Consulting
The analogy of the earth as an ecosystem can help business to see that the macro-level is built in partnership with micro-level organisms. This model indicates that organisation is about interdependency and that isolated changes do not translate to significant results. Conventional organisations act to push narrow agendas that require enforcement on a constant basis. These 'push-models' are overhead rich and effectiveness poor.
Future leaders will overcome this fragmentation and the slow pace of of execution by rethinking their operating models.
The AI Operating Model (AIOM) is whole system concept. It is not merely a new productivity tool.
Improve the model to achieve results:
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Remove silos for real time decision making
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End-to-end integration is not optional
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Measure outcomes as the priority
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Align resources to outcomes and client cohorts
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Automate constantly
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People enhance the performance of the model
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Data points and activity will constantly expand like the universe
The AIOM means the organisation is designed as a fully integrated concept. The implementation reflects the degree of coordination and collaboration across the value stream and the key resources deployed. An AIOM assumes a boundaryless configuration. An AIOM is learning from expanding data points. Humans are learning from the clients experiences and the success / weaknesses of the operating model. Managers work constantly on the system. Leaders learn from the performance of the model and feedback from all involved across the supply chain, the human resource communities, data analytics and the client cohorts.
You are frustrated with some aspects or all of your organisations performance and its medium to long-term prospects. You want to believe you are a strategic leader and can embrace moments of radical transformation.
In large organisations management culture is often driven to prioritise functional control and narrow financial results. These are obstacles to performance, not solutions. They are the basis of non-management, the production of internal agendas and career paths. This approach to business is not entrepreneurial, but bureaucracy. Such organisations are administered, not managed. The market was once an organic social phenomenon, now it is a regulated world of compliance codes.
In this hierarchical conception, customers are an ‘opportunity’ and the benefit is in limiting the cost while maximising the revenue. It is not about meeting requirements or sustaining success, but about survival on the lowest cost base. Low capitalisation therefore attracts specific investment and business models that are oriented towards financial metrics only.
Value is often not the focus of our operating models, if management do not accommodate it. Value is treated as a new additional set of outcomes with added ‘costs’. Businesses spend a lot of time and money on failure demand / waste because they are managing a narrowly conceived proposition that is designed around the Balance Sheet or expenditure budget.
The effect is to limit value, enforce compliance and treat innovation as a luxury.
Management is often the reason why waste exists. For those with confidence, the frontline team is the business and the board is the facilitator of the technology and human resources to perform.
In the conventional management model, the board is the business, deemed to be in control when in fact they have little or no effective control over the operating model and client value streams. Waste is initiated at the first contact with the customer order. Conventional management protects itself with ‘customer service’ which is in effect failure demand.