In today’s fast-changing business world, superannuation funds, banks, and financial services firms— all businesses really — face growing challenges. Stricter regulations, the need for greater efficiency, and the ever-growing demand for customer-centricity are pushing organisations to evolve. However, many businesses struggle with outdated systems and processes that slow them down. That’s where a well-designed operating model comes in—not just as an improvement, but as an essential driver of long-term success.

Why Traditional Operating Models Fail (and How to Fix Them)

Traditional operational methodologies often fall short when addressing modern business challenges. Relying on legacy approaches can prevent even the best-designed operating models from succeeding due to a lack of operational readiness. Common pitfalls include:

  • Failure to Achieve Fund Strategy: Traditional approaches resist change, delaying decision-making and preventing businesses from capitalising on new opportunities (McKinsey Insights).
  • Uncompetitive Processes and Workflows: Outdated frameworks limit a company’s ability to innovate, making it difficult to stand out from competitors (Deloitte Insights).
  • Regulatory Compliance Challenges: Poor operational design can lead to compliance failures, increasing the risk of fines and reputational damage (APRA).

How to Build a High-Performance Operating Model

To overcome these challenges, businesses must embrace a more strategic and adaptive approach to operational model development—one that doesn’t just focus on designing the best model but also ensures it delivers real, sustainable results.

Kyudo’s Operating Model Methodology

In this series, we introduce Kyudo’s methodology for optimising operations and mitigating risks. This approach follows four key principles:

  1. Organisational Capability Modelling – Assessing people, processes, technology, and data to identify capability gaps between the present state and strategic goals.
  2. Target Operating Model Design – Creating a future-oriented design that aligns with business strategy and market needs.
  3. Operational Readiness (Often Neglected!) – Ensuring that governance, skills, and data structures are in place before making operational changes.
  4. Transition Planning and Execution – Developing a roadmap that guarantees the organisation is prepared for transformation.

No-Regrets Approach to Operating Model Design

Businesses often rethink their operating models only when major transformations are already underway. However, this reactive approach means they’re always playing catch-up. Companies that proactively develop and refine their Operating Model and Organisational Capability Model stay ahead of the competition and prevent inefficiencies from accumulating over time (Boston Consulting Group).

What’s Next?

In our next instalment, we’ll explore Organisational Capability Modelling—what it is, why it’s important, and how it positions your business for long-term success.

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