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Top 7 Business Operating Model Templates with Examples and Samples

Deepika Dhaka

With change as a constant companion of business, companies constantly adjust their course to navigate obstacles while ensuring profitability. Caring for their employees and businesses is another prime concern.  In these times, where the margin for error in operations is thinner than ever, having an agile operational framework is crucial.

A business operating model is a blueprint or framework that outlines how a company operates, including its core processes, structure, capabilities, and technology. It provides a clear and organized structure for how parts of the business work together to achieve goals and deliver customer value.

If you are a business owner struggling to create an effective operating model for your business, we have a solution for you — Business Operating Model Templates

Business Operating Model Templates to Provide Structured Framework

Business operating model templates offer a structured framework to benefit organizations.  They bring clarity and alignment to an organization's processes and responsibilities, fostering efficiency and consistency while reducing redundancy. Templates are also crucial in risk management, scalability planning, and team communication. They are invaluable during onboarding and training, aiding change management efforts and supporting data-driven decision-making. These help ensure compliance with regulations and industry standards, enable benchmarking against best practices, and promote a culture of continuous improvement. 

Explore these Top 10 Target Operating Model Templates to Envision Business Growth. These templates function as a bridge that fills the gap between your running operations and your vision for growth and transformation.  

The best part about SlideTeams Templates is that the 100% customizable nature of the templates gives you the flexibility to edit your presentations. The content-ready slides give you the much-needed structure. 

Let’s begin exploring these templates one-by-one!

Template 1: Business Operating Model Risk Management Framework

Introducing a comprehensive business operating model integrated with a robust risk management framework. This PPT Template framework encompasses elements such as capital enhancement, control and quantification measures, transparent communication practices, and a clearly defined model risk appetite. It serves as a  roadmap to enhance process efficiency, align organizational goals, and mitigate risks. Each component is detailed, and the template lists specific tasks and activities needed for successful implementation. Download this template and streamline your risk management processes today.

Download this template

Template 2: Business Operating and Capability Model Template 

This PPT Slide represents the operating model in five levels: Value chain, Sales, CRM, Segmentation of Clients, and Opportunity. It showcases how these five levels or components fit within the organization's operating model. It helps stakeholders understand the interplay between these components and how they contribute to business growth. This layout also includes tasks and activities associated with each of these levels. Get it now!  

Template 3: Cross-Functional Business Process Operating Model

This powerful PPT Slide is designed to help you integrate and streamline processes across departments and functions, fostering collaboration and efficiency. Gain a competitive edge by aligning your operations with strategic objectives. It covers layers like business environment, customer’s needs, core, and supplier’s processes. Download now!

Template 4: Onsite Offshore Operational Business Model

Introducing this comprehensive PPT Slide that equips you with an onsite and offshore operational business model. This innovative solution empowers your business to strategically blend onsite and offshore resources for optimal efficiency and cost-effectiveness. It includes the four-stage process: Planning, transition, Blended Support, and offshore. Manage your operations, maximize productivity, and stay ahead of the competition while maintaining a robust global presence. Download it today!

Template 5: Key Element of Business Management Operating Model

This PPT slide provides a comprehensive overview of the essential elements of an operating model, ensuring you can optimize your business functions. It encompasses critical aspects such as business model, strategy, target operating model, foundation, regulators, customers, and the financial market. In addition, this consolidated structure includes vital business insights like culture, business vision, and values. Download this valuable resource today for your convenience.

Template 6: Multilevel Business Operations Maturity Model Template

This PPT Template provides a structured framework to assess and enhance your organization's maturity across operational dimensions. Whether you aim to optimize processes, improve efficiency, or align with industry best practices, this template has you covered. The focused levels it covers, such as fragmented, sub-scaled, scaled, integrated, and strategic, add to its utility. Streamline your path to success – get started with our template today.

Download the template

Template 7: Business-Focused Cloud Operating Model

Unlock the potential of cloud technology for your business with our focused cloud operating model template. This cutting-edge solution tailors cloud strategies to your business needs, ensuring seamless integration, scalability, and cost-effectiveness. Streamline operations, enhance agility, and boost innovation while maintaining a strong focus on achieving your business goals. Embrace the future with this innovative slide. Download it today!

Structure your Business

The business operating model templates we've explored in this blog are tools to guide your organization toward greater efficiency, alignment, and strategic achievement. You can leverage these templates to  streamline your processes, enhance collaboration, and adapt to changing market conditions with confidence.

At SlideTeam, we are committed to empowering businesses like yours with the resources needed to excel. To access our collection of feature-packed operating model templates and take your organization to the next level, download them today. 

FAQs on Business Operating Model

What is an operating model in business.

An operating model in business is the structural framework that defines how an organization delivers its products or services, manages its processes, allocates resources, and interacts with stakeholders to achieve its strategic objectives. It provides a blueprint for how components of the organization work together to create value and execute business strategy .

What are the 5 components of the operating model?

The five key components of an operating model in business are

• Processes: Defining specific activities, workflows, and interactions required to deliver products or services efficiently.
• Organization Structure: Establishing the hierarchical structure, roles, responsibilities, and decision-making processes within the organization.
• Information Systems and Technology: Addressing the technology infrastructure, software, hardware, and data management systems necessary to support operations.
• People and Culture: Focusing on the workforce, including recruitment, training, and the organization's values and culture.
• Governance and Management: Establishing rules, policies, and procedures for decision-making, risk management, and compliance.

What are the levels of the operating model?

Operating models can be categorized into levels to align with the organization's strategic objectives and structure. The three common levels of operating models are

• Enterprise-Level Operating Model: Concerned with overarching strategies, governance, and resource allocation. 
• Business Unit/Division-Level Operating Model: Focuses on specific business units or divisions within the organization, tailoring the model to their unique needs.
• Functional-Level Operating Model: Deals with the detailed processes and capabilities of specific functions or departments within a business unit or division.

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Free Operating Model Presentation Templates

Free operating model powerpoint templates and google slides themes: make your business operations shine our free, easy-to-edit templates explain your processes with stunning visuals and simple layouts. impress anyone, boost understanding, and leave a lasting impact. no design headaches, just download, edit, and present get your free templates now.

