Deliver a strategy-driven and easy to consume, operating model transformation

Target operating model transformation

Operating models

Target operating models are visual representations which show the relationship between a vision and strategy that define an organisation, and its operational support pillars involved in daily BAU such as suppliers, locations, value chains, and management system.

Target operating models can be produced in different formats from one page to 10+ pages, depending on the seniority of the audience and the level of detail captured within.

Fundational operating models created during the lifecycle of a business aim to either restructure the organisation or transform the business, to operate in a certain way.

operating model design levers

  • The value chain or multiple streams of value
  • Organisational management system
  • Functional structure of the business
  • Internal and external supply chains
  • Logistics and locations
Business model, strategy, functional support
If not proactively supported, business functions are likely to operate in isolation

Align business units to an integrated operating model

Ensure organisational departments communicate with efficiency

Design the target operating model transformation

Align the vision and strategy with the design of the organisation, target operating model transformation
Align the vision and strategy with the design of the organisation
Set out key performance indicators and integrate business intelligence, target operating model transformation
Set out key performance indicators and integrate business intelligence
Integrate technology to automate and improve business assurance, target operating model transformation
Integrate technology to automate and improve business assurance
Define transparent and achievable roles and responsibilities, target operating model transformation
Define transparent and achievable roles and responsibilities
Increase transparency through standardised governance and reporting, target operating model transformation
Increase transparency through standardised governance and reporting
Simplify the value chain and create visual operational workflows, target operating model transformation
Simplify the value chain and create visual operational workflows
Create a transparent and comprehensive service and capability catalogue

Set out the corporate catalogue of capabilities within the operating model

Inform training and up-skilling strategic human resource management decisions

Operating model components

The target foundational operating model capture in a compact visual format key components which define the organisation, its purpose and the way it operates.

Brainstorm analysing business operations

Vision, mission and strategy

Articulate the core differentiators ie the vision, mission, strategic principles and service officering, which define the purpose and strategic objective of the organisation

Value delivery chains

Outline the steps required for the business to undertake, to produce value i.e. services or products which meet a clearly defined quality criteria

Design of the organisation

Define the directorates, business units, business functions including locations, that are working together to enable the organisation to produce outputs

Governance processes and procedures

Set out the governance processes and procedures that are defining the interactions and interfaces between functions of your organisation, including RACI and KPIs

Capability catalogue

Provide a top-down level 1-4 capability breakdown model to inform on how each business function and position contributes to business-as-usual operations

RACI model and interface controls

Provide accountability information about interfaces formed in the operating model, including relevant interdepartmental engagements, roles and attributes

Interview stakeholders and CxO to ensure your business uses a fit-for-purpose operating model

Establish a robust operating model

Set out a clear foundational operating model and align your business functions to it

Contact a consultant

Cross functional communication can cause disconnects if departments misjudge their contribution in the overall business operating model.

COOs can mitigate these risks and transform their organisations by providing alternative visual formats of the same target operating model including one page A410 pages semi detailed document, A3 or A2 Visio model, interactive web based as well as workshops to help with its interpretation.

Use the form attached to tell us about the challenges you are facing with implementing your operating model.

Contact professional services, business operations

Create a robust target operating model to improve your business throughput

What concerns you?