Connecting a strategic plan with an operating model and planning its transformation involves several key steps. This process is fundamental to the success of operating model transformation and delivering the desired outcomes.
1. Aligning Strategy with the Operating Model
Define Strategic Objectives
Clearly articulate the strategic objectives that the organization aims to achieve. These objectives should reflect the long-term vision and mission of the organization.
Map Strategy to Operating Model Components
Break down the strategic objectives into specific components of the operating model: processes, technology, organizational structure, people, and governance. Determine how each component needs to change to support the strategic goals.
2. Assessing the Current Operating Model
Conduct a Current State Assessment
Evaluate the existing operating model to identify strengths, weaknesses, gaps, and opportunities. This involves analyzing current processes, technologies, organizational structures, and capabilities.
Benchmarking
Compare the current operating model with industry best practices and standards to identify areas for improvement.
3. Designing the Future Operating Model
Define the Future State
Develop a clear vision of the future operating model that aligns with the strategic objectives. This includes detailed descriptions of new processes, technologies, organizational structures, and governance mechanisms.
Develop a Transformation Roadmap
Create a detailed transformation roadmap that outlines the steps needed to move from the current state to the future state. This roadmap should include timelines, milestones, resource requirements, and risk management plans.
4. Implementation and Change Management
Implement Incremental Changes
Break down the transformation into manageable phases or projects. Implement changes incrementally to manage risk and ensure smooth transitions.
Engage Stakeholders
Involve key stakeholders throughout the transformation process to ensure buy-in and support. Effective communication and engagement are crucial for managing resistance to change.
Monitor and Adjust
Continuously monitor progress against the transformation roadmap. Use key performance indicators (KPIs) to measure the effectiveness of changes and make necessary adjustments.
5. Continuous Improvement
Feedback Loops
Establish feedback mechanisms to gather insights from employees, customers, and other stakeholders. Use this feedback to make ongoing improvements to the operating model.
Regular Reviews
Conduct regular reviews of the operating model to ensure it continues to align with the strategic objectives and adapt to changing market conditions and organisational needs.