Define your future operating model

The art of strategy is execution – being able to translate your strategies and plans into tangible change within your organisation. In order to execute effectively, the first critical step is to develop a clear picture of where you want to get to via a clearly defined target end state. Getting this wrong can derail your ambitions and plans. 

The way to build this picture is to develop a future operating model which provides a holistic view of how your organisation delivers value to its customers, how it generates value for itself and how all the key component parts of the organisation fit together. It can be applied at an enterprise-wide level, a divisional level, a functional level, and a team level.  

There are five key steps required: 

• Establish a set of design principles which set out the critical criteria
• Start from an ‘outside-in’ perspective by looking at how you can best deliver value
• Identify potential options and assess their respective strengths and weaknesses
• Develop your preferred option by considering all the aspects that will make it up, including processes, roles, organisation structure, technology and culture
• Focus on those critical capabilities that will differentiate your organisation.