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• Free slides available: Try before you buy! Download a selection of free slides to see the quality.

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What is an operating model.

An operating model is like a blueprint that explains how your organization works. It includes your functions, processes, software and hardware, equipment and physical structure, people capacity, and capabilities. It is vital for the success of an organization.

What are Operating Model PowerPoint Templates?

This template is a graphical illustration of your organization's operating model. It can help you make a business presentation to deliver the data management framework.

Where can we use these Operating Model Slides?

Every business and organization can use these slides to make professional presentations to visualize their operating model.

How can I make Operating Model Slides in a presentation?

You can easily make these slides using pre-designed templates available online. You can also check out our tips and tricks pages to learn the steps to design slides from scratch.

Who can use Operating Model PPT Templates?

Managers often use these PPT templates to comprehend how changes in one department can affect other parts of the business.

Why do we need Operating Model PowerPoint Slides?

These slides can help you present how your company is operating now and how it will manage business operations in the future. It provides a clear layout for data management.

Where can I find Free Operating Model PPT Templates?

Finding free templates is simple by browsing the internet. Whereas it is now even simpler with Slide Egg, where you can get a collection of free PPT templates with the highest quality.

Target Operating Model

What do you think of this template.

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The primary purpose of a Target Operating Model is to enable the application of a corporate strategy or vision to a business or operation. It is a high level representation of how a company can be best organised to more efficiently and effectively deliver and execute on the organisation’s strategy.

Moreover, it provides a common understanding of the organisation by allowing people to visualise the organisation from a variety of perspectives across the value chain as every significant element of business activity is represented. People, processes and technology are key components underlining any Target Operating Model and are critical to ensure its success.

The audience for the operating model will vary depending on the strategic drivers, but it can include executives, strategy teams, marketing teams, project teams, risk managers, IT teams and operational teams.

The Current Operating Model represents how an organisation is configured today, whereas the Target Operating Model shows a future state that the organisation should be moving towards in order to achieve its strategy.

Showcase your business’s concept, long term vision, mode of operation and resource optimization with this Target Operating Model ( TOM ) template.  Target Operating Model is used to conceptualize and fulfil a company’s long-term goal while minimizing the risk associated with it. The model is an intersection of people, technology and process.

The arrow-shaped graphic in the first slide sets the tone for dynamism and mission-targeted operations. An at-a-glance overview of your company’s operations can be displayed on the dashboard in slide 2.

The Target Operating Model (TOM)  template is well-designed with infographics for professional and personal use.  Ideal for business analysts, subject matter experts, educators, consultants, project managers, department heads, project managers, etc.

This template will be useful for company leaders when preparing a company’s development strategy. You can describe in detail what goals you plan to achieve in the next year, what coefficients will evaluate the result of the strategy, what time frame and resources will be required to achieve the goal at each stage.

The slides in this template can also be used by managers preparing to meet with project teams. You can describe in detail the stages, deadlines and who are responsible for completing tasks at the stage of the project. Marketers can use this template when developing a marketing strategy to promote products to the market.

Business trainers and educators can use this template when preparing their courses on strategic planning and project management. Engineers can use the slides in this template to prepare a plan for a new production line and new equipment installation. Also, this template will be useful for heads of startups when preparing to meet with potential investors.

Sales managers can use the slides of this software to prepare a plan and key goals and deadlines. Department leaders can use the slides in this template when discussing company strategy and goals.

The template is 100% editable and customizable as per your requirements. You can change the color, text, resize icons and shapes to suit your preference. The informative Target Operating Model  (TOM) template helps create the ideal TOM presentation to explain the concept of Target Operating Model in an in-depth manner to an interested audience. The Target Operating Model Template contains all the tools you need to design a professional and stylish presentation. The slides in this template will organically complement and update your old project planning and management presentations. This template will take its rightful place in your collection of professional presentations.

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Operating Model PowerPoint Templates

Our extensive collection of Operating Model PPT templates promote productivity and convenience when it comes to its applications. These templates have been thoughtfully designed to ensure maximum visual impact. Explore our collection of Operating Model presentation templates and download the perfect template to take your presentation to new heights!

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Operating Model 04 PowerPoint Template

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SOP PowerPoint Template

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Operating Model PowerPoint Templates For Presentations:

The Operating Model PowerPoint templates go beyond traditional static slides to make your professional presentations stand out. Given the sleek design and customized features, they can be used as PowerPoint as well as  Google Slides templates . Inculcated with visually appealing unique and creative designs, the templates will double your presentation value in front of your audience. You can browse through a vast library of Operating Model Google Slides templates,  PowerPoint themes  and  backgrounds  to stand out in your next presentation.

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What is a operating model powerpoint template.

A Operating Model PowerPoint template is a ready-made presentation template that provides a structured framework for creating professional Operating Model presentations. The Operating Model PPT presentation template includes design elements, layouts, and fonts that you can customize to fit your content and brand.

How To Choose The Best Operating Model Presentation Templates?

Keep the following points in mind while choosing a Operating Model Presentation template for PowerPoint (PPT) or Google Slides:

• Understand your presentation goals and objectives.
• Make sure the Operating Model template aligns with your visual needs and appeal.
• Ensure the template is versatile enough to adapt to various types of content.
• Ensure the template is easily customizable.

Are Operating Model PowerPoint Templates Compatible With Google Slides?

Yes, all our Operating Model presentation templates are compatible and can be used as Operating Model Google Slides templates.

What Are The Advantages Of Operating Model Presentation Templates?

Operating Model PPT presentation templates can be beneficial because they:

• Add multiple visual and aesthetic layers to your slides.
• Ensure that complex information, insights and data is presented in a simplistic way.
• Enhance the overall visual appeal of the content.
• Save you a lot of time as you don’t have to start editing from scratch.
• Improve the professional outlook of your presentation.

Can I Edit The Elements In Operating Model PowerPoint Templates?

