The Ten-Component Operating Model
Operating Models · From the essay “An Organizational Chart Is Not an Operating Model”
A chart describes formal structure. An operating model describes coordinated action. These are the ten components a complete model must define, the handoff rules that hold them together, and the questions to test before approving a redesign.
The components
- 01 Mandate & value
- 02 Services & functions
- 03 Capabilities
- 04 Structure
- 05 Processes & workflows
- 06 Decision rights
- 07 Information & technology
- 08 Governance
- 09 Partners & interfaces
- 10 Performance & learning
Handoff rules
- What must be complete before responsibility transfers
- What information must accompany the work
- Who accepts responsibility
- How quickly the next stage must begin
- What happens when information is missing
- How exceptions are escalated
Questions to answer
- What operating problem is the redesign intended to solve?
- Does it change workflows, authority, or capability — or only reporting lines?
- Have the organization’s critical handoffs been mapped?
- Are decision rights clear at the level where the work occurs?
- What information must flow between teams?
- Which capabilities are missing?
- What should be centralized, distributed, partnered, or automated?
- How will performance be governed?
- Which informal workarounds currently keep the organization functioning?
- What must change in systems, budgets, incentives, and behaviour?