what should be the outputs of a high-level operating model ... · © ashridge executive education©...

© Ashridge Executive Education© Ashridge Executive Education

What should be the outputs of a high-level operating model project

© Ashridge Executive Education

High-level operating models

One page Operating Model Ten page Operating Model

The elements of the organisation that are most important for

delivering the value proposition.

The main operating activities that deliver the value proposition

Organisation chart

Processes

Information systems

Loca

tion

s

Supp

lier

s

Ma

na

gem

ent

sy

stem

Operating Model Canvas---------------------

Can do in a day Can do in a month


Detailed operating models

One hundred page Operating Model

One thousand page Operating Manual

Can do in a 6 months Likely to take more than a year


1. Statement of strategy2. Stakeholder map3. List of design principles4. One page operating model5. Value chain map6. Organisation model7. People models for important skill groups8. Decision grid for important decisions9. Process owner grid for important processes10. High-level IT Blueprint for important applications11. Locations footprint showing important locations12. Supplier Matrix with a focus on collaborative partners13. Management calendar of important meetings14. Scorecard of projects and KPIs

A “10 page” output from an operating model project


1. Always include a strategy statement a value chain map and an organisation model

2. Include other frameworks, tables and charts depending on • The value proposition – what is important to the value

proposition• The difficulties you anticipate in delivering the strategy

– what is important to overcoming the difficulties• What guidance is needed by the functionally focused

teams (HR, IT, etc) who will do the more detailed work

How to decide what to include


1. Statement of strategy2. Stakeholder map3. List of design principles4. One page operating model5. Value chain map6. Organisation model7. People models for important skill groups8. Decision grid for important decisions9. Process owner grid for important processes10. High-level IT Blueprint for important applications11. Locations footprint for important locations12. Supplier Matrix with a focus on collaborative partners13. Management calendar of important meetings14. Scorecard of projects and KPIs



1. Which stakeholders: making it clear which are “mission” stakeholders

2. How to “segment” the mission stakeholders3. What products/services/value propositions to each

“segment” 4. Which geographies5. Which channels6. Which sources of excellence or advantage7. What significant operating initiatives

A statement of strategy


IT Function

Line Manager

Employees in IT

Business UnitsOutsource Partners

Central Functions

Employees/Users

Software Suppliers

Hardware Suppliers

Stakeholder Map for an IT function


Stakeholder map for a regulator of qualifications

• Colleges and schools have a role in providing feedback to the Regulator on the outcome of marking and super-moderation.

• Purchasers enable AOs’ to operate in the marketplace (license to operate)

Government oversight

Government Departments

Qualifications Producers

We are accountable to the Government for

delivery of its statutory objectives and is reliant

upon its support and legitmacy

• Accountable to government oversight committee

• Needs to assure that it is effective, competent and delivers VfM

• In return, Government provides ongoing support and legitimacy

We implement Government qualification policy and

receive ongoing financial and Ministerial support

We regulate Awarding Organisations (AO’s)

to ensure that they are accredited to provide qualifications that are valid (purpose, use,

assessment and performance)

• Holds two-ways conversations with Ministers and government departments to advise and help implement policy

• Government provides direction, listens to advice and provides ongoing financial and Ministerial support

• Regulator authorisesAO’s to publish / deliver qualifications

• Regulator authorises, supervises and takes enforcement action against recognition and accreditation conditions

• AO’s assure Regulator that they are compliant with those conditions or evidence that they can be removed

End Users

• Regulates AOs to ensure that qualifications of use and of value for students

…

Students

We protect schools, colleges and training organisations by regulating AOs so that they

can be confident that qualifications are valid, fit for

purpose and of value

We protect end users by regulating AO’s so that they

can be confident that qualifications are valid – fit for

purpose, comparable and differentiate performance

• Regulates AOs to ensure that End users have a role in defining the purpose of qualifications with AO’s

We protect students by regulating AOs so that they can be confident that qualifications are

fit for use, and of value

PartnersThose whocontrol us

Those weinfluenceand advise

We collaborate with other regulators, research bodies and government agencies to

share information

• Works with Universities to conduct research

• Shares common goals with related government agencies

Tosecure(andwherenecessaryreset)the

standardsofqualificationsandassessments,and

promoteconfidenceinthemtosecurea

healthy,robustandefficientqualifications

system

Purchasers

Those we protect

Those we regulateThose we collaborate with


Examples1. The operating model should enable product and sales

resources to be marshalled in support of new growth projects2. The operating model should enable easy integration of

acquisitions3. The operating model should give priority to technical sales

capability over general sales skills4. …..

Tool for summarizing design principles

Design principles

Design principle Link to strategy Implications for design

Should enable resourcesto be marshalled to support growth projects

Growth into new markets and products

• Structure by growth projects?• Allocate growth projects to

business units?• Enhance planning process?


