How Foresight and an Aligned Operating Model Help Companies Thrive
In an online exclusive for NACD Directorship, Managing Director Richard Holt outlines why an aligned operating model that connects customers, operations, and capital strategy is essential for resilience and growth in today’s volatile environment.
Drawing on his experience leading A&M’s Corporate Transformation Services practice, Richard describes how boards can use foresight to keep these three elements in sync so that commercial priorities, operating decisions, and capital deployment move in the same direction and support a coherent strategy.
In the article, Richard highlights practical ways directors can strengthen oversight of the operating model, including how to:
- Clarify where and how value is created. Focus on the customer segments that truly drive long-term profitability, and understand cost to serve, churn, and renewal patterns.
- Build operational agility at scale. Review fixed and variable cost structures, modernize supply chains and organizational designs, and ensure the operating model can adapt as demand and risk profiles shift.
- Align capital strategy and investor expectations. Tie capital allocation and liquidity decisions to a clear narrative about how the company creates value, using the metrics investors care about most.
- Use leading indicators to spot misalignment early. Track signals such as customer churn, margin erosion, and cash-flow volatility to detect issues before they undermine performance.
- Treat alignment as an ongoing discipline. Make the interplay between customers, operations, and capital a recurring board agenda item with clear accountability for course corrections.
Read the full article to learn how boards can spot early signs of misalignment and guide management toward a more resilient operating model.
