Business operating models

Operating models outline how an organisation delivers value through structured processes, resources, and relationships. They define the organisation’s workflow, decision-making, and strategic alignment, ensuring efficient delivery of outputs. A robust model integrates people, processes, and technology to meet customer needs.

Components of an operating model

Each component plays a vital role. Structures ensure clear roles, processes drive efficiency, and KPIs measure success. These elements create an integrated system that aligns resources, capabilities, and strategy, promoting agility, productivity, and value delivery across the organisation.

Organisation structures

Defines reporting lines and roles, ensuring clear accountability and alignment across teams to meet operational goals.

Processes

Standardises workflows for consistency, efficiency, and quality, providing clear steps for executing tasks within the operating model.

Information flows

Enables smooth communication and data sharing across departments, ensuring timely decision-making and alignment on objectives.

Business capabilities

Identifies core competencies needed for success, helping structure resources and skills within the operating model.

Value chain

Outlines activities that add value to customers, guiding prioritisation and resource allocation within the model.

Supply chain

Ensures the timely provision of materials and services, essential for seamless operations and customer satisfaction.

KPI

Measures performance against targets, providing benchmarks that drive accountability and continuous improvement in the model.

Architecture

Establishes the structure of systems and processes, ensuring scalability, flexibility, and resilience of the operating model.

Controls

Implements checks and balances to mitigate risks, ensuring compliance, quality, and financial integrity within the organisation.

Reporting

Provides transparency on performance and operations, enabling informed decision-making and adjustments to the model as needed.

Technological landscape

Supports automation, scalability, and efficiency through appropriate tech tools, directly enhancing operational capabilities.

Lessons learned

Incorporates past insights into current practices, fostering a culture of continuous improvement in the operating model.

Multiple geographies

Adapts processes and structures to regional needs, ensuring consistency and responsiveness across diverse locations.

Leadership

Drives vision and strategic direction, ensuring the operating model aligns with organisational goals and employee engagement.

Governance

Establishes policies and accountability structures, ensuring adherence to strategic goals and operational standards.

Interface management

Coordinates interactions between departments, ensuring seamless workflow and reducing potential bottlenecks.

Knowledge management

Captures and disseminates organisational knowledge, promoting efficiency and informed decision-making.

Business agility

Ensures adaptability to market changes, enabling the model to respond to emerging challenges and opportunities.

Multiculturalism

Enhances inclusivity and innovation, leveraging diverse perspectives in the operating model’s processes and practices.

ED&I

Embeds equity, diversity, and inclusion, fostering a respectful and dynamic work environment aligned with broader organisational values.

AI enablement

Integrates AI tools to drive efficiencies, optimise decision-making, and personalise customer interactions within the model.

Continuous improvement

Embeds an iterative approach to refining processes and outcomes, ensuring the model stays relevant and competitive.

Raw data

Provides foundational insights for analytics, enabling data-driven decision-making and continuous improvement.

Logistics

Manages the flow of goods and services, ensuring timely delivery and operational continuity within the model.

Industry-driven priorities

Organisations in different industries focus on unique priorities based on sector demands and customer needs. Pharmaceutical firms prioritise R&D, compliance, and safety, while retailers emphasise inventory management.

Automotive

  • Heavily reliant on a just-in-time supply chain for cost-effective manufacturing and timely assembly.
  • Focused on continuous improvement and waste reduction to enhance productivity and reduce costs.
  • Emphasis on the lifecycle from R&D to after-sales services, ensuring innovation and quality.

Childcare

  • Strict adherence to health, safety, and educational regulations, creating a safe and nurturing environment.
  • Organisational structure tailored to maintain regulated staff-to-child ratios for optimal care and oversight.
  • Focus on age-appropriate educational and developmental programming to support learning and growth.

Construction

  • Organised around project-based work, often requiring cross-functional teams to manage timelines and budgets.
  • Efficient allocation of labour, materials, and equipment across various sites to ensure timely project completion.
  • Emphasis on health, safety, and environmental compliance throughout all project phases.

Law enforcement

  • Immediate, well-coordinated processes to manage and respond to incidents and emergencies.
  • Built around fostering public trust and collaboration for crime prevention and safety.
  • Cross-functional information flow between units and external agencies to improve public safety and crime-solving.

Management consulting

  • Teams organised around client needs, often with flexible structures to adapt to diverse project requirements.
  • Emphasis on capturing and sharing insights, methodologies, and best practices across the firm.
  • Strong focus on client satisfaction and project success as key indicators of performance.
Bogdan Ciocoiu - Operating Models - Management consulting and professional services

Pharmaceutical

  • Heavily structured around research and development to bring new drugs and treatments to market.
  • Adherence to stringent regulatory standards throughout development, production, and distribution.
  • Robust, global supply chain to manage sensitive materials and ensure timely delivery.
Bogdan Ciocoiu - Operating Models - Pharma

Recruitment

  • Core processes focused on identifying and vetting candidates to meet client requirements.
  • Operational emphasis on efficient, high-volume candidate placements for scalability.
  • Strong focus on maintaining long-term relationships with both clients and job seekers.
Bogdan Ciocoiu - Operating Models - Recruitment

Technology

  • R&D and product development are prioritised to keep pace with rapid technological advancements.
  • Flexible and iterative workflows to adapt quickly to changes in the market or client needs.
  • Heavy reliance on data analytics and insights for continuous improvement and customer-centric enhancements.
Bogdan Ciocoiu - Operating Models - Technology

“An operating model transforms strategic vision into practical, day-to-day actions, aligning resources and processes to achieve organisational goals.”

Bogdan Ciocoiu

Director

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