Organisation Models Ashridge Executive Education A value chain

Organisation Models © Ashridge Executive Education

A value chain map as an operating model All Value Chain Steps Segment A Segment B Segment C Segment D Segment E Segment F Combine/manage together Source of advantage Link or standardise, but manage by segment Separate and manage by segment © Ashridge Executive Education

Value chain map as an organisation model Combined and centralised Centralised to manage links Head Office plus elements of the value chains that have been centralised BUY MAKE SELL BUY MAKE Operating Units (value chains focused on different segments Separated with some standardisation/links © Ashridge Executive Education SELL

Organisations have two kinds of work • Operating work • Do work aimed at delivering value to “customers” • Support work • Do work aimed at helping other departments within organisation Operating work can become support work if it is “centralized” © Ashridge Executive Education

Three ways to structure the operating work Value Chain Unitised Matrix • Function • Process • • • Geography Customer Product Project Asset Etc • Two boss matrix • Front/back © Ashridge Executive Education

Four types of support work l fu r e re o M w o p Finance ss po Key accounts we rfu l Lean/ Operating excellence HR Champion/Coordinate e. g. Policy e. g. Core resource e. g. Shared service e. g. Research Finance services Marketing HR services Operating Work © Ashridge Executive Education Le Head of structure

Impact of combining/centralising • Combining converts “operating work” into “support work” • When combining or centralising it is important to define the role of the support work • • © Ashridge Executive Education Policy Champion Shared Service Core Resource

The target organisation structure for the regulator Board Chief Regulator CEO Office Executive Director of Strategy, Risk & Research Strategic Policy & Risk Executive Director for General Qualifications Stakeholder Engagement Executive Director for Vocational Qualifications Stakeholder Engagement COO Business Planning & Performance Mgmt Reform Programme Assurance Regulatory Op’s Research & Evaluation Regulatory Development Qualification Policy Qualification Standards School Qualification Design Lead Supermoderation © Ashridge Executive Education Regulatory Development Qualification Policy Qualification Standards Authorise Finance Supervise Comms HR Enforce IT Ops Mgmt Legal Customer services

Regulator structure as an organisation model Strategy COO General © Ashridge Executive Educational