Whether I am working on a single process or an operating model, I have found that stakeholder analysis is a good place to start. It is simple to do and often gives insights that are valuable both to the design work and to the transformation work.

Take a page of paper or a flip chart, describe the thing you are designing (process or function or whole organisation) in a circle in the middle, and array the stakeholders on spokes leading away from this central circle. A stakeholder is an individual or group of individuals or organisations who are likely to be affected by the work you are doing or whose requirements will affect the work you are doing.

I recently enjoyed an article by Kevin Laczkowski and colleagues at McKinsey titled: Seeing your way to better strategy. It argued for four lenses to help you “see your way” forward – Financial, Market, Competitor and Operating Model. The thought behind these lenses is that, by doing some focused thinking around each lens, you will develop better strategy.

I have been teaching an executive course called  for four years and the tool that I consider to be most important to good operating model work is something I call a Value Chain Map.  For those of you who work on processes, a Value Chain Map is a high-level process map or value stream map: the term value chain coming from the strategy literature. I prefer the term value chain because it reminds me that we are trying to link operations to strategy. 

I keep a checklist of the technology trends to think about when redesigning processes or operating models. Things like “automation” or “digitization” or “mobility” or “social media”. I am always trying to improve my checklist, which led me to two recent articles listing trends to think about, one from BCG and one from McKinsey.

The BCG report “Twelve forces that will radically change the future of work” by Vikram Bhalla, Susanne Dyrchs and Rainer Strack has five trends that seem to be about operations (the other seven are about changes in customer desires or the workforce). The five are:

Let me start with a definition of agile as it applies to operating models or processes: “being able to turn on a dime for a dime” and “being able to change faster and more cheaply than your competitors”.   These phrases are taken from, who was part of the team who coined the term agile as being relevant to the lean and six sigma community.  In this community, agile is associated with short-period (often six-week), test-and-learn projects, at the end of which priorities and direction can be reset based on what has been learned.  It is also associated with “minimum viable product”: the way of testing a new idea.

In the last twenty years we have become very good at mapping and improving processes; but we still have poorly structured organizations. Can we use our understanding of processes to improve organization design? A process exists to deliver a positive outcome to a customer or beneficiary. Sometimes the beneficiary is the person who does the work, as when you make a cup of coffee for yourself. But most processes in organizations exist to do something of value for an external or internal customer, who is not the person doing the work. This principle, deliver value to the customer, lies behind one of the great developments in process work – Lean. By analysing a process with a focus on what is needed to deliver value to the customer and eliminating everything that is not needed, a process becomes Lean. But Lean tells us little about how the work and people involved in delivering the process should be structured into an organization. So let me try to make a connection.

When doing process work, attention is rightly drawn to the detail: the 43 steps in the process, the tests for waste, the flow bottlenecks, the measures of variation and so on. How, therefore, does a process expert keep connected to the strategy? How does he or she avoid optimising a process only to find that there are unforeseen negative consequences for the larger organisation?

The traditional answer to this question is “by focusing on the customer”. But, in my experience this is insufficient. First, it is the strategy that decides which customers to focus on and what value propositions to provide. So a good understanding of the strategy is necessary even to know whether the process work is focused on the right customer or the right service proposition.