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Operating-model design

Define how functions, business units and shared services divide work and make decisions.

What the work produces

  • A current-state map of activities, responsibilities and decision points
  • Operating-model options and the reasons for the recommended design
  • Defined functional and business-unit responsibilities
  • Service interfaces, approval rules and reporting requirements
  • A transition plan addressing sequencing, people and operational risks

Scope of work

Operating-model design connects a business strategy with the work required to deliver it. We examine how activities are organized, where decisions are made and how information moves between teams. The review covers the practical interfaces between functions, including responsibilities that are duplicated or left unclear.

An organization chart is one output of this work, where a structural change is needed. Other changes may concern approval rules, service responsibilities, management reporting or handoffs between headquarters and operating units. We assess the implementation requirements before recommending a new arrangement.

We map selected activities and decisions using current responsibilities, process records and discussions with the people involved. Design options are compared against service needs, cost, control requirements and implementation constraints. The chosen model is translated into role responsibilities, working interfaces and a transition plan.

Questions to address

  • A process passes through several functions with unclear accountability.
  • Headquarters and business units maintain overlapping responsibilities.
  • A new strategy or acquisition has changed the work the organization must perform.
  • Reporting lines, approval rights and service expectations are inconsistent.
When to consider this work
  • Changes in strategy or scale
  • Integration of acquired operations
  • Shared-service or centralization proposals
  • Recurring delays in cross-functional decisions

How we approach it

Follow the work

Examine representative processes and decisions across the functions in scope. Identify the information, approvals and resources required at each handoff.

Develop the model

Compare responsibility and service arrangements. Test the implications for control, customer service, staffing, cost and management capacity.

Plan the transition

Describe the chosen roles, interfaces and reporting arrangements. Sequence the changes and define how the organization will check whether the new model is working.

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