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OUTLOOK


Four signs your operating model will fail

Trouble is brewing for 78 percent of executives who think their operating model can’t support their business strategy. Here’s how to spot the red flags.

AT A GLANCE

The story might be familiar: A company rolls out a new strategy that promises sustained growth and competitiveness, and yet a couple of years down the road nothing happens. The reason might be the inability to transform the operating model in order to support the new strategy. Global Accenture Strategy data confirms: More than 80 percent of executives agree that advanced operating models are enablers of strategic growth, but only 22 percent think their company’s operating model is able to support the strategy. How can you tell if your operating model isn’t holding up?


The four signs of a failing operating model Have you noticed these red flags within your own company? Click the start button below to begin.
Weak Operating Path Weak Operating Pin
The four signs of a failing operating model Have you noticed these red flags within your own company?
The operating model is not clearly defined and documented. Prepare for turbulence if the model’s key components ― priority activities, distinct capabilities, leadership roles, resources, decision-making processes, etc. ― don’t map back to your strategy. Carefully defining how your company should be (re)structured to execute its new strategy will go a long way.
Board room breakthrough Ask yourself: How should the operating model help our company drive growth? How do we ensure that our business units plan, act and measure in concert with each other?
The C-suite disagrees. When executives battle over how to align to and fund the growth strategy, the operating model is at risk of breaking down. From the CEO to the CTO to the CHRO, everyone needs to align their goals in order to support a high-performing operating model.
Board room breakthrough Ask yourself: Is our C-suite aligned on the core principles of the growth strategy? How do we enable an effective collaboration between our executives?
Talent isn’t aligned to the new strategy. People are the pillars of your operating model so expect breakdowns if their roles are not changing to support the new strategy. Performance metrics should adapt as the model changes.
Board room breakthrough Ask yourself: How will we allocate resources? What new performance metrics do we need to create?
Digital is just a storefront. Flaunting digital capabilities but only integrating them in some areas, such as marketing and sales, is a red flag for the future of your operating model. Digital should drive your operating model across all fronts, from finance to supply chain to human resources.
Board room breakthrough Ask yourself: How does digital disruption affect not just our business models but also our end-to-end value chain? What benefits do we expect from fully digitizing our operating model?

A CLOSER LOOK

Is your operating model holding you back from growth?

Read More

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