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Target operating model design

Berkeley uses a proven approach and a depth and breadth of experience to help clients design the right operating models for their organizations

Target operating model: what does good look like?

Berkeley uses a proven approach and a depth and breadth of experience to help clients design the right operating models for their organizations – all or part – taking in all relevant layers as necessary, such as capability, process, design of organization and key functions, roles and responsibilities, sourcing, location, data, technology, management information and governance.

The key is to design an operating model that has component parts working in harmony to deliver the strategy:

  • A coherent operating model that pulls everything together to drive delivery of the strategy – driving up the top line 
  • The organization effectively and efficiently arranged to deliver the strategy without wasting precious resources – driving down the bottom line 
  • A target operating model that people feel they own, and can be implemented, rather than a design done by consultants that sits on the shelf

Target operating model: a true foundation

A good target operating model sets up an organization structurally to deliver on strategy. We work closely with our clients to design and put in place the target operating model their organization needs to achieve their ambitions.

The support provided by Berkeley Partnership on our target operating model work has been very impressive; Berkeley helped to distil our requirements and ambitions into a robust model, providing effective challenge and best-practice input at every stage of design. The additional support provided on change management helped to propel our Covid recovery work and has resulted in an integrated plan to deliver the target operating model as part of our recovery plan. The team have been a pleasure to work with and really stepped up for us when we needed them – a testament to Berkeley Partnership’s client-centric approach.​”

A public sector client

Target operating model: the challenges

Organizations are often not set up to deliver on their strategic goals. They may have evolved organically rather than being deliberately designed. A new strategy may have emerged that requires change. The external environment may have rapidly shifted. Acquisitions or divestments may have been made. 

The pace of change is increasing in a fast-moving world responding to digitization, climate change, sustainability, D&I, hybrid working and other post-pandemic repercussions. These factors can mean that an organization’s structure is no longer optimal. 

Target operating model: The Berkeley Partnership approach

For our clients seeking target operating model consulting, The Berkeley Partnership brings:

  • A collaborative, partnership-based approach featuring lots of engagement with client people. Our team defines and maintains the pace of work, facilitates meetings and workshops, and challenges thinking.
  • An expectation of working with your existing teams to help us define the deliverables and contribute to them, bringing their knowledge to the fore, under our direction. 
  • The ability to quickly understand the specifics of your unique business but also… 
  • …exposure to a wider of set of clients across several sectors, and therefore fresh perspectives and insights.
  • Leadership, energy and enthusiasm.  We provide senior people who can work at the right level, not junior consulting teams writing low level process documentation.  

Target operating model: avoid the pitfalls

Our extensive delivery experience can help you to avoid the common pitfalls that can result in a beautifully-crafted target operating model being undeliverable or unadopted and reduced to expensive shelf-ware.

Creating a target operating model represents a disciplined approach to really thinking through how you are going to drive strategic change across your business. It’s essential that all aspects of your operation are aligned and work in concert. Developing a target operating model is challenging, as it involves a cross functional, cross business program that must be driven from the very top of the organization.”

Richard Marsden

Clients often ask us…

Question 1

How should we set up to deliver our new business strategy?

Question 2

How do I rearrange my business to operate most effectively after a major acquisition?

Question 3

How can I centralize my back office to provide a better, more cost-effective service to my business units?

Question 4

I need to shift my business model to better support growth regions – how can I do this?

Question 5

Where can we automate, reorganize and free up resource to focus on value-add activities?

Question 6

How do we re-engineer our business for a post-Covid world, designing for hybrid working and more robust supply chains?

Question 7

How can we remodel our business to drive sustainability and lower our carbon footprint?

Question 8

How do I build a target operating model that meets my business needs?

Client stories

Altus

When Altus UK decided to buy its biggest competitor, they had to get the integration right first time. The team at Altus could see they would need expert support and reached out to Berkeley.

At the end of the engagement, Altus achieved the market share it wanted and grew its margins in excess of its pre-deal expectations. It cut costs through efficiencies – combining back-office functions, rationalizing systems and processes and more. Most importantly, it achieved its mission to create a new business that took the good parts of two legacy organizations, while retaining its brand and strengthening its pre-eminent position in the marketplace.

Govia Thameslink Railway

The Govia Thameslink Railway (GTR) franchise was created to support the completion of the Thameslink program: London’s ‘north-south Crossrail’. Berkeley were brought in to fulfil a full-time integration director role within the new executive team and build ownership that was critical to put this mega-franchise on track. 

Within an aggressive timeline, we needed to change the job descriptions and reporting lines for 1,200 people, including a 20% fall out and 10% arrival of fresh legs. We also had to align two totally different data systems and infrastructures, which required building consensus, delivering multiple IT projects and up-skilling operators. 

A retail organisation

As one of the leading suppliers to the rural community, our client had ambitions to grow. However, their retail strategy was somewhat constrained and not maximizing their full potential. Berkeley were called in to bring a fresh perspective, to review, and where necessary, rewrite the strategy in order to set out a path and plan with greater potential. It was essentially about helping the client identify and craft a bigger ambition while at the same time creating confidence around that ambition. 

M&G Real Estate

M&G Real Estate, the global real estate investment manager, had been affected by impacts in the property markets, which had proven more volatile than anticipated. The executive board knew they needed to take action to reflect new market conditions and asked us to help them define a future business model and strategic plan. 

Working closely with the Board and a client-side project director, we created a cohesive and achievable strategy and operating plan, fully supported and approved by parent M&G and M&G Real Estate shareholders. 

Client stories

When Altus UK decided to buy its biggest competitor, they had to get the integration right first time. The team at Altus could see they would need expert support and reached out to Berkeley.

At the end of the engagement, Altus achieved the market share it wanted and grew its margins in excess of its pre-deal expectations. It cut costs through efficiencies – combining back-office functions, rationalizing systems and processes and more. Most importantly, it achieved its mission to create a new business that took the good parts of two legacy organizations, while retaining its brand and strengthening its pre-eminent position in the marketplace.

The Govia Thameslink Railway (GTR) franchise was created to support the completion of the Thameslink program: London’s ‘north-south Crossrail’. Berkeley were brought in to fulfil a full-time integration director role within the new executive team and build ownership that was critical to put this mega-franchise on track. 

Within an aggressive timeline, we needed to change the job descriptions and reporting lines for 1,200 people, including a 20% fall out and 10% arrival of fresh legs. We also had to align two totally different data systems and infrastructures, which required building consensus, delivering multiple IT projects and up-skilling operators. 

As one of the leading suppliers to the rural community, our client had ambitions to grow. However, their retail strategy was somewhat constrained and not maximizing their full potential. Berkeley were called in to bring a fresh perspective, to review, and where necessary, rewrite the strategy in order to set out a path and plan with greater potential. It was essentially about helping the client identify and craft a bigger ambition while at the same time creating confidence around that ambition. 

M&G Real Estate, the global real estate investment manager, had been affected by impacts in the property markets, which had proven more volatile than anticipated. The executive board knew they needed to take action to reflect new market conditions and asked us to help them define a future business model and strategic plan. 

Working closely with the Board and a client-side project director, we created a cohesive and achievable strategy and operating plan, fully supported and approved by parent M&G and M&G Real Estate shareholders. 

Lead Partner

Richard Marsden, Partner