McKinsey 7S questions
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Question
Observations
Shared values
1
Are the value statements and codes of conduct clear and
meaningful?
Are values regularly reviewed, evaluated and approved at Board
level?
Do senior managers proactively (formally and informally)
communicate the organisations values and codes of conduct?
Does senior management behaviour exemplify the values and codes
of conduct do they 'walk the talk?'
Do employees understand the values and codes of conduct?
Are the values and code of conduct reinforced? the stories,
symbols, rituals etc. that relay success.
Are the values built into strategy documents, objectives and decision
making?
Do employees acknowledge, accept and apply the values and codes
of conduct?
Are there barriers (real or perceived) to the implementation of values
and the code of conduct?
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Question
Observations
Style
1
Are the board and audit committee involved sufficiently in evaluating
the effectiveness of the 'tone at the top?'
Do the board and managers show a desire to address culture issues
in an open and transparent way?
Do the board receive sufficient and timely information about sensitive
issues?
Are the board and audit committee members independent of
management and willing to ask the tough questions?
Do informal and formal processes exist for employees to be able to
raise issues about behaviour i.e. grievance, whistleblowing etc.?
Where this has arisen are the issues taken seriously?
Do employees feel that senior managers listen to their ideas and
suggestions?
Are exceptions to policy allowed under clearly defined conditions?
When they occur are they documented, explained, and reviewed?
Compliance with the law and regulations is taken seriously?
10
Are mistakes treated as an opportunity for improvement or used to
apportion blame?
11
Do managers foster teamwork and an atmosphere of mutual trust?
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Question
Observations
Skills
1
Are the skills, experience and knowledge of people matched to the
competencies required for the job?
Are training programmes visible and accessible to all?
Is training aligned to shared values e.g. ethical business, customer
treatment?
Is training aligned with the skills and knowledge necessary for the
job?
Is training an expression that people in the organisation are valued?
Are there multiple training options to fit circumstances and needs?
Are training programmes evaluated to ensure they are effective?
Are there arrangements in place to ensure sharing of skills and
knowledge?
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Question
Observations
Staff
1
Do employees have job descriptions that align with the values and
codes of conduct?
How does the recruitment process emphasis the values/code of
conduct and seek to align these expectations with that of
candidates?
Do employees understand their job descriptions?
Do managers and employees regard performance appraisals as
frank with constructive discussion of performance issues versus
'going through the motions'?
Do performance objectives include how employees are
demonstrating the values and codes of conduct in their day to day
working?
Do employees feel performance targets are SMART? (specific,
measurable, achievable, realistic, time-related)
Do employees feel that they have an equal chance of promotion
based upon merit?
Do bonus packages and other performance measures reward the
right behaviour?
Are employees unduly pressured to meet targets? Whatever it
takes.
10
Is the staff appraisal process applied consistent and fairly?
11
Are there mechanisms in place to capture and evaluate employee
ideas on improvements to ways of working?
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Question
Observations
Strategy
1
Is strategy and supporting objectives of business units clearly set out
and aligned to those of the organisation?
Strategy and objectives of business units are periodically reassessed and re-aligned?
Do employees feel that strategic objectives apply to them?
ownership?
Do employees have job descriptions and performance objectives
that align with strategy and objectives?
Do managers and employees understand the risks they face?
Are employees encouraged to understand risks and be involved in
the risk management process?
Is the organisations risk appetite understood and applied to
objectives and decisions by managers and employees?
Are plans and actions put in place when there is divergence of actual
performance from strategic objectives?
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Question
Observations
Structure
1
Does the structure of the business unit facilitate the flow of
information upwards, downwards, and across organisational lines?
Are reporting relationships appropriate? (2nd and 3rd lines of
defence have sufficient independence of the activities they are
providing assurance upon)
Are accountabilities clearly defined?
Are responsibilities and accountabilities clearly communicated and
understood?
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Question
Observations
Systems
1
Are the values built into and impact decision making processes?
Is there a common and clearly understood set of processes set that
underpin core business activities?
Do employees consider controls and regulations within system are
necessary and apply to them?
Security of personal data within systems is taken seriously?
Does the organisation take customer service complaints seriously?
Are customers complaints communicated to the appropriate levels of
management and responded to appropriately in an open and
effective way?
Does the organisation take customer complaints seriously?
Is the appointment of suppliers and contractors transparent and
equitable?
Is the organisation committed to working ethically with business
partners?
10
Does the organisation have adequate procedures to prevent bribery
and corruption?
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