Yes, our Operating Model PowerPoint and Google Slides templates are fully editable. You can easily modify the individual elements including icons, fonts, colors, etc. while making your presentations using  professional PowerPoint templates .

How To Download Operating Model PowerPoint Templates For Presentations?

To download Operating Model presentation templates, you can follow these steps:

• Select the resolution (16*9 or 4*3).
• Select the format you want to download the Operating Model template in (Google Slides or PowerPoint).
• Make the payment (SlideUpLift has a collection of paid as well as free Operating Model PowerPoint templates).
• You can download the file or open it in Google Slides.

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How To Design A Target Operating Model (TOM) That Delivers

By   Julie Choo

Published: March 2, 2017

Last Update: September 2, 2023

TOPICS:   Capabilities , Gameplans & Roadmaps , Operating Model , Transformation

The concept of a Target Operating Model (TOM) encapsulates a strategic blueprint for an organization’s future operations, outlining the desired “how, where, and when” of its functioning. It serves as a bridge between strategic intent and operational execution, encompassing processes, data, people, and systems orchestrated to achieve overarching goals. A TOM guides transformative efforts by aligning capabilities with strategic vision, ensuring resilience and adaptability in the face of evolving market dynamics and internal shifts. As AI (artificial intelligence) continues to advance, the evolution of digital operating models and digital transformation agility will be pivotal in navigating the near future, enabling organizations to harness AI’s potential for enhanced efficiency and innovation.

Having worked with businesses using TOMs all around the world and having run so many, I’ve seen all possible outcomes. Some have succeeded in delivering very beneficial outcomes for their organizations. Some have failed to deliver anything. There can be many reasons for this; they couldn’t raise the budget, couldn’t get off the ground, they couldn’t get the buy-in needed from stakeholders, or they were based on the wrong motivations and outcomes to begin with. With this background in mind, I thought I’d explain and highlight:

What is the Operating Model?

What is a target operating model (tom).

• Different Types of Target Operating Models
• How an organization can really reap the benefits of a successful business transformation program, or project, that is designed to deliver a TOM?

AND I will also provide examples of why and how a strong TOM with business agility , is how a business will be able to pivot and reinvent its services in times of uncertainty and instability, such as the economic crisis caused by the COVID-19 pandemic.

The Operating Model mustn’t be confused with the Business Model, even though this is often the case in many organizations.

The Business Model delves into an organization’s customers and product offerings (or value chain propositions) and how to effectively commercialize the business. Its focus is on how to bring about profit through revenue streams from product offerings, while looking at some of the activities and resources that are required to deliver the product offerings, and service customers. The ‘Business Model Canvas’ by Alexander Osterwalder and Yves Pigneur is a great tool. It helps organizations big and small to evaluate if they have the right business model and pivot (if needed), especially when conditions change in the ecosystem surrounding the enterprise. At a high level, and with a 10,000 foot view from management, it describes WHAT an enterprise must do and WHAT it must change.

The Operating Model, on the other hand, is a lot less sexy because it is responsible for the HOW, WHERE and WHEN. It is part of the execution lifecycle of THE STRATEGY JOURNEY Framework , while the Business Model is part of design. Success comes from both the design of the best strategies and then the execution of these strategies to the right degree. So a business model without an Operating Model is lost, and unlikely to succeed in delivering the value that it promises to a business enterprise and its customers.

The Operating Model is HOW a business functions, including what capabilities – the processes, data, people and systems it has to keep itself running – which need to be applied at the right time (WHEN) and in the right place, in different locations (WHERE).

I like to use the car analogy to describe the Operating Model as the engine of an organization. In 2016, the fastest Formula One (F1) car, the Mercedes Silver Arrow, driven by Lewis Hamilton (arguably the fastest driver), did not win because of engine and reliability problems. Instead the World Championship was won by his teammate Nico Rosberg, who had a better functioning engine that was able to last the distance of a whole season.

Nico benefited from a slightly better operating model that year, and that’s what led to his overall win. Nico had the processes, data, systems and the people (including himself) – the complete capability package – to win that World Championship. The mechanical failures that Lewis suffered, mostly not through fault of his own, were a result of failures somewhere within his operating model, that year (since he went on to win more championships in the following years). At the time, it was clear Lewis also had some organizational problems within his management team, and we do not know what other issues lay behind the Mercedes garage or in Lewis’ own mind. Put simply, he lost because his operating model package was inferior to Nico’s. And in this subsequent years, he has learned from his experiences, improved and delivered even better results.

An Agile Operating Model, that is an Operating Model with business agility also provides the means for a business to pivot from disruption especially in times of economic crisis.

Because the Operating Model is comprised of all the business activities that make a business run, and keep it running, it is what will get your business through tough times as it gets disrupted both from our fast changing digital economy, as technologies involving robots and AI begin to replace what people do, and from economic crisis caused by shutdowns or lockdowns from a health pandemic like COVID-19.

An Operating Model focus on capabilities that allow it to ‘pivot’ its Business Models to change how it operates quickly, is what makes it agile, or to operate with business agility . This can make all the difference, as we have seen how Business Models can become disrupted, very quickly, and overnight in some cases.

Learn the 5 step process to build business agility your Target Operating Model including success story examples from our article on ‘How to shape your Business and Career with THE STRATEGY JOURNEY Framework’ .

The Target Operating Model (TOM) is a future state version of the Operating Model at a point in time.

A TOM doesn’t exist yet, and to achieve it, the Operating Model itself must change, requiring a large transformation effort in the form of a program of change. However, change itself isn’t good, unless it is for the right reason(s). So, what are these reason(s)?

If the point of the Operating Model is to execute how the Business Model needs to function, then as part of any transformational change program moving towards this new TOM, it would need to be aligned to changes required in the overall strategy of the business. This would cover any changes to the goals and objectives within its overall Mission and Vision, to its business model, and the new or increased value that the organization is set to deliver from the changes.

This is why I have described the whole strategy lifecycle as a journey, with the 5 stages of THE STRATEGY JOURNEY and the 5 models of THE STRATEGY JOURNEY Framework . A business enterprise is a living entity, that is constantly changing on its journey.

