Here’s What You Are Missing in Your Operating Model ! Insights From Leading Organisations
A company usually takes birth from an idea. The product or service is the focus of every start-up. Yet, too deep into the race, CEOs and founders realised they needed to pay more attention to their operating model.
The success of ten per cent of thriving start-ups is credited to their adaptive operating model. Of course, there is no one-size-fits-all or the best working model in the market. But understanding the need for organisation-wise agile change is vital in today’s business world.
Read ahead if you’re one of the few who want to make it to the top of the business pyramid with innovation. This article will outline what’s missing in operating model strategy and how you can get help to transform them.
Keep reading for insights from some of the top industry leaders.
Top Insights for Best Operating Model in 2023
The COVID-19 pandemic caused a stir among business leaders and helped them understand the need for organisational change. Only a few considered their operating models’ importance until the world reached a standstill.
With this insight, over 75% of organisations worldwide expect to make changes in their process in the next three years. To implement the change, you must first understand what’s wrong.
Suppose your marketing team is strong, your employees work hard, and your product-market fit is excellent. Yet, your churn rate is higher than the industry average. In this case, it’s perhaps time to look at the backend functions.
How are your operations bringing in results? To understand this, here are the two fundamentals you’re probably getting wrong-
1. Unclear and Underutilised Metrics
Let us start with the most fundamental yet naively neglected factor. If you’re reading this article in any year post-2010, you know that data is king.
43% of companies worldwide reported a competitive advantage by leveraging data and analytics.
Most operating models face two issues with data and metrics. The first is being unclear about ‘what’ data to use or what ‘metrics’ to measure.
For example, a company’s strategic vision is ‘to have a monopoly in the niche market.’ However, the company fails to define what this monopoly means for them. In today’s day and age, pure monopoly is hardly possible. You will, at the most, end as ‘one of the best.’
So, defining how to measure your success is a core process of any leading organisation. It can begin with shifting to ‘reach XYZ% market share in ABC market.’
Now, companies often know what metrics to measure. It’s common knowledge. However, they only track these metrics and do nothing about it. Unused data is as good as no data at all.
Learning from Coca-Cola
When making data-driven decisions, Coca-Cola is one industry leader that stands out.
When you think of advertisements that stay with you even after years, you think of Coke. Coca-Cola has more than 108 million followers on Facebook, and the brand rightly uses Meta to analyse its audience.
By tracking user preferences and actions, using insights on the photos their users share and the products, they associate with- Coca-Cola adopts personalisation. Personalised ads bring the brand four times more CTR than other conventional methods.
If you are still unclear about leveraging data to adopt a leading business model, don’t worry. Read on ahead.
How Can You Fix This?
The first step towards fixing your go-by-the-gut approach would be to stop and analyse the gaps. Understand where you could improve your business. See what data you already have. Additionally, think over what information you need.
At GrowthJockey, we build a team of data researchers dedicated to your organisation and its specific needs. If you don’t know what you need, our team runs an A-to-Z analysis to understand your business growth needs.
You should create a robust operating model at level zero as a start-up. Having a virtual co-founder on your side always helps.
First, we understand your portfolio. Then, we analyse your business beyond a simple SWOT analysis. Segregating your needs into Technology, Product, Marketing, Organisational, or Cost, our team of experts gives you the data-driven innovations you need.
That’s how we helped Femica India[1]!
2. Not Too Keen on Lean
This is not related to bodily fitness. For context, a Lean methodology is an approach to business process improvement that emphasises the elimination of waste. The idea is to make small, incremental changes to business processes to achieve significant results over time.
Any business process can be lean, but it is most commonly used in manufacturing and production. The lean approach effectively reduces waste and increases efficiency in these environments.
With Digital Commerce becoming one of the leading business models, the meaning of production and operations has changed. How do you organise your structure if half your team works remotely and half works in a warehouse downtown?
Since the pandemic, 43% of organisations have increased efficiency by adopting Lean-Agile methodologies. An Agile organisation is nothing but one that focuses on efficiency and adaptation through technology.
Your strategy is perfect, and so is your product. But your teams are fragmented, and that affects your operational process. Here’s how LEGO transformed its operating process from the core.
Learning from LEGO
Teams were the foundation of the renowned LEGO toy company’s agile methodology.
At the beginning of the Agile implementation, 20 product teams worked across the firm; however, in the end, five became self-organising Scrum teams. As an Agile environment began to take hold, the other groups began to change gradually.
Initially, although each team had become Agile, they needed help to work together successfully. After adopting the SAFe structural pattern, LEGO started to have success
Every eight weeks, the team of teams at LEGO gathered for a one-and-a-half-day long big room planning session. The groups discussed their work, identified lags, calculated risks, and planned the upcoming delivery window.
Like LEGO, you can also transform into the next game-changer by fixing your agility issues.
How Can You Fix This?
At GrowthJockey, we follow an Agile way of working. No redundancy flows around here. So, we can help you achieve this too.
The first step always remains the same- getting to know your organisation. Understanding the gaps and redundancies is the first step toward becoming Agile. Most of the time, the type of technology you use among employees may hamper the quality of work or customer service.
Building on the example of a suffering customer experience team, here’s a glance at the Growth Jockey services. Switching from call centres or CRM to automated chatbots can help provide 60% of your customers with the experience they prefer
Moreover, you don’t just get technological consulting from us. We provide you with the team and automation you need. Take it from zero to a hundred.
Key Takeaways
As digital transformation continues to reshape businesses, the role of the operating model becomes increasingly important. Many organisations need help to keep up with the pace of change and are missing out on the benefits of a well-functioning operating model.
Understanding the two essentials you lack in your business system can go a long way. Most often than not, you will find that the missing piece boils down to ‘metrics’ and ‘mode.’ Through this post, we hope you were able to understand why leveraging your data metrics and adopting an Agile methodology can transform your business.
At GrowthJockey, we are fully committed to developing customised operating models that effectively address the critical challenges faced by our clients across various industries. Irrespective of your company's size, whether it's a small-scale enterprise or a large corporation, you can now benefit from our tailored solutions.
Take the decisive step towards unlocking the next level of growth for your brand by reaching out to us today!
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