Article

New operating model to match the strategy

TOP-TOY

Defining and implementing a new finance operating model to support the revised company strategy.

Author

Nicolai Steen Worziger

Challenge

TOP-TOY had developed a new and ambitious vision and strategy to become the best omnichannel retailer in a highly competitive and squeezed market for toys.

The existing operating model was a barrier to realising the benefits linked to the revised strategy. The primary reasons were inefficient collaboration across the value chain, unclear role and responsibility splits internally and between functions, lack of focus and competences within online retailing and inefficient organisational structure in relation to the revised strategic focus on omnichannel and customer centricity.

Approach

The project was structured with a split focus on planning and execution. There was tight co-ordination across the two tracks to ensure alignment and an optimal allocation of effort.

Some of the activities involved:
  • Process mapping of the end-to-end processes, including roles and responsibilities from category management through retail
  • Execution of organisational design workshops to ensure close alignment between top management focus and the defined strategy
  • Creation of a solution catalogue linked to the operating model with focus on execution across the value chain
  • Introduction of a new organisational structure with significant changes on the senior leadership level
  • Introduction of new/updated roles and responsibilities across functions
  • Introduction of a planning concept for sales and operation, including new roles, meeting structure and deliverables
  • A list of prioritised solutions to implementation

Impact

The project enabled the company to achieve the required benefits and transform their operation according to the strategy. Some of the key impacts were:

  • Increased transparency and understanding of the changes to roles and responsibilities, including the value chain across functions
  • A clearly defined strategic focus mirrored in the organisational structure and decision mandate
  • Locally anchored ownership and engagement, ensuring a continued focus on improvements and implementation of the strategy