Monitoring the performance of a newly implemented operating model is crucial for several reasons. It ensures that the transformation delivers the expected benefits, identifies areas for continuous improvement, and helps sustain the gains made. Here's why and how you should monitor the performance of the new operating model as recommended by the standard OMDDMS.
Why Monitor the Performance of the New Operating Model?
Validate Success: To confirm that the transformation has achieved its intended objectives and delivered the anticipated value.
Identify Issues Early: To detect any problems or inefficiencies in the new operating model before they become significant issues.
Continuous Improvement: To foster a culture of continuous improvement by regularly assessing and refining processes and practices.
Sustainability: To ensure that the changes are sustainable and that the organisation doesn't revert to old ways of working.
Accountability: To maintain accountability by tracking performance against established KPIs and ensuring that all parts of the organisation are aligned with strategic goals.
Adaptability: To remain agile and responsive to external changes by continually adjusting the operating model as needed.
How to Monitor the Performance of the New Operating Model
Define Key Performance Indicators (KPIs):
Relevance: Choose KPIs that are directly linked to the strategic objectives of the transformation.
Measurability: Ensure that KPIs are quantifiable and can be tracked over time.
Balanced Scorecard: Consider using a balanced scorecard approach to cover different perspectives (financial, customer, internal processes, learning and growth).
Regular Reporting and Dashboards:
Real-Time Dashboards: Implement real-time dashboards to provide ongoing visibility into key metrics.
Regular Reports: Generate regular reports (weekly, monthly, quarterly) to review performance trends and identify areas needing attention.
Periodic Reviews and Audits:
Scheduled Reviews: Conduct regular performance reviews with key stakeholders to discuss progress, challenges, and areas for improvement.
Audits: Perform periodic audits to ensure compliance with the new operating model and to validate the accuracy of reported data.
Feedback Mechanisms:
Employee Feedback: Collect feedback from employees through surveys, focus groups, and interviews to understand their experiences and gather suggestions for improvement.
Customer Feedback: Use customer feedback to gauge the impact of the new operating model on customer satisfaction and service quality.
Benchmarking:
Internal Benchmarking: Compare performance across different departments or units within the organisation to identify best practices.
External Benchmarking: Compare your organisation’s performance against industry standards and competitors to identify areas for improvement.
Continuous Improvement Processes:
Kaizen: Implement Kaizen (continuous improvement) activities to encourage small, incremental changes that improve processes.
Lean and Six Sigma: Use Lean and Six Sigma methodologies to systematically eliminate waste and reduce variability in processes.
Governance and Oversight:
Steering Committees: Establish steering committees or governance bodies to oversee the performance monitoring process and ensure alignment with strategic goals.
Accountability Frameworks: Develop accountability frameworks to ensure that leaders and teams are responsible for achieving and maintaining performance targets.
Technology and Tools:
Performance Management Software: Invest in performance management software to automate data collection, analysis, and reporting.
Data Analytics: Use data analytics tools to gain deeper insights into performance trends and identify root causes of issues.
Conclusion:
Monitoring the performance of a new operating model is essential to validate success, ensure sustainability, and drive continuous improvement. By defining relevant KPIs, utilising regular reporting and dashboards, conducting periodic reviews, gathering feedback, benchmarking, fostering continuous improvement, ensuring governance and oversight, and leveraging technology, organisations can effectively monitor and optimise their new operating models. This ongoing vigilance helps to maintain the gains achieved through transformation and ensures that the organisation remains agile and competitive in a dynamic business environment. OMDDMS provided the knowledge and artefacts to manage the process.