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An '''operating model''' can describe the way an organization does business today – the as is. It can also communicate the vision of how an '''operation''' will work in the future – the to be. In this context it is often referred to as the target '''operating model''', which is a view of the '''operating''' at a future point in time.
An '''operating model''' is both an abstract and visual representation (model) of how an organization delivers value to its customers or beneficiaries as well as how an organization runs itself.
==Definition==
However, probably the most common use of the operating model tool is to get alignment between managers in different functions or divisions about how they are going to work together for the benefit of the whole.
==Licence==
When designing an operating model, Andrew Campbell, Director of the Ashridge Executive Education course [http://www.hult.edu/exec/dom Designing Operating Models], recommends that the work starts with creating a 'value-chain map'.<ref>http://ashridgeonoperatingmodels.com/2015/05/06/working-on-an-operating-model/</ref> This is a way of laying out the work steps needed to deliver value to customers. It shows the different delivery chains and how they are linked together or need to be kept separate.<ref>http://ashridgeonoperatingmodels.com/2018/06/12/value-chain-maps/</ref> The second step is to create an 'organization model' based on the value chain map. The organization model shows how the different value chains are structured into an organization and includes the support functions, such as Finance, HR and IT.<ref>https://795bbfb0-d975-4f7e-ba92-1b9e41df44ea.filesusr.com/ugd/6fbdc9_308765c0b8314f02b7abe314de1e9a9f.pdf</ref> The value chain map and the organization model are two of the core diagrams of the operating model.
Additional maps and charts are often needed. For example, an operating model will typically include an IT blueprint, locations maps, a supplier matrix, people models, decision grids and other elements such as a scorecard for assessing performance. The particular set of documents created will depend on what the operating model is being used for. There is no generally accepted set of charts or at least there is no agreement yet about what charts make up an operating model. The [http://www.operatingmodelcanvas.com Operating Model Canvas] is a tool that displays an operating model on one page and suggests a set of charts and tables that should be created to define a high-level operating model. <ref>http://www.operatingmodelcanvas.com</ref><ref>Campbell, A, Gutierrez, M, Lancelott, M, "Operating Model Canvas", Van Haren Publishing, 2017</ref>
As conditions and strategies change operating models need to change. Business architects, who typically help design the [[target operating model]], ensure that change is managed in an orderly way. Technology, such as digitization, big data analytics and robotic process automation are some of the causes of operating model change. Operating models also change to accommodate new ways of working (such as "agile" or "work at home") new people (especially leaders), new capabilities, new geographies, new suppliers and other reasons.
==History==
===Origins in corporate strategy===
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