Target Operating Model
Delivering Operational Excellence

An effective, profitable and efficient target operating model is critical to your strategy and long-term goals. So you can quickly adapt to shifting customer demand, grow into new markets, sell new products, innovate or be compliant.

Our Solution

Our target operating model design service is more than the traditional approach of delivering improvements to your organisation’s people, processes and technology.

We also look at how you deliver your services internally and with external partners, reviewing the level of governance and oversight required for effective and compliant levels of control. We work out how your data can give an accurate picture of where you are right now and then reliably track and measure the impact of changes and improvements moving forward.

Change is no longer daunting and developing a business case is fluid, robust and commercially viable. So you improve your organisation’s financial performance, efficiencies, staff satisfaction and customer experience.

Steve Hepworth
Partner, Operational Excellence

Steve Hepworth

Solving These Challenges and Bringing These Benefits

Challenges

  • Jumping to solutions before understanding the impact of the problem you are trying to solve.

  • Understanding the wider impact and potential benefits of a new product/idea.
  • Underperforming products and services.
  • Inefficient processes; internal, systems, customer journeys.
  • Lack of verified evidence to support key business decisions and failing to deliver what the business case promised.

  • Weak levels of control and understanding of customer demand drivers.
  • Understanding of the true impact of change across the organisation.

  • Stuck in a cycle of working to collect data and information, instead of getting it to work for you.

Benefits

  • Increased profitability/return on investments and reduced running costs.
  • Improved staff and customer satisfaction.
  • Quicker, leaner processes.
  • Embedding responsiveness and agility into the operating capabilities of the business for competitive advantage when conditions change.

  • Increased control of potential outcomes of transformation, supported by impact modelling and prototyping solutions.
  • Intelligent data-driven insights, supporting more pro-active operations and service management, including; recruitment, outsourcing, and commercial financial management.
  • Reduced exposure to risks of non-compliance and other factors.

What We Do

Our comprehensive methodology allows an organisation to select the right approach and implement it at a feasible pace. Setting the scope of where changes are needed, the priorities and forming the road-map through delivery.

Strategic Vision

Focusing on ‘why’ you exist as an organisation; what you believe in, what’s important to your customers and what you want to be.

This supports the creation of a strategic plan to deliver on your vision. Generating your competitive edge and establishing your headline delivery goals. Setting purpose, motivation and identity for your staff, suppliers and customers.

Design Principles

With a clear understanding of your strategic vision, your design principles form a series of statements about how you will deliver your strategic goals.

As simple or as complex as needed, they are initial target metrics, which evolve once the evidence base for the current state is captured.

Services and Capabilities

The evidence base to support the ‘current state’ can be captured and understood.

We document the current capabilities of the organisation, mapping these against existing services and clearly identifying those services that rely on outsourcing.

Processes, People and Technology
  • Accurate detail is gathered and initial analysis for an evidence-based view of your organisation. Through interviews, workshops and collaborative working. Your systems processes and customer journeys are mapped and understood.
  • Organisational views and hierarchies are captured and existing use of systems, technologies and applications is documented.
Data and Information

Now all areas of process, people and technology are quantified. Current and historic trend data is captured, for example:

  • Capacity and demand for products and services
  • Financial budgets, forecasts and actuals.
  • Staff headcounts, full-time equivalents and pay gradings and scales.
  • Outsource contracts and commitments.
  • Benchmarking and other external markets.
Insights and Analysis

Next, we look at how the organisation is currently performing.

  • Multiple views will evolve, highlighting strengths, weaknesses, areas of high value and waste.
  • Your performance-whether by service, team, product or as a whole organisation-becomes visible
  • Areas for improving, changing or making more of will become clear.

This evidence base enables you to track potential change.

Modelling, Prototyping and Business Case
  • Through interviews, workshops and collaborative working, your systems processes and customer journeys are mapped and understood.
  • Organisational views and hierarchies are captured and existing use of systems, technologies and applications are documented.
Delivery and Benefits Tracking
  • The business case is ready to be managed through all stages to delivery.
  • The preceding insights and modelling allow you to manage change and track the realisation of expected benefits.
  • Establishing fully engaged and consulted staff and customer groups, along with the correct processes for any vendor selection and commercial negotiations.
Environmental, Social and Governance
  • Full oversight of current state risks, controls, policies and procedures provided at every step of the process
  • This continually evolves to support the new organisational changes.
  • Necessary changes to existing policies, governance and reporting approaches are identified via constant review.
  • Regular development, improvements and mitigations for continued compliance, adding value to the organisation and broader community.

How it is Delivered

The target operating model programme is based on four core principles – comprehensively evaluate all dependencies, but only do what is needed, achieve benefits quickly, and progress in a ‘planned and agile manner’. Delivered through 5 stages:

We begin with mapping the customer experience across all-important customer touchpoints, using priority ‘customer scenarios’ to guide the time investment during this insight stage. Augmenting with customer needs research, analytics and customer service insights where available. As an example, the following end-to-end areas would be analysed for a digital software business:

1. Programme Governance & Delivery Plan

  • Governance is deployed for the programme to speed decision-making and control.
  • An initial programme framework is created for all stages of the transformation – planning, execution and iteration – so timescales are clear, benefits are delivered and the transformation occurs at pace.

