Transforming an organisation is daunting but rewarding; we know this as we love it!
Being set targets to reduce cost; knowing that you can’t continue with current overheads; knowing you have to reduce headcount; knowing you want to grow but reduce your cost to serve are all challenges regularly faced by many service organisations.
Most companies do not typically retain experienced transformation resources, but with the right support, the right experience, capability and at the right cost, it is out there. So why don’t companies go and get the help they need?
Myth – Support is going to be far too expensive or will mean signing up for a long-term support commitment.
Reality – Avocado55 doesn’t work like that. Our flexible approach allows us to work with companies however long it is needed, be it for a few days or for many months; we are the best partners out there to advise and support you in your transformation.
First steps that are often regretted
Reducing Headcount
Often, the first thing that comes to mind and the easiest solution when cost reductions are mentioned is reducing headcount without reducing the drivers for your current headcount. Rather than cut headcount, we advise you to review all processes and ensure you know exactly the headcount requirement you need. This approach ensures that any headcount reduction is backed by evidence that can be used to reduce resources in a structured programme.
Reduction in the budget (not resources)
Reducing the budget (not resources) is another commonplace challenge, but if thought through, more significant savings could be achieved with the right approach. We have case studies where companies have slashed in-year budgets to a level that gives problems for next year.
A well-devised / planned transformation programme will provide greater savings by optimising processes and introducing non-invasive automation, if applicable, to result in a lower unit cost.
Optimising your business may seem daunting or costly or both, but through experience, we have devised a methodology that enables us to assess your organisation quickly, identify cost reduction opportunities and help you implement them in a short timeframe. This approach strengthens your business for the long term; and ensures minimal disruption to your ongoing business.
OPERATING MODEL DESIGN
Designing a new organisation
Starting in 2018, we designed and continually refined our operating model design approach. We felt that the current approaches to TOM design needed to be more specific, focus on service organisations, and the models designed were never used long-term as they became irrelevant to day-to-day activity.
We developed our OM8x3 model, which documents our systematic approach to operating model design in a simple and easy-to-use way.
Once we have worked with you and designed your new operating model, we support you in implementing all aspects, working with HR, Tech, Operations etc. – who have been with us along the design journey.
The model goes to a level of detail useful in day-to-day change activity as it gives a baseline structure to which the organisation works.