An optimal Target Operating Model (TOM) is the final outcome of all design efforts stemming from the Architecture of Business. Having previously discussed the benefits of an architected operating model to any organisation, this article addresses value delivery chains, a key element at the very heart of any TOM.
The 5 key contexts of Strategic Business Architecture series continues with a fresh look on how Strategic Business Architecture plays a critical buffering and enabling role between the internal company context and its Target Operating Model. Subtly adjusting critical aspects of underlying organisational culture gives the optimal Target Operating Model its capability and agility to deliver expected economic results through the people side of Transformation & Change equation.
Every single organisation, whether a commercial, non-profit or government body, has an operating model. For as long as there is purpose for an organisation to exist and deliver results, it will be organised in some shape or form around structures, procedures, processes and similar. The operating model concept is not limited to organisations of, or above, certain size. Even if a company consists of just one single person, it already has an operating model in place with certain way things are done and results delivered by that organisation. Another single-person organisation will have a different operating model, because its raison d’être and objectives will be different, and even if not, the person in charge will have a different view on how they should be achieved.
What can be learnt from the IT community to efficiently organise and deliver complex organisational projects?
Agile is THE kid on the block as far as the IT industry is concerned. Rapid application, Scrum, Kanban and other lightweight software development methods have been challenging traditional approaches such as waterfall for several years now. The key attraction of agile methods is that their philosophy focuses on people over tools, deliverables that work in practice rather than on paper, continuous collaboration over infrequent interaction events and responsiveness to change over rigid following a preset master plan.
The 5 key contexts of Strategic Business Architecture series continues with this new article on how Strategic Business Architecture plays a critical bridging role between the external industry environment and enterprise Target Operating Model. Indeed, taking into account underlying industry dynamics creates a model that is flexible, agile and interconnected to channel enterprise resources to where needed.
In my overview of the 5 key contexts of Strategic Business Architecture, I mentioned that understanding of the company’s external environment will help building a Target Operating Model that is up-/down-scalable and thus can cope better both when things are looking good and in downturn. In this article, I am discussing likely benefit of using scenario development in designing a more scaleable and resilient operating model.