This week wraps up February’s topic of the month on Ownership and Governance structures, and with that I wanted to highlight some recent work the Operations Council has published on actual operations structures of members we’ve worked with.
A recent survey we sent to Operations Council members shows that 80% of firms have restructured their Service Operations in the last two years. There were a few other interesting points which jumped out at us as well:
1) No Pronounced Centralization-Decentralization Divide
Just over 10% of firms are pursuing a strictly decentralized model for Service Operations, while only 40% are pursuing a centralized model. Instead of making a clear choice between the two, many firms are moving toward hybrid structures, meaning that certain aspects of Service Operations are managed centrally while business areas retain control of other operational activities.
2) Higher Satisfaction with Function-Centric and Customer Segment-Centric Models
The Council’s research found that executives who are most satisfied with their service operations structures are more likely to use function-centric or customer segment-centric models. Despite this, the most common structures firms are using are still product-centric or process-centric models.
With all the restructuring that’s taken place in financial services operations, we wanted to learn from our members what new structures they’ve tried and share our findings. That’s why we created the Operations Organizational Structure Showcase, which profiles services operations structures from across the industry. Check it out today and see how you compare!