7 steps the back office can take to implement a target operating model
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The document outlines a structured approach for developing a target operating model for change initiatives. It presents a checklist covering key steps such as reviewing the current state, identifying improvement opportunities, and assessing delivery alternatives, which culminate in a detailed roll-out plan. Ultimately, it emphasizes the importance of building a comprehensive business case that considers process improvements and risk implications.
7 steps the back office can take to implement a target operating model
- 2. The key is to develop the right target operating model by using a structured approach. Although every situation is unique, this is an introductory checklist that can serve as a guide for those starting (or restarting) their change- the-bank initiatives.
- 3. 1. Review the as-is state and rationale. Understand the current state of performance, identify candidates for improvement, and review the process practices
- 4. 2. Identify improvement opportunities. Use metrics and frameworks to benchmark key areas, identify top areas for improvement, assess the feasibility and risk of options, and analyze benefits such as cost, efficiency, or effectiveness.
- 5. 3. Identify delivery alternatives. Assess options for consolidating processes into internal global shared operations, externally sourced operations, or a combination.
- 6. 4. Determine change implications. Outline the financial and risk-related implications for each location and structuring option (e.g., various types of risk
- 7. 5. Build the business case for each alternative. Compile a high-level business case that encompasses process improvement, organizational structures, locations, and change implications.
- 8. 6. Develop a detailed roll-out plan. Develop a roll-out plan to reach the targeted operating model by process and by location.
- 9. 7. Build the final business case. Identify emerging options for each process and develop financial and implementation plans