The TOM is simply a viewpoint of what that enterprise wants to change into, as it covers what all 5 models will look like at a time in the future.

Different Types of Target Operating Models (TOMs)

That future state TOM varies depending on what industry an enterprise is in, the level of innovation, and what needs to be achieved. This would be the outcomes that are sought through the strategies of that particular enterprise.

TOMs in Larger Organizations

Corporate strategy for Target Operating Models (TOMs) involves a meticulous evaluation of the current operating model’s effectiveness, employing key performance indicators (KPIs) to gauge its performance. This assessment, often facilitated by tools like the Operating Model Canvas, helps organizations identify areas for improvement and optimization. By aligning the TOM with strategic objectives, companies can ensure operational excellence and agility, positioning themselves for sustainable growth and success in a dynamic business landscape.

Within established organizations, the pace of change and innovation is often sluggish. These companies typically allocate 3-5 years for strategic transformation, especially when reevaluating specific business lines and models. Occasionally, Target Operating Model (TOM) adjustments occur within 1-2 years, driven by short-term cost-cutting goals rather than comprehensive TOM initiatives focused on long-term value.

However, when cost reduction is the primary objective, TOM projects can inadvertently trigger to their management system and organizational shifts leading layoffs, offshoring, remote service strategies and changes to adapting more stringent policies. Yet, implementing these changes without considering the need for fundamental Business Model shifts or the implications for the ‘ Value Model ‘ risks achieving only short-term balance sheet adjustments. The ‘ Value Model ‘ signifies the value perceived by customers and stakeholders, both within departments and externally. Presently, evolving customer behaviors shape their own Value Models, driving service preferences and interactions with providers.

Amazon exemplifies value-centricity by meticulously analyzing customer behaviors and leveraging a sophisticated technology infrastructure through services like AWS and Alexa Voice. Ignoring strategic groundwork in favor of quick solutions can result in misalignment, missing out on holistic benefits and potentially yielding long-term complications. This reinforces the importance of a well-structured strategy and game plan in transformation efforts, paving the way for enduring success.

There is a full case study of HOW the Amazon ecosystem works around its Alexa Voice Service in THE STRATEGY JOURNEY book .

TOMs in Government Organizations

In government organizations that are looking at societal changes, the TOM can be a 25 year plan. This is the case with Singapore, who have a Vision that they want to achieve for 2050, and who has invested heavily to build its TOM .

In contrast, the UK faced uncertainty in 2020 regarding Brexit’s TOM implementation and repercussions even 4 years post the ‘leave’ vote. The COVID-19 pandemic redirected the UK’s attention, leading to a chaotic transition post-Brexit. In such scenarios, agile TOMs prove invaluable, offering scalability through their flexible framework.

For instance, an agile TOM would have been apt for managing the societal shift caused by COVID-19, enabling rapid adjustments to healthcare and public service operations in response to evolving circumstances. We can further expand on value of using agile TOMs in this situation where COVID was a new virus which had uncertain elements to what it could have evolved into justifying the need to use an agile approach to adapt to this situation.

Responses to the pandemic showcase strengths and weaknesses in Operating Models, evident in countries like New Zealand, South Korea, Taiwan, and Germany. Notably, the UK’s COVID vaccination effort demonstrates the National Health Service’s (NHS) operating model strength, vaccinating over 20 million citizens by February. While the vaccination program succeeded, testing and tracking services remain weak, revealing an operating model deficiency.

The evidence is in the data as illustrated below in the UK daily summary taken from 6th March 2022

The big multi-billion dollar question is: The challenge is whether the UK can replicate its vaccination program success across diverse sectors and services during economic recovery. Victory in one service model doesn’t guarantee triumph in all, as complexities differ. Updates will be shared through the year, presenting case studies of service models worldwide for insights and awareness.

I’ll be posting updates during the year including new case study examples of ‘Service Operating Models’ from the UK and across the world, in this blog and via our social media feeds (on Instagram , Linkedin and Twitter ) so subscribe to stay updated.

Start-up TOMs

In the high-stakes environment of startups, the focus on survival often limits future planning to a mere 1 to 18 months. Rapid and unpredictable changes seem to discourage the establishment of a comprehensive Target Operating Model (TOM). However, securing investor funding demands a TOM that maps the startup’s strategic journey, aligning Mission and Vision with exit goals. The five models within THE STRATEGY JOURNEY Framework , encompassing the TOM, are essential components of a Business Plan, instilling investor confidence and support.

Essentially, a startup requires a TOM to steer its efforts. Without it, valuable resources—time and money—are squandered on misguided pursuits, hindering progress. A versatile TOM, adaptable to the volatile startup ecosystem, should be structured in short, logical phases spanning a few months, summing up to 18 months.

Consider Google’s early days from 1998 to 2003, contrasting with Yahoo’s dominance. Google’s strategic focus on perfecting its Operating Model empowered exponential scaling, ultimately outpacing Yahoo, which grappled with unsustainable investments, neglecting security. Similarly, Netflix’s success against Blockbuster’s downfall exemplifies how distinct Value Models shaped their Operating Models, steering one towards prosperity and the other towards ruin.

For deeper insights into these scenarios, explore our article delving into the divergent paths of Google and Yahoo, as well as  the downfall of Blockbuster vs Netflix , and how their choices regarding Value Models influenced the success or deterioration of their businesses.

TOMs in High-Performance Sports & Gaming Organizations

Formula One (F1) serves as an innovation hub due to its rapid changes. Regulations shift frequently, prompting architects like Adrian Newey and engineers to design new cars and engines annually. Tracks’ variations necessitate diverse setups for optimal race speed. Changing weather conditions can affect car balance mid-race, demanding adaptable strategies. In F1, a Target Operating Model (TOM), if present, endures about a year, adapting continually due to its agile nature.

In sports, such as football, TOMs align with yearly seasons or multi-year cycles like the Olympics or World Cup. Athlete injuries may affect performance, highlighting the need for flexible, agile Operating Models. France’s 2018 World Cup triumph was propelled by a data-driven strategy hinged on Target Operating Models (TOMs). Their streamlined approach optimized player positioning, ball distribution, and cohesive teamwork, all orchestrated within a TOM framework. . This method facilitated quick adjustments, enhancing their adaptability to their opponents and ultimately leading to their championship victory.

