Target Operating Model (TOM) transformation at a large ScaleUp

This large ScaleUp had a very impressive growth rate. However, growth can be an issue as the small team, dynamic working culture of a StartUp begins to cause problems at scale. A StartUp can effectively manage strategy and delivery by being close to customers and highly adaptable. As this grows, control becomes more distributed, and the organisation will see varying degrees of success. Typically this means a more structured delivery approach is needed.

Change approaches

You have three options when considering changes:

  1. Incremental improvements to existing processes

  2. Replacement of some key processes

  3. Wholesale operating model transformation

The third is a good option where there are significant weaknesses across many areas. This reset can be much faster than continuing to patch sub-optimal work practices. On the downside, it is challenging to achieve high levels of change without organisational resistance and extensive support.

Implementation

I have a background in improving how organisations work and deployed my first operating model into Bupa over 15 years ago. Given this extensive experience, I decided to use many powerful practices to craft a custom operating model. This included strategy definition through to delivery governance and focussed on optimising business results. Below is a simplified description of a complex change:

  • Created a one day course to train each team in the new processes

  • Worked with senior product, technology and research leads to define strategic priorities

  • Ran a session with each team to start shaping their prioritised strategy

  • Created governance to

    • Agree strategy and outcomes

    • Ensure work items were properly formed and return on investment was worth it

    • Track work item progress and manage risks and issues

    • Track strategy results using Objectives and Key Results

  • Regular retrospectives to update and improve the operating model

Incremental improvement

Teams can only cope with a limited amount of change before they start to feel overwhelmed. This meant it was important not to overload them with change. After the core of the operating model was introduced additional optimisation was undertaken. This included linking features to the pricing strategy and improvements to governance of new work items.

Changing an operating model is a difficult activity and requires a lot of focus and support to achieve success.

Significant improvements were achieved:

  • Strategy was fully defined and made clear to all team members

  • UX and user research insights were integrated as a strategic input

  • Strategy definition was improved with more junior product owners being given support

  • Shaping activities that were taking on average three months or more were brought down to weeks

  • Commercial considerations, such as the pricing strategy for features done up front

  • Delivery governance introduced including formal processes for risk and issue management and progress reporting

  • Quarterly review of strategic outcomes

See this link if you are interested in a Target Operating Model transformation.

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