When an organization doesn’t meet its stakeholders’ needs and expectations, the cause may not be a misguided strategy or vision.
Instead, underperformance is often the result of a misalignment of the company’s strategy and its many complex, interacting organizational parts. To address such situations, PwC's Strategy& designs new operating models, based on market economics and customized to deliver against shareholder expectations, customer needs, and the relationships among the constituencies in the organization’s extended enterprise.
Tailored to meet a company’s particular situation, a new operating model typically includes any or all of the following elements:
- Market-like mechanisms for allocating scarce resources
- A decision-rights framework that clearly identifies and motivates individuals to work, individually and together, toward strategic objectives
- Profit-accountable business units formed around distinct value propositions
- Overhead optimization and outsourcing based on market models to serve internal clients responsively and competitively
- Lean and strategically focused head offices
- Alliances and partnerships with best-in-class providers to leverage scale, access expertise, and increase flexibility
- Linkages among organizational elements that measure, inform, and motivate them to effectively work together to execute the firm’s strategy
- Defining the people requirements of the new operating model as well as designing the initiatives to make fundamental change happen
Strategy& has deep expertise to not only design operating models and organizations, but also to help realize the potential of a new organization by deploying our experts in organization efficiency, outsourcing, human capital and talent management, learning and leadership development, change management, and strategic communications.