Operating Model

/ˈɑː.pə.reɪt ˈmɑː.dəl/

An abstraction and visualization of how an organization delivers value to its customers or beneficiaries and how it runs itself.

Operating model conceptualizations and visualizations come in different forms. This includes collections of flow charts, maps, tables and many further examples. Prominent well-known representations would be Value Chain/Shop/Network visualizations or the seminal unique activity network visualizations as proposed by Michael Porter . A typical operating model description might encompass elements such as: the business model and ecosystem, business processes, organization and supplier structure, shared services and infrastructure technology descriptions, as well as the management system the organization is run by.


Porter, M. E. (1996). What is Strategy? Harvard Business Review, November-December.
Fjeldstad, Ø. D., & Stabell, C. B. (1998). Configuring Value for Competitive Advantage: On Chains, Shops, and Networks. Strategic Management Journal, Vol 19, 413–437.