The only constant is change. Businesses are constantly evolving and refining their competitive edge to stay ahead of their competition. When costs creep, revenue generation slows, headcount becomes too high, productivity & engagement declines… the ‘Operating Model’ is firmly placed under the spotlight.

From experience, this is a doube edged sword: the issues identified are not always a result of an incorrect operating model, and can often be the result of the workforce not operating within the parameters of the defined operating model – but, this is another post for another time.

Below is an simplified summary, or high-level view, of how to initiate and go ahead with implementing a new op model.

Whilst this is looking from an HR perspective, generally speaking, the principles and frameworks for running an implementation program are predominantly the same across all professions and disciplines.

Preparation

• Define Vision and Objectives
• Establish clear goals and objectives aligned with the organization’s strategic vision.
• Identify key performance indicators (KPIs) to measure success.
• Conduct a Current State Analysis
• Assess the current operating model and organizational structure.
• Identify strengths, weaknesses, opportunities, and threats (SWOT analysis).
• Engage Stakeholders
• Identify and involve key stakeholders from across the organization.
• Conduct workshops and interviews to gather input and build consensus.

Takeaway: A top down approach is key to success. Ensuring the new TOM is aligned to the wider business objectives is a fundamental cosideration and should be the basis of any decision to ‘go’ or ‘no-go’.

Design

• Define Future State
• Develop a detailed target operating model (TOM) encompassing processes, governance, technology, and culture.
• Ensure alignment with strategic objectives and market demands.
• Organizational Structure
• Design an organizational structure that supports the new TOM.
• Define roles, responsibilities, and reporting lines.
• Process Mapping
• Map out key processes and workflows to ensure efficiency and effectiveness.
• Identify areas for automation and digitization.
• Technology and Tools
• Assess and select technology solutions that support the new operating model.
• Plan for integration and data management requirements.

Takeaway: A clearly defined ‘future state’ is critical to understanding where the business wants to get to. Without alignment here, undertaking a business case review, or updating the business case, would be advisable.

Planning

• Develop a Roadmap & Critical Path
• Create a detailed implementation plan with timelines, milestones, and deliverables.
• Prioritize initiatives based on impact and feasibility.
• Resource Allocation
• Identify and allocate necessary resources, including budget, personnel, and technology.
• Plan for training and development to support new skills and capabilities.
• Change Management Strategy
• Develop a comprehensive change management plan to address potential resistance.
• Communicate the vision and benefits of the new TOM to all employees.

Takeaway: Fail to plan, plan to fail. Depending on the scale, TOM implementations can be simple or complex. Ensuring adequate resource, communication strategy, and change management appraoches are in place is key.

Implementation

• Pilot Programs
• Implement pilot programs to test and refine components of the new operating model.
• Gather feedback and make necessary adjustments.
• Full-Scale Rollout
• Execute the implementation plan across the organization.
• Monitor progress and address any issues promptly.
• Continuous Communication
• Maintain ongoing communication with all stakeholders.
• Provide regular updates on progress and celebrate milestones.

Takeaway: Implementations, and change programs in general, are iterative and continual processes. As unknowns become known, the direction of travel can shift. The initial goal vs the actual end goal will likely differ.

Evaluation and Optimization

• Monitor Performance
• Continuously monitor KPIs to assess the effectiveness of the new TOM.
• Conduct regular reviews and performance assessments.
• Feedback Loop
• Establish mechanisms for continuous feedback from employees and stakeholders.
• Use feedback to make ongoing improvements.
• Adapt and Evolve
• Remain flexible and adaptable to changes in the market and business environment.
• Update the operating model as needed to stay aligned with organizational goals.
• Celebrate Success
• Recognize and celebrate the achievements and contributions of teams and individuals.
• Reinforce the positive impact of the new operating model on the organization.

Takeaway: KPI’s / OKR’s as a measurement for success should have already been identified. Clearly defined measures for success should be evaluated regularly ensuring the correct benefits are being realised by the business, financial and non-financial performance management, and of course celebrating the achievements of delivering against key milestones.