Remember when the
phrase “Operating Model” was commonly interpreted to be a clever way to discuss
“organizational structure”? Indeed, it
wasn’t unusual for the Operating Model of a business to be expressed via an Org
Chart and a RACI matrix. (For the uninitiated,
RACI is an acronym and equates to “decision rights”.)
I’ve been observing
recently that when I speak with a company and the topic of Operating Model
arises, we inevitably go down a different path of conversation. The most prominent word in those
conversations? Platform.
In
the world of business, the term “Platform” has come to refer to the idyllic
state of broad, ubiquitous relevance for conducting commerce. It’s the way that machines interact
seamlessly to knit together complex processes by bringing together tasks
performance by various parties.
Platforms
infer a high degree of automation and consistency of execution. They are launching points for doing other
things, the foundation from which activity yields value.
Once
a business adopts a platform, it tends to define business processes – the
protocols through which work occurs – around the platform’s features and
functionality.
Salesforce.com
is a Platform. It’s hard to escape or
ignore the profound impact that Salesforce.com has delivered to enterprise
strategies and their Operating models.
Ease
of implementation, ease of use, ease of interoperability … all virtues of
frictionless operation. Not the same
emotions as consumer experiences, but emotional attachment nonetheless.
In
the world of Business Process Outsourcing, platforms are the central point of
demarcation between the players and the pretenders. I see this to be true in the strategies of
major companies, and even the mid-market.
Yesterday,
BPO providers delivered services using the Client’s systems and processes. Value was harvested by improving the processes
through repeated execution and refinement, and lower cost of labor.
Today,
Clients are commonly quizzing their incumbent and prospective BPO providers
with the core question: “What is your platform
strategy for your services?” Expressed a
bit differently, this really implies: how do you think you will be relevant to
me over time?
I
am struck by the wide variability that exists across BPO providers in answering
this central question. Most commonly,
there is a sense that the Client has a “right answer” in mind when the question
is posed. You can see the shuffling of
proverbial feet when a BPO provider seeks to articulate a direction with
confidence. This is the moment of truth,
the blink that implies “we can be all things to all people” that erodes
confidence (and interest) in a flash.
Players
in the world of platform-based Operating Models need to market themselves
differently, sell differently, contract differently, and service
differently. 
Pretenders
need not apply.
Peter
