Is your operating model still fit for purpose?

Starbucks cup illustration - Target Operating Model

The ability to adapt, innovate, problem-solve, and change is what separates those organisations who survive the ups and downs of modern life from those who don’t. To use a quote often attributed to Charles Darwin:

“It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is most adaptable to change.”

Over the past four months local authorities up and down the country, have been adapting their business models to cope with a turbulent operating environment. You will have modified the types of services you offer and reduced some others, you will have changed the mechanisms by which services are delivered to your customers, and changed the ways your colleagues interact and work together.

This has all happened really quickly, and you are probably at a point now where you are ready to take a step back and consider the impact of all of this on your future operating model.

A case study in operating model design...

Starbucks recently did something really bold. They outlined their transformation plans and announced a significant change to their future operating model. The change involves closing around 400 of their stores and transitioning to a ‘pick up’ business model where customers will order their Starbucks fix through an app and either collect it or have it delivered to them. This is a huge departure from the original concept for Starbucks which was based on becoming the ‘Third Place’ for their customers.*

So why make the change? Well in a nutshell, it’s what their customers want, and they have the data to prove it.

*Read the book “Pour Your Heart Into It: How Starbucks Built a Company One Cup at a Time” by Starbucks’ ex-CEO Howard Schultz to find out more about the original Starbucks ideas and concepts that made it the household name it is today.

What does this mean for my organisation?

The end of the Starbucks article linked above provides some really useful reflection points, and to sum them up we ask; have you got data that clearly shows what your customers want and need from you as local authorities?

This is the starting point for Target Operating Model (TOM) design; what your purpose is as an organisation and as such what your customers value. Going back to such basics can be hard work, but not as hard as doing it piecemeal, and it is necessary if you are going to reap the ultimate rewards. Explore our guide for tips on designing and implementing your TOM.

We’ve been supporting organisations to successfully design and implement new operating models for over 15 years. If you’d like to explore ways we could support you, or even just use us as a sounding board, then drop us an email with your availability and one of our Directors will get in touch.

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