The Power of Alignment: How Operating model change drives Strategic portfolio success

Unleashing Potential of Operating Model Change to Fuels Strategic Portfolio Success

In today's dynamic business landscape, organizations must constantly adapt and innovate to stay ahead of the competition. One key factor that can unlock your organization's true potential and achieve strategic portfolio success is alignment.

In this article, we will explore the critical role of operating models in driving strategic portfolio success and discuss how to create a structure, culture, and organization design that support your portfolio objectives and foster agility, collaboration, and innovation.

Aligning Strategy with Operating Models

Research suggests that only 10% of organizations are successful at aligning their strategy with their operating models.?To bridge this gap, it is crucial to configure all of the organization's assets in the service of your stated strategy and ensure that there is no confusion about what each part of the organization does to bring it to life.

Fostering Agility, Collaboration, and Innovation

To achieve strategic portfolio success, organizations must foster a culture of agility, collaboration, and innovation. Some practical strategies to promote these values within your organization include.

1. :Aligning operations goals and metrics with business objectives and customer needs: Define clear and measurable outcomes that reflect the value and impact of your Product/ service, and track them using relevant and reliable indicators.
2. Adopting a experiment first mindset: Embrace experimentation and learning, creating a safe and supportive environment where your teams can try new ideas, test new solutions, and learn from failures.
3. Promoting cross-functional engagement: create clear communications flows and encourage collaboration between different departments and teams.
4. Empowering employees: design the organisation to have correct level of autonomy, collaboration and control (yes you read it right) and resources to explore and innovate, and celebrate key ideas and accomplishments.

Real-World Examples of Operating Model Success

Several organizations have successfully restructured their operating models to align with their strategic objectives and drive portfolio success. Some examples include:

• Procter & Gamble (P&G): P&G's success is tied to their focus on simplifying their portfolio, changing their organizational design and governance decisions, and focusing on the market to achieve product superiority.
• Ford Motor Company: In 2006, Ford underwent a significant transformation, returning to profitability within a few years by redesigning its operating model and aligning it with its strategic objectives.
• Siemens and Gamesa: The merger between Siemens and Gamesa was successful due to the application of the Operating Model Canvas, which helped leaders design changes in their organization and operations to align with their strategic objectives.

Conclusion

In conclusion, operating model change plays a critical role in driving strategic portfolio success. By aligning your organization's operating model with its strategic objectives, fostering a culture of agility, collaboration, and innovation, and implementing practical strategies, you can empower your organization to make confident moves and thrive in today's dynamic business landscape.

By learning from real-world examples and adopting best practices, your organization can unleash its true potential and achieve strategic portfolio success.