Hybrid-by-design operating models are tomorrow’s enterprise foundation
Traditional operating models aren't equipped for today’s business.
Our research found that a typical enterprise has an average of 78 handovers per major product initiative, so it's no wonder that speed and innovation are suffering. Moreover, these models often fail to engage millennials and Gen Z workers, who now comprise a significant portion of the workforce.
A better scenario
Across industries, a hybrid-by-design approach–which combines the flexibility of a hybrid cloud environment and the design thinking and collaboration of a human-centered approach–is evolving to support the growing use of gen AI applications.
This requires a full redesign of operating models that goes beyond simply rethinking process flows. Leaders must also consider people and culture, with top-down encouragement and bottom-up embedding to drive change.
In the 5th chapter of our 5-part series on the power of gen AI in hybrid cloud, the IBM Institute for Business Value highlights the importance of adopting a hybrid-by-design approach to break down silos, eliminate handovers, and foster a culture of innovation and collaboration.
Here’s a preview of the report:
Hack the handover
Handoffs and indecision are killing velocity in today's operating models. Many enterprises are stuck in "operating-model-by-default" mode that leads to frustration, stagnation, and a lack of innovation. Decision-making is slow, and communication is muddled, with an average of six management layers between the C-suite and the front lines.
A hybrid-by-design operating model can reduce handoffs and indecision by empowering the front lines, automating processes, and integrating data analysis and machine learning. In these models, you have a "single pane of glass" for centralized visibility, and process and workflow automation can reduce handoffs and free up employee time for more strategic work.
The outcome is a decrease in operating costs by 40% to 70% within six months. But to make this work, you need to hack the handover by mapping the money trail, editing ruthlessly, and unleashing the hackathon heroes.
The silent screams
Employee disengagement is a flashing red light on the organizational dashboard, signaling something is wrong with your operating model. Leaders must focus on the people delivering outcomes, rather than just chasing KPIs. Common culprits include bureaucracy, lack of empathy, and self-serving managers. Employees will show where the operating model needs work, and leaders must listen to their concerns.
To address these issues, leaders should put bureaucracy and hierarchy to bed by designing and documenting changes required for a hybrid-by-design operating model. This includes equipping employees for decentralized decision-making, incorporating anonymous feedback into AI models, and tracking key metrics such as idea leakage rate, fix-it-myself rate, and "Yes, but..." ratio.
By focusing on people and culture, you can create a culture of innovation and collaboration that drives business outcomes.
Don’t let your operating model hold you back
Download this report – Built for flexibility: Why hybrid-by-design operating models are tomorrow’s enterprise foundation – to discover what a hybrid-by-design operating models can do for your organization.
Also, subscribe now to receive complimentary reports from the IBM Institute for Business Value that will help you drive business growth, innovation, and success.
