Transformation
Common challenges when you change your operating model:
Are these your Issues?
Business transformation is challenging. Only a minority of major business transformations are classified as successful (Kotter, Tabrizi).
Selected challenges to overcome include:
Mobilise
- There is denial in some quarters of the need for change, causing timetable to slip.
- Slow progress versus plan causes loss of momentum and strengthens resistance.
Design & Restructure Functions
- The target business model (global operating model) has not yet been adequately defined, and operating model design remains high level.
- Functional work stream leaders are asked to set up workgroups to re-design functions but progress is slow versus plan for various reasons (e.g.,local optimisation, high workload, resistance, job loss concerns)
Regional / Country Design & Restructure
- Regional and Country operating model design is dependent upon functional designs and global operating model design; these are still ill defined.
- Country and /or regional restructuring proposals do not go far enough.
Front Office and Back Office Roadmap and Implementation
- Cross programme interdependencies are not being explicitly managed. There is no single overall governance overseeing the implementation, and no dynamic management of the key independencies.
- Many programmes have an IT dependency, but IT’s record of delivering on-time-in-full is patchy.
Implementation Tracking, Value Tracking
- Lack of vision for information requirements under new operating model.
- Delays in setting up information office to deliver the business intelligence and reporting required by the new business model.
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