Hosted by Wellcome Trust

London, 8th December

@NickGMRichmond

@EuropeanODF

Welcome, Agenda and Notices

Time Activity

4pm Welcome & Notices

4.15pm Community Development Activity

4.45pm How do we smoothly integrate and embed different ways of working and continue to develop the flexibility, challenge and drive across the organisation to enable us to deliver the strategy?

6.00pm Bio-break

6.20pm Taking a truly holistic approach to designing and transforming organisations – working with other business design and transformation disciplines

7.30pm Future Community Sessions

7.55pm Review and Close

Who are we

Mission

To build and advance the community, practice, and strategic role of Organisation Design

Purpose

Creating a connected community, exploring inspirational perspectives to release organisational potential

UK Chapter Vision

Recognising the ‘life’ is in the open exchange and the ‘fruit’ for us is in the practical application. With this in mind our vision is to provoke, stimulate and educate in a safe environment.

EODF Goals

Our main activities will support the following Goals:

1. Grow visibility of EODF – by building partnership with Partner Organisations, developing our presence on-line, in social media and by being present at professional conferences. We will build and develop an ambassador structure.

2. Grow our Membership – by further developing Country Groups and encouraging member sign up from our supporting community.

3. Developing Quality Content with our Members -Education Programmes – By initially developing or further developing the skills and knowledge of our Members (resources on our website, webinars, introductory 1, 2, 3 day programmes through to having an accreditation system in org. design.)

4. Have an amazing, inclusive Conference in Italy – with social interaction before, during and after the event – and transparency, inclusiveness in the planning and execution process too.

Notices

EODF Membership

• Relationships

• Knowledge

• Voice

Individual

£50 / year

Corporate

£300 - £1000 /

year

EODF’16 Schedule

UK

• 1st March, London, Naomi Stanford & Alison McMillan,

DWP, Alexandra Bode-Tunji, TfL

• March, Edinburgh

Masterclasses

• London – April / May

• Scotland - June

Annual Conference

• 14th – 15th Oct 2015, Barcelona, Spain

Milan Conference Feedback

Search #EODF15

Milan Conference Feedback

• Warmth

• Passion

• Generosity

• Inspiring

• Inclusive

• Challenging

• Rich

• Fulfilling

• Blessed

Community Development

Listen out for the process

1. What is currently energising me in organisation design

2. Something I am proud of

3. My biggest organisation design challenge has been

You have 30 minutes

Community warm up

Community warm up

What is currently energising me?

• Working in change and ambiguity

• In the public sector: finding the balance between organisational ambition and day-today performance management

• Opportunity to do macro, end to end/pan-enterprise org design

• SPRINTS

• Managing a client with very strong personality (controlling)

• Amazing scientist director who’s v.poor at line management

• IT is being recognised as a discipline in its own right ‘By design not just accident’

• Developing “Whole” organisations

• How gamification can be used to develop org design

• Community warm ups

• Changing the dialogue @ leadership levels

• Trying to design an org design approach – how much is process vs experience

• How to create leverage & energy using innovative ideas from martial arts

• Simplifying organisations / being a designer

• How to use design principles/criteria

Something I am proud of

• Being confident in my trade to say I’m an org designer

• Moving from theory to reality ‘ making it real’

• Getting new, young, IT business leaders to buy into the value of org design

• Developing as an Org design consultant

• Son showing EI this morning

• Bringing together org design, business architecture and service design approaches in PA

• The position I’m currently in to influence the agenda

• Being calm and consistent

• Principles of business in local community

• Company 10 year celebration

• Building strong relationships

• Blog writing

• PA / Secretaries who worked for me are now HR practitioners inc. 2 HR directors

• Reaching common agreement on criteria for CEO

• Task to redesign outdated Business Processes

• Near Completion w/org-wide org effectiveness prog.

• My course designing operation models

• Pan TfL skills/common language

My biggest Org Design Challenge

• HR Ro-org – Head of HR would not make up her mind

• Designing in an organisation where the MD didn’t support his strategy

• Supporting the re-design of future model of care processes for a CCG

• De merger out of a gov dept. in conflict situation

• Org design Post Merger in Biotech

• Structure for sanity aligning structure with reality

• Bringing OD to an F1 Racing team

• Big personality / old school org design

• Org design for a major military facility

• Global organisation (segment, work type, region + legal entity) with function leaders

• Keeping energy & focus going in developing ‘simple’ data reports

• BI + data develop inc OD in spite of conflicting stakeholders

• Culture change

• Change in culture from debt collection to customer focus across call centre & field collection

• Being sufficiently challenging to culture that things can change without the barriers coming up

• Constructive ppl & design

• Helping Orgs bring culture back to the workplace

Who we are

We are an independent global charitable foundation,

dedicated to improving health.

