Target Operating Model Case Study

Centralisation target operating model of national branch network for large Australian Financial Services organisation


  • Large and costly decentralised Branch network (135 branches nationally at peak) selling Personal Loans and cross-selling Credit Insurance and Credit Cards
  • Large cost-to-income ratio due to overheads and inefficient resourcing
  • Poor quality and risk assurance given lack of operational controls in decentralised sales.
  • Difficulties remotely managing the variation in performance for 400+ sales staff
  • Large cost challenges in modernising technology across the branch footprint resulting in underinvestment and poor system performance and downtime.
  • Ineffective development of sales capabilities due to large decentralised workforce


  • Developed a 3-year, multi-phased strategy to exit the decentralised branch network and implement centralised sales operations.
  • Developed an analytical framework to conduct geospatial demand and profit analysis to identify the sequencing of branch exits to minimise customer and financial disruption while maintaining sufficient national footprint during transition.
  • Led the ongoing transition out of the branch network, while planning for the introduction of a centralised operating model.
  • Designed a new target operating model including org design and restructuring, process re-engineering, systems/app customisation and enhancements, data and reporting requirements and operational readiness planning.
  • Supported the successful implementation of the new target operating model.
  • Developed the ongoing quality assurance framework to drive improved quality and regulatory compliance


  • >$8M cost savings over 3 years through a ~35% reduction in resources and significantly less overheads.
  • Met all Sales expectations within 3 months of centralising operations, and maintained Sales performance
  • Optimised customer and staff experience, with significantly reduced effort resulting from improved process automation and digitisation.
  • Reduced operational risk through more effective risk-based monitoring and supervision