Analysing an operating model is crucial for several reasons, as it helps organisations understand how effectively their resources and processes align with their strategic goals. Here’s why analysis is important and the key issues to address in the analysis phase of implementing OMDDMS:
Importance of Analysis in Assessing an Operating Model
Identifying Strengths and Weaknesses:
Analysis helps pinpoint areas where the organisation excels and areas needing improvement. This understanding is critical for optimising performance and competitiveness.
Ensuring Alignment with Strategy:
Analysing the operating model ensures that it aligns with the organisation’s strategic objectives. Misalignment can lead to inefficiencies and missed opportunities.
Optimising Resource Utilisation:
Effective analysis helps in understanding how resources (human, financial, technological) are being utilised and identifies ways to optimise their use to maximise output and efficiency.
Improving Customer Satisfaction:
By analysing processes and workflows, organisations can identify bottlenecks and areas for improvement, leading to better customer service and satisfaction.
Facilitating Change Management:
Analysis provides a clear picture of the current state, which is essential for planning and implementing changes smoothly and effectively.
Supporting Decision-Making:
Data-driven analysis provides a solid foundation for making informed decisions regarding investments, process changes, and strategic shifts.
Key Issues to Address in the Analysis Phase
Strategic Alignment:
Assess how well the operating model supports the overall strategic goals of the organisation. Are the current processes and structures conducive to achieving these goals?
Process Efficiency:
Evaluate the efficiency of key processes. Are there any redundancies or bottlenecks that hinder performance? How can these be streamlined?
Resource Utilisation:
Analyze the utilization of resources. Are they being used effectively? Are there any areas of over- or under-utilization?
Organizational Structure:
Examine the organisational structure to ensure it supports effective communication, decision-making, and operational efficiency. Are there any hierarchical issues or gaps in the structure?
Technology and Systems:
Review the technology and systems in place. Are they up-to-date and adequate for supporting the organisation’s needs? Are there any gaps or areas for improvement?
Risk Management:
Identify potential risks within the current operating model. What are the key vulnerabilities, and how can they be mitigated?
Customer Experience:
Assess the impact of the operating model on customer experience. Are customers satisfied with the current processes and service levels? What improvements can be made?
Cost Analysis:
Conduct a cost analysis to understand the financial efficiency of the operating model. Where are the major costs, and how can they be reduced without compromising quality?
Compliance and Governance:
Ensure that the operating model adheres to relevant regulations and governance standards. Are there any compliance issues that need to be addressed?
Scalability and Flexibility:
Evaluate how scalable and flexible the operating model is. Can it adapt to future growth and changes in the market or industry?
Conclusion
Analysing an operating model is a comprehensive process that requires a detailed examination of various facets of the organisation. Addressing the above issues during the analysis phase ensures a thorough understanding of the current state, highlights areas for improvement, and supports the development of a more effective and aligned operating model. OMDDMS provides a robust framework and the appropriate artefacts to support this analysis.