We remain true to the vision and values of our

founder, Sir Henry Wellcome, a medical entrepreneur,

collector and philanthropist.

Since 1936, our support has helped to save and

improve millions of lives around the world through

science, research, evidence and engagement

with society.

What we do

We fund health-related research, across the world.

We pursue new understandings of the body, disease, or the

environment we live in, ideas about how to change medicine,

culture or even the world.

We support thousands of curious, passionate people all over

the world to explore great ideas, at every step of the way from

discovery to impact.

Where we do it: our active funding

North

America

£77m

UK

£2,300m

Latin America &

the Caribbean

£10m

Sub-Saharan

Africa

£225m

South-east Asia

& Pacific

£92m

Europe &

Central Asia

£113m

India:

£156m

How we work

Investments: We are funded from a private endowment – the assets

stand at around £18 billion

Our strategic approach. Describes our philosophy and establishes

a framework that sets out our modes of working and gives us the

flexibility to set new priorities over time

To improve health, we have spent (and plan to spend):

1936 2005 2015 2020

£11 BILLION

£6 BILLION

£5 BILLION

What’s new?

We have developed a strategic approach, instead of a plan.

This:

• builds on our last plan, but has no fixed time frame

• give us the flexibility to set new priorities over time

• seeks to reach out to new audiences and partners

• allows us to be directive and purposeful when the time is right

• 7 priority areas (1 Implementation, 6 Development)• 10 -20% of organisation involved

100% of their time on the Priority area, part time while still maintaining their functional role specialist support skills drawn on as required (e.g. finance, HR, IT, fac.)

• Movement into and out of the Priority areas• Roles for 6-12 months

First steps

How do we smoothly integrate and embed different ways of working and continue to develop the flexibility, challenge and drive across the organisation to enable us to deliver the strategy?

The challenge – Plenary Discussion

Output – practical experience

• What have you seen that works/doesn’t work and why? What can we learn from this?

• What specific organisations/contacts can you connect us to so that we can learn from them and share our experiences?

• Provide insights to Sherrie at S.Charlton@welcome.ac.uk

Practical Experience Requested

• The physical environment• Support services e.g. IT, communications• The systems e.g. reviewing performance, development

planning, reward, talent and succession planning, reporting, finance …

• Engaging our people at all levels, start phase and beyond.• Recognising, mobilising and motivating our stars/ambassadors

of change and different ways of working• Roles – have these changed, if so how? Are there new or

specific roles needed to facilitate this approach?• Flexible ways of working

Some areas the attendees could consider

Bio-Break

DESIGNING OPERATING MODELS

Prepared for the EODF London meet-

up

8th December 2015

Mark Lancelott and Andrew Campbell

To explore operating model design as a way of working with

other transformation practices to better design brilliant

organisations

Aim of the session

1. Exploring perspectives game

2. Our view of operating model design

3. Core operating model logic

4. Take-aways

Plan for the session

• Shuffle the cards

• Look for similarities and differences between the concepts

• Group the cards in a way that emerges from this

Be ready to play back to the group:

• What concepts did you group as similar and why?

• How did you group the different concepts?

• Any other reflections?

You have 15 minutes.

1. Exploring perspectives of design and transformation design practices

ITBusiness

architecture

Organisation

design

Process

designService design

Business

model canvassStrategy

Talent and

cultureSourcing Finance

SOA Business

ServicesCapabilities Structure chart Cycle time

Customer

journeyKey Activities Value chain Values Ecosystems

Chart of

accounts

ESBValue

propositionsDecision rights Defects

Service

expectationsKey partners

Competitive

advantageSymbols

Partnership

agreement

Cost centre

structure

CloudInformation

model

Governance

model7 wastes Pain points Key resources Mission Rituals

Supplier

networkProfit centres

Logical

architectureTOGAF

Management

layers

Process

hierarchy

Moments of

truthCost structure Vision

Totems and

taboos

Category

management

Revenue

attribution

Solution designBusiness

objectsSpans of control Value streams

Customer

needs

Customer

relationshipsValues Stories

Strategic

suppliersP&L

API Viewpoints STAR model Cost to serve TouchpointsCustomer

segmentsFive forces Purpose

Framework

contractsBalance sheet

Master data

management

Reference

modelsRAPID Six sigma Motivations

Value

propositionsPESTLE Skills

Statements of

work

Cash-flow

statement

Business

requirementsBlueprints Job design Mini-tab

Customer

outcomesChannels

Value

disciplinesTalent pools Offshoring Transfer pricing

Non functional

requirements

Capability

mappingAccountabilities KPIs

Customer

experience

Revenue

streamsActivity systems Workforce plan Nearshoring

ABC

Use cases Principles Responsibilities Process map Word of mouth Markets OCI Outsourcing

