Our operating model design services will ensure your organisation supports and delivers on your strategy.

We believe an organisation must evolve to support its strategy. That involves changes to organisational structures, processes, technology, the way talent is rewarded, behaviours and culture.

In today’s hyper connected and competitive world, operating challenges have become more complex as organisations must be designed to support many more growth avenues, new products, new steps of the value chain, new geographies, new customer segments and new channels.

At Cygnis we believe a great operating model design is a critical success factor for organisations. A well thought through and designed operating model serves as the bridge between strategic intent and turning strategy into a reality.

But, how do you design an operating model?

We recommend a five-step approach for the design and implementation of an operating model:

  1. Identify the strategic priorities and assess the effectiveness of the current operating model in supporting those strategic priorities
  2. Develop operating model design principles that will guide the design and decisions. Articulate the capabilities that the new operating model will require e.g. new distribution channels, global team, customer-centric vs. market-centric
  3. Evaluate the operating model design principles and capabilities against a series of high level ‘macro’ operating model options
  4. Select the best ‘macro’ option to go forward with and detail what that will look like across typical areas of an operating model (people, process, technology, etc.)
  5. Bring all this together into an implementation plan e.g. a blueprint new operating model, a project plan and a change plan

Each company’s path to a new operating model is unique, but successful operating model designs and transformations are all constructed with similar steps to those above.

A common mistake we have seen time and again when helping clients is to have a narrow focus on one department or area of a business without considering the impact to the broader organisation. We’ve seen organisations move full steam ahead with a new organization design that integrated multiple independent business divisions in order to encourage cross-selling. However, the size of the opportunity was not appropriately considered against the cost, complexity and disruption caused by moving all the divisions into one. They didn’t realise the original cross-selling benefit and lost revenue momentum in existing divisions due to the disruption.

While it may be tempting to focus on a more narrow approach to operational improvements, these fragmented initiatives rarely succeed long-term and can end up wasting valuable time and resources.

Our approach is to help organisations build a competitive advantage at every level of their operations from the development of more effective models for delivering services, product development, planning, manufacturing and distribution.

We also work with executives and leaders that are faced with the need to restructure, lower costs, increase productivity and get the most out of the workforce and assets to remain competitive.

Our operating model design services
  • Facilitating operating model principles
  • Business capability modelling
  • Assessing effectiveness of operating model
  • Develop operating model designs
  • Establish operating model initiative

What to read next

We also recommend reading the HBR article “Is Your Company Actually Set Up to Support Your Strategy?” by Eric Garton, November 2017.

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