Operating Model

In today's market operating models are more valuable than ever. Sia Partners UK can help our clients implement a well-designed operating model which will provide the internal clarity required to create and sustain a competitive advantage.

What is an operating model?

An operating model is a description of how an organisation organises and utilises its resources to deliver value to customers.  This can encompass many different elements: people, technology, process, data, channels, etc. The true value of an operating model does not come in documenting each of these elements in isolation, but in considering how they interact and relate to each other. Collectively these elements create your organisation’s capabilities and ultimately they help to achieve your vision, ambitions, and objectives.

Another way of conceiving an operating model is this. If you consider a strategy to be the direction and desire of a business then the operating model should be the capabilities that the organisation needs to achieve its strategy.

How does it help?

Operating models can be designed for organisations of all sizes or even divisions, functions, or teams within an organisation. When well designed they provide transparency and clarity of both structure and ways of working. You might benefit from an operating model review and refresh if you are currently facing any of the following challenges:

  • Your business is not meeting its strategic objectives
  • You know that you must undertake a restructuring of your organisation, but are unsure how it will impact other aspects of your business, such as key processes
  • Your interactions with external stakeholders are inefficient and costly because they do not understand how your business is set up and operates
  • Your decision making authorities are unclear or you find that there is duplication of some activities across the organisation which are inefficient and costly, or
  • You are operating in a highly regulated market where non-compliance can be costly

Sia Partners UK can help you review and update your operating model, to ensure it is effective and fit for purpose.

What is the method?

Our operating model design toolkit is based on the best of many models built for clients across multiple sectors. The toolkit is made up of two primary parts:

  • The ‘Operating Model Design Toolkit’ which is populated with activities, tools, templates, and tips that are adaptable to your specific requirements, and
  • A proprietary ‘Rapid Assessment Tool’ that complements the toolkit by enabling you to assess existing operations and ways of working to quickly determine opportunities for improvement. This assessment will help identify whether a complete re-design of the existing operating model is required, or whether some modifications will be sufficient

What is the impact of doing it right?

GE argue that they have two and a half processes which essentially are order to cash, trouble to repair, and innovation. This works for them. A well-articulated operating model will work for you by:

  • Clearly aligning every significant element of business activity to your strategy
  • Establishing a common understanding of how your organisation operates now and how it is planned to operate in the future
  • Enabling clear communication both within and across organisational boundaries
  • Enabling you to understand the implications of any future changes, and
  • Providing a baseline against which you can measure business cases, roadmaps, and programme deliverables

 

 

 

 

My experience with Sia Partners UK over the last 10 months has been extremely positive, and in particular their agility, common sense and a very focused approach to getting the job done has delivered excellent business outcomes efficiently and on time.

Business Unit Leader

What next?

We have helped many clients become and remain competitive by re-thinking how their business operations are managed, how their organisations are structured, and how their people are developed. If you would like to know more about how we can help you, or to access our operating model toolkit, please call us on +44 20 7933 9333.

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