Migrating to a New Target Operating Model

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The current business environment is uncertain and ever-changing, forcing organizational leaders to rethink the structure and operations of the critical functions supporting their business. Common challenges have become increasingly complex as a result of today’s business environment with typical triggers for migrating to a new target operating model, including:

  • Major Transactions – M&A, divestitures and carve-outs
  • Reporting Inefficiencies – Slow/Inconsistent FP&A, data issues
  • Escalating Costs – Increasing overhead or administrative costs
  • New Systems – Integration of new ERP, Corporate Performance Management, or other enabling technologies, shift to automated processes
  • Ineffective processes – Manual and inefficient processes, redundant activities and rework
  • New CEO or CFO – Bringing a transformation charter and driving for increased organizational effectiveness at a lower cost
  • Public Readiness – IPO preparedness, regulatory and reporting requirements

Organizations can leverage these challenges as opportunities to reevaluate their target operating model, the foundational blueprint that describes how the finance organization should deliver value by connecting the strategic vision of the business with its underlying services and capabilities.

Defining a new future state target operating model can help leaders create a more agile, efficient, and effective organization, enabling businesses to be more proactive than reactive to unexpected disruptions or strategic growth.

Redefining Your Target Operating Model

MorganFranklin’s Strategic Transformation & Program Execution services brings seasoned perspective, hands-on execution, program expertise, and scalable resources to target operating model initiatives. We work directly with finance stakeholders to collect data, assess the current state of in-scope processes, design the ideal future state, develop recommendations, prioritize initiatives, and build your business case for change. We will then be there to help support you with your transformation program delivery and implementation.

  1. Phase 1 – Root Cause Analysis, Conceptual Design and Roadmap
  2. Phase 2 – Alignment, Planning and Detailed Design
  3. Phase 3 – Implementation

Six Dimensions of Target Operating Models

MorganFranklin typically addresses six dimensions when helping assess and design target operating models.

  1. People: Organizational roles and responsibilities, organization design and structures
  2. Service Delivery Model: Insource, outsource, onshore, offshore, optimal location to provide services, governance & service delivery management
  3. Process: Definition of end-to-end business activity, roles, actions, decisions, policies, controls
  4. Data & Reporting: Master data management, data strategy, definitions, metrics and KPIs
  5. Technology Enablement: System architecture, integration, ERP and other enabling technologies, and process automation
  6. Governance & Control: Process governance, SOX and Controls, continuous improvement, and COE’s (centers of excellence)

MorganFranklin considers these six factors throughout each phase of a target operating model implementation initiative. Our teams conduct an in-depth review of the current state of the organization and work directly with stakeholders to identify feasible quick wins and strategic initiatives, as well as prioritize these initiatives for future implementation.

Let’s Work Together

We are experienced, engaged professionals that are highly energetic and motivated to work in challenging, high stakes environments.

The MorganFranklin Way™

MorganFranklin’s team is experienced in assessing, designing, and implementing target operating models with companies ranging in size from start-ups to the Fortune 50.  We tailor each engagement to meet the strategic objectives and business requirements of the client, redesigning their organizational structure and service delivery model to align with the strategic vision of the business. We also develop a clear understanding of existing business requirements and end to end processes, and where there is opportunity for improvement.

Our process results in the design and implementation of optimal and efficient target operating models, allowing our clients to reduce costs and focus their Finance organizations on business partnering, analysis and decision support. Our analysis focuses on the entirety of the business—including the people, processes, data, and technology—to identify sustainable solutions and ensure your finance organizations’ long-term success.

Talk to our experts today.