Last week, I discussed the importance and impact of defining a broader set of enablers when rethinking your operating model. This was focused on expanding upon those well-versed and defined operating model pillars of people, process and technology.

In reflecting on the enablers outlined last week, it got me thinking about another critical set of factors that we always seek to take to into consideration when working with our clients, which is, what are the influencers on the operating model.

This can be best summed up by those factors that are not always controlled by the organisation but significantly impact the delivery and therefore the rethinking of the operating model.

In breaking down these influencing factors, I have overlaid the imagery illustrated in my last blog on this topic.

Influencers in Rethinking your Operating Model

1. Culture and values

One common misconception is that organisation culture and staff values are enablers. In our view these factors are better described as outcomes, where the design and management of the organisation and personal drivers shape culture and staff values respectively. As outcomes, these factors influence the operating model both in respect how change is embedded as well as the supporting structures that need to be put in place.

2. Suppliers

The supplier is a key influencer in any rethinking of the operating model, both in respect of the effectiveness of supply chain management and the product lifecycle management. Suppliers must be a key consideration and stakeholder through any rethinking of the operating model.

3. Customers

The customer influences the operating model through the requirements they have, the state of the relationship and their satisfaction in the product or service. Always seen as a common driver within the Business model, it is important to understand how they shape and influence the ‘how’ in delivering the organisations products and servicesAlthough, not exhaustive, when combined with the operating model enablers, these influencers provide key insight into what needs to be considered and recognised when identifying, developing and embedding your rethinking of ‘how’.

If you want to read the first installment of Richie’s series on Operating Models, click the link below: