Companies generally spend a lot of time thinking about how they can use their current operating model (COM) to reach new targets. Yet, we rarely think about how we can change the way they operate itself. That’s no surprise because it takes a lot of effort to rethink your way of working, certainly in large organisations. As long as everything runs smoothly and successfully, there’s no hurry to start the lengthy process of thinking about how the world is changing. But then, on top of the financial crisis, the ever-evolving regulatory landscape and increasing macro and microeconomic pressures, comes along COVID-19. And within weeks, some companies are forced to not only rethink their operating model but even change their entire business model. Many of our clients are prepared for this but as we look into the world of business, we see countless companies struggling. The big question is: how do you avoid being out of touch with your corporate strategy or vision and keep your operating model up to date to tackle a crisis more efficiently?
The difference between jelly and glue
Projective is a frontrunner on the (new) normal way of working thanks to implementing our Target Operating Model (TOM). This model combines new (and existing) functions, organisational structures, underlying key processes, and applications with the aid of market insights and a detailed As-Is analysis of the existing operating model.
We can already hear you ask the question; what’s the difference with the Current Operating Model (COM)?
A COM represents how your organisation is configured today, whereas the Target Operating Model shows a future state that your organisation should be moving towards, to best realise its strategy. With TOM you constantly evolve your operating model based on your company strategy, instead of patchworking on the COM and losing sight of your evolving strategic objectives. TOM is like putting moving pieces into a jelly liquid. It can change and adapt in function of the pieces you put in, or take out, instead of being glued to each other.
It’s all about vision and strategy
The primary purpose of a Target Operating Model is to enable the effective application of a corporate strategy or vision, to a business. It is a high-level representation of how a company can be best organised to more efficiently and effectively, deliver and execute, on that same organisation’s strategy. We expect a TOM to cover the required processes, organisation, technology, and information, to fulfil strategic objectives. Furthermore, key changes (incl. scenarios and recommendations) must be outlined in sufficient detail with an underlying business case, to understand the impact and levels of the necessary investment, to deliver the new strategy.
Creating the perfect TOM with cross-functional working and communication
TOM is not only about targets, but also about people. Developing a winning TOM will often challenge functional boundaries, requiring a level of open-mindedness and collaboration right across the business. Every division, including HR, marketing, finance, and IT will be involved and that requires good communication. It is critical to engage and communicate the necessary shifts to achieve the desired strategic outcomes with key stakeholders.
Measuring is knowledge
If you put in the effort to work with a TOM, you need a guarantee that it pays off. This is where TOM really shows its real potential. Considering the key drivers of business success, alongside your operating model design, will allow you to build-in the information and measures. You will use this, via your decision-making and leadership arrangements, to steer your business towards its strategic and operational goals. In today’s ever-changing technological environment, it’s always a good idea to use external skills and resources to validate whether you’re on the right track. In the end, you will end up with greater long-term cost-effectiveness and a reduced risk from a more controlled operating environment. Furthermore, your time to market will be shorter due to greater agility in launching new businesses and products.
Your personal Siri in times of crisis
Preparation is everything in times of crisis. You don’t start solving issues in the midst of a storm, you’re simply too late. That’s why we work alongside our clients to transform their current operating models and design and implement a business-relevant TOM that is suited to various scenarios, always ensuring that the key components of the business are aligned with the strategy. Our extensive experience can help avoid the common pitfalls. That way your company can react accordingly when a real crisis like COVID-19 hits your business.
With TOM you have a real friend on your side. At the same time, your team will benefit strongly from the extra effort you put in your communication between departments and colleagues. Consider TOM as your personal operating Siri. Always ready with an answer for every change in your business strategy.
Want to discuss this further? Connect and let’s have a chat.