Why Your Current Operating Model is Out of Date and Broken

This blog first appeared on the DLA blog here

Back in the 80s and 90s, when Soft Cell and Nirvana were flying high in the charts, accountancy companies and auditors sold you a set of “best practice processes”, often described as an “operating model”. 

The objective behind this was simple, we “muggles” couldn’t come up with a set of standard processes, therefore you were given a preset batch of processes to work to. While I realise that many people think they and the companies are different, in fact many are similar. If you think about the process to raise a purchase order, match with an invoice, pay the invoice and account for it, it’s pretty much standard worldwide. Hence why there are accounting products that work and sold globally.

There were multiple business process reengineering (BPR) projects as companies changed systems for the year 2000, or Y2K as it was called. If you recall, the world was going to come to a standstill as computer programs had been written for years that started with 19, as in 1971 and not years that started with 20, as in 2018. Pretty much every computer system in the world was changed as part of Y2K.

The plan was that these systems would be implemented and last 10 or so years.

Problem being that Lehman Brother’s bank went down in 2008, plunging the world into a recession. This meant that system change that was required in 2010, didn’t happen, in fact the budget for this either hasn’t happened or is taking place under the guise of “digital transformation”.

So what has this go to do with my operation model?

This blog continues on the DLA blog here

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