Realising your Strategy: The Critical Role of Operating Models

Realising your Strategy: The Critical Role of Operating Models.

organizations must continuously adapt and evolve to stay ahead of the competition. One key factor in achieving this is the operating model, which serves as the foundation for execution and provides a clear guide for how resources are organized to get critical work done.

An operating model is not just a set of processes or procedures, but rather a comprehensive framework that outlines how an organization will achieve its strategic objectives. It defines the roles, responsibilities, and processes necessary to deliver the organisation’s products and services(which in turn is part of organisation design work), and provides a clear direction for employees to follow.

In this post, we’ll explore the importance of operating models in unlocking a company’s strategy, and provide insights on how to design and implement an effective operating model.

Why Operating Models Matter

Operating models are critical to unlocking a company’s strategy because they provide a clear framework for execution. Without a well-defined operating model, organizations may struggle to achieve their strategic objectives, leading to inefficiencies, poor decision-making, and reduced customer satisfaction.

Designing an Effective Operating Model

Designing an effective operating model requires careful consideration of several key factors, including:

1. Clear Strategic Objectives: The operating model should be aligned with the organization’s strategic objectives and goals.

2. Defined Roles and Responsibilities: The operating model should clearly define the roles and responsibilities of each team member and department, as we said this is part of organisation design process.

3. Standardized Processes: The operating model should outline standardized processes and procedures to ensure consistency and efficiency.

4. Technology and Data: The operating model should leverage technology and data to support decision-making and improve operational efficiency.

5. Continuous Improvement: The operating model should provide a framework for continuous improvement, allowing the organization to adapt to changing market conditions and customer needs.

Benefits of an Effective Operating Model:

An effective operating model can bring numerous benefits to an organization, including:

1. Improved Business Performance: An effective operating model can improve business performance by increasing operational efficiency, reducing costs, and improving customer satisfaction.

2. Better Connection with Stakeholders: An effective operating model can provide a clear framework for connecting with stakeholders, including customers, employees, and partners.

3. Increased Process Integration: An effective operating model can reduce duplication of effort and improve process integration across divisional units and functional areas.

4. Improved Coordination and Decision-Making: An effective operating model can provide improved ability to plan and sequence initiatives, as dependencies across the organization are better understood.

Conclusion

In conclusion, an operating model is a critical component of an organization’s strategy, providing a clear framework for execution and guiding how resources are organized to get critical work done. By designing and implementing an effective operating model, organizations can unlock their strategy and achieve their goals.

Frequently Asked Questions (F.A.Q) of Operating Model

What is an Operating model of an organisation?

The operating model encompasses a spectrum of elements, each playing a pivotal role in shaping the organizational landscape. From the intricacies of day-to-day processes to the overarching organizational culture, it is the amalgamation of these components that defines how an entity adds value to both its internal stakeholders and the wider external ecosystem.

What are typical parts of an Operating model?

• Processes and Workflows for Navigating the Organizational Symphony

• Organizational Structure to understand the organisation Beyond the Organizational Chart

• Technology Integration which make The Digital Nervous System

• People and Culture to work with The Human Fabric of the organisation.