We share 6 tips for designing a target operating model that works for your organisation, including pointers to ensure there’s a realistic plan for transformation.
For a company to realise its growth ambitions, a framework is needed that optimises the business and improves cost efficiencies to deliver the business strategy. Taking a top-down approach, we can build an operating model that determines business outcomes and provides a structure on how to achieve them while also evaluating the business from the bottom up and identifying specific changes for a solid operational base and business cost reductions
To develop a business and its activity for delivering successful growth, we employ a three-step process.
Define the strategy
Our highly experienced consultants work closely with our clients to create a strategy that details what the business is aiming for and why. Using deep data-driven insights, we establish growth and financial outcomes for the business, and the structuring and investment required to support these objectives.
Develop a robust business model
When developing a business model, we take an insight-led approach to identify the key markets to focus on and how these impact the overall ecosystem and customer lifecycle. Our strategic experts then create value propositions that build the brand and ensure differentiation to gain a competitive advantage. We identify and expand the channels that can be used to reach the target audience and establish competitive positioning and targeting to attract, convert and retain customers.
Deploy the target operating model
Working from the bottom up, our target operating model also seeks to strengthen our clients’ operational base, where strengths and capabilities are configured to ensure successful, efficient delivery both locally and globally.
With our strategic expertise, we focus on five key areas to establish a solid operational base: Core business processes; Technology and operations infrastructure; Structure, governance and risk controls; People and culture; and Data, measures and KPIs. In each of these areas, we seek to balance efficiency, quality and flexibility to fulfil our clients’ propositions and deliver customer value.
This process includes ensuring that all supporting processes, operations infrastructure and technology, as well as employee capabilities and experience are aligned to provide maximum benefit. By working with employees, we are able to identify skill gaps and develop a training programme to upskill people within the business, providing a more balanced, stable skillset to ensure optimum operations performance, and a more rewarding experience for everyone.
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The benefits of best practice
With our operational expertise and industry experience, and proprietary data analytics tools, we can develop and deliver a target operating model that builds capability – and ultimately drives measurable and sustainable cost reduction benefits.
We identify and substantiate the strategic and financial ambitions of our clients’ businesses, defining the investment and risk parameters in which they are to be achieved to provide them with a tangible vision for the direction and purpose of their business.
By establishing key target markets and channels and developing competitive value propositions, we ensure a client’s business is in a solid position to maximise long-term customer value and achieve lasting cost-efficiencies for sustained profitable growth.
Our target operating model provides a robust foundation that drives successful and efficient business activity. By optimising core processes, technology and infrastructure, and a people model that is rewarding and productive, we deliver operational excellence that is pivotal to the fulfilment of a business’s growth ambitions.
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