The business owner of today has many challenges that he faces on a day to day basis to maintain the integrity of the company. The ability to respond to the changing needs of the consumer are models that many business owners are faced with. Creating a successful operating model strategy that will unlock the potential value of the business is a fine line the business owner walks each day.
Operating Model Overview
The economy today is going through a significant change. These changes can range from the spending habits of consumers, the framework of regulatory business, the ability to acquire credit and funding, the strength of currencies, expectations from the corporate office and the effects of social media marketing.
The changes within each of these is forcing many business to rethink their current operating model strategy so they can not only stay competitive, but to excel in this very difficult fiscal time. These businesses need strategic responses to these concerns, which might even require the business to revamp their entire business operating model. Here are a few principles you should consider when trying to rework the operating model of your business.
Operating Model vs Business Model
An operating model should not be confused with a business model, the process map, a value chain or organization strategy. The operating model is simply the way the infrastructure, people and the processes all work together to deliver results to that organization. When the company focuses on outputs and results, the top management can then determine when and how work needs to be performed, and utilize in house and outsourcing services, as well as using offshore companies to help with the work load to basically improve the overall integrity of the company. When the operating model needs to be redesigned as part of an overall strategy, it works to act like a blueprint for explaining to employees what needs to be done within the company to achieve the desired outcome.
A successful business operating model can completely transform the company from being in trouble, to actually moving ahead of projected sales numbers in a very short period of time. Successful operating models have changed and evolved over the past few years, and being able to look back on past business operating model strategies can reveal some techniques that have worked, and some that have failed. Being able to identify these and successful use the ones that have brought the business the most success is another strategy in itself that has worked brilliantly for many businesses.
If there were significant bottlenecks in the process that kept from newer strategies to being implemented, this analysis can identify and free up those troublesome areas rather quickly. Communication is vital is creating a successful business operating model.