AgileCapability

maturity Business units IDEF0 Tone of voice

Customer

segmentsHIPO

ERP Data dictionary Shared servicesBPMN

Storyboards Grading

COTS Meta-model Matrix STPReward

systems

SLAs Dotted linesPerformance

management

Operating model design as a way of:

• bridging the gap between strategy

and action

• aligning decisions that different

functions and transformation

practices make

• providing a common map for

different functions and professions

to use.

2. Our view of operating model design

Key operating model design artefacts:

• Value delivery chain

• Organisation model

Then

• Process

• Information links

• Suppliers

• IT

• Decision rights

• People and values

• Locations.

34

Define the value delivery chains for each segment

16

5

2

73

4

Segments

Segments can be defined by

product or customer type or

channel or geography

BUY MAKE SELL

BUY MAKE SELL

BUY MAKE SELL

BUY MAKE SELL

BUY MAKE SELL

BUY MAKE SELL

Seg 1

Seg 6

Seg 5

Seg 2

Seg 3

Seg 7

Draw the value chain for each segment

Segment A

Segment B

Segment C

Segment D

Segment E

Segment F

Combine/manage together

Link or standardise, but manage by segment

All Value

Chain Steps

Separate and manage by segment

Source of advantage

(1) Identify which steps are critical sources of advantage for each segment.(2) Then identify which steps should be combined, linked or kept separate.

Example value delivery chain

Organisation model describe the relationships between different types of organisation units

Most strategic organisation

design is about…

Unit 1 Unit 2 Unit 3

CEO

Common

Operations

Policy functionsCoordinating or

championing

Shared services

Powerful central

functions

Less powerful service

and lobbying units

1. How to divide the operating core into

operating functions?

2. What support functions to set up and

how to get them to work well with the

operating core?

Functional requires a clear and stable

understanding of the contribution of each function,

so that holding heads of accountable for functional

performance will deliver overall performance

• Function

• Process

Matrix can manage complex and changing

interdependencies, but requires greater

management overhead to resolve inherent

tensions and overlapping authority and diffuse

accountability. Requires appropriate leadership

and managerial practices and behaviours to work

effectively.

Three key ways of organising operating work

• Geography

• Customer

• Product

• Project

• Asset

Business unit is the simplest to manage from a

corporate perspective when it is clear what MDs

will be held accountable for (profit, revenue and

cost in SBU model), and inter-dependencies are

simple.

• Functional matrix

• Geographic matrix

• Front/back

• Multi-matrix

Function

Matrix

Units

There are four different types of support work, each with a different relationship with operating functions

Support unit Characteristic

Policy

functions

• Defines policy – other operating

and support units must comply

• Must have full backing from the

CEO to direct and enforce

• Policy units have power over other

units

Unit 1 Unit 2 Unit 3

CEO

Powerful central

functions

Less powerful service

and lobbying units

Common

operations

• Shared operational activity to

provide efficiencies

• Operating units have power to

direct, but as shared across

more than one unit, may require

CEO arbitration if they can’t

agree

Shared

services

• Provide transactional, common

process delivery on a service

basis

• Exist to serve operating units -

are ‘subservient’

Coordinating /

championing

functions

• Coordinate and champion

• Influence through lobbying and

persuasion, rather than authority

• Also considered as ‘subservient’

to the lines of business.

Policy functions

Common

Operations

Coordinating or

championing

Shared services

Bridging the gap betweenstrategy and action

Aligning decisions that differentfunctions and professions make

Providing a common map for differentfunctions and professions to use

Summary and Close

• Summary

• Post-It poll

– How welcomed you felt tonight? (very strong, strong, weak, did not feel welcomed) Very strong

– How valuable was this event to you? (out of 10, where 10 is highest value) 8.25

• Comments

– Opportunity to practice OD rather than just theory talking about - and with fellow practitioners

– Great case study,

– Liked opening up Op model topic. Thanks for the biscuits

– Helped me think through how we organise our TOM & organisation design activities