Performance Turnaround through Operating Model Redesign

Our client, a major provider of academic and vocational qualifications, was under pressure to turn around several years of underperformance and the fallout from a failed restructuring that had introduced unnecessarily complicated ways of working. Increased competition, government funding cuts, and a misaligned product portfolio left the organization struggling to regain stability.

 

The client engaged us to design a simpler, more effective operating model that would reduce people costs by 20% while setting the organization up for long-term growth. Over a structured 9-month program, we partnered with leadership and engaged over 200 stakeholders to deliver a streamlined, scalable organization. The resulting design enabled growth and sustained operational excellence.

 

Pressure from Internal Inefficiencies and External Factors

 

The client’s performance challenges stemmed from structural and external pressures that compounded over time. Key issues included:

 

• Revenue loss: A misaligned product portfolio failed to meet market demands.
• Competitive pressures: Increased competition eroded market share.
• Funding cuts: Government reductions placed additional financial strain.
• Complexity and confusion: A failed restructuring left accountability and decision-making unclear.
• Regulatory risk: Operational inefficiencies increased the risk of compliance breaches.

 

Bringing Rigor to the Design Process

 

We worked closely with the client to take a structured and inclusive approach, ensuring alignment across leadership and employees:

 

• Collaborative project team: Formed a combined team of consultants and high-potential internal leaders to drive the transformation and build internal capabilities.
• Leadership engagement: Established a consistent communication cadence, ensuring alignment and maintaining momentum throughout the program.
• Thorough analysis: Conducted a detailed review of the current organization, operating model, and business processes to identify strengths, weaknesses, and opportunities for improvement.
• Design principles: Developed clear principles to guide decision-making, focusing on simplicity, scalability, and strengthening commercial capabilities in the “front office.”
• Iterative design testing: Engaged over 200 stakeholders to test and refine design options, ensuring alignment with business scenarios and strategic objectives.
• Detailed design: Delivered the business unit structure, including clear accountabilities, job descriptions, governance frameworks, and key processes.
• Staff consultation strategy: Supported the HR team in creating and implementing a robust consultation plan to ensure smooth execution.

 

A Leaner, More Strategic Organization Poised for Growth

 

The transformation addressed the organization’s challenges by delivering a simpler, functionally structured operating model. The new structure is more commercially oriented, with clear accountabilities and enhanced sales and marketing capabilities. This has enabled the organization to focus on re-capturing lost revenue, removing excess costs, and positioning itself for sustainable growth.

 

Key results include:

 

• Cost reduction: Achieved a 20% reduction in people costs by streamlining the structure and eliminating unnecessary complexity.
• Trust in leadership: Restored confidence across the organization through consistent communication and meaningful stakeholder engagement.
• Flexible and responsive operating model: Designed and implemented a scalable model to support long-term growth and adaptability to future market changes.
• Career development opportunities: Created better pathways for career progression and succession, enhancing talent retention and engagement.
• Leaner governance: Simplified governance and streamlined processes for more effective and efficient operations.
• Effective consultation: Guided the HR team in executing a fair and transparent staff consultation process, ensuring smooth implementation of changes.

 

This transformation has delivered enduring value, with a focus on operational excellence and strategic growth. Team members involved in the program have advanced to senior leadership roles, further embedding the change within the organization. The simplified operating model has withstood leadership transitions and continues to deliver results, including stronger commercial capabilities and reduced regulatory risk. This success demonstrates the power of collaborative design and disciplined execution to drive meaningful and sustainable change.

 

To learn more about our work, contact us at info@orgdesignworks.com