An Operating Model is part of a business model that defines how a business will operate, the future state is commonly referred to as a Target Operating Model as it is normal for an organisation to be transitioning towards a new operating model. Use this tag to describe questions that ask questions about as-is or target operating models.

According to Ashridge:

An operating model is the operational design that makes it possible to deliver the business strategy. [The] operational design follows strategy, but the relationship also works the other way around, which means that ideas for operating model improvements can lead to changes in business strategy.

Operating Models are often defined in terms of different aspects of a plan, one of the following patterns are commonly followed when designing Operating Models:

  • 3 Ps - people, process and products (sometimes also "partners")
  • POT - process, organisation and technology
  • POLISM - processes, organisation, locations, information, sourcing and partners, management system

Further Reading