High-impact operating model design in action

Part 1: Reducing the risk of a failed transformation

Posted by Tiffany McDowell,  Uzair Qadeer, and Julia Rudansky on September 20, 2017.

Influential and instrumental, operating models are a vital link connecting business vision to an organization’s design and ultimately to a company’s success or failure. In a truly remarkable way, operating model design acts as connective tissue between theory and reality. Yet effective operating model design tends to remain one of the least understood organizational topics and continues to evade armies of sophisticated professionals. In the first of our three-part series on high-impact operating model design, we look at the (often overlooked) role of operating models in achieving business transformation, particularly their role in enabling and supporting desired behaviors.

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Syncing the organization with the business

As flexible consumption (also known as subscription, usage-based, pay-per-use, or as a service) disrupts many industries, organizations should ask how their internal systems and structures support or hinder this new business model

Syncing the organization with the business

Posted by Hilary Horn, Laura Shact, and Andrew Niederhauser on April 27, 2017.

In an increasingly connected and digital world, customers are demanding the ability to consume technology and media content in flexible and scalable ways. Simply put, customers want to be able to choose where, how, and how much data they consume and pay for, and pay only for what they use. As a result, many companies are undergoing profound shifts and rethinking how they sell and deliver their products and services. Shifting to a radical new business model based on flexible consumption involves a comprehensive transformation: both the organization and the people in it should be ready and able to support the change.

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Embedding digital DNA in your organization: Think “rewire” instead of “redesign”

Embedding digital DNA in your organization: Think “rewire” instead of “redesign”
Posted by Garth Andrus, Don Miller, and Maya Bodan on December 06, 2016.

Digital capabilities in companies are widespread according to the fifth annual research study by MIT Sloan Management Review and Deloitte, with more than two-thirds (68 percent) of respondents having moved beyond the early stages of digital maturity. This seems prudent, as nearly 90 percent of the executives surveyed believe their industry will be disrupted by digital technologies. Still, less than half (44 percent) believe they are adequately preparing for that disruption. A common practice has been to wade into the digital waters by setting up digital capabilities in pockets of the organization. The challenge comes when trying to integrate these pockets into the wider legacy organization. Interactions between the two are often inconsistent and stifle the digital organization, preventing it from being as effective as it could be. But by rewiring the organization—rather than wholesale redesigning it—these digital subgroups can not only become an integral part of the company but also more effective in their own right.

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On trend: Organizing around teams

On trend: Organizing around teams

Posted by Walt Sokoll on August 30, 2016.

A startling 92 percent of companies responding to Deloitte’s 2016 Global Human Capital Trends research rated redesigning the organization as very important or important, making it the No. 1 trend in this year’s report. One of the primary ways we see this organizational restructuring playing out is in the rise of teams—companies moving away from traditional hierarchical organization structures and empowering networks of teams centered around customers, products, markets, or missions.

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Organizational Network Analysis

Powering teams to better execute business strategy

Organizational Network Analysis

Posted by Tiffany McDowell, PhD and Don Miller on August 4, 2016.

Companies today are “living organizations” that must constantly adapt to market and industry pressures in order to stay competitive. This mode of continual change means they can no longer operate effectively in formal, rigid frameworks. Most executives recognize this shift—92 percent of surveyed leaders believe that redesigning their organization is either very important or important, and many are moving away from formal, functional structures and redesigning their organizations to be dynamic and team-based. Organizational Network Analysis (ONA) is a tool that can help manage living organizations to keep them agile and responsive to changes in the business environment.

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Designing the fabric of the new organization: 5 keys to success


Posted by Josh Bersin on April 26, 2016

I hope you’ve had a chance to dig into this year’s Deloitte Global Human Capital Trends 2016 report. The theme is The new organization: Different by design, reflecting this year’s No. 1 trend, cited by 92 Percent of respondents: the need to redesign our organizations and the way we get work done. The shift we clearly see is a move toward a new organizational model, one we call a “network of teams.” Your company might look like a hierarchy on the org chart, but in reality people operate in teams (sales teams, product teams, service teams, etc.), and the teams work with each other, often communicating transparently, sharing information, plans, and results.

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New Research: Changing business structure, dynamic roles, and new models of leadership top the Global Human Capital Trends for 2016


Posted by Josh Bersin on March 02, 2016

The new digital world of work is shaking the foundation of the world’s organizations: one of the biggest challenges companies now have is the need to fundamentally change the way they are structured.

This month we are launching our largest-ever study of talent challenges in business, the Deloitte Global Human Capital Trends 2016. More than 7,000 companies around the world took the time to answer our survey, and the findings were striking. While nearly every talent challenge from last year became more acute, the No. 1 topic on people’s minds is now “how do I organize my company to effectively meet the digital demands of today?”

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Structure eats strategy for lunch: Insight into operating model design

Structure eats strategy for lunch: Insight into operating model design

Posted by Tiffany McDowell on February 16, 2016.

Very few in the business world have escaped the old adage “culture eats strategy for breakfast.” Anyone who has tried to transform an organization and drive different behaviors from the status quo has probably heard Peter Drucker’s classic statement. Despite passion for doing the right thing, and despite having a great group of well-intended, hardworking individuals, leaders often cannot get the collaborative behaviors needed to move their organization to new ground. But when you really want to understand why individuals and groups behave certain ways—often in ways that seem counter-intuitive to the organization’s best interest, or at odds with their own mission—you need only look at their existing operating model and the very purpose and vision it’s built to drive.

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Managing talent in a post-M&A world

Managing talent in a post-M&A world

Posted by Elaine Loo and Heiko Dorenwendt on December 3, 2015.

If it isn’t broken, don’t fix it. Or so the old saying goes.

In the breakneck world of mergers, acquisitions, and consolidations in life sciences and health care, businesses are often bought or absorbed not because they are broken but because they are thriving and leaving their mark in a key targeted segment of the marketplace.

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