Manage the Corona Impact

The Operating Model as the Heart of the Company

How to manage the operating model in challenging times

The operating model defines how the company is organized: structure, processes, and resources. It is the core of each company and needs to be well-supported in the short-term. As soon as there is more transparency regarding the direct implications of the crisis, the operating model needs to be adjusted to the "new reality" of markets, customers, and suppliers.

Essential levers – Actions to be taken by business leaders

Business leaders need to immediately take the following actions to protect their operating model:

  • Provide transparency on critical structures, processes, and resources
  • Develop emergency working plans and routines
  • Isolate critical units or resources

In the mid-term, business leaders have to ensure that changes in the strategic landscape of their company are also reflected in their operating model by:

  • Monitoring market and business drivers
  • Translating corporate strategy into organizational design principles
  • Adjusting capacity and resource needs
  • Refining KPIs to manage organizational units
  • Restructuring organizational and processual landscape

Success factors for resetting the course

The following elements are key when realigning the operating model:

  • During every phase of the crisis, full transparency on resources, capacities, and their utilization is essential for making the right decisions
  • Incorporating flexible mechanisms, such as agile teams, when designing organizational structures and processes is always useful, not just during short-term "emergency mode"
  • All fundamental adjustments of the operating model need to be backed up by concise strategic analyses