Why Operating Models Fail to Deliver Strategy

Guest post, Operating Model, Organisation Structure, Organisation Transformation

Othman Al Thakafi

Othman Al Thakafi

Othman is strategic and goal-orientated Executive Leader with a strong ability to combine a vision, strategy, perseverance, and empathy to achieve transformational change. He successfully led and executed cost reduction strategies for flight operations, IFS, maintenance, and IT departments, resulting in significant fixed cost savings critical to ensuring financial stability.

Beyond the Org Chart: Why Operating Models Fail to Deliver Strategy

There’s a truth most executives rarely say out loud: We redesign org charts because it’s easier than fixing what’s truly broken.

It’s more comfortable to shift lines on a PowerPoint than to confront structural inertia, cultural residue, and embedded contradictions woven into the daily rhythm of the organization.

We call it a “transformation.” We announce an “operating model redesign.” But more often than not, what we call new is simply old dynamics rearranged with fresh labels, while the core tensions stay buried.

The Myth of Operating Models

To many, operating models are visual outputs:

  • Org charts
  • KPI dashboards
  • RACI matrices
  • Governance slides

When execution falters, the reflex is usually structural:

“Split that department.” “Create a new role.” “Elevate that team.”

These changes offer the illusion of control. But the true operating model — the one that governs how work really gets done — remains untouched.


What an Operating Model Really Is

An operating model is not what appears in a deck. It’s what the organization does when no one is watching.

It’s reflected in:

  • Who gets consulted (and who doesn’t)
  • What decisions are delayed, escalated, or quietly ignored
  • How trade-offs are made — or avoided
  • The rhythm of how pressure is absorbed or redirected

You don’t learn the operating model from documentation. You observe it when:

  • A customer issue hits the system
  • Two executives disagree on priorities
  • A critical project falls behind
  • A stakeholder disappears from decision-making

 In those moments, you meet the real model — not the one approved in a steering committed.

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The Deep Memory Organizations Carry

Every organization holds a cultural memory — not written in manuals, but coded into habits:

  • Historical power centers
  • Invisible lines of influence
  • Individuals or teams seen as “untouchable”
  • Legacy behaviors rewarded more than current results

These dynamics don’t vanish with new hires or rebranding. They persist in who speaks first in meetings, who gets “looped in,” and who silently vetoes without owning a decision.

Without active unlearning, even the best-designed models are pulled back by the gravitational forces of the past.


How You Know the Operating Model Isn’t Working

You feel it in subtle breakdowns:

  • Teams working hard — but no one is clear on what “done” means
  • Multiple owners, no single outcome
  • Escalations used as shields, not solutions
  • Same issue resurfacing across silos with different owners and no convergence
  • Meetings full of updates, light on progress

It’s not dysfunction — it’s disjointed energy. And the more process you layer on top, the more it begins to feel like noise.


Silos: The Symptom We Misread

“Break the silos” is a common diagnosis. But silos don’t just happen — they are created, nurtured, and defended.

They arise when

  • Incentives are function-specific, not outcome-aligned
  • Decision rights are fuzzy, so teams retreat to their safe zones
  • Metrics compete instead of complement
  • Trust erodes, so information becomes protection
  • Loyalty to functions is rewarded more than collaboration across them

Silos offer something deeply human: protection — from ambiguity, blame, and status loss.

So before you dismantle a silo, ask:

What was it protecting — and what will replace that protection?

You don’t break silos with structure. You replace them with:

  • Shared incentives
  • Cross-functional career mobility
  • Governance that demands — and rewards — trade-offs
  • Leaders who model collaboration rather than just mandate it

Silos aren’t just an execution issue. They are a leadership choice — and a design failure.


Why Strategy Fails to Land

Strategic plans don’t die because they’re flawed. They die because the organization was never rewired to deliver them.

Broken operating models:

  • Delay decisions
  • Prioritize politics
  • Fragment accountability
  • Strangle momentum with risk aversion

When strategy lacks oxygen, even brilliant plans lose power.

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What Real Operating Model Redesign Requires

This is not about frameworks. It’s about the willingness to confront what’s hard.

Here’s what it takes:

  • Unlearn legacy power: Acknowledge historical influence. Don’t pretend it’s gone — address it, or it will work against you.
  • Name contradictions: Don’t say “collaborate” but promote solo KPI wins. Don’t say “agile” but escalate every decision up four levels.
  • Redesign decisions: Clarify who decides what, how ambiguity is handled, and how trade-offs are made in real time.
  • Fix incentives: If you want new behavior, reward it. Recognize it. Promote for it.
  • Build continuous feedback loops: Don’t wait for a quarterly review to find out something’s broken. Make feedback part of the operating rhythm.
  • Model it at the top: If senior leaders bypass the model, the model won’t survive. Culture flows down — and so does permission.

Final Thought: Your Operating Model Is a Mirror

It reflects what you truly value. What you tolerate. What you avoid.

If your strategy isn’t landing, ask:

What does your system silently reject?

The opportunity is real — and rare:

  • 🟢 You can build an operating model that doesn’t just look good, but works.
  • 🟢 You can reshape cultural memory by leading differently.
  • 🟢 You can bring coherence to execution — where design, decisions, and delivery align.

This isn’t about complexity. It’s about coherence:

  • Between intention and action
  • Between vision and incentives
  • Between what teams are told — and how they are supported

In the end, what sustains transformation isn’t the announcement. It’s the operating system that follows — and the trust that holds it together.

Because when the structure breathes and trust holds, strategy doesn’t just survive — it scales.


✅ Disclaimer:

The content of this article is based on my professional observations, personal reflections, and readings of generalized patterns across organizations and industries. It is not intended to reflect, reference, or critique any specific employer, client, or professional affiliation—past or present. The views expressed are shared in the spirit of thought leadership and strategic reflection. Any perceived resemblance to particular entities or individuals is purely coincidental.

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This is a guest post on Versatile Consulting by Othman Al Thakafi. All opinions and copyrights are those of the author.