Why to consider to change your operating model?
Well,
the vast majority of today's organizations still
follow principles that date back to the 1960s. And that's
even though much have really occurred since then.
This really requires organizations
to respond quickly to a new context,
a new normal that is increasingly fragile,
while stakeholders require focus on sustainability.
These megatrends strive,
coming from the new model,
and the new model. companies to reconsider their strategy
and to redesign their operating model.
At Implement,
we often apply the playing to win strategy framework by Roger
Martin when transforming business and operations into success.
We connect theoretically business model
with the more practical operating model,
answering both why and how to reach the winning aspiration.
The operating model answers the questions about the how.
What capabilities are needed to succeed
with our aspirations in the future?
What management systems are required?
For example, how do we need to be organized?
How to make cross-function decisions?
And how to evaluate performance in the future?
By applying this approach,
we bridge the organization's strategy to how it should
operate on a day-to-day basis to achieve its
strategic intention and create value for its customers.
A future operating model with a holistic approach,
covering both the organization and the business context.
Implement's operating model framework aims to cover the full spectrum
of complexity needed to lay out the blueprint for how to operate.
The framework consists of business context and dimensions.
The business context captures the organization's external
surroundings and frames the design of the operating model.
They help bring together the organization's leadership team
around a set of key objectives for designing or adjusting
the operating model to ensure that it is fit for the purpose.
Dimensions are the essence of the operating
model and they must be designed to fit together.
In theory,
the design phase is fairly simple and
consists of six plus one fundamental.
First, we need to start with ambition.
Why are we doing this?
Why are we doing this?
What to achieve?
And what is the impact case?
We will define relevant design principles to have that conversation.
Second,
we need to understand our baseline before embarking on this journey.
What needs to be improved and what will it take to transform?
Thirdly,
we need to align the key capabilities needed
that we as an organization is to develop,
nurture and maintain.
Fourthly,
we need to explore the options space when we are
aiming for an evaluation of different solutions.
along this dimension.
After selecting a solution.
After selecting a solution,
then we would design the target model described with a
sufficient level of details to be able to assess feasibility,
business outcome and align leadership around it.
The final step is to work out a transformation roadmap,
typically with a number of substreams and projects
that we would help the customer execute on.
The seven fundamental is the most important.
Operating model transformations are multifaceted and require a true
cultural change in the organizational change in the organization.
Proper change management,
already from the start,
is key for a successful transformation.
In practice,
it is slightly more complex since every
operating model transformation is different.
A journey may look like the upper curve,
quickly reaching familiar terrain and a level of
clarity that allows for a waterfallish project.
This can be done within three to six months.
However,
a journey may also look like the lower curve,
quite often we start deep in the unfamiliar area
and have a longer way to go until a final decision.
The main reason for this is that we sometimes need
more time to explore and evaluate options by
conducting real-life tests to verify assumptions.
The detail of each operating model design phase varies.
Just like the fact that operating models need to be tailored,
the operating model design needs to be adopted
to fit each and every need that may arise.
It requires a learning mindset.
There are three things you need to
remember when designing an operating model.
All dimensions have to be in scope.
Second, you cannot introduce textbook solution.
It is not an option.
An operating model needs to be designed
for a specific business situation.
And thirdly, you need to remember culture.
Culture and mindset is at the core of
every operating model transformation.
If you're curious to know more,
please just reach
out.
We are really happy to engage in a
conversation on how to get you started.