"Target Operating Model: The Modernization Journey" describes how to start the journey, key considerations, and how to prioritize improvement actions.
NEW YORK , NEW YORK, UNITED STATES, April 6, 2021 /EINPresswire.com/ — AEGIS Advisory Partners, LLC (AEGIS), a strategy and management consulting firm, announces the release of the 2nd installment of their Target Operating Model trilogy – “Target Operating Model: The Modernization Journey” which was published on March 31, 2021. This paper describes how to start the journey, key considerations, and thoughts on how to prioritize the improvement actions. This builds on the Target Operating Model framework established in the initial paper released in February 2021.
The Target Operating Model trilogy shares the AEGIS team insights and experience advising global clients. It starts with “Target Operating Model: The Foundational Framework.” In that installment, AEGIS defines the ten (10) Operating Model components (as seen in Exhibit 1). “Setting the target operating model is the first step to a successful Finance modernization initiative” according to Don Rogers, Managing Partner, AEGIS Advisory Partners, LLC.
The document points out how the Target Operating Model is useful. The key is to understand the knock-on impacts across the TOM components and building those dependencies into your modernization plans. It points out the modernization challenges that exist and suggests how the Target Operating Model framework provides the rallying point to identify and mitigate execution risks and manage the improvement.
The second paper “Target Operating Model: The Modernization Journey” explores an approach and the considerations for successful Target Operating Model improvement. The CFO modernization effort will be founded on changing the Finance “ways of working.” As shown in exhibit 2 (The Modernization Paradigm), typically Finance improvement efforts are targeted at reducing costs, improving quality, developing/enhancing business insights, and maintaining a vigorous control environment.
With those goals established, AEGIS works with its clients to set its priorities and then build an executable roadmap. There are real trade-offs to consider when building the execution roadmap. For example, the priority of saving money versus improving business insights has a direct impact on the execution actions and their sequencing. This paper provides a framework to gauge the trade-offs and establish a basis for determining the path forward. It is essential to have a disciplined priority resolution approach and setting the Finance modernization direction.
“The most difficult challenge clients face is the ability to prioritize their improvement actions. Choosing between lowering execution costs and improving business insights is counter-intuitive to Finance executives. They want both and need a sound framework to evaluate their alternatives and commit to a path forward” according to Greg Derderian, Managing Partner at AEGIS. The Modernization Journey paper identifies an approach for project qualification and marries that with a prioritization template. The end result is the ability to build a supported execution roadmap that reflects the client’s needs and priorities.
The third paper in the Target Operating Model trilogy – “Delivering on the Promise” is due for release during April 2021.
About the authors
Gregory S. Derderian – Managing Partner
Gregory S. Derderian is a recognized leader in the areas of finance, risk & compliance. He has thirty-five years of experience as both an industry practitioner, strategy and management consultant, and thought leader. Greg has directed complex change improvement programs across multiple industry verticals through the design, construction, and deployment of the underlying processes, data, information, tools and technology.
Donald B. Rogers , CPA – Managing Partner
Donald B. Rogers is recognized in the strategy and management consulting industry as an innovative thinker with broad based expertise in executable strategy, target operating model development, finance transformation, organizational change, operations improvement and cost optimization. Don is a seasoned business leader with over twenty-five years of experience in implementable strategy and management consulting. He has worked with many Fortune 500 companies, across multiple industries.
Source: EIN Presswire