First things first, let’s define value
By Ana Garcia, Natasha Kaul and Lydia Loh
But before we do… a quick recap
In Lydia Loh’s article The Future of Operating Models, she introduced a definition of an operating model as an: ‘articulation of how parts of an organisation work together to create value and achieve its vision’.
Following that article, we have had readers wanting to engage with what “creating value” means and wanting to apply these concepts to their organisation.
In this second article of three, we focus in on what this means for an organisation and how it could provide a foundation for your organisation’s success in this digital, tech-driven age.
Value and its users
Think of the products, services, experiences or ideas your organisation provides to its users — these end results and their positive contribution are the “value” that your organisation creates. Value may look slightly differently for different user groups:
Ultimately, the result meets user needs in a positive way, which contributes towards a user-centric, sustainable business.
Now that we have ourselves a definition for “value” in the operating model context, let’s consider our framework (which is in essence a series of value chains) and how we consciously apply it to your organisation.
Identify your user’s needs
We can deep dive into some of the areas of your organisation that Lydia mentioned in her last article. We’ve previously gone through the first two columns (the challenges faced by individuals and the value of using an operating model mindset), so now let’s have a look at how this could work in practice:
Summarising the benefits
Operating model design yields the most benefit when all of the parts of the organisation work together well; here are some of the total benefits of viewing value in this way:
*Operational resilience — ‘Resilience by design’ an article by Deloitte Financial Advisory exploring the regulatory push for operational resilience following the Covid-19 pandemic
**Institutional memory — ‘Too good to be forgotten — why institutional memory matters’ an article by BBC explaining the hidden costs of employee attrition for business knowledge
†Black Box thinking — Columnist for The Times and bestselling author of Bounce: The Myth of Talent and the Power of Practice Matthew Syed argues that the key to success is a positive attitude to failure.
In conclusion, structure your organisation in a way that gives your users the value they deserve
Today we focused on the meaning of “creating value” and the part that value chain engineering plays. This is a foundational part of the operating model design discipline:
The operating model design discipline is a beautiful blend of value chain engineering, business architecture, and program management — an understanding of all three is foundational in redesigning your organisation’s operating model.
Join us next time to explore how combining this with business architecture and programme management can help your organisation on its Operating Model Transformation journey.
If you have enjoyed this article and want to explore more of the concepts and themes raised, please feel free to reach out to us.
Ana Garcia — Operating Model designer at Deloitte NSE
Natasha Kaul — Operating Model designer at Deloitte NSE
Lydia Loh — Operating Model designer at Deloitte NSE
