Nov 13, 2025 · What are the key elements of an operating model, and how do they work together as a system? McKinsey’s Organize to Value approach to effective operating model design focuses on 12 …

In this post, we'll dive into what an operating model is, share some examples, and highlight the key differences between an operating model and a business strategy.

While strategy answers “what do we want to achieve?”, the operating model answers “how will we make it happen?” Key components typically include: Processes: Core workflows such as sales, …

All elements of the operating model—structure, accountabilities, governance, essential behaviors as well as the way people, processes and technology get integrated to deliver key capabilities—must be …

Dec 12, 2025 · It uses elements such as charts, graphics, tables and maps to show how the organization operates and the value it brings to customers and stakeholders. Managers often use …

At its core, a company's operating model represents how business components work together in line with the system’s guiding principles. At the highest level, operating models describe how a …

To overcome this weakness, the KPMG Target Operating Model includes not three, but six 'layers' - Process, People, Service Delivery Model, Technology, Performance Insights and Governance. …

The organization identifies key components of its operating model, including its processes, organizational structure, technology systems, people capabilities, and governance mechanisms.

Operating models work at three levels of the organization: enterprise, functional unit, and team. Not only does the operating model need to be cohesive across the seven components, but also …

Apr 23, 2025 · It includes elements such as the value proposition, target customers, distribution channels, revenue streams, cost structures, and key activities, partners, and resources. …