Six lessons on how to embrace the next-generation operating model

• Published in: McKinsey Insights
• Main Authors: Camara, Tod, Singla, Alex, Hu, Adele, Sood, Rohit, Jasper van Ouwerkerk
• Format: Magazine Article
• Language: English
• Published: New York McKinsey & Company, Inc 17.01.2019
• Subjects: Automation; Digitization; Efficiency; Executives; Organizational change

For a global property-and-casualty insurer, the starting point was policy services; for a credit-card issuer, it was customer acquisition; for a life insurance issuer, it was new-business origination; and for an airline company, it was the ticket and ancillaries sales journey. In a bank, these could include the front, middle, and back office, as well as IT, risk, and compliance. Because the end-to-end journey owner must engage with many parts of the organization, it is a challenging role and should be filled by a highly capable executive. To break down silos within the business, it started by standing up a cross-functional team with process redesign, agile, digital, and automation expertise and representation from compliance, legal, risk, and privacy. Not only do they need new skilled people, but they also need to reskill or redeploy existing staff, since certain improvement levers, such as RPA, will replace some jobs and transform many others. Because these challenges don’t appear immediately, companies tend not to focus on them until it’s too late, at which point talent management becomes a bottleneck on their path toward the NGOM.