Defining a strategy and Target Operating Model

The Client's Challenge

The client’s Business Performance Improvement group in the Business Banking division had been in existence for 4 years and implemented a wide range of improvements across the division. However, more and more problems were being identified which was both overwhelming the group, forcing it into reactive mode and also preventing it from setting and then implementing the bank's performance improvement agenda. 

A new General Manager sought help as to how to reframe the group to increase its value to the division, avoid any potential downsizing and make better use of its siloed skill-sets.

Scope

The Business Bank Business Performance Improvement group, which included a variety of improvement skill-sets including Kaizen, Six Sigma, Process improvement and Change management.

Approach

We worked with a core group of 12 staff that included the General Manager, a selection of direct reports and front-line staff representing the different departmental units and skill-sets.

A series of eight workshops were held with this group – one workshop every week for eight weeks. This approach maintained a high level of momentum and prevented the ideas and outcomes of the previous meetings being forgotten or lost.

The TOP Value Pyramid framework was used to show how the performance, credibility and capability of the Business Performance group had to grow in a logical sequence in order to progressively realize its target operating model.

The Results

• Changed the overall focus of the group from responding to a myriad of small change requests to developing a progressive program of work that could be more easily managed and deliver more significant results

• Defined 21 desired business outcomes that clearly addressed all of the identified issues and constraints of the current operating model

• Four work themes were identified – providing a single source of truth; developing and delivering effective change (across the division); managing a visible program of work and engaging as a single Business Performance identity. Cumulatively these four themes delivered the agreed Target Operating Model (TOM),

• Defined a progressive realization plan moving through three sequential phases – getting the basics right, improving project performance and improving business performance

• Developed master change plans for each business outcome

• The resultant TOM was defined as a series of ‘end-to-end processes’ that the group managed.

The Payoff

The capability of the Business Performance group was immediately increased and refocused on generating and delivering greater returns to the division

As a consequence, the group received increased (and assured) funding for the following years.

The different sub-groups and skill-sets were brought together to provide a better service using their combined skills.