Arkaro Insights

Revitalising Your Operating Model: The Arkaro Approach

• Mark Blackwell

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Welcome to the Arkaro Insights podcast. This episode is based on original content developed by Arkaro. At Arkaro, we're committed to innovation in everything we do—including how we share our insights. We've utilised advanced AI technology to transform our written expertise into this conversational format, making our content more accessible and convenient for our busy B2B audience. What you'll hear is a two-person discussion generated through AI voice technology, designed to deliver our insights in a more engaging way than traditional reading. As we continue to evolve this approach, we genuinely value your feedback. Thank you for listening to Arkaro Insights, where professional expertise meets innovative delivery. 

Struggling to translate your strategic vision into day-to-day operational reality? You're not alone. Many B2B executives face this frustrating gap between brilliant plans and actual results. The culprit? Often it's an outdated or misaligned operating model.

This episode unpacks the critical role your operating model plays as the engine that powers strategic execution. More than just an org chart, your operating model encompasses your entire value delivery system – organisational structure, core processes, governance frameworks, capabilities, roles, metrics, and supporting technology. When these components work in harmony, execution follows naturally. When they fall out of alignment, even the best strategies falter.

We dive deep into Arkaro's unique "do-it-with-you" methodology for operating model revitalisation. Their four-stage approach – understand, co-create, enable, and sustain – combines technical excellence with meaningful people engagement. Rather than simply delivering recommendations, they work alongside your team to build lasting internal capabilities. This collaborative approach ensures changes stick long after the consultants leave, creating sustainable business transformation.

The episode explores how this methodology applies to critical operating model elements like strategy validation, customer linkage, operational processes, and integrated planning. Each area delivers specific business benefits: coherence between strategy and operations, better alignment with market needs, process optimisation, and breaking down functional silos. The result? More efficient operations, better customer relationships, faster deal closures, and improved business performance across all metrics.

Whether you're grappling with fragmented processes, siloed functions, sustainability challenges, or struggling to align execution with strategy, revitalising your operating model could be the key to unlocking your organisation's full potential. Visit www.arkaro.com to learn more or email mark@arkaro.com for a free consultation about your specific situation.

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Speaker 1:

Welcome to the Arkaro Insights Podcast. You're a B2B executive, right, and you're here because, well, you want to deliver better results. We definitely get that.

Speaker 2:

Yeah.

Speaker 1:

That's why we do these deep dives into the latest ideas and change and innovation specifically for your organization. Today we're really focusing in on something I know is probably top of mind for many of you revitalizing your operating model. You've likely felt that frustration, haven't you? That gap where your big strategic goals, they just don't seem to fully land in your day-to-day operations and the results you're after feel well just out of reach sometimes.

Speaker 2:

Absolutely. It's a really common frustration. You can have this brilliant strategy, this roadmap for where the business needs to go, but if the engine, your operating model, isn't tuned properly to get you there, you're just going to keep hitting roadblocks. It's like imagine having a top of the line GPS but your car is running on fumes or maybe flat tires.

Speaker 1:

Exactly Great analogy, yeah. So think of this deep dive as your short tip. Maybe we're going to unpack how a really well defined operating model serves as that vital link, that connection between your strategic intent the what you want to achieve and the operational reality the how you'll actually make it happen day in, day out. And we'll be looking at Arkaro way of tackling this. They're a B2B consultancy specialized in strategy, innovation, process, product management, commercial excellence, ibp.

Speaker 2:

Integrated business management yeah.

Speaker 1:

Right, and what's interesting is their mix of practical hands-on experience, especially in sectors like ag, food chemicals, combined with that formal consultancy training.

Speaker 2:

And it's important to grasp that your operating model. Fundamentally it's the system of how your organization actually delivers value. It's not just theory, it's your structure, your processes, how decisions get made, that's governance, the roles people have, how you measure success, the metrics and even the tech supporting it all. And the thing is, even the best models, over time they can drift. You get new strategies, the market shifts, technology advances and suddenly it's misaligned and that's when you see those inefficiencies creeping in, those missed opportunities that can really hurt.

