Transcription of Architecting an Operating Model - Deloitte US
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Architecting an Operating Model - Deloitte US
FEATUREA rchitecting an Operating modelA platform for accelerating digital transformationAnne Kwan, Maximilian Schroeck, and Jon KawamuraPART OF A Deloitte SERIES ON DIGITAL INDUSTRIAL TRANSFORMATION2 FIGURE 1 What makes a strategic transformation succeed or fail?Sources: Marcia Blenko, James Root, and Nader Elkhweet, When weak Operating models happen to good strategy, Bain Insights, April 2, 2015; Ron Carucci, Executives fail to execute strategy because they re too internally focused, Harvard Business Review, November 13, Insights | of UNSUCCESSFUL TRANSFORMATIONSGap between strategy and execution; culprit is usually an obsolete/misaligned Operating modelCharacteristics of SUCCESSFUL TRANSFORMATIONS64 percent build their budgets around and allocate specific company resources to their strategies60 percent do not link budgets to strategies, meaning resources and capabilities are not aligned to goals77 percent translate their strategy into operational mechanisms, monitor progress, and make changesExecutives leave old organization designs in place, inhibiting change in responsibili-ties and processesCompanies with top-quartile Operating Model indicators have five-year CAGRs 120 basis points higher than tho
Architecting an operating model to accelerate digital transformation. 5 business-unit strategy and varying business mod-els. The operating model is the anchor for the enterprise and is critical to the strategy’s effective-ness and longevity. And understanding how your
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