High-impact operating model design in action
Part 3: Putting Behaviors in the Foreground
By understanding how behaviors are both essential inputs and outputs of operational model design, organizations can effectively navigate the ever-changing market waters and create the customer-centric organization of tomorrow. In this series, we discussed how a behavioral exploitation model can help reduce risk in commercial transformations and how the operational model influences behaviors ( and vice versa). But, of course, knowing that behaviors are a crucial entry and exit from the design of the operating model is only half the battle. The way organizations put this into practice is also essential to ensure that the business model does its job and leads the organization. In our last article, we look at this "how to".
The design of the operational model is the starting point for a transformation or a change, when leaders must address difficult problems and discuss the structural features that support and provide the bones for culture. The decision to design a new business model is a strategic decision based on the assessment and in-depth understanding of desired behavioral outcomes based on mission, vision, core values, market changes and current organizational inefficiencies. .
As organizations analyze the organizational behaviors of the current state and reflect on the desired future state, there are some key questions to consider:
Which configuration of the operating model reflects the vision and mission of our organization?
What behaviors should we mobilize to successfully implement our strategy?
What affiliation to the profession, purpose and mission leads and will continue to lead our people?
What kind of culture do we want our business model to promote in our organization?
Here is an example of how a company approached the effort.
Case in Point
Although advanced analytical functions are commonplace in the consumer goods industry, they are relatively nascent in pharmaceuticals. A global life sciences organization has embarked on a mission of deploying a strong analytical function by combining some existing teams with a slew of new and innovative ones. This unique situation required a unique approach, so with a new team leader at the head of the charge, the company undertook to identify the final behaviors needed in order to be able to design an operational model capable of drive them.
Source: Deloitte Consulting LLP
Mobilizing for Action
The transformation of the operational model does not involve reorganization; it's about linking strategy to behavior. People need to be empowered to act, communicate and provide their jobs in new ways so that they can effectively execute the organization's strategic plan. The model should allow people to follow the right steps, just like a trail designed to cross a park intuitively allows passersby to cross the park while staying on track. Leaders should take a holistic approach to the design of the business model, from strategy to behavior, taking into account not only the high-level structure, but also how tasks will be executed and how people will do their work.
Here are some steps to consider when you make organizational behavior an essential part of designing your operating model:
Break at the summit before going too far downstream . Organizational transformation is not limited to solving the structure and processes. Leaders should start upstream and really understand the behavioral implications of operating model selection. Leverage tools and analytical capabilities to deliberately guide these organizational elements instead of just letting them happen.
Recognize that the exploitation model informs so many other elements within an organization . The operating model has an impact on the organization's design, culture, leadership, talent, network of employees, agility and so much more. All these elements must be carefully considered. If the leaders do not understand the choice of the operating model, they will probably have trouble with other organizational elements.
Invest to get it right from the beginning . By taking the time to evaluate current and desired behaviors, you can choose the operational model that synchronizes desired behavioral outcomes with strategic goals. You can build a solid platform that dictates all other moving parts, and helps establish long-term successes down the road.
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