Hilton McKinsey 7S Model

By John Dudovskiy
September 1, 2016

Hilton McKinsey 7S framework focuses on seven elements of a business practice that can be aligned to improve effectiveness of the company. According to the framework strategy, structure and systems represent hard elements, whereas shared values, skills, style and staff are soft elements. McKinsey 7S framework stresses the presence of strong links between elements in a way that a change in one element causes changes in others. As it is illustrated in figure below, shared values are positioned at the core of Hilton McKinsey 7S framework, since shared values guide employee behaviour with implications in their performance.

Hilton McKinsey 7S Model

Hilton McKinsey 7S Model

Hard Elements

Strategy.  Hilton business strategy can be classified as service differentiation. The major points of differences of Hilton hotels from the competition include high quality of services and advanced integration of information and communication technologies into various aspects of hotel experience. Moreover, Hilton business strategy attempts to associate the experience of staying in Hilton Hotels with customer perceptions of status, achievement and recognition.

Structure. Hilton organizational structure is hierarchical due to the massive size of the business that comprises 13 brands serving 140 million guests in 2015 alone (Annual Report, 2015). Moreover, Hilton organizational structure can also be described as divisional and the business is divided into three divisions: ownership, management and franchise, timeshare.

Systems. Hilton Worldwide business operations rely on a wide range of systems such as customer reservations system, quality control system, employee recruitment and selection system, employee performance evaluation system and others.  Since his appointment as the President and CEO in 2007, Christopher Nassetta simplified a wide range of Hilton systems to a great extent. For example, an introduction of a single company-wide system for employee performance evaluations simplified relevant processes to a great extent.

Hilton Worldwide Holdings Inc. Report contains a detailed discussion of Hilton McKinsey 7S model. The report also illustrates the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis and on Hilton. Moreover, the report contains analysis of Hilton’s marketing strategy, leadership and organizational structure and discusses the issues of corporate social responsibility.

Hilton Worldwide Report

Category: Strategy