Strategy
Operating Model
Plain English
How a business runs day to day.
Definition
An operating glossaryModelA model is a system or representation used to process data and generate outputs, often trained to perform specific tasks.Open glossary term defines how an organisation delivers its products or glossaryServiceA service is a component or function that performs a specific task within a system.Open glossary term, including glossaryProcessA process is a defined sequence of steps used to achieve a specific outcome.Open glossary term, roles, systems, and workflows.
In practice
Used to structure teams, define responsibilities, and ensure efficient glossaryDeliveryDelivery is the process of building, testing, and releasing a product or feature.Open glossary term.
In context
It explains why a good glossaryStrategyStrategy is a high-level plan that defines long-term goals and the approach to achieving them.Open glossary term produces poor glossaryDeliveryDelivery is the process of building, testing, and releasing a product or feature.Open glossary term. If the glossaryModelA model is a system or representation used to process data and generate outputs, often trained to perform specific tasks.Open glossary term routes every decision through one committee, the strategy moves at the speed of that committee.
The reality
Even great glossaryStrategyStrategy is a high-level plan that defines long-term goals and the approach to achieving them.Open glossary term fail if the operating glossaryModelA model is a system or representation used to process data and generate outputs, often trained to perform specific tasks.Open glossary term can’t support them.
Compared with
Operating Model vs Business Model
The glossaryBusiness ModelA business model describes how an organisation creates, delivers, and captures value. It covers who the customer is, what they receive, how it reaches them, and how the money and the costs work.Open glossary term is how value is created and captured: what you sell and how you make money. The operating glossaryModelA model is a system or representation used to process data and generate outputs, often trained to perform specific tasks.Open glossary term is how the organisation actually delivers it. One is the promise, the other the machinery.
FAQ
Common questions
A few practical answers to the questions that usually come up around this term.
What is an operating model?
An operating glossaryModelA model is a system or representation used to process data and generate outputs, often trained to perform specific tasks.Open glossary term defines how an organisation delivers its products or glossaryServiceA service is a component or function that performs a specific task within a system.Open glossary term.
Why is an operating model important?
It ensures teams and glossaryProcessA process is a defined sequence of steps used to achieve a specific outcome.Open glossary term work effectively together.
What does an operating model include?
glossaryProcessA process is a defined sequence of steps used to achieve a specific outcome.Open glossary term, roles, glossarySystemA system is a collection of interconnected components that work together to achieve a specific function or outcome.Open glossary term, and glossaryWorkflowA workflow is a defined sequence of tasks or steps required to complete a process.Open glossary term.
How does an operating model relate to strategy?
It enables the execution of the glossaryStrategyStrategy is a high-level plan that defines long-term goals and the approach to achieving them.Open glossary term.
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