The blueprint for how an organization delivers value to its customers and stakeholders, encompassing processes, organizational structure, technology, and governance. It describes how different parts of the business work together to execute strategy and create competitive advantage.
Combines 'operating' from Latin 'operari' (to work, be active) with 'model' from Latin 'modulus.' The business concept gained prominence in the 1990s-2000s as companies focused on operational excellence and process optimization to compete in global markets.
An operating model is like the DNA of your business - it determines how everything actually gets done, regardless of what the org chart says! The most successful companies design their operating models around customer value creation, not internal convenience. When your operating model aligns with your strategy, execution becomes almost effortless.
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