Transformation Meets Operating Model: The Real Dream Team

Transformation according to the Cambridge Dictionary is: "a complete change in the appearance or character of something or someone, especially so that that thing or person is improved."

When you put this in an organisational transformation context, it means changing or evolving a

current organisational state toward something different. And that something different…

…can have various reasons. It can be reactive in response to e.g. market shifts, digital disruption, or internal challenges, or proactive as a deliberate part of strategy execution and aimed at achieving strategic goals.

…can take on different shapes. It might involve a few digital projects, changes to operational processes, or even a simple change to the org chart. However, some organisations undertake it as a deliberate exercise to explore multiple dimensions and carefully balance an optimal interplay between processes, business capabilities, technology, organisational structures, people, and culture. And yes, in that last sentence we find the components of a cohesive Operating Model (OM).

…can have different time horizons. Some announce it as a defined period with a clear end-date, while others realise that transformation is a continuous effort to evolve and improve.

So, OM and transformation go hand in hand. They’re like Thelma and Louise. Transformational activities enable changes in the OM. They are the engine for shifting the status quo. And the relationship between them needs to be close, visible, and deliberate.

Yet, I rarely see this power relationship called out. Articles and presentations usually focus on one component and often present a very narrow or limited view. And let’s be honest: who still uses the term OM? Is it a thing of the past—or not?

Some of my take-aways on this topic:

1. Transformation requires a change in the operating model. Even if it's just about implementing a single new digital platform. And let’s be honest: you can’t execute a new strategy using old ways of working.

2. Operating Model design enables transformation. By being deliberate and clear about how work gets done (e.g. introducing agile, new management systems, shifting responsibilities), transformation becomes achievable and sustainable.

3. A clear OM provides alignment and direction across teams, enabling better flow and more effective transformation.

4. Maturity assessments and capability models (as part of OM design) help identify gaps and set priorities for transformation.

As always, I welcome your thoughts and views.

#BeeKind 🐝

An