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Versioned Operating Model ↺ Prompt 3 ↺ Response 1

Prompt 3​

Breakdown how the Versioned Operating Model works. Describe the VOM is implemented.

Generation 1​

Absolutely! Here's a breakdown of how a Versioned Operating Model (VOM) works, including an outline of its implementation process:

How the Versioned Operating Model Works

  1. Establish a Baseline:

    • Thoroughly document your current operating model. This provides a clear reference point for understanding how your organization works now. Include elements like:
      • Core business processes
      • Organizational structure
      • Roles and responsibilities
      • Technology systems and interdependencies
      • Governance mechanisms

  2. Version Control System:

    • You don't necessarily need a specialized system. A structured approach to document management can work:
      • Version Naming Convention: (Example: VOM_v1.0, VOM_v1.1, VOM_MajorChange_v2.0)
      • Centralized Repository: Secure shared location to store all operating model versions.
      • Change Logs: Track changes made with each version, including who made them, the rationale, and the date.

  3. Iterative Change Process:

    • Identify Need for Change: Triggered by strategic shifts, performance gaps, new technologies, etc.
    • Propose and Design Change: Collaboratively develop and document modifications to the operating model.
    • Impact Assessment: Analyze the potential effects of the changes across different parts of the organization.
    • Testing/Sandbox (Optional): Simulate changes in a test environment if possible to verify and refine before full-scale implementation.
    • Approval: Follow established governance procedures to formally approve changes.
    • Rollout: Implement changes with a clear communication and training plan.
    • Create New Version: Document the updated operating model and assign a new version number.

Implementation Considerations

  • Start Small: Begin with a focused pilot project or a manageable segment of your operating model. This gives you time to refine the process.
  • Change Management: Strong change management is critical. Communicate, train, and involve stakeholders throughout the process.
  • Tool Selection (Optional): If the scale and complexity of your organization warrant it, consider tools designed to support operating model documentation and visualization.
  • Metrics and Measurement: Track pre- and post-change metrics to assess the effectiveness of VOM iterations.

Important Note: The Versioned Operating Model is about disciplined change, not change for change's sake. Ensure each version is driven by a clear business need and aligned with overarching strategic objectives.

Let me know if you'd like help in tailoring this process to a specific area of your organization or to brainstorm potential starting points for implementing a VOM!

Generation 2 ↻ Longer​

Absolutely! Here's a more in-depth exploration of the "Versioned Operating Model" concept, offering additional insights and considerations:

Why the 'Software' Analogy Fits

The comparison of an operating model to software is particularly apt:

  • Continuous Improvement: Just as software goes through updates to fix bugs, add features, and improve performance, so too should an operating model. The versioned approach acknowledges the need for ongoing adjustment.
  • Complexity Control: Large software projects use rigorous version control to manage multiple developers and the complexity of a large codebase. Similarly, a versioned operating model helps manage the complex web of processes, people, and systems within a large enterprise.
  • Risk Reduction: Testing new software versions before full release mitigates risk. A versioned operating model lets you pilot changes on a smaller scale, or simulate the impact of potential adjustments, before rolling them out fully.

Additional Benefits of a Versioned Operating Model

  • Knowledge Transfer: A well-documented, versioned operating model makes it easier to train new employees or transfer knowledge across different departments or locations.
  • Mergers & Acquisitions: During integrations, a versioned operating model lets you compare different ways of operating, leading to better decisions about a combined approach.
  • Process Improvement: Identifying when changes were made to the operating model can pinpoint the root causes of both improvements and declines in performance metrics.

Implementation Considerations

  • Balance Simplicity and Detail: There's a trade-off between keeping your versioning system simple, and capturing sufficient detail. Start basic, then add granularity as needed.
  • Don't Over-Rely on Technology: Tools are aids, but the real emphasis should be on the process and cultural shift of treating your operations with the same care you would software.
  • Link to Strategy: Ensure changes to the operating model are clearly driven by shifts in business objectives. This avoids change for change's sake.

Let me know if you would like a hypothetical scenario illustrating how this works in practice, or if there's a particular aspect of implementation you'd like to discuss in more detail!