Is your target operating model fit for purpose?

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.”

Organisations regularly adapt their business models to cope with the 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.

What does this mean for my organisation?

The Starbucks case study 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 an organisation?

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 Knowledge Hub for tips on designing and implementing your TOM.