During the COVID-19 lockdown situation, sports organizations and management companies are hit hard of course even if some of them might have big cash reserves, but customers are turning to the gaming industry, to fulfill their need for sports entertainment from home.

The gaming industry gained traction as a substitute for live sports entertainment. In F1, teams transitioned online, hosting Virtual Grand Prix events to sustain fan engagement and driver activity, anticipating revived demand post-crisis. The gaming sector flourished during the pandemic, with companies like ESPORT witnessing surges in signups .

Target Operating Models (TOMs) That Deliver

A TOM will deliver whatever you ask it to do, and we have highlighted what are the 4 priority capabilities to build , so it comes down to ‘what is the game plan ?’ The most important step to developing a good TOM is to ensure it is being formulated for the right outcomes, based on the right context or problems, and to deliver the best possible services. The problems and outcomes need to clearly state, both what the root causes and the goals are, and how, when and where they will occur and be achieved. If the mission, goals and objectives are compromised to begin with, and not properly aligned to the strategy of your organization, then naturally, the output of the TOM will reap the benefits as well as consequences of that compromise. In Big Data the saying goes: Rubbish in, Rubbish out.

When the TOM is designed to deliver in phases, with a good flexible roadmap that sets out the gameplay in steps, and is aligned across all THE STRATEGY JOURNEY stages, with the 5 strategy journey models: Mission Model, Business Model, Value Model, Operating Model (the existing one), and Transformation Model in sync to deliver the right outcomes, with a plan to execute those phases, in the right place at the right time, while having the business agility to cater to unforeseen changes, such as those caused by disruption including health pandemics, then an enterprise is in the position to successfully navigate its journey to deliver the outcomes in the TOM and the benefits sought.

This is how a business or enterprise of any shape or size can utilize TOMs to manage its transformation journey , comprising its transformation programs, to give it the best possible chances of fighting, overcoming and even thriving from disruption, such as the digital transformation of AI .

SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis and PESTLE (Political, Economic, Social, Technological, Legal, Environmental) analysis are powerful tools for comprehensively assessing a company’s macro and micro business model.

About the author

Julie Choo is lead author of THE STRATEGY JOURNEY book and the founder of STRATABILITY ACADEMY. She speaks regularly at numerous tech, careers and entrepreneur events globally. Julie continues to consult at large Fortune 500 companies, Global Banks and tech start-ups. As a lover of all things strategic, she is a keen Formula One fan who named her dog, Kimi (after Raikkonnen), and follows football - favourite club changes based on where she calls home.

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A how-to guide for building an effective operating model

If you’re running a business, you know that there are plenty of different components that make your business work. 

Of course, every business wants to bring value to its customers. In order to deliver that value to your customers, your company needs a strong operating model. An operating model can help you hit your organizational performance goals. 

Especially in today’s climate, everything changes — and changes fast. Many companies are pivoting their direction, veering the steering wheel left to right to avoid roadblocks. Maintaining profitability — while caring for your people and your customers — is radically important. In times when margins for error may be slimmer than before, an agile operating model is a must. 

In order to adapt to the changing economic environment, an operating model can help your organization perform better. Let’s dig into what defines an operating model. We’ll also talk about how to build an effective operating model that’ll help keep your company one step ahead.  

What is an operating model? 

First, let’s define what we mean by operating model. 

What is an operating model?

An operating model is a visual representation of the business model. It’s the way an organization carries out its business model to deliver value to its customers. 

It’s estimated that nearly 70% of well-formulated strategies failed due to poor execution . Beyond that, 61% of executives reported not being prepared for the challenges they faced once put into leadership roles. The result? An estimated 50%–60% of executives fail within the first 18 months of being promoted or hired. It’s a radical shift in responsibilities to become a manager . In those first few months, it’s critical that leaders get the support they need to lead teams well . 

Despite strong business models in your organization, it’s the operating model that brings your business (and profits) to life. 

4 types of operating models 

Let’s dig into the four different types of operating models — and how they may interact with one another. While it might sound like a lot of corporate jargon , there are some key differentiators to what makes up each type of model. 

• Coordination operating model. Think of coordination as shared access to data. This type of operating model calls for high levels of integration but low standardization. This essentially means that many key parts of the business are integrated with one another. However, each business unit or team has its own way of doing things. 
• Unification operating model. This is probably the most hands-on type of operating model. The unification operating model runs on a theory that when things are tightly integrated and tightly standardized, companies maximize efficiency. The risk here is that there’s little autonomy or wiggle room for how different business units operate. 
• Diversification operating model. This type of operating model applies to companies that have very few shared customers, suppliers, or even ways of doing business. Essentially, this model helps companies diversify their products and services to different customers to avoid a central hub to limit control over different business units. 
• Replication operating model. Another way to think about this operating model is autonomy but with some standardization. This type of operating model makes sure different business units have autonomy over their operations. But first, there’s a standardization of how things are done. 

How do you build an effective operating model? 

If we really get down to it, an operating model is how your organization runs. If we think about your business model as the strategy, your operating model is the execution. 

So, when it comes to building out an effective operating model, there are a few things to keep in mind. Follow these seven steps to help build an effective operating model for your company. 

1. Reflect on your company culture 

While it might not be the first thing that comes to mind when you think about execution, your company culture can be a guidepost for how you operate. 

How do your key stakeholders interact with one another? What sort of partnerships or connections do you hope to foster within your organization? As a leader, what’s your decision-making philosophy? What type of customer experience do you want to create? 

Take a minute to reflect on your company culture. This might help guide some decisions you make about your operating model. At its heart, your operating model is about people. It’s about helping your people run efficiently to optimize the business process. 

And when you put people at the center of your organization, oftentimes, your profits reflect it. 

2. Identify (or create) your value chain 

Now, let’s get into your strategic plan . As a business leader, you’ve likely put together a roadmap for your value proposition. You’ve probably put together the business model that’ll help guide your target operating model. 

