IT Operating Model Design and implementation for digital business transformation

Our customer faced the challenge of centralising IT services in a federated model where the businesses held the funding and had the legitimate authority and autonomy.

The risk of doing nothing was continually increasing duplication of services and therefore increased cost and complexity. Continuing with this approach did not align with their corporate strategy.

The risk of implementing a new operating model was potential degradation of the IT services that were transferred from the federated businesses into the central shared service function.

First and foremost, it was imperative that the federated businesses both sponsored and shaped the change.

The programme governance model was designed to ensure each business had representation and was part of the decision making.

To design the operating model, the programme enlisted the support of approximately 40 people from throughout the organisation to ensure each of the businesses had suitable input and bought into the new operating model. This led to an operating model design in which the common or commoditised services in each business was proposed to be centralised and those unique services that directly supported customers were to remain in the business.

With an operating model agreed, the IT organisations and people were assessed for fit, and a proposal was developed and agreed to move people and services as per the target operating model.

A roadmap was developed to optimise common services to improve efficiency and reduce spend.

Around 250 people and associated services and activities were moved from the various business units into Shared Services and Head Office. The impact was improvements in effectiveness and efficiency and a reduction in duplication and cost.  

Secondly, the reduction in services delivered by the federated businesses has allowed them to focus on providing value to their end customers.  

Project One value add:

• Project One drove through the change bolstering the internal capability  

• It was also valuable from a stakeholder management perspective to have an independent third party manage and deliver the project to reduce accusations of bias from the federated businesses.  

Unlock the full potential of your business with our expert insights. Contact us today to discover how we can help you achieve your goals.

theteam@projectone.com