2. Insight & Analysis

  • Using the ‘needs analysis outputs’ all areas of change needed are identified.
  • The additional analysis highlights the organisation’s capability to undertake change.

3. Delivery Plan & Roadmap

  • A transformation plan is created using the analysis.
  • Identified improvements and change capabilities are subjected to a cost-to-benefit, importance, timeliness to deliver, and interdependency review.
  • Prioritisation is mapped and the investment case to support the initiative.
  • A delivery roadmap is evolved, supported by critical success KPIs.

4. Integrated Delivery & Governance

  • The delivery roadmap guides the change process.
  • Planning and change are controlled and measured centrally so everything happens at the right time and clear reporting informs all stakeholders of progress and success.
  • Central planning controls the overall programme and delivery is conducted through agile sprints, cross-functional working practices and organisational empowerment to deliver benefits quickly. The elected creation process may not be ‘agile’ but our delivery uses those principles for maximum benefit.
  • Everything is supported by clear and meaningful internal communications to enable buy-in across the full organisation.

5. Measure & Iterate

  • Critical success KPIs are used to measure outcomes and the success of the process for all stages and streams. Identifying needs for iteration.
  • Adaptability is baked into the approach for agility to shifting conditions and business goals.
  • With success enhanced through objectives, clear accountability in the senior delivery team, organisational empowerment and a communication plan that brings the transformation vision to life.

Meet some of our operational excellence team

DWG is a digital transformation consultancy with a real breath of experience. A team of 50+ senior digital change experts working internationally experienced, meet some of them:

Steve Hepworth

Steve Hepworth
Partner, Operational Excellence

Marjory Carrero
Marjory Carrero
Commercial FP&A and Finance Transformation
Damon Harding
Damon Harding
Partner, Non-Profit
Josh Whiten
Josh Whiten
Partner, Marketing Transformation
Suzie Leckie
Suzie Leckie
Partner, Customer Service Experience
Jonathan Smare
Jonathan Smare
Partner, Finance & Business Transformation
Katherine Farnon
Katherine Farnon
Partner, Organisation & Culture
David Ball
David Ball
Partner, Technology Strategy, Architecture & InfoSec

Previous Customer Success

Westminster Council

Westminster City Council
Contact Strategy Operating Model Design

Contact Strategy Operating Model Design
  • A combination of internal services and multiple 3rd party providers were providing customer contact solutions across various channels.

  • Contributing to increased service running costs, staff inefficiencies and many inconsistencies across the services.

  • Impacting customer channel access, multiple confusing entry points and staff being unable to track case activity.

  • Any available performance analysis was disparate, resulting in poor customer experience, reflected in falling and inadequate satisfaction scores.

By working in partnership with service representatives, multiple workshops and interviews, a ‘current state’ map was outlined of all services and their customer contact touch points. This included:

  • A full data clean and analysis of the multi-channel contact landscape, by internal and outsourced providers and across directorates and services.

  • Analysis of failure demand and waste generated by manual contacts, repeat contacts and call propensity, and avoidable contact.

  • Development of scenario modelling tools to analyse the financial and staffing impact of potential contact redesign and reduction/deflection options, by way of different technology implementations and supplier/internal mix of customer contact service provision.

  • Business cases were developed and approved, with prototyping and pilot work delivered to support solutions implementation including, IVR, chatbots, email management systems and knowledge base.

  • A commercial evaluation exercise was provided to support new supplier tenders.

  • An evidence-based approach to benefits realisation and tracking was a critical part of the business case development, with more than £20m of savings over five years.

Buckinghamshire Council

Buckinghamshire Council
Commercial Waste Service Review

Commercial Waste Service Review
The service commissioned an operating model review to explore growth options, in part driven by private sector services expansion in the local area, and as a result of receiving an increase in additional services enquiries from current customers.
Working closely with the sales and operations teams within the service, collaborative work was carried out to analyse current sales performance and opportunities. This included:
  • Historic and current customer sales analysis.

  • Operating budget analysis, vs actual, including assets summary.

  • Analysis of staff structure and roles.

  • Services offered and commercial price-point analysis comparison with the open market.

  • Commercial analysis of customer sales structure and third-party contract commitments.

  • Analysis of the regional market and potential new customer opportunities.

Ooptions were modelled to support future service delivery and provided the service with different approaches to consider when looking at any expansion of their operating model. The review delivered financial, staffing and customer scenario analysis regarding the impact of making positive changes in the following:
  • Commercial pricing inconsistencies by customer and region.

  • New market and region opportunities.

  • Product development ideas.

  • Tipping points for understanding the impact of growth – asset investment/cost increases vs revenue generation.

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