To make sure you’re delivering value to your customers, you need to understand what that value is. Work with your corporate strategy team to ensure you’re measuring the right values, too. Together, you can track the right KPIs, business metrics , and other key components of your business methodology. 

3. Align with your business strategy

Let’s say that you run a supply chain business that relies on automation to help move your product through different parts of the business. 

Your business hinges on cross-collaboration . You need defined business processes to make sure your products can move from one step to the next. In this type of business, teams working in silos simply wouldn’t work. You know that your strategy demands open access to information and coordination. 

Think about the core of your business strategy. What does it take to get your product delivered to customers? What sort of product lines will your product move through before it hits the market? What about your business strategy needs to align with your operating model?

4. Invest in performance management solutions 

Performance management matters more than you think. Performance management is a set of processes and systems to help employee development . 

Oftentimes, these systems, processes, and lines of communication help focus on strategy. At its heart, performance management is about helping employees reach their peak performance . 

Especially now, it’s important that your employees see growth opportunities. Your operating model is dependent on the people who run it, which means employee retention needs to be top of mind. 

In what ways are you encouraging career development within your company? How are you attracting and retaining top talent ? How are you investing in your employees to reach their full potential? How does talent management weave into your performance management strategy? 

With BetterUp, you can provide individualized support for your employees. If you want to tap into the potential of your workforce, consider how virtual coaching can help. 

5. Think about how your digital transformation strategy fits into the picture 

People help your operating model come to life. But the right technology, especially today, can drastically improve how your people work. 

If you haven’t already, make sure you take a hard look at your digital transformation strategy .

What tools will help your employees do their jobs well? For example, what technology can help streamline workflows? In this future state of work, how do you see technology working within your ecosystem? What initiatives or programs will need new tools or technology to successfully launch? 

6. Develop a strong leadership team 

At the helm of every good operating model is a strong leadership team. But contrary to popular belief, leaders aren’t born leaders . It’s important to invest in your leadership development to make sure you have the right folks to execute your operating model. 

A good starting point is investing in virtual coaching. After four months of leadership training with BetterUp, Members report lower stress, higher purpose, and higher resilience . Employees who are thriving :

• Lead teams that are 31% more productive
• Have direct reports who are 78% less likely to leave voluntarily
• Recover from setbacks 1.2x stronger
• Are less likely to experience mental illness
• Are 22% more satisfied with their jobs

What’s the difference between an operating model and a business model? 

This is a good question. The two models work together in a symbiotic relationship of sorts. 

But it’s important to note that a business model and operating model are not the same things. 

A business model is how the company will offer its value proposition to the market. Strategic business model planning outlines products, service management, customer base, and key stakeholders. 

Think of the operating model as how the company will carry out its business model. It’s the execution arm—the pathway the company will take in order to deliver its value proposition. 

Build a strong operating model with a mentally fit workforce 

In a world that’s constantly changing , it’s important to make sure your people are at the center of everything you do. 

With the rise of hybrid and remote work , people are working from all geographies. It’s imperative that companies have that competitive advantage to keep ahead of the competition. But it starts with having the strategic foresight and future-mindedness to execute with agility. 

If you’re in an operating model redesign or starting from scratch, BetterUp can help. With access to virtual coaching, you’re investing in your employees’ mental fitness .

We know things are going to continue to change. There’s uncertainty looming ahead, and strategy needs to stay flexible to be able to adapt to what the world has in store for companies. After all, companies can only focus on their own locus of control . It’s important to be pragmatic and optimistic about the future. 

But with a mentally fit workforce, your company can feel prepared for what the future of work holds. In fact, our research found that employees with the best mental health had 56% fewer missed days for health reasons , were 5X more likely to be rated a top performer, and had 25% higher productivity and 34% higher engagement than those struggling with mental health.

Being mentally fit translates into a more resilient workforce. This means that resilient workers are better poised to have more flexible thinking , contribute to more agile teams, and are 20% more innovative. 

Together, we can help you build a resilient, agile workforce prepared for the future. 

Lead with confidence and authenticity

Develop your leadership and strategic management skills with the help of an expert Coach.

Madeline Miles

Madeline is a writer, communicator, and storyteller who is passionate about using words to help drive positive change. She holds a bachelor's in English Creative Writing and Communication Studies and lives in Denver, Colorado. In her spare time, she's usually somewhere outside (preferably in the mountains) — and enjoys poetry and fiction.

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Home PowerPoint Templates Models Operating Model PowerPoint Template

Operating Model PowerPoint Template

The Operating Model PowerPoint Template is a business presentation of data management framework. This is a digital transformation model for businesses that brought significant change in many industries. Because data has become one of critical assets for businesses. The businesses manage data as strategic assets and develop a system to gain value from it. It is an effective source of analyzing customer satisfaction models and market company’s products and services. The diagram further helps discuss different aspects such as quality, compliance, security, privacy, and risks associated with data collection. The visual diagram of Data Excellence Model provides a quick view of guidelines for data management for digitalized companies.

The Data Excellence Model highlights three design areas of data management i.e. Goals, Enablers, and Results. These three categories are interconnected through a continuous improvement cycle. It further assists in adjusting goals and enablers for dynamic model.

• Goals : Breakdown the purpose of data management by outlining business capabilities.
• People, roles and responsibilities
• Performance management
• Data architecture
• Data application
• Data lifecycle
• Processes and methods
• Results : Measure the extent of goals achieved in terms of data excellence and business value.

The Operating Model PowerPoint Template contains 4 slides to highlight three stages using colors. These slides provide infographic layout of data management model with the help of gradient colors and clipart icons. Whereas, circular shape of two chevrons depicts improvement cycle of diagram.

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Governance Operating Model

Governance operating model presentation, premium google slides theme, powerpoint template, and canva presentation template.

If you know different governance operating models and it's like second nature to you, perhaps this new presentation template can be the one for you. Customize its slides and explain exactly what this concept is to your audience. To make it more visually attractive, we've used some gradients and two alternating colors for the titles. What's best is that all layouts are simple to edit, and adapting the palette to your corporative image is totally possible!

