Move guide
Place each function
Your report suggested a move on at least one of these two practices:
- whether the few things that must be done the same way everywhere are written down;
- whether capability gaps are fixed with capability or with a restructure.
This move guide gives every sub-function a home under the chosen model. It writes the standards the centre sets, each with an owner. Then it rates the capabilities the model needs, and fixes the gaps before any box moves.
1. When it applies
Use this move guide if your report placed either practice in the lowest two stages.
| Practice | Where it may sit today | Where this move guide aims |
|---|---|---|
| Whether the few things that must be done the same way everywhere are written down | Lagging: "Each site runs the process its own way, and two teams doing the same job would not recognise each other's version of it." Basic: "Standard procedures exist for the auditor, and each team still does it their way." |
Competent: "The few processes that must run the same way everywhere are written and followed, and the rest are deliberately left local." |
| Whether capability gaps are fixed with capability or with a restructure | Lagging: "When a function underperforms the answer is a restructure, and the same gap reappears under the new boxes." Basic: "Leaders know which skills are missing, but the fix keeps getting folded into the next reorganisation." |
Competent: "The few capabilities the strategy depends on are listed and honestly rated, and gaps are fixed by hiring, training or buying before any boxes move." |
If both already sit at the middle stage or higher, skip this move guide.
It needs the model chosen in choosing the model.
2. What to do
Four steps, in three to four weeks.
- Give every sub-function one of three homes. The centre owns it end to end. The centre sets the standard and the units deliver to it. Or the units lead it.
- Write the standard for each sub-function the centre sets. Give each standard an owner. Everything not on that list is the units' own business.
- List the few capabilities the new model depends on. Rate each one against evidence, not opinion.
- For each gap, decide hire, train, buy or borrow. Do it before any box moves.
Table A below holds the placements and the gaps on one page.
The two free worksheets do the recording:
- /worksheets/operating-model/ways-of-working for the standards and their owners;
- /worksheets/operating-model/capability-vs-structure for the capability ratings and the fixes.
3. What to produce
One table, plus the two worksheets above.
Table A. Where each function sits, and the gaps
| Sub-function | Centre owns end to end | Centre sets the standard, units deliver | Units lead | Owner of the standard |
|---|---|---|---|---|
| Capability gap 1, and the fix | ||||
| Capability gap 2, and the fix |
Mark one home for each sub-function. A sub-function with two marks has no home.
4. A worked example
Illustrative. Written for this move guide. It describes no client.
A building services contractor chose to set the standard centrally and deliver locally. It has twenty-four sub-functions to place.
The homes.
- Payroll, estimating systems and national contracts went to the centre, end to end. Safety and quoting became standards the centre sets and the regions deliver. Crew scheduling stayed with the regions.
The standards.
- Each of the six standards has an owner at the centre. The regions were told that everything else is theirs to run.
The capabilities.
- The model depends on estimating for large jobs. Two regions could do it, and four could not. The contractor hired two senior estimators before moving any region's reporting line.
- 24 sub-functions, each with one home
- 6 standards, each with an owner
- 2 estimators hired before any box moved
On a retake, both practices could be answered at the middle stage.
What it looked like in our work
From our own work. Redrawn.
A consumer-health products maker asked whether a new structure would fix its weaker areas. We rated its capabilities first.
| Capability | Rated |
|---|---|
| People | Strong |
| Marketing | Strong |
| Manufacturing | Strong |
| Pricing | Weak |
| Systems | Weak |
| Strategy | Weak |
Every alternative structure added headcount for little gain. The structure stayed, and the business built the three weak capabilities instead.
5. Effort and dependencies
- Chief operating officerOwns the placements and the standards list.
- Function headsPlace their sub-functions and write the standards they own.
- Chief executiveSigns off each capability fix before any box moves.
What you need
- The chosen model from step 4, and the function map from step 2.
- Evidence for each capability rating: results, reviews and customer feedback.
How long
- Three to four weeks.
What gets in the way. We have seen this in our own work:
- A restructure that would not have helped. A consumer-health products maker was weak in pricing, systems and strategy. Every alternative structure added headcount for little gain, so it built the capabilities instead.
6. How will you know it worked?
The test is whether the standards are followed, and whether the gaps closed before any box moved. Retake the check once the placements are in use. Each of these should be true when you answer:
| Practice | You can answer Competent when | A document alone does not count if |
|---|---|---|
| Whether the few things that must be done the same way everywhere are written down | Each standard is written, has an owner and is followed, and the rest is left to the units. | The standards are written, and each team still does it their way. |
| Whether capability gaps are fixed with capability or with a restructure | The capabilities are rated against evidence, and each gap has a fix in hand before any box moves. | The gaps are listed, and the fix is the next reorganisation. |
The worked example is illustrative.
Think we've used your work without proper credit? Tell us and we'll fix it.