Planning For Success After COVID-19: Operating Model

2021-06-18 |  Austen Hancock

What's changing?

The impact of the recent pandemic has made organisations rethink how they operate. Developments in the market - most notably the uncertainty driven by COVID - and the increase in remote working, have prompted many to re-examine their operating models.

Growth in digitalisation and changes in customer behaviour are also forcing them to adapt to a new landscape, where there is a higher usage of self-service and a reduction in less efficient channels and transactions.

Increased scrutiny on operational resilience is being mandated to enhance the stability and robustness of important business services.

These challenging conditions have emphasised the focus on efficiency and costs. The outlook remains uncertain, but confidence is growing.

How will this impact you?

The effects will vary from business to business, but we expect the following to impact everyone to some degree:

  • People: Many organisations are using the lessons learned from remote working as a catalyst to drive further modernisation, simplification and collaboration. Talent strategy is now focused on priority requirements without geographical boundaries.

  • Process & technology: There’s an increased demand for automation - to accelerate change and reduce governance, to put a greater focus on embedding customer experience measurement, to control third parties more effectively, and to simplify IT infrastructure through greater flexibility of solutions (e.g. cloud).

  • Locations: Lots of businesses are reassessing their use of premises, to ensure the location footprint and property management aligns with their strategic ambitions and plans.

And universally, across all areas of the operating model, companies will be spotting further efficiency opportunities and delivering on them.

What you need to do about it…

A target operating model (TOM) is a representation of the desired end-state of an organisation. It shows the set-up and change required to deliver on its vision and strategy.

This can be a powerful tool for building consensus on a vision, and controlling how you get there. To get started, you’ll need perform a health check on your organisation to determine where you need alignment on priority activities.

  • TOM health check baseline: This includes compiling the relevant components of the current operating model to perform the health check on.

  • Analysis to determine priority areas to target: Find the key insights, and then look for the actionable opportunities that align to key priorities and objectives.

  • Develop a practical and deliverable action plan: Turn the outputs into an actionable plan that can successfully upgrade your operating model to match your priorities.

How can we help?

We have real experience in supporting organisations to navigate change by developing their target operating model.

PEN is working with many clients to understand how best to approach a post-COVID world, and to identify the best strategies for them.

If this or any of our other related COVID articles interest you, do please get in touch with Helen Clark.

Further reading:

Planning For Success After COVID-19: Channel Strategy

Planning For Success After COVID-19: Customer Data

Contact Helen Clark:


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