Is your operating

model holding you

back from growth?

Till Dudler, Bill Theofilou

and Oliver Wright
Here is a story that continues to stand the
test of time. Company A developed a new
strategy. They were excited to share the news
with employees, media and shareholders.
The business had great plans to fuel growth
and drive competitiveness, but in the end,
nothing happened.
Why? Because Company A did not evolve their
operating model to reflect the new strategy.
Those developing the strategy never took
the time to identify the capabilities needed
to deliver on the growth strategy. Senior
executives were too afraid to make bold
moves with people or resources. Employees
were not committed to the strategy because
they didnt understand the big-picture vision,
or how they could helpand because it looked
like nothing was really changing.

Growing Nowhere

80% 22%

According to Accenture Strategy research, Yet only 22 percent say their companys
more than 80 percent of executives agree that operating model is helping them put strategic
advanced operating models are an enabler of growth initiatives into action.
strategic growth.

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The journey to growth is not an easy
ride. It is a trip that requires tough
choices about the companys future.
How will the business model
respond to disruption?

What are the companys core values?

How will we allocate resources?

Budgets? People?

How can strategic partners in the

ecosystem support the growth strategy?

Without an operating model designed to

respond to these questionsand a slew of
othersthe strategy will never get off
the ground.

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No one is speaking the
same language A look back at the basics
Few organizations have a clear and consistent
definition of what an operating model is, and Business Model: how a
the core capabilities needed to enable it. An company goes to market
operating model has many more dimensions including defining its
than the boxes and lines on an org chart.
products, customers,
Successful companies make sure that they channels, geographies.
have all the key components of an operating
model clearly defined, including all priority
activities, distinct capabilities, leadership Operating Model: the means
roles, resources, decision-making processes by which the company is
and more (see Figure 1). structured to execute its
strategy and business model.

Figure 1. Key components of the operating model

Operating Model Vision

Distinctive Business Capabilities

Operating Model Principles & Implications

Shape Accountabilities Critical Governance Metrics &

Decisions Incentives

Culture and Values High Level Business Case

Full Structure People Process Technology

Financial Frame

Execution
Source: Accenture Strategy

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  T he link between operating
model and growth strategy People arent part
is broken of the plan

Many strategies fail because they are People are a critical pillar of a strong
not clearly put into action through the operating model that supports growth. As
companys operating model. Only 25 the operating model shifts, employees must
percent of companies we surveyed have a transition as well. For example, if a company
flexible operating model that can adapt to moves from a regional to global model, it is
consistently deliver on strategy and execute important to determine what the new key
the activities that drive value for roles are in the organization and prioritize and
the organization. shift the top talent accordingly to support the
needs of a globally-led business.
Companies fail for a variety of reasons
including, they: If people remain in the same roles or have the
same responsibilities as the ground beneath
Had the wrong strategy.
them is shifting, they cannot be effective
Didnt allocate the right resources contributors to the growth agenda and
to the strategy. actually can become obstacles to the new
Didnt garner support from leaders growth strategy. People want to contribute
and employees. to growth, and they should have incentives
P ivoted to a new strategy, but dragged for doing so. Create measurements of
along the old operating model. success, and reward employees for meeting or
surpassing those expectations. Ensure ongoing
Restructured without considering the
progress by adjusting those measurements as
implications to the growth strategy.
the operating model changes.
The operating model should be designed
to support the business model and growth Digital is a
strategy. The C-suite must be aligned around shiny object
that strategy and how to fund it.
This seems simple and yet, in too many cases, Digital is disrupting many dimensions of
we find that the operating model is not businesses todayfrom growth strategies to
aligned to the strategy and therefore holding how companies pay their bills. Companies are
the company back from success and a major eager to embrace the power of digital in the
cause of frustration in the organization. front office, such as in marketing and sales or
Accenture Strategy research indicates that customer service and yet they are taking only
only 17 percent of chief financial officers and limited time to understand the implications of
31 percent of chief executive officers strongly digital on their operating model.
agree their companys operating model is
aligned to fuel strategic growth initiatives.

