The 8th Dec event focussed on Wellcome Trust as a co-consulting case study and then Explored operating model design. We had some excellent conversations and practiced the application of operating model design to 2 different organisations.
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EODF – London 08 Dec report
1. Hosted by Wellcome Trust
London, 8th December
@NickGMRichmond
@EuropeanODF
2. Welcome, Agenda and Notices
Time Activity
4pm Welcome & Notices
4.15pm Community Development Activity
4.45pm How do we smoothly integrate and embed different ways of working
and continue to develop the flexibility, challenge and drive across the
organisation to enable us to deliver the strategy?
6.00pm Bio-break
6.20pm Taking a truly holistic approach to designing and transforming
organisations – working with other business design and
transformation disciplines
7.30pm Future Community Sessions
7.55pm Review and Close
3. Who are we
Mission
To build and advance the community, practice, and strategic
role of Organisation Design
Purpose
Creating a connected community, exploring inspirational
perspectives to release organisational potential
UK Chapter Vision
Recognising the ‘life’ is in the open exchange and the ‘fruit’ for
us is in the practical application. With this in mind our vision is
to provoke, stimulate and educate in a safe environment.
4. EODF Goals
Our main activities will support the following Goals:
1. Grow visibility of EODF – by building partnership with Partner
Organisations, developing our presence on-line, in social
media and by being present at professional conferences. We
will build and develop an ambassador structure.
2. Grow our Membership – by further developing Country Groups
and encouraging member sign up from our supporting community.
3. Developing Quality Content with our Members -Education
Programmes – By initially developing or further developing the
skills and knowledge of our Members (resources on our website,
webinars, introductory 1, 2, 3 day programmes through to
having an accreditation system in org. design.)
4. Have an amazing, inclusive Conference in Italy – with social
interaction before, during and after the event – and transparency,
inclusiveness in the planning and execution process too.
12. Community Development
Listen out for the process
1. What is currently energising me in organisation design
2. Something I am proud of
3. My biggest organisation design challenge has been
You have 30 minutes
15. What is currently energising me?
• Working in change and ambiguity
• In the public sector: finding the balance between organisational ambition and day-
today performance management
• Opportunity to do macro, end to end/pan-enterprise org design
• SPRINTS
• Managing a client with very strong personality (controlling)
• Amazing scientist director who’s v.poor at line management
• IT is being recognised as a discipline in its own right ‘By design not just accident’
• Developing “Whole” organisations
• How gamification can be used to develop org design
• Community warm ups
• Changing the dialogue @ leadership levels
• Trying to design an org design approach – how much is process vs experience
• How to create leverage & energy using innovative ideas from martial arts
• Simplifying organisations / being a designer
• How to use design principles/criteria
16. Something I am proud of
• Being confident in my trade to say I’m an org designer
• Moving from theory to reality ‘ making it real’
• Getting new, young, IT business leaders to buy into the value of org design
• Developing as an Org design consultant
• Son showing EI this morning
• Bringing together org design, business architecture and service design approaches in
PA
• The position I’m currently in to influence the agenda
• Being calm and consistent
• Principles of business in local community
• Company 10 year celebration
• Building strong relationships
• Blog writing
• PA / Secretaries who worked for me are now HR practitioners inc. 2 HR directors
• Reaching common agreement on criteria for CEO
• Task to redesign outdated Business Processes
• Near Completion w/org-wide org effectiveness prog.
• My course designing operation models
• Pan TfL skills/common language
17. My biggest Org Design Challenge
• HR Ro-org – Head of HR would not make up her mind
• Designing in an organisation where the MD didn’t support his strategy
• Supporting the re-design of future model of care processes for a CCG
• De merger out of a gov dept. in conflict situation
• Org design Post Merger in Biotech
• Structure for sanity aligning structure with reality
• Bringing OD to an F1 Racing team
• Big personality / old school org design
• Org design for a major military facility
• Global organisation (segment, work type, region + legal entity) with function leaders
• Keeping energy & focus going in developing ‘simple’ data reports
• BI + data develop inc OD in spite of conflicting stakeholders
• Culture change
• Change in culture from debt collection to customer focus across call centre & field collection
• Being sufficiently challenging to culture that things can change without the barriers coming up
• Constructive ppl & design
• Helping Orgs bring culture back to the workplace
18.
