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Blueprint for how an organization delivers value through processes, roles, capabilities, and technology.
DESCRIPTION
An operating model translates strategy into the organizational structures, processes, roles, and technology needed to create value. It defines how work flows, who owns decisions, and how capabilities interoperate. Clear operating models enhance accountability, agility, and scaling by standardizing integration and governance. They often include service delivery, data governance, sourcing, and risk controls. Target operating models describe a future state for transformation, guiding roadmaps and change management.
ALTERNATIVE DEFINITIONS
Wikipedia
An operating model is the abstract representation of how an organization operates.
Highlights abstract representation of organizational operations.
MIT CISR
An operating model is the necessary level of business process integration and standardization for delivering services to customers.
Emphasizes integration and standardization as core to the model.
McKinsey & Company
An operating model translates a company’s strategy into the organizational design needed to deliver it.
Focuses on translating strategy into organizational design.
RELATED TERMS
Target Operating Model Organization Design Process Architecture Governance Responsible Accountable Consulted Informed Capability Model Value Stream Enterprise Architecture
COMPETING TERMS
RELATIONS
- Broader: Model
KNOWLEDGE AREAS
Transformation Process Collaboration Data Management Domain & Business Context Data Governance
TARGET AUDIENCE
Chief Data Officer Enterprise Architect Digital Transformation Manager Data Strategy Consultant Chief Technology Officer Chief Information Officer Data Governance Manager Solution Architect Product Owner
EXTERNAL SOURCES
- Wikipedia - Operating model
- MIT CISR - Seminal research on operating models
- McKinsey & Company - Consulting perspective and practices
TOP QUESTIONS
Why is an Operating Model critical for data and AI initiatives?
It aligns processes, roles, and technology for scalable delivery, clarifying decision rights and governance necessary to manage data risk and enable reliable AI value.
Category: Relevancy
What is the difference between Operating Model and Business Model?
The business model explains how a company creates and captures value, while the operating model explains how it organizes and executes to deliver that value.
Category: Alternatives
How do you design an Operating Model for analytics?
Define data ownership, governance forums, delivery processes, platform capabilities, and talent roles, then map workflows and decision rights across domains.
Category: HowTo
What are common mistakes in Operating Model design?
Ignoring change management, underdefining decision rights, and over-centralizing capabilities can hinder agility and adoption.
Category: Mistakes
What is a Target Operating Model (TOM)?
A TOM is a future-state blueprint guiding transformation, sequencing capability upgrades, process changes, and organizational realignments.
Category: Overview
How is an Operating Model governed?
Through councils, policies, RACI matrices, and KPIs/OKRs that enforce decisions, standards, and continuous improvement.
Category: Management
What risks arise from a weak Operating Model?
Inconsistent processes, unclear ownership, compliance failures, and duplicated platforms increase cost and reduce trust.
Category: Risks
What is currently a hot topic around Operating Model?
Data product operating models, federated responsibility in data mesh, and AI governance integration are prominent.
Category: Topic
Where to start learning about Operating Model?
Read MIT CISR work, consulting guides, and enterprise architecture frameworks like TOGAF for structure and practices.
Category: Learning