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Leading operating model modernization: What do agile transformation leaders say?

Over the past few months, McKinsey has convened a series of virtual conversations with executives and leaders from across Europe and Asia–Pacific to explore their organizations’ emerging agile-working practices. In previous conversations, we have spoken with chief financial officers (CFOs), 1 For more, see Jason Inacio, Dávid Kincsem, Guilherme Riederer, and Dániel Róna, CFO perspectives on leading agile change , McKinsey, May 19, 2022. chief human resource officers (CHROs), 2 For more, see Jason Inacio, Dávid Kincsem, and Dániel Róna, CHRO perspectives on leading agile change , McKinsey, August 30, 2021. and chief information officers (CIOs). 3 For more, see Jason Inacio, Dávid Kincsem, Guilherme Riederer, and Dániel Róna, CIO perspectives on leading agile change , McKinsey, January 24, 2022. In this article, we report on a discussion with heads of agile centers of excellence (CoEs) representing companies from a wide range of sectors (including telecommunications, banking, and insurance) and at various stages of their agile transformations.

About the authors

Participants were eager to discuss the multifaceted role of an agile CoE and how it has shifted over time. This evolution means it’s crucial to choose a CoE leader who can switch seamlessly between a focus on the small details and on the big picture.

Based on their experiences, the heads of agile CoEs identified five major success factors related to agile transformations: communicating the role and position of the CoE, catalyzing change, leveraging the potential of data and automation, thinking and planning for the long term, and using disruption to hone strategic thinking.

Despite the complex and sometimes difficult nature of the journey, all agile CoE leaders agreed that agility would be vital to their companies’ success in the emerging postpandemic world. They also noted, however, that simply “doing” agile—changing their structures, processes, and technology—was not enough; it took a deeper transformation, encompassing how people worked and interacted on a daily basis, to move their organizations toward their ultimate goal of truly “being” agile.

The role of an agile CoE

Going agile is a complex process that requires far-reaching changes in strategy, structure, people, processes, and technology. 4 The five trademarks of agile organizations , McKinsey, January 22, 2018. The agile CoE has evolved into an essential part of a company’s backbone, leading and sustaining the organization’s journey to agility. In our experience, agile CoEs are vital in the implementation of the new operating model and can significantly accelerate an organization’s agile journey. Crucially, they act as catalysts who bring together the “how” and the “what” and foster effective cross-organizational collaboration.

CoEs are generally already in place at the start of an agile transformation. They can evolve out of the initial transformation office (which generally forms in the months before the transformation goes live), sit under the HR function, or even develop in parallel to other structures. The key responsibilities of the agile CoE typically include building the organization’s agile capabilities; supporting other parts of the organization through the provision of expertise, including agile coaches; developing an agile community; and supporting the continued adoption and increased maturity of agile ways of working across the organization. To fulfill these responsibilities, agile CoEs require an extensive set of capabilities around both talent management (including hiring, professional development, and evaluation) and learning and development (including program development and day-to-day support).

Participants experienced different journeys as heads of CoEs, but all agreed that their day-to-day work had shifted significantly over time. One participant called the first year of operations the “initial foreigner stage” in which much of the CoE’s effort went into building the leadership team’s confidence in its decision to embark on an agile transformation. Only in the second year did the CoE enter the “scaling phase” and begin to focus on rolling out the transformation. Another participant saw a different sort of evolution. In the first year, he spent about 80 percent of his time on the “how” (for example, defining processes and deliverables) and 20 percent on the “what” (such as setting more strategic directions). By year three, however, he was spending significantly more time ensuring that organization-level strategy effectively cascaded down to all levels so that the divisions themselves primarily handled the more operative angle, or the “how.”

In general, agile CoEs are not intended to exist forever. At some point, the organization must itself sustain the agile momentum and have the structures and capabilities to continually monitor and deepen the implementation of truly agile practices. These structures might include embedding agile goals into employee evaluation and recognition systems, reporting on agile maturity as part of the annual report process, or developing new-business value streams directly related to agile. One Australasian telco company, for example, has built an externally facing agile coaching center that acts as both a revenue driver and a catalyst to continually examine and improve the organization’s own internal practices.

Participants were in broad agreement that the evolving role of the CoE means that they, in their role as head, must have a broad and unusual combination of skills. For example, they need to be able to simultaneously see the big strategic picture, focus on details, and be decisive and rigorous in execution.

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Five major success factors for an agile coe.

While all heads of CoEs were unambiguous about the benefits that the transition to agile brought to their organizations, 5 For more, see “ Enterprise agility: Buzz or business impact? ,” McKinsey, March 20, 2020. all were also eager to talk about the challenges they faced. A number of the issues they identified—such as prioritization, managing resources, and reporting—were the same as those discussed in our conversations with CFOs, CIOs, and CHROs. But they also highlighted five success factors that are more specific to their own role.

1. Ensuring consistency in the role and position of the CoE—and then communicating it

CoEs come into being at a time of considerable change—and possibly also of uncertainty—for a company. It can be difficult to build trust, especially when both the leadership and the rest of the company do not yet understand the purpose of the agile CoE or where it sits within the organization.

The location of the agile CoE in the organizational structure varies by company. In some cases, the CoE has been designated as a separate function under the CEO in order to emphasize the relevance of the center for the entire organization. In other cases, it sits under HR or IT or is an extension of the original transformation office. In all cases, however, participants agreed that it is vital for the agile CoE to develop a clear and consistent model. This consistency is particularly important during the first, decisive six to 12 months of the transformation.

Irrespective of the agile CoE’s precise position in the organization, CoE heads generally agreed that their ability to gain the trust of the organization as a whole was a more important determinant of success than any prior decision about where they sat within the organization.

One participant said he had a mantra during his first few months in the job: that he was always working with—and on the side of—his company’s employees. It was vital that he obtained and kept the full support of the board, but his daily efficacy depended on gaining the trust of those who would actually implement the transition. He worked hard to build trust, which involved being clear that the CoE was an independent unit with a high degree of decision-making autonomy. This initial investment of time paid off, with employees becoming more accepting of changes in strategy. They were ready to execute, even when there was an element of risk involved.

