As some of you may know, I am writing a book on operating models, which will probably be called “Operating Model Canvas” – to connect with the “Business Model Canvas”. I am also making this the center piece of my course Designing Operating Models.
So here is something I have been working on for the book – the eleven visuals. After all, one of the definitions for the word model is “a visual way of displaying how something works” (this blog has been updated a little from four days ago – so some of the comments may not fit the text exactly – but please comment).
So here is my current list – and a visual showing how all these visuals fit together! The visual in the middle is the operating model canvas (POLISM – Processes, Organisation, Location, IT, Suppliers and Management System). I don’t yet have pictures of all the other visuals – but it is coming. When you look at the framework in the middle try to work out where the P or O or L fit! The little icon symbols, if you can see them, might help.
- Stakeholder Map: this is helpful in clarifying what is inside the operating model and what is outside the operating model and the type of relationships that exist with those outside (see comments – Richard is suggesting that something richer is needed here)
- Value Chain Map: core visual that shows the operating work that needs to be done to deliver value to the beneficiaries of the operating model. Vital tool for clarifying sources of excellence and problem areas. Also vital for thinking about where similar activities/capabilities should be combined, linked or kept separate. Helpful for thinking about in-sourcing and outsourcing, and hence good to link with the stakeholder map. (See comments – Alex is suggesting an additional cost waterfall chart)
- Organization Model: converts the value chain map into an organization structure, and provides a framework for adding all the supporting functions and capabilities into one picture.
- People Models: outlines the people model (who we want, what we offer them, what career path, what culture) for each skill group that is critical to the organization’s success
- Decision Grid: lists the ten or twenty major decisions that the organization makes and defines the role of each organization unit in making these decisions using RACI or RAPID
- Process Ownership Grid: combines the organization model and the value chain map into a table so that it is clear which operating processes touch multiple organizational units, where there are likely to be difficult working relationships between organizational units and which organizational unit(s) own(s) each process (or part of process).
- IT Blueprint: using the process ownership grid, it is possible to mark on the table what applications are needed to support each process, whether the application is bespoke or a standard module and whether the application is owned by IT or the owner of the process. There are many uses of the phrase IT Blueprint. This is a particularly high level use of the term.
- Supplier Matrix: summarizes the outsourcing and in-sourcing choices and identifies which suppliers need to be treated as business partners rather than transactional suppliers
- Locations Footprint: displays the geographic locations or building layouts showing where work is done, why it is done in that location and what assets are needed to support the work
- Management Calendar: displays the annual (or periodic) rhythm of strategic planning, budgeting, target setting, business reviews, people reviews, continuous improvement processes and other systems that run the organization.
- Scorecard: displays the tool that managers will use to assess progress. Typically includes vision, mission and values statements, a list of projects and a list of KPIs with red, orange and green lights against each item. (see comments – Peter points out that “projects” are an optional part of the scorecard)
What do you think? Any thoughtful comments will be rewarded with “contributing author” status in my book (three contributing authors so far!).