An introduction how to define Operating Principles – the foundation for your global transformation. The Operating Principles describe how you translate customer needs into your business and constitute the design and development of your Target Operating Model.

Why do we need a Target Operating Model for the future

We are operating in the context of accelerating market dynamics: new technologies, changing customer behaviors, increasing regulations and new competition. At the same time we are managing risks against an uncertain economic environment with high pressure on margins and high market expectations. We need to understand these developments both from a customer as well from a business point of view to translate the changing requirements into operations which best support the execution of our business models.

Introducing a structured approach

This teaser document provides an introduction how to define Operating Principles – the foundation for your global transformation. The Operating Principles describe how you translate customer needs into your business and constitute the design and development of your Target Operating Model. The Operating Principles balance on the one hand the need for global standards and on the other hand support an adequate adaption for a best execution of local businesses in their specific and challenging markets. The local entities turn the resulting functional model derived from the Operating Principles into an organizational structure.

Impact of local organizations

The local organizations will successfully respond to dynamic market changes with their business specific strengths. With business specific criteria they are prepared and flexible to adapt local business models with emerging business needs and opportunities to successfully perform their business as well globally as locally. This makes the defined Operating Principles valid to all company organizations supporting all Lines of Business and customer groups served.

Aiming at improved customer services

Together with productivity improvements the company is aiming at improved customer services at lower cost and higher quality. Only when significantly reducing complexity and harmonizing the operational activities the company will be able to leverage global synergies of scale and skill. All organizational entities will agree on these common Operating Principles to draw a competitive advantage from global presence, skilled people and Group-wide collaboration.

What is the purpose of an Operating Model and what does it entail?

An operating model serves within organizations and across the network of organizations as an integrated framework to translate business needs into specific operations and services. In other words the operating model should enable the execution of the business model in the best possible way. Integrated decision framework;

The operating model details the organizational and process structure of the company. It supports the people in the organization and enables them to work more effectively by creating coherence, transparency and consistency. With the right processes, frameworks and metrics in place it allows for better, faster decisions in day-to-day execution. Better, faster decisions in day-to-efficient execution of the business model day execution

In order to derive the general principles/ implications for the Target Operating Model we work along the following steps.

We can support you with your project

ToBeConsult offers individually tailored solutions and no standard procedure. We have developed a structured approach, models and efficient methods and apply them in cooperation with our customers. We think entrepreneurially and always act from the owner’s point of view.