High-impact operating model design in action

Part 2: Realizing the ultimate influence

Posted by Tiffany McDowell Uzair Qadeer and Julia Rudansky on September 29, 2017.

In the first part of our three-part series on the design of high-impact operating models, we examined the role of operational model design in driving and sustaining the behaviors needed for a result. desired business. Here we examine examples of how business models influence behavior and where behavioral discussion integrates into the design process.

We can see a clear example of the influence of business models on behavior by examining two nations that are socially, geographically and politically similar: Canada and the United States. Both nations are driven by a similar political mission, vision and values, but the way each nation governs within these philosophical parameters differs considerably. Neither the governing institutions nor the underlying democratic vision supporting these governments are responsible for these varied outcomes. On the contrary, the way in which the components of government work together – that is, the country's operating model – determines how the respective nations deliver on their promise to govern.

The two nations have a constitution: Canada is a constitutional monarchy and the United States a republic. Canada is governed by a parliamentary cabinet and the United States is governed by three branches of government. These structures determine both the decision-making process and the behavioral outcomes of each government. First, the operating model influences the roles that politicians play in each country when they address the same legislative issues. Second, if a controversial bill becomes law, the process of repealing this law also differs remarkably between the two democratic neighbors. Finally, the government's operating model has a strong impact on how most citizens perceive the role of their government and their relationship with their government. The citizens of these two countries tend to see their relations with the government in a very different way and can therefore arrive at radically different conclusions for identical socio-political issues. For example, despite the fact that both countries have developed Western economies with democratic governments, universal access to health care is a widely accepted idea in Canada, while in the United States this remains a contentious issue. The operating model is a real influencer of behavior. It teaches people ways to execute processes, gather information, formulate points of view, and set standards in the system.

Operating Models "; undeniable influence on behavior

When building a home, strategic architecture and design choices influence how residents end up feeling and acting in their home. This is also true for organizational design choices. The operating model serves as building blocks that influence the operation. Modify the placement of a block, and you will change the behavioral results that result. For example, the impact of placement of organizational blocks can be seen in a global organization that has chosen to rethink into regional buckets. Because of the new structure, people have finally stopped worrying about events outside their own area. This environment has become comfortable, creating behaviors in unwanted silos. Once employees have worked long enough in the new system, learned behaviors have become global behaviors. This can be applied to any operating model, regional or otherwise.

Behavior is a two-way street; It is influenced by the design of the operating model and should influence the selection of the operating model. Organizations adopt certain behaviors and behaviors that then become common practice due to the positioning of organizational blocks.

We talked in depth about the link between behaviors and patterns of exploitation in the post, "Structure eats strategy for lunch: overview of the operational model design ." Behavioral considerations are an imperative to ensure that businesses are supported to change the culture of the organization to meet new age demands, such as digital. Without the proper behaviors in place, employees will not be able to embrace effectively and allow change. Simply put, there is no magic potion. Changing a business model and waiting for people to show up with changed mindsets and behaviors without planning them is just wishful thinking. It's like throwing a Ave Maria pass; Someone can catch the football, but again, it can just as well be a disappointing end.

Behaviors are not only results of the design of operating models, but they are also an input to guide strategic decision-making related to the design of business models. The positioning of the organizational blocks should be determined by pre-established desired behaviors. Design and execution occur around these desired behaviors. By keeping the structure, roles, incentives and all other operational factors constant and simply looking at the manipulation of the exploitation model, we find that the design of the operational model creates four key concepts:

The mission of the operating organization is a driver of how employees view their mission.
The operating model has a direct impact on the way employees communicate.
The operational model design has created a set of universal behaviors within a system.
The design of the operating model influences employees to deliver and see their jobs / roles in a certain way.

The step jumped

We know that functioning models can be the most important determinant of behavior in organizations. Yet, time and time again, well thought out transformations can fail because companies stop a shy critical step of holistic business model design. They reflect on most nuances of the future state, from vision to strategy, through structure, business processes and change facilitation, but do not take into account the types of behaviors that these new stories will create. configurations. ways to process the information required to achieve the desired results. If the simple business process change and change management could be transformative, the transformations would never fail.

The real foundation for effective transformations is the design of business models to create an infrastructure that is primed to enable the desired behaviors. To link the business model to the final phase, the desired end product, it is crucial to understand and identify the organizational behaviors needed to ensure that the new structure and approach function as intended. Perhaps the only thing that prevents success is this "skipped step".

Source: Deloitte Consulting LLP

Whereas the skipped step is how you can achieve structural alignment with other organizational elements that lead to congruence. To do this, one must understand the behavioral results, then work backwards to understand the design needs in order to achieve the desired behavioral outcomes.

Transformations of the future should not be shy, especially when this step – from redesigning business processes to impacting behaviors and culture – can make the difference between success and success. # 39; failure.

In our last article in this series, we focus on action: how organizations can put into practice their understanding of the role of behaviors. Stay tuned for high impact business design in action: put behaviors in the foreground.

Tiffany McDowell is a leading Transformation & Talent organization in the human capital practice of Deloitte Consulting LLP, where she focuses on helping companies improve their performance. by building new structures. abilities through their workforce.

Uzair Qadeer is responsible for the organizational transformation and talent in human capital practice of Deloitte Consulting LLP, where he specializes in organizational development. and talent strategies. Uzair has provided transformative organizational strategies that work both in the United States and internationally.

Julia Rudansky is a consultant in organization and talent transformation in the practice of human capital of Deloitte Consulting LLP and focuses on organizational strategies, talent, change management and strategic communications.

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