Designing A Target Operating Model

SHARED SERVICES

THE CLIENT

A shared services organisation that works in partnership with large government agencies to provide back office processing capabilities.

THE CHALLENGE

A newly created shared services business was created to support Central Government efficiency drives. Their purpose was to centralise all key support functions including HR Services, Finance & Accounting, Procurement & Technology.

They absorbed c.1200 staff from existing Central Government functions via a TUPE arrangement across 9 UK sites. They needed to develop a TOM to reduce cost by 30%.

The client also inherited service penalty contracts, so service levels needed to be maintained and ultimately improved whilst the TOM was implemented.

THE SOLUTION

Using our TOM approach, we worked with teams across all 9 sites to completed detailed ‘as-is’ view of the operating model to ensure we were working from an accurate baseline.Once agreed, we then:

  • Created a new TOM design with transition plan.
  • Created a detailed benefits case to be used for investment linked to the new TOM.
  • Mentored a select group of internal consultants to enable them to implement all recommendations on the TOM roadmap.

THE RESULTS

  • We agreed a new organisation-wide TOM which involved the creation of 4 centres of excellence.
  • We produced a detailed transition plan to rationalise the business considering all TOM layers. The plan was designed to enable a rapid transition however would not put service delivery at risk.
  • We created an 18 months’ Benefits Realisation Plan down to the lowest level of detail to ensure that the benefits would be realised.
  • We built internal capability so the business were able to manage the full TOM implementation.

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Chris Dando

Ryan King

Graham Turnbull

Graham Turnbull