Once upon a time, people went to work for organisations that took care of them, in return for their labour, until they reached a fixed age of retirement. Now consider that before the pandemic, the typical Briton could expect to have nine jobs and one major career change over a career averaging 48 years[i]. Following the Coronavirus pandemic, around 29% of Britons are looking to move job in 2022[ii]. Since the majority of people are keen to get back to normal, it seems that many employers are desperate for the same. So, read on as we look at the target operating model and curbing the great resignation.
Target Operating Model (TOM)
A Target Operating Model enables a company to identify the organisation’s most appropriate state to deliver on the strategic objectives. It is often colloquially described as the ‘to be’ state of the organisation. Ideally, a company has embarked upon a strategic planning exercise to form ambitious strategic goals. Once the goals are established, we need to work out how to transition and transform from the ‘as is’ to a more optimised ‘to be’ state.
One of the critical elements of the TOM is people. There are a variety of permutations of the operating model framework but the people pillar makes a fairly consistent appearance. If people are one of the key tenets within a target operating model, why do strat plans seem to impact so few people and roles within an organisation?
Missing a chance to transform the operating model
We have previously looked at how team structures, systems and job descriptions fail to create attractive roles. How often do we see the incoming hire take on the outgoing job description plus one or two additions? How often do we see new hires coming into a team without clear roles, responsibilities and accountability? There is a real opportunity to revisit who does what, who reports to whom, skills and responsibilities. We can change the organisation, role profiles, reporting lines, systems and processes. In summary, when you think of people as the main enabler of organisational strategy, there is opportunity in org design to get things right.
After all, according to Simon Sinek, he believes that we all deserve a job we love. In a Twitter post from May 2021[iii], he says that, “Loving our work is a right, not a privilege. It is the responsibility of leaders to cultivate work environments where people feel safe, inspired, and fulfilled. Everyone should be able to wake up in the morning and say, “I love my job.””
Targeting an operating model for EX
Wouldn’t it be a vision that people can get behind? Wouldn’t it be an organisation that many want to work for? Could it be an organisation that does good in the world? We previously looked at ways of improving the experience of staff and what good looks like. Unfortunately for businesses, the pandemic has concentrated and accelerated employee expectations of future work styles. Once upon a time, it was acceptable to pile staff into office cubicles, smoke, harass others and go for a drink at lunchtime. Thankfully, we moved into open-plan offices, smoking was moved outside, standards of behaviour codified and a working lunch became the norm. Now, what do employees really expect of an employer?
If the statistics are anything to go by, companies have a long way to go to meet them. As of mid-February, the Office of National Statistics (ONS) estimates that there were 1,298,400 vacancies[iv]. Furthermore, the ratio of vacancies for every 100 people employed reached another record high of 4.3. Is this the result of Brexit, people leaving the workforce or people who are disenfranchised? Alternatively, are potential recruits disillusioned with work, companies, workplaces, benefits, systems, processes, leadership or something else? It isn’t a quick solution if you start from the bottom up.
Systems are important but not everything
The shift to remote working at the onset of the pandemic was as swift as it was shocking. As people lost the ability to chat at the water fountain, quickly organise a face-to-face meeting or ‘desk bomb’ their colleagues, we became trapped at home behind a screen. Of course, some already had the ability to work from home. Many people work in other parts of the UK for London headquartered businesses (presumably because there was insufficient talent available in and around London). Others had international roles or spent much of their time working with colleagues located in India, China or perhaps Brazil. So, what was the solution?
In a rather haphazard fashion that was outside of what strat plans and target operating models visualised, we all needed to work remotely. Much of this technology was foisted onto employees at breakneck speed: online meetings, collaborative workspaces, productivity monitoring software and more. At a macro-level, consider how digital technology is done unto staff with lasting consequences. How did staff feel about this rapid change in their working practices and interactions with others?
Filling roles without considering the operating model
Fast-forward two years and it is easy to see when an organisation or a recruiter is struggling to fill a role. First of all, the role appears with a laborious job description and may demand full-time office work. In some cases, this attracts a handful or zero applicants. Secondly, it reappears with an element of hybrid working or recruiters post a ‘hybrid working opportunity’ on LinkedIn. If that doesn’t bring the desired talent, it finally reappears as a role with occasional office work and one or two of the ‘must-haves’ removed.
We have seen some people advocating to ‘recruit based on potential’ as a way to overcome hiring challenges. While there is nobility in this message, this perhaps fails to address the underlying issues. Are leaders aware of the unappealing roles in their organisation and why? Are managers aware of what roles entail and do they expect high performance when spinning many plates? Do HR managers realise that teams and roles are becoming ever more complex? Do we make people decisions based on biased information or what we think is best for the business? In conclusion, are we simply reluctant to put in the hard yards to curb the great resignation, hoping that it will be a temporary phenomenon?
A complex people prescription for organisational design
Think Beyond is a management consultancy based in Cheshire. Our clients operate across England from Cumbria to Kent and internationally. We offer services to support leaders with strategic planning, assurance and transformation. We also offer workshops to help you troubleshoot business problems. In summary, we partner with boards and senior leaders to find opportunities and to accelerate your business performance.
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Finally, why not take a look at how Think Beyond differs in approach.
[i] https://www.actuarialpost.co.uk/article/goodbye-to-the-job-for-life-6910.htm
[ii] Article: Almost a third of UK workers considering a career move
[iii] https://twitter.com/simonsinek/status/1395469078421250053?lang=en-GB
[iv] ONS job vacancy data February 2022