Navigating the Intersection of Operating Models and Ways of Working

In today’s fast-paced business environment, organisations need to be agile, efficient, and aligned with their strategic goals. Two key enablers of this alignment are the operating model and ways of working. While often used interchangeably, these two concepts serve different purposes and need distinct approaches. This blog post will clarify their roles, illustrate how they complement each other, and offer insights on how to create or improve them for optimal business impact.

What is an Operating Model?

An operating model is the blueprint that defines how an organisation delivers value to its customers. It encompasses the structure, processes, people, and technology needed to execute the organisation’s strategy. The operating model answers questions like:

What capabilities do we need to deliver on our strategy?
How should our teams be structured?
What are the decision-making frameworks?
What systems and tools will support our work?

It provides a high-level view of how the organisation operates, from leadership to individual teams, ensuring that resources and efforts are aligned with the company’s goals.

What are Ways of Working?

Ways of working refer to the methods, processes, and behavioural norms that dictate how people collaborate and execute their work. This includes everything from daily communication practices to project management frameworks like Scrum or Kanban. Ways of working ensure that teams are productive, focused, and capable of adapting to changing environments. Key components include:

Communication channels and meeting structures
Agile methods, workflows, and team rituals
Decision-making processes at a team level
Cultural behaviors and values in collaboration

While the operating model defines the “what” and “why,” the ways of working define the “how” on a more granular level.

How Do They Play Together?

The operating model and ways of working are closely interconnected. An operating model provides the broader organisational design and capabilities, while ways of working enable the day-to-day execution within that model. Without a well-defined operating model, teams struggle with misaligned goals or unclear responsibilities. On the other hand, without effective ways of working, even the best operating model can fall short of delivering value.

Think of it this way: if the operating model is the organisational skeleton, ways of working are the muscles and connective tissue that allow the body to function and move with agility.

Setting Up or Reworking an Operating Model

When setting up or refining an operating model, consider the following steps:

Align with Strategy: Start by identifying the key outcomes the organisation seeks to achieve. The operating model should directly support these goals.
Define Core Capabilities: What skills, roles, and systems are necessary? Map out the key functions and structures required.
Design the Organisation Structure: Make sure the structure fosters collaboration and supports efficient decision-making. This can range from centralized to more autonomous, depending on the strategy.
Embed Governance: Decision-making frameworks and accountability mechanisms must be in place to ensure alignment and control without stifling innovation.

Designing Effective Ways of Working

To improve ways of working:

Assess Current Practices: Look at what’s currently working well and what isn’t. Involve teams in this analysis, as they understand the day-to-day realities.
Introduce Appropriate Frameworks: Consider using frameworks like Scrum, Kanban, or hybrid models that suit the team’s needs and the work they deliver.
Foster a Collaborative Culture: Encourage transparency, regular feedback loops, and cross-functional collaboration to keep alignment and adaptability.
Measure and Adapt: Continuously evaluate the effectiveness of your ways of working. Are teams hitting their goals? Are collaboration and communication efficient?

Conclusion

Operating models and ways of working are essential pieces of the organisational puzzle. One provides the foundation and structure; the other enables effective execution. To ensure long-term success, it’s crucial to regularly review both, aligning them with evolving business needs and market demands. By doing so, organisations can stay adaptable, efficient, and competitive.