Great article as ever from McKinsey (Six lessons on how to embrace the next generation operating model). We’d like to respectfully add two standout lessons from Latenbridge’s direct experience in creating successful NGOMs
1) McK say, “It's generally better t1o take on customer-facing journeys before internal ones” We absolutely agree. One of the most common errors we see is “partially brilliant” processes and journeys. These happen when focus and effort aren’t evenly applied across the whole journey. A common example is great marketing and sales experience, but pretty ordinary onboarding. For the customer, the whole thing is his experience and firms are judged on the weakest link, not the strongest or even the overall average. This is too bad, because actually, there are only a few parts of the process that truly impact CX and need to be gold-plated (these include onboarding!); the rest can be base, so long as they are sufficiently quick and efficient. It’s therefore important to sort these carefully and objectively and not simply go with historic views Excellent point!
2) McK say, “...applying robotic process automation (RPA) before redesigning the process can be a waste of time". We almost always see a case for process redesign - or at least, affirmation - before applying any automation. Firstly, the definitions of effectiveness and efficiency have changed rapidly in the face of automation options. Secondly, processes need to be adaptable in ways and places that simply didn’t register 5 years ago and any automation will need to look at “controls” in a technological sense.
The good news is that redesign doesn't have to involve major surgery - serious automation benefits can still be achieved by applying a healthy dose of reality ie balancing market and customer expectation with budget and viability because being seen to move in the right direction is sometimes as important as doing so.
The very best players go even further, rendering core elements of processes replicable ie designed to be able to form the core of many other processes; if this happens, then change to both the NGOM and its attendant IT can be done once, from the centre, rather than over and again for each process - a huge boost to cost and adaptability.