Suppliers

Organisation

Customer/Beneficiary

Value Delivery Chain(s)

Management System

The Operating Model Canvas

Locations

Information


Up to the minute fashion

Affordable prices

Zara - illustration


Compensation and Benefits

Talent

OD

HR Consulting

HRStats

HRBPs

BU 1

BU 2

BU 3

Corp funct-ions

HR - example

IT function

ConsultantsRecruiters


Client (Relationships, Solutions, Negotiate, Admin, Deliver)

Open (Design, Market, Deliver)

House ( Design Solutions, Negotiate, Deliver)Qualifications (Design, Market, Admin, Deliver, Sales)

Research ( Design, Do Research, Publish)

Admin UK Mktg

UK Sales

Mid East S+MTailored courses and consulting

Open courses

Qualification coursesConferences and weddingsResearch

Associates

Hult Int’l Sales

HultServices

CRM database Booking

software

Website

BU structure

Ashridge - illustration


Open coursesTailoredQualificationsConferencesWeddingsResearch

All Value Chain Steps

Source of advantage

DesignBuild Clients Market Quote

/SellAdjust design Admin Deliver/

doFollow up

Issue qual

+ design

publish

Value propositions

A value chain map comparing chains




Source of advantage

*

***

Problem/Opportunity



doFollow up

Issue qual

+ design

publish

*

* *


Value propositions




Source of advantage

*

***

Problem/Opportunity



doFollow up

Issue qual

+ design

publish

Combine/manage together

Link or standardise

Separate and manage by segment

*

* *


Value propositions


Organisation Model

Head of structure

Operating Work

Policy e.g.

Core resource e.g.

Champion/Coordinate e.g.

Shared service e.g.

Lean/ Operating excellence

Key accountsFinance

HR

Research

Marketing

Finance services

HR services


People CultureCareersIncentives/ Value Prop

People Model – for Mark Warner


Decisions CEO Head of HR

Head of Mkg CFO BU MD

BU Sales

VP

Sales Targets I D R

Pricing for new customer I D/P

Marketing budget D I A

Product features D I

Salary structure D R/P

BU team appointments A I D

IT systems investment D I

etc

Decision Grid – using RAPID


Process owner grid – electrical equipmentValue Chain e.g------------

Org Units e.g

Design Buy Make Market Sell Etc

Product business units

Owner –manufacture

Selling unit by country

Owner –one process

R&D Owner

Purchasing Owner

Scheduling Owner -scheduling

Marketing Owner

Etc



Value Chain e.g------------

Org Units e.g


Product business units

Owner,Integ stand

Selling unit by country

Owner, Integ Besp

R&D Owner, Spec

Purchasing Owner, Integ Stand

Scheduling Owner,Integ Stand

Marketing Owner, Spec

Etc

Integ Stand = Integrated standard moduleERP Besp = Integrated bespoke moduleSpec = Special stand-alone application

Integrated into an enterprise solution

High-level IT Blueprint


Independent solutions


Locations Footprint


Is this a key activity in delivering value?NoH

ow g

ood

are

we

com

pare

d to

oth

ers? We do, if it does not distract We do

Outsource Design a collaborative agreement

Supplier Matrix

Yes

Bette

rW

orse


ManagementProcesses

Jan Feb Mar Apr May Jun Jul Aug Sep Oct No De

Executive Committee and Board

EC ECB

EC ECB

EC ECB

EC ECB

ECB

EC EC B

Strategic Planning * *Budgets and Target Setting * *Performance Monitoring P P P P P P P P P P P P

People Review *Major Project Reviews MP MP MP MP MP MP MP MP MP MP MP MP

Continuous Improvement

Management Calendar


T ipo de proyecto: Proyecto: SELL OUTSIDE MÉXICO

Business Case Oportunity statement

Objectives Project scope

Team memberProject plan

Team Charter

GUACAMOLE BALANCED SCORECARD Updated:

MISION, VISION, VALUES PROJECTS KEY PERFORM. INDICATORSVISION WHAT MÉXICO OUT MEXICO

Division of Grupo Guacamole internationaly Sell 500 m€ outside Mexico in 2 years 1 Sales forecast Jon 1 Ander 1recognised for providing world class solutions,products and services for electrical network Sell 200 m€ in specials with 20% margin 1 Turnover Peter 1 Jon 1infraestructures. Specials Andr 1 Ron 1

HOW EBIT Derek 3 Casidy 3MISION Specials Jon 3 Mat 3

Create SSU (1 m€/y) 1 HeadWe are a Division of Grupo Guacamole that currently SSU + HR Risk Ron 1 Mat 1operates in the electrical distribution sector. New plant and lay outs (10 m€/y) 1 Head of We seek to provide solutions for our customers production Cost of poor quality Jon 1 Casid 3by incorporating high added value products and services. SAP (7 m€) 1 Heads of

IT & SSU Safety AndrLocal sales capabilities (3 m€/y) 1 Head of

VALUES salesRe adapt production lines to specials (2 m€) 1 Each BU

- Flexibility GM- Leadership Organization design clarification 1 HR- Support- Pragmatism Moving offices / office in the forest 1 HR- Innovation

1

FACTURACIÓN BAI

1 1

PREVISION VENTA RELACIÓN COMPRA-VENTA RIESGO

3 1 1

1 1

Nº NO CONFORMIDADES SEGURIDAD VENTAS NUEVOS NEGOCIOS

0123456

02468

10121416

ago. sep. oct. nov. dic. ene. feb. mar. abr. may. jun. jul. ago.

M€

Facturación Total FacturasDescuentos Anticipos nº meses

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Nº NC total Total acum. Previsto

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Fecha 02/09/2014

Sponsor Area ChampionProyecto Leader

Objetivo final 33 m€Previsión actual

Fase actual del proyecto Status

Monthly reportMikel Gutierrez Mikel Gutierrez

6 Francia. 11 Iberoamérica. 12 España. 13 Internac. Rafael Sevilla

1

What I did last month

What I will do next monthSponsors coments

Problems I cannot solveWhat I learnt

Planning

Scorecard

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