A well-designed operating model provides a clear and consistent blueprint for how resources are organized and operated to achieve a company's strategic priorities. Our research indicates that companies with strong operating models are four times more likely to achieve sustained, profitable growth.
Our consulting teams partner with clients to help them design and implement operating models that translate strategy into effective execution, to deliver results.
A well-designed operating model:
· ensures consistency of all elements in the organization system through a clear and coherent blueprint before embarking on detailed organizational design;
· goes beyond structure to specify how the org chart comes to life with clear accountabilities, governance and ways of working;
· explicitly supports the strategy by emphasizing the key capabilities required to win
· ensures that critical decisions are made and executed quickly with a sharp focus on value, and;
· reinforces the positive aspects of a company's culture, heritage and values.
Companies considering operating model redesigns are often prompted by a common set of triggers. These triggers could include: external factors, such as technological disruption or an evolution of the regulatory environment; strategy changes, such as a major acquisition or entry in a new market; or internal challenges such as excess cost and complexity, ineffective decision-making or a founder approaching retirement.
We ensure that our clients have the right operating model to address their specific challenges. Typically, there is often not one right answer, but a small set of feasible options that require objective evaluation in light of each company's unique strategic needs.
Our clients are regularly confronted with the question of whether their organizational structure is best for achieving strategic objectives. Will a product-, channel-, geography-, or customer-focused structure be best for realizing the growth objectives? Which functions should be centralized or center-led, and which performed locally? Should the HR function be organized on the same pattern as Finance? Should you assemble a distributed or country-based structure? To which new structure should you transition to after a recent merger?
Whatever situation our clients face, we partner with them to define the right organizational structure and ensure implementation success. We do so by taking a broad perspective, namely by making sure the organizational structure is aligned with the way processes, resources, and technological support will be set up and can be driven by the people forming the organization.
Besides the organizational structure, we will pay close attention to adequately and clearly allocating roles and responsibilities, and to setting up the appropriate governance and performance management systems.
· Roles and responsibilities. People are the crucial and differentiating element of any organization. They must know what to do and take ownership for it. We help our clients define clear, undisputable roles and align job profiles and qualification needs.
· Governance. Governance is about making sure the right decisions are made by the right people based on the right information. We help our clients identify and focus on the right business priorities to maximize performance and reduce risk. We help them allocate clear accountabilities for decision making and delivery and define the appropriate information sources and decision support tools.
· Performance management. Performance management is about aligning and focusing the full organization towards reaching its strategic goals and creating the needed transparency and incentives to foster the right decisions and actions. We help our clients put in place effective and sustainable performance management systems.
We believe that consistency among organizational structure, roles and responsibilities, governance, and performance management systems are important for creating an aligned and engaged organization.