The power of transformation in regional target operational models: how to achieve cross-regional standardization?

In today's business environment, businesses face unprecedented challenges and opportunities, especially in multi-regional organizations.Region-based targeted operational models are increasingly seen as important tools to drive organizational change.The purpose of this model is to transform strategic ideas into specific operational plans, thereby improving organizational efficiency and flexibility.

The target operation model is a framework for describing the ideal state of the organization's operation model.

The construction of target operation models is usually divided into analysis of "current status" and "future status".Among them, "current status" refers to the current operation mode, while "future status" is the goal the organization hopes to achieve.Depending on different needs and challenges, organizations can adopt various frameworks to define their target operational models.

For example, the POLISM framework proposed by Ashridge Executive Education contains six elements in total:

  • P – Process and Competencies
  • O – Organizational Structure and Culture
  • L – Location and Infrastructure
  • I – Information Systems and Interactive Links
  • S – Suppliers and Business Partners
  • M – Management Systems and Processes

This framework not only helps organizations better understand their operational needs when implementing new business models, but also shows the flexibility and adaptability of the target operational model.

The target operation model provides a vision for organizations experiencing change.

The target operation model comes into being when new business strategies or models appear, or existing operations perform poorly.Therefore, the development of these models must be closely linked to the advancement of strategic work.It can be said that shape follows function; as a target operation model, its design must be adapted to the organization's long-term strategy.

In the process of advancing the target operation model, companies usually need to formulate a roadmap to plan the process from "current status" to "future status".This can start with the value chain map, first identifying the value propositions provided by the organization and defining the chain of activity required for each value proposition to achieve the process.

Different value chains can be presented on the map to identify steps that can be aggregated, standardized, or remain independent.

As businesses usually operate in multiple regions, regional target operation models are particularly important.Such models not only integrate standards from different regions, but also fully consider the specific needs and challenges of each region.

The process of establishing a regional target operation model first requires detailed records of the existing organization's design, business capabilities, business processes, and components that support technology.Then, based on this "current status" information, the organizational design and business capabilities for the required "future status" are clearly defined.

In developing these models, it is crucial to clearly express high-level business interests, especially when facing gaps in technical capabilities, business needs must be clearly captured to facilitate subsequent solution evaluations.

It is worth noting that successful regional target operation models are not limited to a single theoretical framework.Instead, it is a practical process that houses multiple thinking and strategies that will ultimately be oriented towards the specific needs of the organization.

In the implementation of the target operation model, comprehensive collaboration of personnel, processes and technologies must be taken into account.

When designing these models, companies must maintain an open mind and adjust flexibly to adapt to the ever-changing market environment and technological advancements.This not only requires rigorous planning, but also requires support and cooperation at all levels.

Finally, the effectiveness of the regional target operation model ultimately depends on its ability to adapt quickly to deal with what people call "dynamic change" environment today.Will this model become the key to the success of a company?

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