Operating models are frequently depicted with diagrams of boxes and lines — representing functions, teams, governance forums, processes, and roles.
While these elements are important, they are not the main focus.
A well-designed operating model helps an organisation make better decisions and translate them into coordinated actions. This requires looking beyond the organisational structure.
Asking who owns the outcome, who has the information, who has decision authority, and where alignment across boundaries is needed, reveals more about how the model functions than an org chart ever could.
Common issues arise when there’s a disconnect between desired work processes and actual authority distribution.
Teams expected to act quickly may still face centralised decision-making or limited influence for product leaders.
Cross-functional teams might exist, but funding and performance systems still reinforce siloed behaviours — highlighting friction points between parts rather than within them.
Therefore, designing an operating model should start with understanding the work and decisions involved, not just the boxes.
Key questions include:
- What value are we aiming to create?
- What needs to flow across the organisation?
- Which decisions influence this flow?
- Who should make those decisions?
- What information is required?
Only afterward should we determine how teams, roles, governance, funding, and coordination are organised.
The solution doesn’t always need to be radical. Often, the biggest gains come from clarifying a few critical interfaces.
- Moving decisions closer to the work.
- Making accountability explicit.
- Removing unnecessary forums.
- Redesigning dependencies.
- Sharing priorities across functions instead of optimising locally.
Effective operating models facilitate desired behaviours.
The question isn’t whether your model looks modern, but whether it enables people to make sound decisions even when work becomes complex.