29th August 2014
Organisational Design: Building a New Operating Model
Below is an example where Generator Consulting working with a State Government Health Care provider to successfully re-work their operating model to realise efficiencies and increase capability of their organisation to deliver a new business strategy.
Building a New Operating Model for a Health Care Provider (State Government)
Challenge and Objectives
This State Government provider of Health Care strategy and services was seeking to create new capability to aid the delivery of the strategy. Their purpose, based on research, is to investigate both internal and external health and disability trends to inform policy and develop strategy. Their plan was to bring in new international “best in class” practices and translate these into a new operating model that would improve scheme performance, enhance service to their clients and improve return-to-work outcomes.
How Generator Consulting Helped
Over an engagement period of six months, our Partners led a redesign and subsequent implementation of the organisation’s fundamental operating model. Given the team had experienced an adverse redesign process with another consulting group, our focus was on:
- Engagement of the senior team and critical stakeholders.
- Ensuring a focus on all aspects of organisational design; the capability of the people, the processes that support them, the structure they work in and the reward systems that motivate them.
In this phase we worked with the client to re-establish their purpose, roles and outcomes they needed the operating model to deliver. We then established all key processes, systems and policies that were owned by the group. We set up their change plan and developed success indicators and captured limits and assumptions for the design. For this client it was critical to have a well-developed change, engagement and communications plan, which we focused on early in the work.
This phase of the engagement was effected in two parts:
- Finalising a “Macro-design” which included designing a new structure and key processes and determining how best to work across integrated business units; looking at reward systems and also how to select/assess and deploy people into new roles, manage their performance and support their development.
- Conducting the “Micro-design” which included analysing and defining the specific work so that the roles and responsibilities of individuals could be set; identifying core organisational capabilities and individual competencies needed for key and critical roles.
We were also engaged to oversee the implementation of the new operating model. This phase of the project included developing a consultation plan, staffing plan, and an approach to address the differences between employee terms and conditions across the new group. Training plans, highlighting any critical path work streams; change engagement and communication planning and writing relevant communications content was also developed.
This stage of the project focused on ensuring the new organisation rapidly developed capability and operating efficiency. This included facilitating activities such as a launch event, conducting “process and solutions workshops” to clarify any changes and discussing how the organisation operated from the perspective of the team and key stakeholders; creating a common purpose around aligned goals and metrics; visibly demonstrating Board sponsorship and getting some early wins in the collaboration space.
The organisation has tracked their progressed through a survey that measured the effectiveness of the communications and their readiness to adapt to the new ways of working. Indications are that the change process is on track. We remain in touch with the client and have since been engaged by them to lead an organisation redesign process in an associated organisation.