The journey is on
Getting your operating model transformation underway
A quick recap…
In her first article, Lydia introduced us to operating model design and frameworks. Then, in our second of three articles, we explored what “creating value” means in an operating model design context, design discipline and the applications for your organisation (particularly in this digital, tech-driven age).
In this third article, we step through what it could take to move your organisation towards creating more value, and away from “non-value add stuff”; so let’s get right to it!
Together these form part of your Operating Model Transformation journey.
2. Unlock value
For example, we have engaged with your COO to find opportunities to improve user experience in a cost efficient manner. We start by interviewing users, colleagues and leadership to gain an understanding of the way things are done today and pain points experienced (if any).
We run through the critical components* of an operating model framework, these make up the user experience in the organisation’s context (people, technology for example, plus value chains), looking for opportunities to redesign the operating model in a way that delivers more of the value you want (described in the “Defining Value” stage).
This facilitates a wider conversation about where the organisation could be leaking value, to help realign these components and value chains to achieve the organisation’s goals — in this case an enhanced user experience.
*Components related to operating models are in bold throughout the document to help the reader skim the document — this forms a part of the business architecture discipline mentioned in our previous article.
3. Create value
On a small-scale, an operating model framework serves as a tool to zero-in on and unlock the most easy-to-access value — who doesn’t love a quick win?
For our clients, we tend to see that the most value is unlocked through large-scale sustainable transformation. This exercise takes a deeper look into the existing operating model; fundamentally, breaking down the different components of the organisation and then building them back up in a new, innovative way.
Let’s say you and your management team want to take the opportunity to build an operation that is aligned to your strategic goals –
As the COO, you’ll immediately recognise that your goals will be anchored around the vision and ambition set by your CEO. You’ll also have done a stock check on the budget and resources you have to deliver this, and recognise that they do not match.
Your goal then is to maximise the impact of your budget and resources — economically, safely, and smartly.
Using the framework, you can pinpoint the critical components of what your organisation uses to deliver value (or where it is losing it). Conversations need to happen with various parts of the organisation to understand these issues better, remove blockers and how to bring delivery up-to-pace with the rest of the organisation.
This collaborative assessment could identify issues such as:
- Organisational considerations including reallocation of resources, change of roles and responsibilities, change of staff incentives to align to business drivers
- Location strategy, for example offshoring and shared services
- Digitising mundane tasks, leveraging new technologies or tidying up the data you hold on your upcoming and legacy products so to provide meaningful insights.
This is the beginning of an operating model transformation journey that is both complex but necessary (see the benefits in our previous article) in our fast-paced markets.
We find that clients that are on the front foot to transform their operating models to meet market, customer, internal and regulatory demands are often trailblazers in their respective fields.
Small-scale and large-scale transformations both have their place; getting the right balance can be more art than science to unlock or enhance value for your organisation.
In conclusion, accelerate your transformation to give your customers and stakeholders the value they deserve
We’ve outlined how to define, unlock and create value through operating model design.
There isn’t a one-size-fits-all approach, but with the right discipline and anchoring against a proven operating model framework, it should prove useful as your guiding north star.
If you or your organisation would like professional advice or support on large-scale transformation, feel free to reach out to us, our specialist teams would be happy to help.
Ana Garcia — Operating Model designer at Deloitte NSE
Natasha Kaul — Operating Model designer at Deloitte NSE
Lydia Loh — Operating Model designer at Deloitte NSE
