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Transforming your operating model for the market !
By Ashutosh Kumar
A flexible operating model is essential for maximising profitability and ensuring customer success over the long term.

Every business wants to stay ahead of its competitor, and one of the many ways to do it is to build a solid customer base. Loyal and satisfied customers say a lot about your business. And to build this customer success, most companies adopt the best operating model in the industry.

But one size does not fit all. And this is why, when adopting one, you need to customise your operating model. The market is constantly changing, and fitting your operating model to the emerging market is the need of the hour.

The emerging trends in digital transformation, the growth of big data and analytics, process automation, and different technologies are shifting value for the customer journey.

For many businesses, this results in constant transformation, interruption, and an elevated risk of market obsolescence. Across different sectors, market leaders are adopting the flexible operating model to combat this.

A flexible model is essential for long-term success to maximise profitability and ensure customer success. It should help businesses move faster, adopt changes quickly, make smarter use of technology, and improve overall performance. But many fail in their attempts to transform an operating model successfully.

So, how to transform an existing model into one that is more flexible that meets the rising demands of the future?

Using Target Operating Models to Drive Transformation

Before we dive into transforming operating models, let's understand why organisations need transformation.

The existing operating model states how things are currently running at the organisation; how employees’ work flow, the services they provide to the market, how they build client relations, source new leads, etc.

The Target Operating Model (TOM) steers the organisation correctly and brings it closer to growth and transformation. It creates an optimised way of working and helps the organisation prioritise needs.

In simpler terms, TOM envisions the future and creates a path to adopt the changes required by gradual transformation.

For instance, a wholesaler manufacturer who supplies to markets in its region suddenly faces competition from online wholesaler markets. Due to changes in demand, they need to adopt an online business strategy and shift their supply channels.

With an effective operating model, they can continue their sales in the existing channels while slowly reaching potential clients online.

Digital transformation is one of the key factors driving the change in the operating model. Almost 70% of organisations are working on digital transformation strategies globally. As a result, companies should transform to meet the demands of the digital space.

Benefits of Transforming Operating Model for Business

Operating models must effectively meet the changes in customer behaviour, business disruption, and adopting new technology.

It may be easy to adopt an operational approach that is content with how the employees and resources are. But in the long run, this will only obstruct the company's growth. You will fail to be ahead of the game.

The strategy of the organisation keeps changing with time. Clients demand change, the need for reducing costs arise, utilising new resources efficiently, different markets open up, and all these factors should align with the operating model. Understanding how things were, the recent changes, and how they can be in the future is why transformation is vital.

1. Cost-Cutting Measures

This is not about saving money. Transforming your operating model helps you to re-evaluate where your business money is going. Is it aligning with the business strategy? Are any resources drawing up extra costs without producing any actual results?

Assessing different factors, you can take steps to redistribute the costs to make sure you are spending in the right areas. As a result, in the long run, you end up saving company resources.

2. Boosts Employee Performance

Organisations undergo transformation keeping the needs of employees in mind because they set your business for success. When operations support the staff in their work, they feel motivated and satisfied. This means they will be more productive and give the best output.

3. Increase Customer and Business Engagement

Transforming the operating model to a more responsive model results in increased consumer understanding. This means you can anticipate market needs and customer preferences and build better relations with them.

Also, transforming the model means you can provide better services and support to customers, leading to more customers. So, this helps increase revenue.

4. Utilise Data

Given the exponential growth of data, utilising data for the transformation of the operating model is a crucial element in building what is suitable for the future. Data can support the sustainable growth of the business by providing real-time insights and helping them make informed decisions.

According to research, almost 51% of respondents agree that data is an integral part of their business strategy. At Growth Jockey, we use real-time insights and analytics to understand the scope of businesses.

5. Operational Efficiency

As business strategy changes, so do the need for the function of the operating model. Transforming the operating model ensures the current team’s capabilities, resources, and objectives meet the organisation's goals. A good model supports everything running smoothly, automates processes wherever required, and keeps costs low.

