operations
Operating Model
Operating Model - how an Organisation delivers value to its customers.
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People- In-house skills assessment, Recruitment and Training, Utilisation, New ways of working and Flexible workforce.
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Process- Process standardisation, Integration, Operational procedures, Roles & Responsibilities.
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Technology- Legacy applications, Cloud capability, Supplier risk management and Upscale capability.
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Customer- Customer experience, Pricing strategy, Product offering, Lifetime value and Brand loyalty.
Problem
Building a Strategically aligned Operating model continues to be an elusive objective for many organisations. Over the time every department makes changes to suit their needs, each manager brings their own flavour in an effort to improve the productivity of their teams. Consequently, this breaks down the established processes, protecting their own domain's priorities to the detriment of the overall business. People lose sight of the Organisation's goals, effort is wasted, morale drops as teams work in silos and a complacent culture takes over where Accountability is shunned.
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Solution
Strategy and Operating Model alignment.
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1) Establish baseline - the current 'As-is state'
2) Review alignment with Strategy
3) Define Future state
4) Get the Management and workforce buy-in
5) Implement Target Operating Model (TOM)
Lean six sigma
Improve operational performance and reduce cost. Ensure that your organisation is making the most out of its assets.
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The story of every business
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Every organisation faces challenges as it grows, new processes are quickly bolted on top of existing processes in order to meet demand, workers rely on personal relationships and benefit from close proximity amongst their teams since the business is still small, to get the work done. However, as an organisation grows, teams expand and workload increases, it becomes difficult to function since the underlying processes are insufficient for its scale and everyone has come up with their own way of getting things done. This takes a toll on the bottom line and whilst it is not evident in the growth phase since the organisation is expanding, it certainly becomes a pain as the firm reaches maturity or the economy takes a toll. The risk of operating on low Profit margins is that very soon your competitors will undercut you, even if it is for a short period of time and put you on the edge.
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This is why it is vital that an Organisation continuously reviews its process and eliminates waste, also known as Continuous improvement. Explore options of optimising the existing process and deploying Digital technology to complement the human capital. Whilst, cost efficiencies can be achieved through Lean, it would also improve production time, resulting in enhanced customer experience and a win win situation for everyone.
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10-30% 15-20%
Potential Cost reduction Production time improvement