Operating Model Redesign

A new operating model for a new world

Sometimes it's clear when an operating model needs an overhaul. For instance, a new strategy or business model may require operational changes to activate it

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Operating model redesign is the process of rethinking and reshaping how an organization functions to align its strategy with its execution, which involves changing how it creates value, makes decisions, and uses its resources. It is driven by the need to improve efficiency, enable growth, and adapt to market changes through strategic adjustments to its structure, processes, governance, technology, and talent.

Why redesign an operating model?

Adapt to change: To stay competitive in a dynamic market, especially with new channels (like digital), shifting value propositions, or mergers and acquisitions.

Drive growth: To better execute a business strategy and to reposition the company to seize future opportunities.

Improve efficiency: To optimize current operations, lower costs, and increase utilization of resources.

Increase agility: To become more adaptable to market disruptions and to get new products to market faster.

Embrace new technology: To effectively integrate innovations like AI into the business. 

 

Key components of an operating model

Mission and Purpose: The core reason for the company’s existence.

Governance: How decisions are made and who owns them.

Processes: The workflows that create and deliver value.

Technology: The systems and tools that support operations.

People: The skills, talent, and capabilities required.

Structure: The organizational design and how people are organized.

Culture: The values and mindsets that shape behavior. 

 

How to approach redesign

Strategic alignment: Ensure the redesigned model directly supports the business strategy and is aligned with the company’s goals.

Structured approach: Use a systematic process that includes discovery, analysis, design, and implementation.

Holistic view: Consider all interconnected elements, not just structure, such as governance, processes, technology, and talent.

Data-driven decisions: Use data and analytics to inform changes and to measure success.

Manage risk: Proactively identify and manage risks associated with the transition.

Focus on flexibility and stability: The new model should be adaptable to change while still delivering consistent value. 

 
 
 
 
 
 
 
 
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