Operating Model

Introduction

Terms like “digital transformation”, “new ways of working”, “change your operating model”, “adapt” and “new normal” abound in the business, IT, and management press. However, little is known about what this entails in practice or how to address these issues. Much appears to be left to expensive consulting firms staffed by MBAs, who appear to sweep in, change everything, and then walk away, leaving you with a large hole in your pocket.

The key to addressing the need for change is to have the right operating model — whether that is starting with the right one for a start-up or adapting or recasting your existing one for an established organization.

What is an operating model?

Our view is that the operating model determines how the business delivers the value its strategy describes by using people, processes, and technology. It turns the ‘what’ into the ‘how.’ Thus, it is also a key prerequisite for a business to have a well-structured, considered, and actionable strategy. “

Is it important to understand the operating model?

Understanding how the business operates and the path to generating value is critical to the success of your organization. This is true at all levels of the organization.

1. Understanding how a business operates and provides value can be applied at various organizational levels.
2. Understanding and optimizing the organization’s operating model can benefit every part of the organization, down to a certain level. It means that IT has an operating model, IT Development has an operating model, IT Service Delivery has an operating model, and there are probably a few others in the IT world as well.

Understanding the operating model can be traced back to 1962. Alfred Chandler, a Harvard Business School business historian, then wrote the seminal book “Strategy and Structure:

1. Chapters in the History of the Industrial Enterprise.” He demonstrated how a managerial organization grows in response to its business strategy.

It indicates that a portion of the organization’s strategy and mission is also unclear and/or poorly communicated. Repair that, begin organizing around your strategy, define and expand your operating model, and your strategy will be realized.

Once your strategy is in place, it will lead and guide your operating model! Your operating model is now operational, aligned with the strategy, and delivering on its promises. But what are the advantages? It will cover:

An operating model converts all these topics into models, maps, and charts that help communicate how the organisation works:

• A map of the value delivery chains shows the organisation’s involvement in each step
• An organisation chart in the form of an organisation model.
• A table laying out the types of people, incentives, accountabilities, and culture.
• A table showing the cut-across processes and information needs and who “owns” these processes.
• A grid of the major decisions and each senior manager’s role in the structure for each decision.
• A matrix explaining what is in-house or outsourced, and which external suppliers are business partners.
• A map of the locations explaining the roles and assets at each.
• A timetable showing the rhythm of management meetings used to run the organisation.

How may we assist you?

1. Developing an operating model that unleashes your people’s full potential, allowing them to effectively execute your strategy and embody your purpose.
2. Adaptable and innovative in the face of change, remain simple and efficient as you grow, and help you make better decisions.
3. Using new data and technology to build differentiating capabilities that will power your growth.
4. Fostering the behavioural change that is so critical to maintaining the changes you make.

There are basically two types of services

1. You can buy a template giving you an overview of what a start-up company’s operations should look like, which is adaptable to your line of business (Standalone Company 299£; Group Company 499£).

2. We can do the fine-tuning (adapt the full operating model to your needs) and work out the standard frame of the 3 Ps (Processes, Procedures & Policies). Here, there are the two price settings: Standalone Company 299£ – Group Company 499£.

We can easily define the transactional model (ERP) and look for the right vendor, implementer, and project manager.

The complete setup of the system, including the latest best practices for sales, manufacturing, procurement, supply chain and finance, can be easily designed to contain the system’s essentials (core), allowing you to run your business smoothly. We mainly focus on change management, which is another important aspect of making the implementation successfully.