Operating Model - What is it?
Operating model is an abstract representation of how an organization operates across process, organization and technology domains in order to accomplish its function.
The operation model is a tool and approach for achieving the company's strategic goals; it includes decisions and actions that impact all layers and tiers of the company, including the organizational structure, the role descriptions, the interfaces, employee movement in the company, budgets, expenses, establishment of new units or closure of others, and courses of action combined with targets and metrics for the work plans of all of the company's managers and employees.
The operating model chosen by the company is part of the DNA that is formed each time anew in every strategic change, which core business that the company chooses to focus on.
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The Seam between "Childhood to Adulthood"
ACT, under the management of Avshalom, has the experience, the knowledge and the ability to identify the breakthrough and failure points at this critical state, to analyze the organization in all of its conscious and unconscious levels, to pinpoint and treat all aspects related to the product in question, the technological, operational and support entities impacting the chosen direction, to suggest the most suitable operating model and to support the company in the intervention and implementation stages, while providing the tools for the company's management to deal with the change process
According to case studies performed in start-up companies, and from extensive experience, the transition stage from development to production is one of the critical moments for a start-up company, who now needs to settle down and "start working in an orderly fashion" during crisis, objections and conflicts amongst the company's management and its workers, the presence of changing work norms that become work procedures and formal interactions between the departments and divisions, and even different geographical regions.
On the one hand, progress is made to solidify the version for the first article, and transfer of the power to the operation persons responsible for the execution, so it will improve in terms of Time to Market, cost of BOM, the Alpha site processes and the Beta site processes with the potential customers.
On the other hand, there is an inherent need for continuous improvement as part of the DNA of the development systems, and with aspirations for higher performance as the end of the Alpha site process draws to an end, the journey is drawn out to the launch date that was promised by the marketing teams and CEO to the potential customers.
The ability to change the operation model of the company from the location and manner in which it operated in the initial stages of the product development to the production stage and transferring the centers of power in a proportional, balanced manner that meets the objective function, is the ability to transform the dream into a reality.
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Establishing the Company's Operating Model
ACT, under the management of Avshalom, has the experience, the knowledge and the ability to identify the points of breakthrough and failure at the decision making stages in which the company decides on a strategic change that impacts or is impacted by the value chain, to analyze the organization in all of its conscious and unconscious layers, to suggest the operating model suitable for the company in order to achieve the chosen strategy, to support and support the company's management in the intervention and implementation stages, by providing the right tools to deal with the change process
The forecasting horizon in the business world is getting shorter; the ability to predict sales forecasts is becoming more difficult as external factors and transformations in the global macro economy take place and impact companies and business.
Experience in recent years has taught that the number of times that the company's strategy is rethought is moving towards a yearly resolution; the five-year plans are a thing of the past, and sometimes companies change their strategy on the fly in the midst of the yearly plan.
The name of the game is flexibility and the quick ability to respond to any change in the company's business environment; a quick transformation to reduce fixed costs in proportion to the changes in demands and incomes is the oxygen for the organization.
The value stream of the organization includes all of the elements required to operate the company, from marketing and development, to sales and service through engineering and projects, procurement and production, logistics and management; these elements and a lack of coordination and efficiency existing in the processes and interfaces between these elements are burdensome and strongly impact the fixed costs of the company and rework derived from quality problems.
The information and the knowledge to reach a decision about the operating model are ongoing necessities of the company, but they are complicated, hard to identify, accompanied with objections by employees and managers in the organization that feel less necessary. Tools, transparency and analytical methods for a quick decisions, are important and critical assets to an organization
In every strategic change, the core business that the company chooses to focus on and keep In House deriving from determination of the core units, become more significant and require additional resources. Understanding where the company is at a relative disadvantage and the decision to outsource, or where to allocate the resources and where to downsize, is critical and frequently asked.
