Is your Operating Model future-proof?
Climate change, digitalisation and the effects of a linear take-make-waste economy are changing the fundamentals of doing business already today. Beyond management commitments and inclusion in the business strategy, it is essential to define the right operating model to stay in the game.
Let’s define an operating model: An operating model is an operational design that facilitates owners and employees to deliver all aspects of the business model (Rashed 2016). It puts your idea into gear and helps to break down roles, milestones, KPIs and deliverables for each and every day.
The Operating Model objective is to drive operational excellence across the operation and the supply chain eco-Systems of the enterprise. Using state of the art and industry-specific operating models covering business processes, systems, organization and people, as well as data and metrics.
What are Operations: all core functions of an enterprise from product development, Omni-channel selling activities, distribution, logistics, production, sourcing to procurement and finance. The functions are supported by business processes which are the first layer of a description of the Operating Model and the entry point into all other dimensions.
For established companies the operating model needs to adjust with the scope and speed of customer requirements and competition. Failure to do so, will render the business irrelevant.
For start-ups the operating model is especially important. Your idea, pitch deck and great team mean nothing if you have not defined a clear operating model. Some serial entrepreneurs and start-up founders even believe that an operating model is more important than your business model, as it fundamentally connects all the dots to execute your business model.
1. Climate change, digitalisation and the effects of a linear 'take make waste' economy are changing the fundamentals of doing business at unprecedented rates.
2. Leading companies differentiate themselves through a well designed and even better implemented operating model, to secure the heartbeat of the business.
3. Without a clearly defined and flexible operating model, a company will become irrelevant in the near future. The time to rethink, redesign and implement your operating model is now.