19. Who we are
We are an independent global charitable foundation,
dedicated to improving health.
We remain true to the vision and values of our
founder, Sir Henry Wellcome, a medical entrepreneur,
collector and philanthropist.
Since 1936, our support has helped to save and
improve millions of lives around the world through
science, research, evidence and engagement
with society.
20. What we do
We fund health-related research, across the world.
We pursue new understandings of the body, disease, or the
environment we live in, ideas about how to change medicine,
culture or even the world.
We support thousands of curious, passionate people all over
the world to explore great ideas, at every step of the way from
discovery to impact.
21. Where we do it: our active funding
North
America
£77m
UK
£2,300m
Latin America &
the Caribbean
£10m
Sub-Saharan
Africa
£225m
South-east Asia
& Pacific
£92m
Europe &
Central Asia
£113m
India:
£156m
22. How we work
Investments: We are funded from a private endowment – the assets
stand at around £18 billion
Our strategic approach. Describes our philosophy and establishes
a framework that sets out our modes of working and gives us the
flexibility to set new priorities over time
To improve health, we have spent (and plan to spend):
1936 2005 2015 2020
£11 BILLION
£6 BILLION
£5 BILLION
23. What’s new?
We have developed a strategic approach, instead of a plan.
This:
• builds on our last plan, but has no fixed time frame
• give us the flexibility to set new priorities over time
• seeks to reach out to new audiences and partners
• allows us to be directive and purposeful when the time is right
24. • 7 priority areas (1 Implementation, 6 Development)
• 10 -20% of organisation involved
100% of their time on the Priority area,
part time while still maintaining their functional role
specialist support skills drawn on as required (e.g. finance, HR, IT, fac.)
• Movement into and out of the Priority areas
• Roles for 6-12 months
First steps
25. How do we smoothly integrate and embed
different ways of working and continue to
develop the flexibility, challenge and drive
across the organisation to enable us to deliver
the strategy?
The challenge – Plenary Discussion
26. Output – practical experience
• What have you seen that works/doesn’t
work and why? What can we learn from
this?
• What specific organisations/contacts can
you connect us to so that we can learn from
them and share our experiences?
• Provide insights to Sherrie at
S.Charlton@welcome.ac.uk
Practical Experience Requested
27. • The physical environment
• Support services e.g. IT, communications
• The systems e.g. reviewing performance, development
planning, reward, talent and succession planning, reporting,
finance …
• Engaging our people at all levels, start phase and beyond.
• Recognising, mobilising and motivating our stars/ambassadors
of change and different ways of working
• Roles – have these changed, if so how? Are there new or
specific roles needed to facilitate this approach?
• Flexible ways of working
Some areas the attendees could consider
30. To explore operating model design as a way of working with
other transformation practices to better design brilliant
organisations
Aim of the session
1. Exploring perspectives game
2. Our view of operating model design
3. Core operating model logic
4. Take-aways
Plan for the session
31. • Shuffle the cards
• Look for similarities and differences between the concepts
• Group the cards in a way that emerges from this
Be ready to play back to the group:
• What concepts did you group as similar and why?
• How did you group the different concepts?
• Any other reflections?
You have 15 minutes.
1. Exploring perspectives of design and transformation design practices
32. IT
Business
architecture
Organisation
design
Process
design
Service design
Business
model canvass
Strategy
Talent and
culture
Sourcing Finance
SOA Business
Services
Capabilities Structure chart Cycle time
Customer
journey
Key Activities Value chain Values Ecosystems
Chart of
accounts
ESB
Value
propositions
Decision rights Defects
Service
expectations
Key partners
Competitive
advantage
Symbols
Partnership
agreement
Cost centre
structure
Cloud
Information
model
Governance
model
7 wastes Pain points Key resources Mission Rituals
Supplier
network
Profit centres
Logical
architecture
TOGAF
Management
layers
Process
hierarchy
Moments of
truth
Cost structure Vision
Totems and
taboos
Category
management
Revenue
attribution
Solution design
Business
objects
Spans of control Value streams
Customer
needs
Customer
relationships
Values Stories
Strategic
suppliers
P&L
API Viewpoints STAR model Cost to serve Touchpoints
Customer
segments
Five forces Purpose
Framework
contracts
Balance sheet
Master data
management
Reference
models
RAPID Six sigma Motivations
Value
propositions
PESTLE Skills
Statements of
work
Cash-flow
statement
Business
requirements
Blueprints Job design Mini-tab
Customer
outcomes
Channels
Value
disciplines
Talent pools Offshoring Transfer pricing
Non functional
requirements
Capability
mapping
Accountabilities KPIs
Customer
experience
Revenue
streams
Activity systems Workforce plan Nearshoring
ABC
Use cases Principles Responsibilities Process map Word of mouth Markets OCI Outsourcing
Agile
Capability
maturity
Business units IDEF0 Tone of voice
Customer
segments
HIPO
ERP Data dictionary Shared services
BPMN
Storyboards Grading
COTS Meta-model Matrix STP
Reward
systems
SLAs Dotted lines
Performance
management
33. Operating model design as a way of:
• bridging the gap between strategy
and action
• aligning decisions that different
functions and transformation
practices make
• providing a common map for
different functions and professions
to use.
