Operating Model Design


How adaptable is your operating model?

Disruptive technologies and empowered consumers are accelerating market change. During these periods of transition, your operating model is your linchpin.  Organisations must pursue innovative and agile operating models to adapt, compete and grow.

Over time, even successful companies with talented people, sound processes and good tools can become burdened by outdated systems, bloated overhead, and processes which inhibit rapid decision making and accountability. We take a bottom-up approach to creating a roadmap to a lean, agile organisation poised for growth.

Operating model design – the link between strategy and delivery

A business operating model is the critical link between your business strategy and your service proposition, and articulates how your business is organised to deliver products and services aligned to your strategic objectives.

While often representing your organisation ‘on a page’, it needs to be a logical depiction of your organisation’s business capabilities which demonstrate how you create value, deliver outcomes and produce results. And that summary view needs to be supported by a thorough consideration of the different business capabilities that will come together to enable that vision.

It creates the core stability to deliver effectiveness and efficiency, as well as optimising the interactions between your customer, your people and technology to maximise the customer experience.

Having the right operating model means you can successfully implement your strategy, respond to disruptive trends, efficiently and effectively allocate resources and capabilities to meet your customer needs and drive your growth agenda. A Target Operating Model (TOM) often forms the bridge between a strategic direction and a roadmap of change initiatives to establish new business activities, services, behaviours and outcomes.

We develop innovative designs for operating models. We make sure all the features work together as a whole, and that the model works in practice, not just on paper.

We help businesses gain competitive advantage, respond to disruptive market changes and serve customers better. We do that by redesigning the way they work to effectively deliver strategies which include:

Implementing and embedding a new strategy

Entering a new market or geography

Taking out cost and simplifying a business

Introducing new commercial models

Managing an asset or business unit sale

Incorporating an acquisition or merger

Implementing a new core IT system

Some of the common questions we hear from our clients are:

How can we set ourselves up to effectively deliver on the company’s strategy and value proposition?

How can we achieve synergies from centralisation or merging of functions?

How can we operate beyond silos, fostering collaboration between functions to improve employee experience?

We help our clients solve some of their toughest strategic problems using our structured and robust approach to strategy development while also having the practical delivery experience to know how to successfully implement the associated changes to ways of working.

The result is a well thought-through operating model, aligned to your business strategy which you can be confident will be successful in practice.

How we can help

Designing a human-centric target operating model

We help our clients design and implement an operating model which is fit-for-purpose and supports their strategy holistically, leveraging the company's people and culture as well as all the formal and informal elements which affect success.

The objective is an operating model which is adaptable and innovative in the face of change, and will remain simple and efficient even as you grow to support effective decision-making. The key to this is ensuring that you have the right insights, supported by solid evidence and data – and stakeholder support and engagement are essential.

We establish rigorous and tested design principles to guide the design of your operating model and define the outcomes which the operating model should achieve. This acts as the basis for any design decisions to ensure your operating model delivers on its aims, meaning that when all those involved have been through the process they are able to endorse the new model.

When we consider your operating model, we consider three essential components:

1. The high-level operating model strategy

2. The design of the target future model

3. A practical and achievable implementation plan

Starting with a comprehensive, bottom-up assessment, we identify a portfolio of high impact opportunities to improve performance across the enterprise, ranging from quick wins to the more fundamental decisions which deliver transformational results.

What we can do for you:

Objective setting: establishing how the organisation will need to change to meet specific goals, such as winning more business, enhancing your customer experience, or cutting operating costs.

Requirements analysis: understanding corporate strategy and customer needs to identify the business capabilities required to meet the strategic goals.

Gap analysis: evaluation of whether the existing operating model is still ‘fit for purpose’ in the light of changes in your corporate strategy or your operating environment.

Alignment: designing the critical links between the operating model components to make sure the organisation’s resources – your people, processes, information, systems and infrastructure - are all properly aligned with the organisation’s goals.

Business process analysis: starting with the customer, understanding each process step and how it adds value, identifying where latency occurs, the extent of rework, root cause analysis and identifying key process changes which will improve business performance.

Business process framework: creating a process framework which ensures that all key processes are in place, differentiating processes have been identified and prioritised, ownership of processes has been established, and process metrics have been defined, measured and monitored.

Policies and rules: embedding policies and rules in the design and execution of processes, ensuring appropriate levels of control are in place across an enterprise.

If you would like to learn more about our experience, please contact our Operations practice team.

Case studies

We have wide-ranging experience of creating and updating operating models across sectors and geographies, including:

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Henderton acts as independent, trusted advisors to innovative companies throughout their growth lifecycle.

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