Speaker 1:

OK. So our goal today is really to unpack our coroes approach, their philosophy, their methodology, to help you, our listener, understand how you can make sure your operating model stays that powerful engine you know, delivering the results you need. So let's start with that core challenge, the one you probably know well the struggle to consistently implement strategy, achieve those outcomes. Why is that such a common sticking point?

Speaker 2:

Well, very often if strategy isn't translating into results, the root cause is right there in the operating model. If it's become outdated, or maybe it was never truly aligned with the strategy in the first place, it creates this real disconnect. You might have a great vision, but the way the organization is set up, the processes, the incentives, place it, creates this real disconnect. You might have a great vision, but the way the organization is set up, the processes, the incentives, even they could all be sort of subtly working against that vision, hindering execution.

Speaker 1:

Okay, okay, so let's get down to brass tacks then. What exactly is an operating model? We've touched on pieces, but give me the clear definition.

Speaker 2:

Right. Think of it like the blueprint the blueprint for how your organization actually creates and delivers value to its customers. It's the practical system that turns strategic goals into tangible actions. It answers that basic question how do we actually do what we say we want to do? And, like you said, it's got these key interconnected elements your org structure, how teams are set up, reporting lines, the org chart basically. The org chart, yeah, but also the core business processes, those end-to-end workflows, how work actually gets done.

Speaker 1:

The day-to-day stuff.

Speaker 2:

Exactly. Then there's governance who makes what decisions, the frameworks for that, your capabilities, the skills you need, the roles people play, performance metrics, management systems, how you track it all and, of course, the technology underpinning everything the information flow. For it to work, all these pieces need to be in sync, really working together.

Speaker 1:

Okay, that makes sense seeing it as a whole system. So we know what it is, but why revitalize it? It sounds like, honestly a big undertaking.

Speaker 2:

It can be, yes, but it's often absolutely necessary for long-term success. Like we said, the business world isn't static, is it? Your strategy might evolve. New opportunities, new threats, market conditions change fast, competition heats up. That puts pressure on how you operate. Or maybe you just start seeing internal science processes getting clunky and efficient, things holding you back.

Speaker 1:

So it's about keeping pace, staying agile, responsive to all those pressures, internal and external.

Speaker 2:

Exactly, and a successful revitalization, when done right, can bring huge benefits. We're talking, you know, dramatically better performance overall, happier customers because you're meeting their needs better, and, ultimately, a stronger competitive position. Ignoring a misaligned model, though, that's risking stagnation, missing out.

Speaker 1:

Right Now, Arkaro has a specific philosophy here you mentioned. It's not just about dropping off a report and saying good luck, is it?

Speaker 2:

No, not at all. That's really key to their approach. They firmly believe that for change to actually stick, to be sustainable, you need both things. You need the technical excellence designing better processes, structures, whatever's needed but you also must engage the people.

Speaker 1:

The people side.

Speaker 2:

The people side, the ones who have to implement it, live with it day to day. It's not just fixing it on paper, it's bringing the team along, empowering them to own it.

Speaker 1:

So the what the technical design and the who the people, making it real.

Speaker 2:

Precisely, and their philosophy also recognizes look, you probably already do some things really well within your organization. There are existing strengths, so their approach isn't about ripping everything out. It's about strategically building on those successes, while bringing in targeted improvements where they're most needed. That makes the whole change feel less disruptive and, frankly, increases the chances your teams will actually adopt it for the long haul.

Speaker 1:

And this do it with you, methodology that seems central to this whole idea. What does that really look?

Speaker 2:

like in practice. Give me a feel for it. Okay, yeah, do it with you basically means they don't just hand over recommendations and walk away. They actively partner with your team through the whole thing. It's really collaborative. The focus is squarely on building lasting capabilities inside your organization. So the end goal is that you have sustainable solutions that your own people understand, champion and can maintain long after our growth is finished. It's about empowerment, not just a temporary fix. You know, they often say we don't just coach from the sidelines, we get on the pitch with you.

