How To Design an Operating Model

Tip for Business Analysts

Step 1: Define the scope of the operating model

This approach is exactly the same as that needed for defining the scope of any project in

business analysis

Step 2: Bear in mind the following (simple) description of an operating

model

‘’The operating model is required to answer who/what/when/where/ how are operations

performed’’

The aforementioned definition indicates that an operating model should include relevant

operations, inputs, outputs, resources, and controls (rules, instructions etc)

Step 2: Cont.

Learning about operating models, I was overwhelmed with hundreds of articles

explaining differences between business and operating model design and strategy. But, I

have noticed that every presented operating model was based on who/what/when/where/ how elements, thus realizing that the identical structure was used for building both business

and operating models.

Step 2: Cont.

Therefore, turn your business process model into an operating model by adding the

following: • Controls – you can present them as inputs to

the processes• Resources (not just roles) needed for the

processes to be conducted

Step 2: Cont.

Step 3: Present the operating model graphically with a type of diagram that will include all of the elements mentioned in Step 2.

The major issue for me was that I could not find standard diagrams intended for designing operating models as they

seemed to miss. On the other hand, I could not interpret any of the examples of operating models that I had an

opportunity to see, and I needed ‘my’ operating model to be understood by both IT and non-IT audience. Therefore, I decided to use one of business model diagrams to create

the operating model, and it worked fantastic.My choice was/is IDEF0 diagram, but any other type of

diagram for business process modelling will do equally well.

Step 3: Cont.