Operating Model Redesign 窶� Why Do It?

Previously we have explored Mainsheet窶冱 10 Critical Success Factors to support redesign or development of your Operating Model. However, the question you might still ask yourself is, 窶弩hy do it?窶�

Your Operating Model is the link between strategy and how you are organised (your organisation design). It is the blueprint for how you will deliver on your strategy, or how your teams will work together to convert your strategy into results. The Operating Model addresses many things such as people, accountabilities, processes, information and technology.

In today窶冱 environment, there are many reasons why an organisation may choose to redesign its Operating Model. Mainsheet has identified 5 reasons why you may consider a redesign.

• Strategic Change 窶� You may have just launched new service/product offerings, entered new markets, commenced a digital strategy that automates your supply chain or customer service activities. Those types of changes impact the way your teams work together, and not redesigning your Operating Model accordingly could lead to problems.
• Recent Acquisitions 窶� There are new management, customers and suppliers in the mix now. There is often a need to redesign or validate your Operating Model and it is a good idea for this to be an early line item in your integration plan. For our recent M&A Performance analysis, click here.
• Cost Pressure 窶� You may want to explore cost efficiencies. Redesigning your Operating Model, with a cost target in mind, should be the first step before looking at organisation design, process, technology and people changes. Have the end state in mind before you start cutting.
• Cultural Shift 窶�Your teams may not be as efficient as possible, policies could be outdated, key personnel may be leaving soon, and employees may not engaged. It could be resulting in higher turnover, lower retention, decreased productivity and less idea generation. Your Operating Model can be used as means to redefine how you work, as well as engaging with staff, driving cultural and behavioural changes. To review our lessons learnt about operational change and transformation, click here.
• External Drivers 窶� beyond internal drivers, external drivers like a pandemic, war and social change will inevitably drive internal change. Including 窶脇xternal drivers and their impact窶� on your management agenda is important to anticipating future business shocks through successful Operating Model design and implementation. For more information see our Scenario Planning paper.

In today窶冱 environment there is no better time than now to redesign your operating model.

Contact Shane McEwen to discuss how Mainsheet can support your Operating Model review and redesign.