Target Operating Model design & delivery

We supported a global life insurance subsidiary to focus on key markets through a streamlined approach to organisational redesign

The challenge

The UK subsidiary of a global life insurance organisation had recently completed a strategic review to re-position the business for growth in its selected strategic markets whilst also delivering a £50m pa reduction in running costs

This required a programme of work to be set up with the objectives of:
  • Restructuring the business to position itself for success in the chosen markets
  • Improving capabilities in these markets to drive the strategy and bring in fresh thinking to the organisation
  • Simplifying the operations of the business to improve consistently and efficiency of delivery
  • Analysing the current operating costs, using benchmarks to identify opportunities for improvement and setting up a series of initiatives to deliver the savings

Our approach

We employed our standard approach for Target Operating Model (TOM) and Target Organisational Design (TOD) programmes

This involved the setting up and management of the following streams of activity:

  • TOM Design; using the business strategy, the definition of TOM design principles and the selection of a high level TOM to deliver that strategy
  • Capability Definition; definition of the capabilities required for the TOM to be successful, and an assessment against current capability levels
  • TOD Design; design and delivery of management structures to take the future organisation forward
  • HR Delivery; design and execution of the consultation, assessment and appointment processes to deliver the TOD
  • Expense Analysis; analysis of the current UK cost base and identification of opportunities for reduction, both quick wins and longer term

The outcome

The UK business approved the new Target Operating Model and is now engaged in a 2-3 year programme of work, supported by PEN, to deliver the people, process and technological improvements required that will deliver the committed strategy

We worked closely with a team of internal stakeholders throughout the programme, enabling a client for whom this type of work was new and challenging, to learn best practice methods for programme design, management and delivery.