The article is also noteworthy for setting forth McKinsey’s original definition of strategy as “an integrated set of actions designed to create a sustainable advantage over competitors” and includes a description of the wellknown “ninebox” matrix that formed the basis of McKinsey’s approach to business portfolio analysis.
Practical Example. The McKinsey 7S model can be applied in circumstances where changes are being brought into the organization that may affect one or more of the shared values. Suppose a company is planning to undertake a merger. It will affect how the company is organized since new staff will be coming in.
McKinsey’s standard portfolio analysis tool is the ninebox matrix (Exhibit 2), in which each business unit is plotted along two dimensions: the attractiveness of the relevant industry and the unit’s competitive strength within that industry.