Designing a Transformation Programme
From 'as-is' to 'to-be' of your operating model

Transitioning from an "as-is" to a "to-be" operating model involves understanding the current state, defining a future vision, and developing a comprehensive transformation program. Key elements include stakeholder engagement, governance, change management, implementation roadmap, and ensuring sustainability.

In today’s fast-paced business environment, organisations often need to evolve their operating models to stay competitive and responsive to market changes. Transitioning from an "as-is" operating model to a "to-be" operating model is a complex but essential journey. This blog will guide you through designing a transformation program to achieve this goal, highlighting key elements to consider.

Understanding the "As-Is" Operating Model

Before you can chart a path to your future state, you need a clear understanding of your current operating model. This involves:

  1. Current State Assessment: Conduct a thorough analysis of your existing processes, systems, and organizational structure. Identify strengths, weaknesses, and areas for improvement.

  2. Stakeholder Engagement: Engage with key stakeholders across the organization to gain insights into current challenges and opportunities. This helps ensure that the transformation program addresses real needs and has broad support.

Defining the "To-Be" Operating Model

With a solid understanding of your current state, you can define your desired future state. Key activities include:

  1. Vision and Objectives: Articulate a clear vision for the future operating model. Define the strategic objectives that this transformation aims to achieve.

  2. Design Principles: Establish design principles to guide the transformation. These might include customer-centricity, agility, efficiency, and innovation.

  3. Target Operating Model (TOM) Blueprint: Create a detailed blueprint of the "to-be" operating model. This should cover:

  • Organisational Structure: Define the new organisational hierarchy and roles.

  • Processes: Redesign business processes to improve efficiency and effectiveness.

  • Technology: Identify technology solutions that will support the new operating model.

  • Culture: Outline the cultural changes needed to support the new way of working.

Developing the Transformation Program

Once you have a clear vision of your "to-be" operating model, it’s time to develop a comprehensive transformation program. Key elements to consider include:

  • Governance Structure: Establish a governance structure to oversee the transformation. In OMDDMS we call this the OMTO (Operating Model Transformation Office) which should have an OMB (Operating Model board) to report to and take lead from.

  • Change Management: Develop a robust change management strategy to address the human side of the transformation. This should included.

  • Communication Plan: Keep stakeholders informed and engaged throughout the process.

  • Training and Development: Equip employees with the skills and knowledge they need to succeed in the new operating model.

  • Employee Engagement: Foster a culture of participation and feedback to ensure buy-in at all levels.

  • Implementation Roadmap: Create a detailed implementation roadmap that outlines the key phases and milestones of the transformation. This should include:

    • Quick Wins: Identify and prioritize quick wins to build momentum and demonstrate early value.

    • Pilot Programs: Test new processes and technologies through pilot programs before full-scale implementation.

    • Phased Rollout: Implement changes in phases to manage risk and ensure smooth transitions.

  • Performance Metrics: Define key performance indicators (KPIs) to measure the success of the transformation. Regularly review and adjust the program based on these metrics.

  • Ensuring Sustainability

    A successful transformation program not only achieves its initial objectives but also ensures long-term sustainability. Key considerations include:

    1. Continuous Improvement: Embed a culture of continuous improvement to keep evolving the operating model in response to changing needs and conditions.

    2. Leadership and Culture: Develop strong leadership capabilities and foster a culture that supports ongoing innovation and change.

    3. Monitoring and Evaluation: Continuously monitor the performance of the new operating model and make adjustments as needed.

    Conclusion

    Designing and implementing a transformation program to move from an "as-is" to a "to-be" operating model is a significant undertaking. It requires a clear vision, robust planning, effective change management, and a focus on sustainability. By following the steps outlined in this guide, you can navigate this complex process and position your organisation for future success.


    By considering these key elements and following a structured approach such as OMDDMS, you can successfully transition to your desired future operating model and achieve your strategic objectives.

    John Barnard:
    Integrating Design and Manufacturing in Formula One