02 operating model (updated)

Operating Model

Day 2

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What were the most important ideas/points discussed in Day 1?

Recap / Day 1







DAY 2:


Operating Model

Identifying the phases related to the process of strategic planning.

Highlighting the operating model and all the components related to it.

Defining strategic goals and how they should be aligned with business strategy.

Recognizing the main parties involved in the strategic planning process.

Sharing some tips and advice on how to implement a business plan strategy.






“Without a strategy the organization is like a ship without a rudder, going around in circles.”

Joel Ross and Michael Kami

Quoting







which are required for firms to achieve:

strategic competitiveness

sustained competitive advantage

above‐average return on investment

1.The Strategic Management Process (1 of 2)

Involves the full set of:

ActionsCommitments Decisions







Drawing a Strategy Map

TRANSLATE STRATEGY

Mission / Vision Strategy Map Targets Initiatives

ORGANIZATION ALIGNMENT

Corporate Role SBU Goals Shared Services External Partners

EXECUTIVE LEADERSHIP

Top Management Support Executive Team Engaged Accountability & Results A Performance Culture

CONTINUAL PROCESS

Linked to Budgeting Linked to Mgt Operations Management Meetings Feedback System Learning Process

EVERYONE’S JOB

Strategic Awareness Goal Alignment Professional Responsibility

Strategy Focused

Organization

1.The Strategic Management Process (2 of 2)







Human Resources

Operations

Finance& Accounting

Information Technology

Marketing& Sales

Understand the perspective of our internal business partners:

2.Internal Factors

Finance: ‐ Pricing products ‐ Creating financial models

Accounting: ‐ Accounts payable ‐ Accounts receivables, etc.

Marketing: ‐ Plan, price, promote, &

distribute goods/services.Sales: ‐ Sell company’s product in the marketplace, etc.

Operations: ‐ Focus on productivity, quality, cost, delivery, & performance.

‐ Supply chain.

Human Resources: ‐ Attract, retrain, retain and reward. ‐ Define core/managerial & technical competencies

Information Technology: ‐ Identifying strategic information system that is dependable & reliable. ‐ Can save time/cost on the company, etc.

Strategic Management Parties involved: ‐ Owners ‐ Directors/Managers ‐

Supervisors/employees ‐ Suppliers/clients/etc.







3.Internal/External Stakeholders

Internal Stakeholders External Stakeholders

COMPANY

Employees

Manager

Owners

Suppliers

Society

Government

Creditors

Shareholders

Customers







Environmental Realities

Organizational RealitiesVision

Mission Culture

Organizational Strategy(Objectives)

Company Structure )Workplace design(

HR Requirements )Competencies(

Business StrategyPerformance Management

GROUP ACTIVITY







4. Mckinsey’s 7s Model

Consider the impact of change upon these 7Ss:

Strategy

Systems

Staff

Skills

Style

Shared values

Structure

The vision and business plan; (is there a new direction and a need to re plan?)‐

Computer/manual processes; (are we more efficient? Where can we improve?)

The affected parties; (are they accepting and coping with the changes now?)

Future knowledge and skills needed; (what are the training programs needed?)

Methods of communication; (any issues faced? how technology has affected people?)

Culture and ethics; (are we contradicting ourselves or being on the right track?)

Reporting Lines and framework; (is decision making enhanced or duplicated?)







5.Operating Model

Objectives of the Operating Model:

To foster a culture of innovation and enterprise development though partnerships in a community based‐ system.

To support across the developmental value chain, from funding support, to R&D, manufacturing, marketing, servicing and standards development.

The operating model is the first key deliverable in any organizational design. It describes in broad terms how the new organization will operate and interact with its customers and other stakeholders.







5a. A Framework for Change Management Model







Example of a High Level Retail Operating Model







Example of Operating Model (e.g. for Finance)







5b. How to Design the Operating Model

5 Major Steps to be considered:







5c. How OD Supports Organizational Effectiveness







6.Service Management (1 of 2)

Service management is about:a. building relationships with key customers and stakeholdersb. ensuring that the services delivered meet customers’ needs.

Best service management exists to meet regularly with people to share objectives, review past performance and set expectations for future activity.

