How to start building your next-generation operating model

The following article provides a great basis for smaller companies looking to grow and larger ones looking to become more nimble. In our face paced world the "old way of doing things" needs to be constantly reviewed to identify areas for improvement that lead to increased sales and cost reduction.

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Each company’s path to a new operating model is unique. But successful transformations are all constructed with the same set of building blocks.

A North American bank took less than two years to shift 30 percent of its in-branch customer traffic to digital channels and dramatically reduce its brick-and-mortar footprint. A European cruise line redesigned and relaunched five core products in nine months to increase digital conversions by three to five times and sales by 150 percent.

These companies have been able to transform because they have developed next-generation operating models that provide the speed, precision, and flexibility to quickly unlock new sources of value and radically reduce costs. The operating model of the future combines digital technologies and process-improvement capabilities in an integrated, sequenced way to drastically improve customer journeys and internal processes. McKinsey & Company – Read more…