About-Berkeley

About Berkeley

We’re about being there for our clients when it really matters. When it absolutely has to be right. Doing the right thing is both our ethos and sweet spot. And it’s why clients turn to us again and again

 

Careers

Find out how you can make a big change to your career by joining one of the best small firms in the UK.

 

I graduated from Liverpool University with a degree in Geography in 1999, and seeking variety while I decided what I wanted to do long term with my career, I began my management consultancy career at ...

Kirsty Nethersell, Partner

Kirsty Nethersell

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The people

It's the people that make Berkeley different to other consultancies. Bright, friendly, down-to-earth people who are both thinkers and doers. Working by your side, as consultants and colleagues, to get the right results.

Target Operating Model

Helping you to design the business that will achieve your strategic goals

Designing for success

A Target Operating Model (TOM) very often forms the bridge between a strategic direction set by leadership and a roadmap of change initiatives to establish new business activities, services, behaviours and outcomes.

We help our clients solve some of their toughest strategic problems through our structured and robust approach to strategy development whilst also having the practical delivery experience to know how to successfully implement the associated changes to ways of working. The result is a well thought-through operating model, aligned to your business strategy that you can be confident will be deliverable and successful in the ‘real world’.

The Berkeley definition of a TOM

The phrase ‘Target Operating Model’ means many different things to different organisations and people. The truth is that there is no right or wrong answer – the context of any particular business will determine the components that, when assembled together, make a useful and valuable TOM.

For us, a Target Operating Model simply describes how a business will operate at a point in the future. Broadly speaking, we’d usually expect a TOM to cover the processes, controls, systems and organisation (roles and responsibilities) required to fulfil   the strategic objectives. Its purpose is to describe the key changes required in sufficient detail that the impact and levels of investment required to deliver the new strategy can be assessed.  The TOM is also a critical element in engaging and communicating with key stakeholders the shifts required to achieve the desired strategic outcomes.

It’s all about alignment

Whatever the content of your TOM, the watchword is alignment.

The real value of designing an operating model is in ensuring that the business is aligned to its strategic ambitions and goals, and that all sub-components, however many or few you have, are aligned and working together in harmony to make the business succeed. Without making a conscious effort to develop a cross-functional operating model design, it can sometimes be easy for functional silos to develop and grow, resulting in a lack of alignment with strategic goals across the organisation.

But we’re already aligned. Aren’t we?

Developing a winning TOM will often challenge functional boundaries, requiring a good level of open-mindedness and collaboration across the business. Cross-functional working can sometimes come with a little friction. This is more likely to be a challenge in organisations which have operated in discrete functional silos for some time and there is now a need to challenge that and achieve greater alignment between functions.

In such cases, it is critical that leaders and decision-makers are aligned on the strategic goals of the business, that time is invested in bringing stakeholders on a journey, and that the overall sponsor has the authority to set direction and mediate as necessary.

Our independence and collaborative style lend themselves nicely to helping you involve and engage the right stakeholders, in the right way, to develop an operating model that has the support of your cross-functional leadership team.

Easy to design, hard to deliver

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

Involving representation from across the business, people with real operational knowledge and experience of your current business reality, rather than designing in isolation, will improve the quality and utility of your TOM.

Designing the operating model with implementation in mind will help to bring tangible benefit to the business sooner. For example, considering quick wins that can be implemented in the short-term and transition states that can be achieved gradually over the medium to long-term to bring phased change to the business.

Outputs should be measured

Once you’ve invested the time and effort to design and implement a new operating model, you will want to know how well it’s performing, how well it is supporting your strategic objectives, and what business results it’s helping you to attain.

Considering the key drivers of business success alongside your operating model design will allow you to build-in the information and measures which will you will use, via your decision-making and leadership arrangements, to steer the business towards its strategic and operational goals. Practically, this often takes the form of KPIs, management reporting dashboards and balanced scorecards aligned to your strategic objectives.

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 is essential that all aspects of your operation are aligned and work in concert. Developing a Target Operating Model is however challenging, as it involves a cross functional, cross business programme that has to be driven from the very top of the organisation.

Neil McClumpha

Neil McClumpha
Partner

Contact Neil McClumpha

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