End-to-end operating model evolution

The situation

A nascent Qatari developer was looking to cut cost overruns on its only mega-project, and to evolve from a one-project developer into a full-fledged developer and operator. The company called on Strategy& to help it determine the optimal business structure, decide what governance entities needed to be created, design key management processes to reinforce the organizational philosophy, and ensure coordination among the various departments throughout the project life cycle. The objective was to evolve the operating model in a way that would ensure the successful execution of future projects, with a focus on promoting a commercial mind-set. And to do it all with limited disruption to its ongoing flagship project.

How we helped

The Strategy& team began by baselining the existing operating model and identifying key challenges. The team benchmarked 10 global and regional developers, compiling relevant lessons learned. It reviewed the governance structure and key management processes, and designed the development process to govern all stakeholder interactions across the project life cycle. The new organization was designed five levels down, with detailed functional statements for all positions, a five-year staffing plan, and an implementation road map. The team led the full business process reengineering effort covering 60-plus processes, 200-plus procedures, direction-of-arrival matrixes, and new policies, and served as the project management office in transitioning to the new operating model.

Results

The results were highly positive. The new model eliminated conflicts of interest and increased the commercial mind-set of the company by establishing new functions, elevating key existing functions, and optimizing the governance structure and management processes. The team’s efforts enhanced the Qatari developer’s interaction with partners, such as the project manager, in order to both protect the developer’s rights and align incentives. High-level recruiting needs were defined for the pipeline of upcoming projects, and roles and interactions across the project life cycle clarified. The team smoothly transitioned the entire operating model to its target state.