How the balanced scorecard complements the McKinsey 7‐S model

Purpose This article shows how the McKinsey 7‐S model and the balanced scorecard (BSC) model complement each other. Design/methodology/approach The developer of the widely used BSC model analyzes and compares the features and functions of the two models. Findings One can view the BSC as the contemporary manifestation of the 7‐S model, helping to explain its popularity as a practical and effective tool for aligning all the organizational variables and processes that lead to successful strategy execution. Research limitations/implications There is no data on the financial impact of the BSC mdel on the companies that have adopted it. Practical implications The author suggests that the BSC is not only fully consistent with the 7‐S framework, but can also enhance it in use. Originality/value This the first article to compare the characteristics and functionality of the McKinsey 7‐S model and the BSC model.