2. Catalyzing change

An agile transformation may initially seem daunting, and it can be difficult to know where to start. Several agile CoE leaders said they found success by combining a realistic assessment of the challenge ahead with a willingness to take a step-by-step approach to reach their ultimate destination. The right first step depended on the company—some focused on culture, while others looked at the organizational structure or the necessary evolution in capabilities.

In all cases, however, agile coaches proved essential. Coaches championed the required changes to both teams and leaders. Participants agreed that investing in an efficient, extensive coaching network early in the transformation paid significant dividends. These coaches—and indeed the CoE itself—were vital in shifting the organization’s culture through daily, on-the-ground work with individuals and teams.

Irrespective of the precise details of the road map of each agile transformation, every CoE head spoke about the critical importance of ensuring they had the right employees with the right mindsets in the right jobs. Managing talent is generally a key focus in the early stages of a transformation, but it should also be an ongoing process because the skills and capabilities required may shift over time.

One participant oversaw an innovative approach in which the organization asked existing employees to interview for new roles within the reorganized company. The goal was to ensure that each employee had the right skills, mindset, and motivation for their new role. The process was relatively labor intensive and created some upheaval, but the participant said many employees now agree it was the single biggest factor in creating the successful, forward-looking company they have today.

This particular process might not work for all companies undergoing an agile transformation. The optimal way to catalyze real change—and then to ensure that the company maintains a fluid and dynamic workforce over time—will vary according to the culture and makeup of each organization. Crucially, however, CoE leaders should play a key role in this ongoing effort.

3. Leveraging the potential of data and automation

Large-scale agile transformations require many teams to work together, which means that managing and leveraging information can be a challenge. But the volume of data created through such transformations—including, for example, performance metrics such as customer satisfaction scores, conversion rates, shares of digital transactions, the number of complaints, and the number of new accounts opened—also creates opportunities for those who are able to harness data to create practical insights and leverage those insights to increase customer satisfaction.

Teams and leaders sometimes place too much importance on data relative to the insights that can be generated, which means it is critical to invest in the ability to both analyze data and present the findings appropriately. Leaders should also be coached to understand and react to these findings.

Many agile CoE leaders talked about the systems they put in place to manage complexity and leverage the full potential of their data. In all cases, the right approach was a mixture of hiring new people (generally both data analysts and data engineers), acquiring or building the capabilities and infrastructure to manage data effectively, and investing in automation.

Our participants were particularly eager to talk about new and innovative uses of automation—for example, to allocate tasks between and among teams and to track time usage. These are some of the backbone processes required to make an agile system work, so they must be performed accurately and efficiently. One participant, for example, enabled the elimination of labor-intensive timesheets by approximating team cost breakdowns for each work strand.

For most use cases, however, the leaders stressed that automation could not fully replace face-to-face interaction. The output of process automation had to be checked and often tweaked; they generally saw automation as a time saver and a process facilitator, rather than as an end-to-end solution.

4. Thinking and planning for the long term

Several agile CoE leaders noted that when agile transformations were in full swing, it could be difficult to get leaders to focus on their overall agile ambition. One commented that they now saw that the key purpose of their role was to “safeguard the path toward where we want to be in 2025 and beyond.” But participants agreed that there is a tricky—and important—balance to be struck: CoEs need to think about the long term but stay in a perpetual state of action to support the immediate needs of the organization.

There was a broad consensus that the way to balance long-term thinking with the shorter-term exigencies of the transformation was to constantly recenter the company—and its individual divisions—on its fundamental objectives.

There was a broad consensus that the way to balance long-term thinking with the shorter-term exigencies of the transformation was to constantly recenter the company—and its individual divisions—on its fundamental objectives. These objectives, which should be relatively few in number, should be the building blocks of each strategic decision. Teams should have autonomy to decide how to achieve their objectives, but they should also be able to draw a straight line between each decision they make and their top-level objective.

One CoE head, for example, represented a European financial institution that had had always prided itself on customer loyalty and wished to maintain its market-leading position on customer satisfaction. After a round of customer engagement, however, the CoE identified a well-defined segment of customers who felt negatively affected by a rapid program of service automation. A quick round of feedback led to the hypothesis that bringing back physical advisers for that particular subgroup could help bolster customer satisfaction. The CoE supported the effort by moving quickly to test this theory on a subset of clients. An early round of data collection revealed that the customer satisfaction scores of those clients doubled, which led the bank to make the physical-adviser service more widely available. By emphasizing the company’s overall objectives to counteract the short-term pressure to automate—and by using an iterative, agile mindset to address a developing issue—the CoE head was able to protect the DNA of the company and steer it toward a more sustainable, long-term strategy.

5. Using disruption to hone strategic agility

Unsurprisingly, heads of agile CoEs were keen to reflect on how recent disruptions—including COVID-19, the war in Ukraine, and inflationary pressures—had affected both their roles and the overall direction of their companies. All agreed that the past few years have been unprecedentedly challenging.

But participants noted that they were able to bring the concepts of agility to business planning and strategy in a way that enabled them to be more dynamic and more flexible. This was particularly relevant, for example, during the shift to hybrid-work practices. The tools, ways of working, trust, and mindsets they cultivated as part of the transformation had direct, practical relevance for what the organization required for adaptation. In a world that has become more volatile, heads of agile CoEs felt they could add real value by helping to bring agility to their strategy.

Participants also said that they used this “unfortunate opportunity” to reflect on the longer-term direction of both their industries and their own strategy. They agreed that it was challenging to distinguish between disruptions that were temporary and those that had fundamentally reshaped their industries. The reflection process was ongoing but had already enabled them to start to zoom in and align on their top-level priorities, both for the short term and for the longer term.

Overall, the agile CoE leaders who spoke with us were conscious of the challenges their companies faced in becoming agile. But the difficult experiences of the past two years have only made them more confident that their agile transformations will be worthwhile.

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