Design Target Operating Model & change programmes

Following a number of acquisitions, this leading insurance company established a shared service to consolidate locations, reduce costs and improve services. We were engaged to work with the Board of the shared services organisation to define the strategy and change agenda for IT, a substantial organisation of around 1500 people supporting over 40,000 staff within the company across the UK.

In a mixed team of client and Optimos consultants, we engaged on four clear workstreams:

• Assess the current situation and determine the need for change
• Design the Target Operating Model (TOM) for five years
• Design and initiate the key programmes to deliver the TOM
• Design an organisation structure and annual operating plans

We engaged with key stakeholder groups to understand their requirements and to determine their levels of satisfaction from IT. We developed views of the current position of IT, the immediate and longer term objectives, services it provided well, where improvements needed to be made and how the future could develop if the service did not change. These formed the basis of a “call to change” used across the organisation.

Using stakeholders requirements and examples of world-leading service organisations from insurance and other sectors, we defined the Target Operating Model for five years and expressed what this would mean in terms of customer, services, value, capability and technology changes. For example, the existing “allocated cost” basis of the current shared service would be replaced by true “pay for what you use” market price. We articulated what these changes would mean for each of our stakeholders.

Finally, we defined the key programmes required to deliver the change. We established common principles to drive decision-making and worked through a number of options for structured change over three years. We developed a Business Case and reviewed and agreed this with the Board. This was followed by the design of an organisation structure, divisional operating plans and feeds into Personal Development Plans for each individual staff person.

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