Growth Jockey’s Guide to Operating Model Transformation

The idea of transformation sounds scary, and most businesses will agree that they do not look forward to this part. Organisations often result in chaos when they try to transform. Also, many complain that the transformation does not work for them.

A single operating mode can only benefit some sectors. An organisation should understand and identify its business goals and build its operating model around them instead of focusing on someone else's model.

Before getting ready to transform the operating model, it is important to understand the effectiveness of the current operating model. Everyone from the department leader to the head should be involved in the process.

Experts at Growth Jockey can support businesses to transform their existing operating model to keep up with the changes in the industry. Our experts recommend asking the following questions to make the process easier for any organisation.

  • How well has the organisation been able to march along with new changes, and what new offerings has it made?

  • How well has the organisation been able to scale?

  • Does the existing operating model need to be changed?

  • What aspects of the existing model need to be changed, and how can it be changed?

  • What will be the impact of the new changes on the organisation?

Some key factors essential for planning operating model transformation projects are discussed below.

1. Evaluate

The first step before executing is to assess the existing operating model. Is it in alignment with your business strategy? What are the results it is yielding in your business? How happy are your customers with the current operation?

Create a detailed breakdown of the entire operating model to understand your business's shortcomings and how you can improve.

2. Plan

When you design the targeted operating model, keep in mind the interests of stakeholders, employees, shareholders, and customers. After you evaluate these factors, carefully plan the operating model. How can you provide better support to customers? Are you giving the employees the flexibility they require? How will you handle change in customer behaviour?

A detailed picture of how your organisation can operate better and make the most of the available resources should be the primary goal of planning the model for the market.

3. Action

The final step is to put the plan into action. Transformation of the operating model means a large-scale and sudden transformation. The implementation of this requires a systematic approach and cooperation from all parties involved in the project.

To carry out the project of transformation successfully, take help from experts. Growth Jockey can help businesses connect with the right resources that can support a 5x cost reduction.

Our Final Words

In the end, it is not enough for organisations to have an operating model. Organisations must adapt to stay ahead in the changing market scenario. The only thing that limits this is a rigid operating model.

It starts with transforming operating model for the market, keeping in mind the future. Many organisations struggle to adjust when there's a shift in the landscape. But uncertainty is inevitable, and organisations should be prepared to face it.

If you are in need of an operating model or in the process of redesigning one, Growth Jockey can help. We understand each company is unique. Our strategy is to understand the needs of the company first, where they stand and assess the potential for market growth.

Our expert team has extensive knowledge in designing operating models. We know the market is going to continue to transform. And we aim to prepare organisations to stay flexible by adopting new changes. Our operating models align with this principle.

At Growth Jockey, we are fully committed to developing customised operating models that effectively address the critical challenges faced by our clients across various industries. Irrespective of your company's size, whether it's a small-scale enterprise or a large corporation, you can now benefit from our tailored solutions.
Take the decisive step towards unlocking the next level of growth for your brand by reaching out to us today!

3rd Floor, GJPL, Time Square Building, Sushant Lok, Gurugram, 120009
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25/23, Karpaga Vinayagar Kovil St, Kandhanchanvadi Perungudi, Kancheepuram, Chennai, Tamil Nadu, 600096
19 Graham Street, Irvine, CA - 92617, US
3rd Floor, GJPL, Time Square Building, Sushant Lok, Gurugram, 120009
Ward No. 06, Prevejabad, Sonpur Nitar Chand Wari, Sonpur, Saran, Bihar, 841101
Shreeji Tower, 3rd Floor, Guwahati, Assam, 781005
25/23, Karpaga Vinayagar Kovil St, Kandhanchanvadi Perungudi, Kancheepuram, Chennai, Tamil Nadu, 600096
19 Graham Street, Irvine, CA - 92617, US

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