what exactly is an operating model?
Simply put, an organization’s Operating Model defines how an organization is structured to deliver on its value proposition.
It is not a strategy in and of itself, but rather the components of your business that must work together to achieve the strategy. They are the elements that turn vision into action to enable value delivery.
An operating model is composed of six interdependent elements: Processes, Organization, Location, Information, Suppliers, and Management System. These components provide a comprehensive blueprint of how work gets done across the enterprise. By making these elements explicit, leaders can design, diagnose, or redesign operations in a coherent and integrated way, ensuring alignment between business goals and day-to-day capabilities.
what is an ‘operating model canvas’?
The Operating Model Canvas* provides executives with a structured framework to assess how well the business is set up to deliver value. It begins with core processes and aligns organizational design, technology, sourcing, and governance accordingly. This approach clarifies where to standardize, where to differentiate, and how to scale with intent—supporting strategic execution, transformation efforts, and operational excellence.
*Originally developed by Professor Andrew Cambell at the Ashridge Business School.