Aligning Strategy with the Operating Model - The key steps

Aligning Strategy with the Operating Model - The key steps

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.

Conclusion

Connecting a strategic plan with an operating model and planning its transformation requires careful alignment, detailed planning, and continuous monitoring. By following a structured approach, organisations can ensure that their operating model supports their strategic objectives and drives sustainable growth. For further insights and structured approaches, exploring frameworks like OMDDMS can be beneficial.

Steve Sanders

Strategist, market developer, ecosystem leader, deal shaper and mindset shifter. IOD Fellowship. Social mobility exemplar and mentor. Value Delivery Mechanisms for breakthroughs from ideation to impact WITH stakeholders.

7 个月

Perhaps one of the most outstanding complementary capabilities coming from Senaryo that my contacts in SIs and Advisory firms should get on board with. This post offers a simple description but with Senaryo’s help and their toolkit for OMDDMS international standard, operating model inconsistency and performance variability disappears.

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