Organisational culture - part 2

In this lesson

1. 0:00 Introduction to McKinsey 7S Model
2. 1:04 Structure, Strategy, and Systems Explained
3. 2:01 Skills, Staff, and Style Defined
4. 2:53 Shared Values as Organisational Culture
5. 3:41 Hard Aspects vs Soft Aspects Framework
6. 5:02 Advantages of Strong Organisational Culture
7. 7:55 Disadvantages of Strong Organisational Culture

About this lesson

The model identifies seven interconnected elements (structure, strategy, systems, skills, staff, style, and shared values) that work together to define culture, distinguishing between hard aspects (strategy, structure, systems) and soft aspects (style, staff, skills, shared values). You'll explore how these elements interact to create shared values, which McKinsey considers the foundation of organisational culture itself. The video then examines the advantages and disadvantages of strong organisational cultures. Strong cultures can foster belonging, reduce conflict, regulate behaviour, and support strategic resilience—but they also risk inflexibility, tunnel vision, and difficulty adapting to external change. You'll learn why a strong culture isn't always beneficial: it can entrench inappropriate values, create conflict during mergers and acquisitions, and become misaligned with the broader environment. This balanced perspective is crucial for exam success, as examiners expect you to critically evaluate culture rather than assume stronger is always better. This content is directly relevant to E3 Strategic Management and builds on foundational frameworks like Johnson's cultural web. Understanding both the mechanics of the 7S model and its practical limitations will strengthen your ability to analyse organisational culture in case studies and strategic scenarios.

Duration: 11m