Our aim at Transform Inc. is to help organizations build an Operating Model that translates strategy into both Stable and Dynamic components through Continuous Transformation at four different levels.

Stable Component: Business Capability Building

Business Capabilities are the essential abilities an enterprise must possess to achieve its mission and strategic objectives. Capability building encompasses People, Process, and Technology. While business capabilities are stable, their relative importance may shift over time, requiring periodic reprioritization of investments in capability building.

A simple enterprise architecture such as the one below could capture the essential business capabilities (vertical), and IT enterprise capabilities (horizontal).

Value Streams are captured through the integration of business capabilities across the value chain, aligning the flow of activities that create value for the enterprise.

Dynamic Component: Innovation and Discovery Engine

To ensure that strategy remains dynamic, we propose an Innovation and Discovery Engine that quarterly identifies and implements new experiments along the following outline:

  1. Identify the strategic context

  2. Assess required business capabilities

  3. Identify three experiments based on the two steps above

  4. Implement the identified experiments in parallel during the quarter

  5. Incorporate the results into the strategy and capability-building reprioritization

Continuous Transformation at Four Different Levels

Our approach for building the above-described Operating Model is through continuous transformation at four different levels outlined in the below diagram.

These levels don’t represent an organizational structure or hierarchy, and the corresponding steps are not meant to be sequential.