Operating Model

An operating model describes how an organisation executes its strategy and delivers value in day-to-day work. It connects capabilities, activities and processes, roles and structures, governance, data, technology, locations and performance management. It is therefore broader than an organisation chart or a process map.

Use the term when several organisational elements must be designed together so that decisions, collaboration and value delivery support the strategy.

The operating model is reduced to reporting lines or documented as an abstract target picture with no connection to real decisions, workflows or capabilities.