An Operating Model is a comprehensive framework that defines how an organization structures itself, allocates resources, establishes accountability, and coordinates activities to deliver products and services in alignment with its strategy. It translates strategic intent into operational reality by specifying the “who, what, where, when, and how” of organizational execution.
Operating models address several interconnected dimensions: organizational structure defining reporting relationships and accountability; governance establishing decision rights and oversight mechanisms; processes detailing workflow design and execution; technology enabling business capabilities; information flows supporting decision-making; people capabilities specifying required skills and competencies; and culture shaping behaviors and values. These dimensions collectively create the execution engine that implements strategic objectives.
For technology leaders, operating models provide essential context for architecture decisions by defining organizational boundaries that influence system design; establishing governance models that guide technology investments; specifying process requirements that inform application capabilities; and identifying information needs that shape data architectures. The IT operating model itself—whether centralized, federated, or decentralized—fundamentally influences architectural approaches, particularly regarding standardization, integration, and technology autonomy.
Modern operating models have evolved to address digital business requirements, incorporating several contemporary patterns: product-oriented structures organizing teams around customer value streams rather than functional silos; platform approaches creating reusable business capabilities consumed via APIs; agile delivery models enabling iterative implementation; DevOps practices accelerating deployment cycles; and ecosystem orchestration extending organizational boundaries to include partners. These evolutions reflect the increased importance of speed, adaptability, and collaboration in digital environments.
From an architectural perspective, the relationship between operating model and technology architecture is deeply symbiotic—operating models shape architectural requirements while also being constrained by architectural possibilities. The most effective organizations explicitly design their operating models and architectures in tandem, creating mutual reinforcement between organizational structure and technology capabilities. This integrated approach ensures that both human and technical systems work coherently toward common strategic objectives.
« Back to Glossary Index