As companies have grown, so has the complexity in their businesses. During the last decade, this was hidden by a benign business environment.
For many, the global recession has exposed the shortcomings of their operating model, at the same time increasing the need to respond to strategic challenges.
Many companies have found themselves with an inefficient business model, for example, with decentralised operations where decisions are duplicated at a country or business unit level, and with fragmented and costly back office support functions. This has inhibited their ability to respond to challenges decisively and swiftly.
This operational inefficiency is frequently compounded by an overall disconnect between the management, legal and tax structures, often creating significant tax, legal and compliance risks, overheads and a high effective tax rate.
We help clients articulate a future operating model, simple yet innovative, which will deliver their strategic goals, and which is aligned with efficient tax and legal structures.
Operating models explained
An operating model is the way in which a business is organised to execute operational decisions to deliver the strategy.
This relies on getting the right information to the right people, on time. The structure will need to be as simple as possible to allow the business to be responsive to change and quickly to make the most of opportunities.
Transforming the operating model is a task which affects every member of the business and effecting this change will require a compelling case for change, a clear vision of the future model, which is shared by all stakeholders, and a defined transition plan to the new model.