Don’t start your operating model design with an org chart

For many people the bottom line for operating model design is the org chart. This is why most people focus on the org chart and want that answer as soon as possible.

After years of consulting on operating model design I can tell you that the org chart is literally the last thing you should do in op model design.

Op model design is primarily about answering how to get the flow of value to your clients as efficiently as possible, while making the best use of your capabilities (strengths of your people, existing assets, etc), in the context of the business strategy & environment.

There are numerous questions and scenarios to be worked through before the question, “and what grouping of people and accountabilities would best support that?”

Questions like, where are the tensions in the op model? Which are bad tensions and need to be designed out, and which are good and to be kept? This tension design is a great Pareto heuristic to check if yob’ve done enough op model design, and indeed should be done after the org chart is done too.

Resist the urge to start your op model design with the updated org chart.

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