The McKinsey 7S framework

Understanding the components you need in your business and how they link to each other is an important part of designing a successful business model. The McKinsey 7S framework can be used as a reminder to identify the components you need in your business and how they relate to each other. In essence, this framework is a simplified version of the Business Model Canvas, but with relationships already identified:

Figure 3.6: The relationships of the seven components of a business.

Goals and shared values

The central component of your business are the goals and shared values that your business exists to fulfill. For some organizations, this is simply to make a profit, whereas other organizations such as charities and social enterprises place a higher priority on their social agendas. Understanding ambitions will allow you to accurately define the requirements of each of the other components in order to fulfill them.

Strategy

Possibly more than any other component, strategy...