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Creating a new IT Operating Model

Client challenge


Coeus was engaged to create a new IT Operating Model and IT Organisation for its shared IT services, in line with the vision and strategy of the client. This requirement was set against the following:

•  The client was undergoing a major divestment of the business - splitting the organisation into two

•  The current operating model faced many challenges from ownership and responsibilities to processes, and gaps in key skill areas

•  In supporting the organisation split, IT was undergoing major sourcing challenges and complicated negotiations

•  The client did not have a clear vision of the future of its operating model or how this could be achieved

The above factors complicated all decision making relating to the future of the organisation, leading to elongated decision making / sub-optimal outcomes.


Approach


Coeus conducted a full current state review to fully understand roles, responsibilities, key challenges and RACIs. Follow this a strategic operating model was fully developed to address challenges and to drive recommendation to meet future needs of the business:

•  Understand current business challenges with respect to IT and current operating model

•  Understand performance constraints driving key operational decisions

•  Assessment of the current state against the market place and against current best practice for the sector

•  Determine future vision for operating model inline with the business major divestment

•  Develop detailed organisation designs and team structures

•  Develop RACI for each team and location advice

•  Run workshops to identify initiatives to remove inefficiencies as a result of the divestment


Deliverables


The team delivered an operating model centralised around the vision and strategy:

•  Assessment of current state against business requirements

•  Strategic drivers and challenges documented

•  Full operating model design, organisation design, teams structures, FTE numbers and roles and responsibilities with RACIs

•  Skills and location assessment for each team to identify focus areas for recruitment or upskilling

•  Proposed sourcing opportunities of application development, support and testing

•  High level transformation delivery plan split by activities

•  Suite of initiatives to help mitigate divestment inefficiencies including FTE benefit

The deliverables formed the foundations of the transformation programme to roll out the new operating model


Benefits


•  Clear roadmap and strategy for the IT organisation moving forward for the next 3 years

•  Ability to divest the organisation without incurring additional cost/overhead impact

•  Removal of gaps in skills and roles

•  Clarity of governance and process ownership to avoid duplication

•  Preparation of the business to integrate new technologies into the current structure in the future

about the author

Peter Cartwright

Peter is an IT professional with experience of major transformation and cost reduction programmes.

Email: info@coeusconsulting.co.uk

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