Speaker 1:

I like that. Get on the pitch.

Speaker 2:

Yeah.

Speaker 1:

It paints a picture, doesn't it? Much more hands on collaborative than maybe traditional consulting sometimes feels. Now, this methodology. It's built around four stages. Right, Can we walk through those? I want to understand how they actually execute this.

Speaker 2:

Yes, absolutely. It's a proven four-stage approach that provides the framework for bringing that collaborative philosophy to life. Stage one is understand, think of this as the crucial foundation. You have to get this right.

Speaker 1:

Okay, understand, makes sense Laying the groundwork, figuring out what actually needs changing.

Speaker 2:

Exactly this first phase is all about getting a really deep grasp of why change is needed in your specific situation, and they look at it from two angles Culturally, how your organization works now the norms, the behaviors. And technically, the processes, systems, data, you know, recognizing that existing operational DNA. It's crucial for building the case for change and making sure any solutions are actually practical and will fit.

Speaker 1:

So what happens during? Understand what are the key activities you'd see.

Speaker 2:

Well, several important things. First, really understanding your business objectives, the market you're in, then working to pinpoint the key bottlenecks, the pain points in your current model. Where are things slow? Where's the friction? Where are people frustrated? A big piece of this is doing in-depth interviews with stakeholders across different levels, different functions.

Speaker 1:

Oh, talking to the people actually doing the work.

Speaker 2:

Crucial. It helps uncover those constraints, those process issues that you might not see just looking at flow charts or high level data. They also assess you know how ready is the organization for change? Where might resistance pop up? Understanding why people might resist is key to addressing those concerns proactively. And finally, they map out key stakeholders what are their needs, expectations, worries related to the operating model. So the outcome of all this discovery is a really holistic understanding covering both the technical needs and those crucial organizational dynamics.

Speaker 1:

That thoroughness in the understand phase, yeah, that definitely feels like the right foundation. So, after that deep understanding, what's next?

Speaker 2:

Stage two is co-create. This is where it shifts from just identifying problems to actively developing solutions together with your team.

Speaker 1:

Co-create. There's that collaborative piece again. How do they involve my team in this stage?

Speaker 2:

So several key things happen collaboratively. They work closely with your designated project team to build a high level roadmap for the revitalization map for the revitalization. Everyone needs to understand the direction, feel some ownership. They also support your leadership, helping them communicate the vision, effectively manage the change process overall. Another critical bit is setting up clear decision-making structures. Who decides what? How are issues escalated? Clarity is vital. And then, importantly, they facilitate joint design sessions. These are really interactive workshops. They bring Arkaro expertise in operating model design, but they blend it with your team's deep knowledge of your specific business, your challenges, your opportunities. The aim here is practical, tailored solutions designed for you, not just generic best practices pulled off a shelf that might not fit.

Speaker 1:

Right. So building something together that actually works, from my specific organization, my culture.

Speaker 2:

Exactly right. Then comes stage three enable. You've got the collaboratively designed plan. Now the focus shifts to equipping your organization, giving them the tools, the skills, the support they need to actually execute those changes effectively.

Speaker 1:

Enable right getting my team ready to actually do it. What does that look like practically?

Speaker 2:

It covers a few key areas. First, identifying skill gaps. What training or development is needed to support the new model? Importantly, they also focus on defining and reinforcing the desired values and behaviors. How should people work in this new model day to day? And to make this real? Their consultants work directly with your leaders, your teams, providing coaching, mentoring as they tackle implementation challenges. This hands-on, on-the-ground support is huge for building internal capability, embedding those new behaviors so they last that sounds incredibly valuable, that skill transfer, the support during the actual transition period.

Speaker 2:

It really is. They also often use pilot programs, establish feedback loops. This lets you test things out, monitor, make adjustments as you go. It's an iterative approach, helps fine-tune things in the real world, deal with any unexpected issues or resistance. And finally, they help leadership, design clear roles, responsibilities, reporting lines, decision rights, making sure the formal structure actually supports the new way of working efficiently.