A successful service management team will continually check the alignment of the services from the shared service center with the goals and objectives of the customer groups.







re c

Service management is usually made up of the following key activities:• Quality control to monitor standard processes and outputs on a day by day basis.• Performance measurement to track volumes and adherence to service KPIs within cost• Process improvement teams to manage change requests and to act to correct service non ‐

compliance in a timely manner.• Service level agreement )SLA( management to set up suitable SLAs that define the

responsibilities between service provider and customer.• Performance reporting of KPIs and balanced scorecard on a regular basis to inform the

dialog between the service provider and the customer.• Customer satisfaction feedback surveys to measure baseline satisfaction with services on a

regular basis• Governance boards, which meet on a quarterly or half‐yearly basis to review overall

performance and prioritize new services for roll‐out, improvements to be scheduled or investments to be made.

6.Service Management (2 of 2)







6a. Service Management Activities







6b. Service Management Phases







Strategic planning is an essential business activity. It is practiced widely informally or formally.

Strategic planning and decision making process should result in SMART goals and agreed‐upon objectives.

Concepts to be used in strategic planning include: ‐ programs ‐ policies ‐ plans ‐ actions ‐ tactics ‐ strategies ‐ goals and objectives

We need to have a clear roadmap that defines the ways things are best achieved in the organization taking into account people productivity and efficiency in performing their tasks, duties and responsibilities.

7.Goals, Objectives and Targets (1 of 3)







The definition regarding these concepts vary, overlap and fail to achieve clarity!

There are common features among goals, objectives and targets. They are mainly specific, measurable, achievable, realistic and time bound.

It is important to identify priority objectives and goals and develop clear action plans to reach the desired outcome quantitatively and qualitatively.

Shareholders may have several goals at the same time: ‐ To achieve higher profits. ‐ To gain competitive advantage. ‐ To ensure bigger market share.

“Goal Congruency” refers to how well the goals are combined with each other. For example: Does GOAL “A” appear compatible with GOAL “B”?Do they fit together to form a unified strategy?








We recommend to have short‐term, medium and long‐term goals.So one should expect that short term ‐ goals are easily attainable and fairly assessed.

To achieve the desired goals and outcomes, this mainly requires:‐ Commitment‐ Concentration‐ Communication‐ Coordination ‐ Resource planning ‐ Time management ‐ Budget

Above all, in order to become really effective, LEADERS in the organization should have the responsibility for: ‐ communicating the vision of the shareholders ‐ creating a sound strategic plan ‐ setting an action plan ‐ defining the short and long term objectives to‐ be compatible with the company vision, mission, and business strategy.








7a. Diagnosing Development Level (1 of 2)

What is the specific goal or task you want to accomplish? )Clarity of vision(

How strong or good are the individuals demonstrating task knowledge and skills? )Learning or doing(

How strong or good have the individual’s transferable skills? )Ability or self‐efficacy(

How motivated, interested and enthusiastic is the individual? )Attitude: + or ‐(

How confident or self‐assured is the person? )Personality A/B or AB(







7a. Diagnosing Development Level (2 of 2)


D4 D3 D2 D1Doing

Can do goal or taskwithout direction

LearningCannot do goal or task

without Direction

Attitude+ - - +D4 D3 D2 D1






1 Board Members:• Vision / Goals• Support / Focus• Monitor Effectiveness• Shares / Perks

4 Individual / Employee• Self‐awareness• Job Performance• Professionalism & Career

Planning, training• Bonus / Promotion /

Merit

2 Group Organization:• Strategy• Systems / Processes• Technology / Help• Gain Sharing / Bonus

3


Manager / Supervisor:• Performance Management• Development & Coaching• Succession Planning• Bonus / Merit / Benefits• Others

7b. Identifying Corporate Responsibilities






8.Business Partners’ Requirements

To be successful, LEADERS must concentrate on the SEVEN key elements:

Abilities

Skills

Development

Attitude

Ethics

Recognition

Knowledge







Be part of the business management team with specific responsibility for leading the development and implementation of proper solutions in place.

Champion, drive and embed the functional agenda with the business customers and ensure its inclusion in the business planning process.

Support change initiatives undertaken by business customers.

Manage relationships with business customers on a face to face basis.

Conduct regular discussions where customers can raise issues, concerns and ideas, etc.( to improve accordingly.

Act as a facilitator for major communications and change management. Work with senior managers on solving issues and managing change.

Consolidate and capture the customer feedback and respond adequately.

8a. The Role of a Business Partners







8b. Dimensions of Change


Business partnering

Strategic perspective

Organizational Change

New Technology

Diversity & work life‐ balance

Decentralization

Shift in responsibilities

Outsourcing

Off shoring

Social responsibility

Development of people

Measurements

Mergers & acquisitions

Employee relations






Steven Covey

7 Habits for Highly Effective People

Conclusion







02 operating model (updated)

Leadership & Management