An operating model is the operational design that makes it possible to deliver the business strategy. Operational design follows strategy, but the relationship also works the other way around, which means that ideas for operating model improvements can lead to changes in business strategy. This program is about the intersection of business strategy and operational design, for an organization as a whole, a business unit, a function or a team.
The operating model defines how the organization will deliver the capabilities and financial outcomes required by the strategy. An operating model covers six elements making up the acronym POLISM:
- Processes and activities: the work that needs to be done
- Organization and people: the people doing the work and how they are organized
- Locations, buildings and other assets: the places where the work is done and the equipment in those places needed to support the work
- Information: the software applications and databases needed to support the work
- Sourcing and partners: those outside the organization supporting the work
- Management system: the planning and performance management of the work
Each element of the operating model needs to be designed to contribute to the success of the organization: satisfied customers and beneficiaries, and sound financial performance. This program will introduce tools and frameworks that help participants understand and challenge their existing operating model, and design and communicate a new target operating model. The Operating Model Canvas, from the book of the same name, is the core framework. It is supported by more than ten tools.
This program has a unique faculty: an academic, a consultant and an executive. The executive leads an organization of more than 8000 people. We also spend one day developing an operating model, guided by the executive who led the work. Participants on the last two programs rated the value to them as individuals at 9.1 and 9.4 out of a possible 10. The net promoter scores were 78% and 91%.