Speaker 1:

Making sure the formal structure actually supports the new way of working efficiently. Okay, so we've understood the need, co-created the solutions with my team and enabled the organization to put it into practice. What's the final stage in our CROWS approach?

Speaker 2:

The final stage is sustain. This is all about making sure the changes you've worked so hard to implement actually last, that they keep delivering value over the long term.

Speaker 1:

Sustained right. Making sure it sticks becomes the new normal. How do they help with that?

Speaker 2:

Well. They use those key performance indicators, the KPIs both leading and lagging that were set up earlier. Use them to continuously monitor how the new model is performing, spot when course corrections might be needed. Their engagement often includes periodic check-ins, maybe revisits down the line, to audit processes, address any weaknesses that crop up or find new ways to optimize. This ongoing support is really aimed at embedding the changes deep into the organization's operations, its culture, so you get that long-term sustainable value, not just a short-term bump.

Speaker 1:

So it's not just a one-and-done project. There's a commitment to seeing it through and ensuring it delivers results over time.

Speaker 2:

Precisely Now. Obviously, while this four-stage framework gives you the structure, the specific areas of your operating model you focus on, well, that depends entirely on your unique needs, your challenges.

Speaker 1:

Right, it has to be tailored. Yeah, not one size fits all, and our CAR applies this to various key operating model elements.

Speaker 2:

Yeah, they do. Let's take strategy validation, for example. A really common challenge is when the operating model has kind of drifted away from the overall strategy.

Speaker 1:

Yeah, I can see that happening easily.

Speaker 2:

It leads to confusion about priorities, resources get wasted. You just don't hit those strategic goals. So Arkaro's approach there is to work with you to make sure the operating model new or revised directly supports and reinforces your strategy, creates real coherence between the what's and the how, the key outcome clarity on the why, so everyone understands how their operational work helps achieve the bigger strategic picture, motivates people, enables implementation.

Speaker 1:

That strategy operations alignment seems absolutely fundamental. What about linking up with customers, with the market? That's huge for B2B.

Speaker 2:

Oh, absolutely critical. Often organizations find their internal ways of working have gotten a bit disconnected from what customers actually need or expect. Now that causes friction. You miss chances to serve them better. Relationships can weaken. Arkaro assessments often find undocumented workflows, fuzzy decision making, things that cause misalignment between sales and marketing, maybe, or between operations and supply chain, impacting the customer. So their approach is really putting the customer right at the center of the operating model design and the outcomes you can see better go-to-market integration, more profitable products because they actually meet demand, faster deal closures, higher win rates, accelerated new business development, better returns on innovation because it's focused on what the market truly values.

Speaker 1:

Those are significant improvements.

Speaker 2:

Yeah.

Speaker 1:

What about the internal engine room, the core operational processes and that growing focus on sustainability?

Speaker 2:

Another vital area. Lots of organizations grapple with processes that have just become too complex, inefficient, costly over time. Sometimes you even see unofficial workarounds popping up which undermine efficiency and add risk. Arkaro focuses on digging in, identifying the real cost drivers in your operations and then implementing targeted optimization efforts aligned with your strategy. The results Streamlined processes that cut costs, improve responsiveness, better productivity from your assets, your working capital and increasingly crucial today, especially in B2B reducing environmental impact and building more operational resilience.

Speaker 1:

Sustainability.

Speaker 2:

Yeah.

Speaker 1:

Definitely moving from nice to have to must have Good to know that's integrated.

Speaker 2:

It really is, and particularly for businesses and sectors like ag food chemicals. Arkaro helps weave sustainability right into the core operations, addressing regulations, meeting market expectations, but also finding opportunities to create new value through more sustainable practices.

Speaker 1:

You also mentioned integrated processes earlier. Why is breaking down those classic functional silos so important?

Speaker 2:

when you're looking at the operating model, Because those silos, they just prevent optimal outcomes. Usually Simple as that. You need cross-functional collaboration, clear policies that span departments, integrated decision-making to really maximize efficiency and effectiveness. Take IBP, integrated business planning and S&OP as a great example. The common problem Strategic priorities get disconnected from day-to-day execution.

