Operating Model & Cost Management
Organisation-wide optimisation
Finding areas for improvement
Assess the Current Operating Model
Understand core components: Break down your operating model into its key parts - processes, technology, people, and governance.
Identify inefficiencies: Conduct a thorough audit of workflows, performance metrics, and value chain processes to find bottlenecks, redundancies, or areas that consume too many resources.
Align with Strategic Goals
Focus on what drives success: Ensure that the operating model aligns with your business strategy. Whether it's improving customer experience, increasing efficiency, or driving innovation, your model should support these objectives.
Leverage Technology
Automate and digitise: Identify tasks or processes that can be automated to reduce manual work and improve efficiency. Tools like AI, machine learning, and cloud technologies can optimize supply chain management, customer service, and back-office functions.
Improve data utilisation: Use data analytics to gain deeper insights into customer behaviors, market trends, and operational performance. This will help with more informed decision-making.
Enhance Agility and Flexibility
Adopt an agile framework: Shift toward agile methodologies in areas like product development or project management. This allows your business to respond faster to market changes and customer feedback.
Simplify structures: Reduce complexity in your organisation’s hierarchy to allow for faster decision-making and better collaboration across teams.
Optimise Resource Allocation
Focus on high-impact areas: Allocate resources (capital, personnel, technology) where they will have the greatest return on investment. Use cost-benefit analysis to ensure every dollar spent is generating value.
Outsource or partner when needed: Consider outsourcing non-core activities or partnering with specialists to reduce costs and improve efficiency.
Review and Adapt Regularly
Monitor key success metrics: Track performance through KPIs that are tied to your business objectives - such as customer satisfaction, cost per transaction, or time-to-market.
Be ready to pivot: The business environment is constantly evolving. Regularly review and adjust your operating model to remain competitive and responsive to market conditions.