DesigningOperatingModelsA three day residential workshopto help design better targetoperating models

(Typically runs January, April & September)

STRATEGY

BUSINESS MODEL

INVESTORS

CUSTOMERSOFFER

RETURN TO INVESTORS

Process and Equipment Information TechnologyLocations and PropertiesOrganisation and PeopleSuppliers and Partners

OPERATING MODEL

Designing Operating ModelsAn operating model is a visualisation (a model) of the operations of an organisation in a form that helps managers with all the detailed design decisions that need to be made before the organisation can start operating. There are five categories of design decisions that are relevant (the PILOS framework):

rocesses and Equipment - the work of the organisation

nformation Technology - the systems needed to support the work

ocations and Properties – the locations and buildings that house the work

rganisation and People – the people who do the work, their culture, structure, etc

uppliers and Partners – the sourcing agreements needed to support the work

A target operating model defines how the organisation will operate in the future. It is developed from an understanding of the organisation's strategy and business model.

“Very high energy and extremely good value”Eric Smith, General Manager Operations, CalMac Ferries Ltd.

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About the workshopBefore an organisation can operate managers must make many decisions. What to insource and what to outsource? Where to locate? Who to hire and what terms of employment to offer? What information systems to set up? These decisions are made at different points in time by different functional leaders. This workshop is about how to design all of these decisions so that they align with each other and with the strategy.

� You will have a role that involves linking strategy to operations or operations to strategy.

� You may be in a planning or strategy team and need to ground your business plans.

� You may be in an operations team trying to interpret strategy for your area.

� You may be a business architect or enterprise architect attached to an IT team.

� You may be a business partner or strategist in HR or IT or Finance.

� You may be a member of a Lean or Business Improvement or Operational Excellence team.

� You may be part of a group working on Transformation or Project Management.

� Finally you may be a consultant in any of these areas.

Who should attend?

Whichever of these roles you have, you want to ensure that your operating model is efficient, innovative and aligned with your business strategy. You want to better understand the operating model of your business, and have more influence over the major choices made.

You may have been involved in incremental improvements, and are now looking for more transformational improvements. You may know how to deliver change projects, and now want to help decide which projects to initiate. You may be an expert in Lean methodologies, and now want to be more strategic in the changes you make. You may be doing design work for IT or HR or Finance, but want to contribute to the broader business design. Importantly you will feel that you have something to contribute as well as something to learn.

“A thoroughly well thought outcourse. Content provided the rightlevel of tools and approaches toOperating Design”Merryn Horneman,Principle Management Consultant (Pcubed)

“Very good grounding. Presentednumerous tools to develop an OMfrom scratch or transform anexisting one”Nick Ouston,Management Information Manager, EDF

“Full of variety, interactive learning and 'real world' case studies”(Nick Lund-Conlon, Strategic Development Manager, MGM Advantage)

Learning ObjectivesOperating model design is a developingfield. Some frameworks and tools are wellestablished, but some are still evolving. Wewill discuss the well-established tools andexplore new ones. You will learn about:

� The difference between a business model and an operating model

� The importance of taking a stakeholder view

� The design process, in particular how to turn business strategy into good design principles

� The levels of design from level 1 (design principles) to level 5 (implementation)

� Tools for documenting business strategy in a way that is helpful for operating model design

� Design thinking, in particular the benefits of drawings and rough sketches

� The Dupont Model, for linking operating model choices to financial outcomes

� Tools, such as IDEA and ASIAA, for challenging the status quo and encouraging innovation

� Frameworks for thinking about technology

� Tools for checking the robustness of new designs, particularly organisation structure and relationships with suppliers and business partners.

Since this is a workshop, we will all be learning together. Hence, your learning will depend, in part, on the other participants.

Learning ApproachThe workshop has three parts to it:

� Six hours of structured preparation: four hours to read assigned articles (we also offer an online test that helps participants confirm that they have understood the reading); two hours to prepare a case study and participate in an online discussion of the case (this helps participants orient their thinking to the topics of the workshop)

� Three-day residential workshop

� PA Consulting and Ashridge will continue to share their learning in this area with regular updates on insights into business design - (visit ashridgeonoperatingmodels.com or follow @operatingmodels or @marklancelott) and with occasional conference calls to share experience.

Expected timetable

Agenda and objectives

What is an operating model?

A worked example from PA

Meat and potatoes case

Linking strategy and operating model

An operating model as a value chain

An operating model as an organisational model

Design thinking and visualisation

End of day one

Discuss visualisation examples from participants

The process of design and design principles

Challenging an operating model with IDEA

Improving an operating model with technology

Improving supplier relationships

Challenging an operating model with SPACI

Planning and project management

End of day two

Review

Major case study with Mikel Gutierrez

Review and close by 16.15

09.00

09.15

09.45

10.45

11.30

14.00

15.00

16.00

17.30

08.30

09.30

10.30

11.30

13.30

14.45

17.00

17.15

08.30

09.00

16.00

Day 1

Day 2

Day 3

Booking informationThe three day workshop is residential at Ashridge Business School,Berkhamsted, Hertfordshire HP4 1NS; one hour from London airports.

The fee, including two nights accommodation:£2,950 (+VAT)

For enquiries concerning bookings:Tel: +44 (0)20 7681 6422Email: Ravinder.lidder@ashridge.hult.eduwww.ashridge.org.uk/dom

The course typically runs in January, April and September

For this year's dates please see our website

“Worked examples bring thetheory to life. Andrew and Markwere great course tutors.”Steve Curry,Assistant Director of Operations, Health Board

“Very stimulating, will help me a lot back at work”Sardip Sandhu, Strategy and Transformation Lead, Boots Company Plc

Andrew Campbell is a Director of Ashridge Strategic Management Centre and a world-renowed expert on corporate strategy and organisation. He has authored 10 books on strategy and organisation issues, published numerous articles including six in the Harvard Business Review and spoken at many conferences. He leads research projects, directs management courses and works with client companies.

Faculty

Andrew Campbell

Mark LancelottMark Lancelott is the Managing Consultant of PA Consulting’s Business Transformation Group. He specialises in business design, helping businesses define, design and deliver the business and IT architecture to execute strategy. He has worked with clients across many sectors throughout Europe. Before joining PA, Mark spent eight years with Barclays in IT, strategy, consulting and service design roles.

Mikel GutierrezMikel Gutiérrez is ex-CEO of Asebal, a company producing galvanized steel for road and solar businesses. He took it from being a domestic, almost bankrupt, Spanish company to a strong business, selling in more than 20 countries. Previously he was General Manager of Ormazabal Germany and Director of Business Process Improvement of the parent company Ormazabal Group, a producer of equipment for the power industry. He has worked in the aerospace, automative, energy, road construction and solar sectors across Europe and the USA.

Programmes are residential at AshridgeBusiness School near Berkhamsted,Hertfordshire HP4 1NS.

Visit www.ashridge.org.uk/domor contact Ravinder LidderAshridge Strategic Management CentreTel: +44 (0)20 7681 6422Email: Ravinder.lidder@ashridge.hult.edu

For more information

“This course has de-mystifiedthe subject”Paul Hill, Operations Services Director, Manheim

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“An extremely valuable course which combines theoretical background tools and the design process”Natasha Sidorova, Head of Securities Services, ING Bank

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