What does an operating model represent?

An operating model represents a visualization of organizational functionalities because it illustrates how different parts of the organization work together to deliver value. It encompasses processes, roles, responsibilities, technologies, and structures that enable an organization to execute its strategy effectively.

By effectively mapping out these components, an operating model facilitates a clear understanding of how the organization operates, how it achieves its goals, and how resources are allocated to support business objectives. This comprehensive view is essential for identifying areas of improvement and ensuring alignment between the organization’s mission and its day-to-day operations.

In contrast, focusing solely on financial status, internal IT structures, or employee performance evaluation does not encapsulate the broader view of how an organization functions as a cohesive unit. Therefore, understanding the operating model is crucial for strategic planning and operational improvement in any organization.