Deliver a strategy-driven and easy to consume, 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
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
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.
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 A4, 10 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.
