Operating Model Redesign

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An Operating Model is a blueprint for how value is created and delivered to customers through an enterprise. The adage “people, process, and tools” provides some context for an operating model; however, it is more complex when you factor in human nature. There are six components to an Operating Model, all of which must be designed and integrated properly to ensure an organization executes effectively in support of its objectives.

How We Do It

Process Re-engineering. First, we will take a bird’s eye view of the organization by first understanding the critical business processes associated with the enterprise. Regardless of who is responsible for each step in a process, we must first understand if the process is robust.

Role & Responsibility Assessment. Next, we will map all the individual responsibilities in executing the business process from a Responsible, Accountable, Consulted, and Informed (RACI) perspective. Here, we are explicitly looking at who is doing what and whether they're the right person for the roles based on functional alignment, skills match, incentives and so on.

Performance Management Overhaul – Human behavior is a function of its consequences; thus, we must clearly define how performance is measured including the incentives (or consequences) for achieving success (or failure). A strong performance management plan integrates business process with people because the incentives are clear. Beyond measures and incentives, we help organizations detail out a process for managing performance including data collection, reporting, review cadence, and management training.

Systems Usage, Maturity, & Roadmap. Many organizations alter business processes to utilize enterprise systems that have been commissioned (with or without good reason). Many organizations also rely too heavily on Excel for the flexibility it offers many cognitive tasks such as planning. It is important to understand the systems that are currently in use including future systems the enterprise is seeking to onboard or evaluate. We can help engage in a variety of ways with the organization’s technology team and its providers to ensure systems are configured to support the ideal process (and not the other way around).

Reorganization. Upon developing a detailed understanding of your existing operating model, the final step is to contemplate options for reorganizing to align performance with incentives, responsibilities with skills, and accountabilities with charters. Furthermore, there will be a roadmap of initiatives to re-engineer business processes, streamline systems use, and implement other necessary improvements following the change.

Change Management. Change is hard. Managing it is harder. We must make a compelling case for change (the "why") and be prepared to help those who will be most affected. Many organizations fail at this step because they under-communicate and fail to anticipate their teams' reactions. It is important to note that change management starts on Day 1 and throughout the entire process of evaluating the operating model.

Want to learn more? Contact us to set up a discovery call.

• Operation Transformation
• Supply Chain Restructuring
• M&A Value Creation
• Cost Takeout
• Business Intelligence