3b. Design:Operating Model

ACT//DO//DESIGN&DELIVER

Design a new operating model

Having described the strategy of what you are going to do in the business case, its now time to (re)design the organisation so that it is ready to execute the strategy and deliver the value propositions. Firstly, you need to design a high level “to be” Target Operating Model (TOM). Secondly, have you identified any important risks? (e.g. intellectual property or contractual issues around what is proposed?) Have you sought advice to mitigate risks?

The Operating Model Canvas

An Operating Model Canvas covers the “back-end” of the Business Model Canvas – the key resources, activities and partners and maps how they come together to offer the values proposition. It is a one page operating model. If you link the operating model canvas with the business model canvas, you get an enhanced business model canvas that has Processes, Organisation, Information, Location and Suppliers in place of Key Activities, Key Resources and Key Partners.and the video below from Ashridge Business School explains how to use it:

The Operating Model Canvas is available in copyrighted book format, supported by a website. (Unfortunately, unlike all the other resources in this toolkit, its authors have chosen not to give it a Creative Commons license).

Once you have designed your Operating Model Canvas, you will be able to break down what you need to achieve it:

  • Kit (hardware)?
  • Software or cloud services?
  • Person power or subcontractors?
  • Content (do contracts need looking at, do you need any licenses)?
  • Training?

How will you journey to the desired “to be” state from your current “as is” state? How will the Digital Transformation be led?

    • How will direction be set, momentum built, and the plans followed through?
    • Who will drive the change forward and direct the new activities and behaviours?
    • How will the digital initiatives and capabilities and processes and products be governed?
    • If there’s an IT department, what is their role in the leadership of digital transformation activities?

Consider how staff will be involved, engaged, and informed:

      • one-off (eg. implementation, training)
      • ongoing (e.g. managing new services, processes, subcontractors, new staff, etc.)
      • engaged in the change (e.g. through sharing feedback or ideas on the new implementations via a staff intranet or social channels

Consider what additional expertise will be required:

      • External Consultants (technical, social media, data analysts)?
      • Project manager for implementation (secondment? short term contract?)
      • Digital technology developers or designers?
      • Other suppliers?

Milestones & planning

How are you going to do it? Create a timeline and milestone path to achieving your aspirations.

Although creating timelines and milestone paths is best done in chronological order, you might like to work more visually than just writing a document as you begin to map out your decisions and their resource implications. We love online collaborative mindmapping software Mindmeister, and Prezi is a great free online mindmap presentation tool.

Now develop your Business Case in Detail.