2. Our view of operating model design
Key operating model design artefacts:
• Value delivery chain
• Organisation model
Then
• Process
• Information links
• Suppliers
• IT
• Decision rights
• People and values
• Locations.
34. 34
Define the value delivery chains for each segment
1
6
5
2
7
3
4
Segments
Segments can be defined by
product or customer type or
channel or geography
BUY MAKE SELL
BUY MAKE SELL
BUY MAKE SELL
BUY MAKE SELL
BUY MAKE SELL
BUY MAKE SELL
Seg 1
Seg 6
Seg 5
Seg 2
Seg 3
Seg 7
Draw the value chain for each segment
35. Segment A
Segment B
Segment C
Segment D
Segment E
Segment F
Combine/manage together
Link or standardise, but manage by segment
All Value
Chain Steps
Separate and manage by segment
Source of advantage
(1) Identify which steps are critical sources of advantage for each segment.
(2) Then identify which steps should be combined, linked or kept separate.
37. Organisation model describe the relationships between different types of
organisation units
Most strategic organisation
design is about…
Unit 1 Unit 2 Unit 3
CEO
Common
Operations
Policy functions
Coordinating or
championing
Shared services
Powerful central
functions
Less powerful service
and lobbying units
1. How to divide the operating core into
operating functions?
2. What support functions to set up and
how to get them to work well with the
operating core?
38. Functional requires a clear and stable
understanding of the contribution of each function,
so that holding heads of accountable for functional
performance will deliver overall performance
• Function
• Process
Matrix can manage complex and changing
interdependencies, but requires greater
management overhead to resolve inherent
tensions and overlapping authority and diffuse
accountability. Requires appropriate leadership
and managerial practices and behaviours to work
effectively.
Three key ways of organising operating work
• Geography
• Customer
• Product
• Project
• Asset
Business unit is the simplest to manage from a
corporate perspective when it is clear what MDs
will be held accountable for (profit, revenue and
cost in SBU model), and inter-dependencies are
simple.
• Functional matrix
• Geographic matrix
• Front/back
• Multi-matrix
Function
Matrix
Units
39. There are four different types of support work, each with a different relationship
with operating functions
Support unit Characteristic
Policy
functions
• Defines policy – other operating
and support units must comply
• Must have full backing from the
CEO to direct and enforce
• Policy units have power over other
units
Unit 1 Unit 2 Unit 3
CEO
Powerful central
functions
Less powerful service
and lobbying units
Common
operations
• Shared operational activity to
provide efficiencies
• Operating units have power to
direct, but as shared across
more than one unit, may require
CEO arbitration if they can’t
agree
Shared
services
• Provide transactional, common
process delivery on a service
basis
• Exist to serve operating units -
are ‘subservient’
Coordinating /
championing
functions
• Coordinate and champion
• Influence through lobbying and
persuasion, rather than authority
• Also considered as ‘subservient’
to the lines of business.
Policy functions
Common
Operations
Coordinating or
championing
Shared services
43. Summary and Close
• Summary
• Post-It poll
– How welcomed you felt tonight? (very strong, strong, weak,
did not feel welcomed) Very strong
– How valuable was this event to you? (out of 10, where 10 is
highest value) 8.25
• Comments
– Opportunity to practice OD rather than just theory talking
about - and with fellow practitioners
– Great case study,
– Liked opening up Op model topic. Thanks for the biscuits
– Helped me think through how we organise our TOM &
organisation design activities