Speaker 1:

Right, the plan says one thing, but reality is different.

Speaker 2:

Exactly. Resources get misallocated, management becomes reactive because the strategy isn't really driving coordinated action across functions functions. Arkaro approach is to help set up structured, collaborative processes for that longer-term planning maybe a 24-month rolling horizon and ensure key decisions are consistently based on value, on strategic alignment. The big outcome there better executive engagement, genuine alignment across functions, so your business priorities actually drive operational decisions.

Speaker 1:

Wow, that kind of alignment sounds like it could be truly transformative for how a business runs.

Speaker 2:

It really can be. Then you've got S&OE, sales and operations execution. The challenge here is those short-term day-to-day hiccups, constantly throwing the longer-term plans off track.

Speaker 1:

The constant firefighting.

Speaker 2:

Exactly. It creates the cycle, prevents teams focusing on strategic stuff. Arkaro helps implement effective, daily, weekly operational management focused just on that immediate horizon, handling demand and supply fluctuations efficiently. The key outcome much clearer boundaries, clearer responsibilities between strategic planning and tactical execution. Teams handle the immediate stuff without losing sight of the big picture.

Speaker 1:

So managing both the long view and the short view effectively, without one derailing the other.

Speaker 2:

You've got it. And one more Forecast-driven fulfillment, that constant balancing act right Inventory levels, customer service, operational costs. Our CRO's approach involves designing resilient supply chains, integrating demand forecasting right through to fulfillment, with clear policies tailored to different customer segments. Fulfillment with clear policies tailored to different customer segments. The result much better cross-functional alignment sales ops supply chain, which leads to better service lower inventory and lower overall costs.

Speaker 1:

It hits all three. It really does all circle back to that interconnectedness, doesn't it? How all these pieces need to work together smoothly. Okay, as we start to wrap up this deep dive, could you just reiterate for me those key benefits? What really sets our Corot's do-it-with-you approach apart?

Speaker 2:

Sure, I think the core advantages boil down to sustainability, practicality, real team ownership and, frankly, speed to results. Because they work alongside your team through that whole journey Understand, co-create, enable, sustain. They're fundamentally building your internal capability. Your organization learns how to keep evolving the operating model even after they're gone. Their focus is always on practical approaches tailored to your context, your environment, not just generic stuff. And because your team is deeply involved in co-creating the solutions, they feel real ownership, commitment that's vital for long-term success. And, finally, that hands-on, collaborative way of working. It just tends to speed up learning, speed up adaptation, which means quicker implementation and seeing those tangible benefits sooner.

Speaker 1:

Yeah, it definitely sounds like a more embedded, more sustainable and, ultimately, probably a more effective way to tackle what can be a really complex challenge revitalizing that operating model. Well, I really hope this deep dive into revitalizing your operating model looking at Ar, really hope this deep dive into revitalizing your operating model looking at Arkaro approach has given you some valuable insights as you lead your B2B organization. Remember a well-aligned, effective operating model. It's not just theory, is it? It's the engine. The engine that drives your strategic success and delivers those real, tangible results for the business.

Speaker 2:

Absolutely. And if you're listening and thinking, yeah, we face challenges with fragmented processes, or we have siloed functions hindering collaboration, or we struggle to align execution with strategy, or maybe we need to get serious about sustainability, then Arkaro collaborative, proven approach might just provide the guidance and the practical support you need to get where you want to go.

Speaker 1:

So to learn more, dig deeper into Arkaro specialized services and how they can help your organization deliver better results through change and innovation, please do visit their website it's Arkaro. You can also keep up with their latest thinking by following Arkaro on LinkedIn. And, importantly, for a free, no-obligation consultation just to talk about your specific situation, your challenges, feel free to email Mark Blackwell directly mark@arkaro. com. Thank you so much for joining us for this Arkaro Insights Deep Dive and if you found this helpful, please do share it with your colleagues and peers.

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