Tool

Summary

There are five common operating models:

•  Product
•  Service
•  Channel
•  Operation
•  Exchange.

Each has its own required set of core competencies, financials, and metrics to assess relative to its past, plan, and peers. It is important to understand how an organization operates relative to these five common models.

It is also important to select just one of the models and to optimize operations based on best industry best practices for the chosen model. It is hard enough to be successful in one model. Trying to be successful in more than one is usually a fool’s errand.

That said, an organization might choose to migrate from one model to another or to operate hybrid models. It is okay to be different from any of the five common models, but the difference must be known, clearly understood, and it must make sense to the entire management team for success to ensue.

The slides in this deck present a framework for mapping any organization’s operating model. How to view PAST, PRESENT, and PLAN.