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More than 80 percent of executives think that Create your
digital strategies are an enabler of advanced people plan
operating models, and 84 percent see digital
business as an enabler of strategic growth. Standing up an operating model calls for
More than half are reinvesting cost savings plotting out how your workforce should
into digital technologies, but without clarity evolve to support that operating model.
on how digital affects the operating model, Map key talent to the areas that you have
or how it can enable growth, that defined as core to fueling growth. Place top
reinvestment may be wasted. performers in high-priority roles and use open
innovation or virtual working teams to fill
in the gaps.
Toward efficient and effective
Look at new models for matching talent
operating models with tasks across locations. Think about how
To optimize the operating model to fuel digital can enable your workforce of the
growth and competitiveness, there are a few futurecloud computing, new social and
critical areas to get right. collaboration tools, and advances in remote
access enable many jobs to be easily carried
Link your operating model out from a distance.
to your growth strategy and
business model 80% 80 percent of
Think about how the operating model can executives think
support growth. Be clear on profit goals and that digital strategies
where growth will come from in the future. are an enabler of
Identify the specific capabilities across the
advanced operating
organization that are essential to winning in
models.
the marketplace.
Invest in those core capabilities that will Crowdsourcing offers a dynamic workforce on
drive sustainable, profitable growth. Stronger demand with unique capabilities that you can
core capabilities can reduce rework, drive cost-effectively tap into when you may not
down costs and ultimately boosts competitive need a full- or part-time person. For example,
differentiation. Dont waste more than you Field Agent has 800,000 users enabled with
need on context activities that dont add an iPhone app that pays them to conduct
value to the business (e.g., controlling, HR basic field research. These agents carry out
admin, sales operations, etc.). retail audits, secret shopping, even conduct
polls or online research on a companys behalf
for just dollars per job. Participants are paid
via PayPal once theyve completed the
task requested.1

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   U
 se digital as fuel
for growth
Businesses must look at how digital affects
the operating model and, moreover, how it
can be used as fuel for driving sustainable
profitable growth across all parts of the value
chain. Digital enables a new level of flexibility
that companies need to compete in an ever-
changing marketplace. How can your business
use that flexibility to its advantage?
To get full value from digital you need to
shape an integrated plan that identifies
how digital can be woven into the fabric
of functions. A number of emerging digital
solutions can inject innovation and efficiency
across the value chain. Digital can also be
fuel for creating a culture of innovation and
fostering out-of-the-box thinking.

Out with the old, in with the new

Whether the operating model does or doesnt enable growth
may be the hardest test to a business strategy. Many are failing
the test because they are stuck in the past, trying to retrofit old
legacy models. Or, there are features of the new operating model
that the business hasnt curated well enough to move the needle
toward growth.
Its time to get serious about the operating model so it can
deliver desired business outcomes and growth at scale.

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 Join the conversation About Accenture
@AccentureStrat
Accenture is a leading global professional
services company, providing a broad
Contact the Authors
range of services and solutions in
Till Dudler strategy, consulting, digital, technology
[email protected] and operations. Combining unmatched
experience and specialized skills across
Bill Theofilou more than 40 industries and all business
[email protected] functionsunderpinned by the worlds
largest delivery networkAccenture
Oliver Wright
works at the intersection of business and
[email protected]
technology to help clients improve their
performance and create sustainable value
Other contributor for their stakeholders. With approximately
373,000 people serving clients in more than
Samuel Holmes 120 countries, Accenture drives innovation
[email protected] to improve the way the world works and
lives. Visit us at www.accenture.com.
Resources
1 https://fieldagent.net/ About Accenture Strategy

Accenture Strategy operates at the

intersection of business and technology.
We bring together our capabilities in
business, technology, operations and
function strategy to help our clients
envision and execute industry-specific
strategies that support enterprise wide
transformation. Our focus on issues
related to digital disruption,
competitiveness, global operating
models, talent and leadership help drive
both efficiencies and growth. For more
information, follow @AccentureStrat or
visit www.accenture.com/strategy

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