Strategic - Operating Model

  • futureSME tools for Operating Model

  • What is it?

    An operating model describes how a business organises its resources to ensure its day-to-day operations support its strategy. It outlines how your company gets its products to your customers. The model describes operations from a number of different but interrelated perspectives:

    • Product/Service families
    • Customer channels
    • Processes/Functions
    • Information used and produced
    • Organisation structure 
    • People 
    • Technology 
    • Geography 
    • Commercial relationships

  • Why is it important?

    The purpose of the operating model is to support rapid and effective change within a business. Any significant change to a business can fail if the operating model does not support the proposed change; for example, starting to outsource without a corresponding function to coordinate activities. Changes in the operating model can reduce a business’s ability to meet the strategic vision; for example, out-of-date technology.

  • How do I use it in my business?

    The purpose of the Operating Model is to support rapid and effective change / adaptation within the firm. The current Operating Model is used in support of any strategy discussions to help put detail to any change plans – if a change does not affect the Operating Model it is unlikely to impact how the firm performs. A future Operating Model is used to communicate the necessary change to stakeholders with practical levels of detail and to plan strategic change. At an overview level the operating model would be used as follows:

    Resources Step 1

    Identify the strategy change from your visual strategy.
    Visual Strategy.

    Resources Step 2

    Determine whether the change affects your current operating model.
    Producing the Operating Model,
    Reviewing the Operating Model.

    Resources Step 3

    Identify any gaps between your current and future operating models..
    Producing the Operating Model.

    Resources Step 4

    Create a plan to close these gaps.

    Resources Step 5

    Review the impact of the changes on the strategic situation.
    Visual Strategy