Operating Model

While having a strategy is important, it only engages 5% of your organisation. It’s not enough if your people can’t connect it to how it impacts their day to day work.

An Operating Model is required to engage the remaining 95%. It acts as the ‘North Star’ to align leaders, teams and stakeholders to clearly understand how their strategy will affect what they do. They need to make this connection to understand the ‘why’ behind what they do so they know how they can impact the overall customer experience.

To give your strategy the best possible chance of succeeding, it’s also important to closely examine your business using a holistic approach.

Not adopting a holistic approach can result in your business being out of sync with your strategy.

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  • Under utilisation of existing capabilities and assets
  • Not making the best use of data to generate insights and increase value
  • Not being sufficiently close to your customers to identify how their needs impact your priorities
  • Reacting too slowly or lack of agility to respond to opportunities or threats
  • Trying to prioritise everything, dropping the ball and generating change fatigue
  • Making decisions in isolation without considering the overall impact – death by a thousand cuts
  • Budget / investment not linked to strategy with significant amounts of money wasted
  • A culture of no accountability or collaboration along with a disengaged workforce
  • Delivering performance outcomes which don’t match your strategic ambition
  • Provoking change resistance because the change is not embedded appropriately

The approach clearly maps out how all dimensions of an organisation are configured to create value for your customers.

Our BE HOLISTIC integrated capability tool allows you to clearly map out how all dimensions of an organisation are configured to create value for your customers.

It enables you to challenge whether any areas of your organisation are getting in the way of achieving the goals you have set.

Overview of our BE HOLISTIC integrated capability tool

Some of the key questions you may wish to explore include the following:

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How does the new strategy impact your business model? Which customers should you serve? Via which channels? With what value proposition etc….?

Business Model
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What are the key end to end processes that are required to deliver value? How can we make these as efficient and effective as possible? End to End Value Chain
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What people capabilities are required? How can you develop the employee experience? Human Capital
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What are the appropriate boundaries for lines of business? What is the size and shape of the organization and indicative resource levels? What are the roles and responsibilities between each line of business? How are decisions made? Organisation
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Where should you locate your teams? What working environment will you adopt? What tools do your teams require? Location
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What information and data analytics will be deployed? Information and Data Analytics
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Which activities will you not do in-house? What type of relationships should you have with your suppliers? Suppliers
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What supporting technology should you use to deliver value? Technology
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What operating rhythm of executive forums and management processes should you adopt to extract the relevant indicators required for high-quality decision making on strategic priorities, resource allocation and business performance management? Indicators
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What cultural norms and ways of working will you establish for how people collaborate, especially across the boundaries between functions or teams? Culture

Does this mean you need to completely overhaul your business when you change your strategy?

No, not necessarily. When you change your strategy, you may find that certain elements such as the End to End Value Chain or Culture may need to be adjusted. And in some cases, the model may need to be overhauled—Organisation Design and all.

It really depends on what the gaps are between your current model and your strategic ambitions.

However extensive the needed changes may be, all dimensions should be well integrated and internally consistent.

 

How can we help?

Validate the Ambition

We will work with your leadership team to validate the magnitude of value which can be achieved from your strategy compared to your current operating model.

Design and Refine

We will then continue to prototype the new operating model in more detail and using the lessons learnt, make modifications until you are convinced.

Scale

Based on the final design, we will help you get ready to launch the change program by preparing your leaders, defining the implementation roadmap that includes organisational change program execution and developing a set of success measures to track progress.

Our BE HOLISTIC integrated capability tool helps to explore transformation opportunities and prioritises focus areas for change by shaping the capabilities needed to successfully transition to your future state.

It helps by iteratively developing prototypes of the future service delivery models and capabilities which we can then test against customers / stakeholder expectations, talent abilities / mindset and the competitive landscape so that we can clearly define the magnitude of change required to move to a new and more agile operating model.