Operating Model Optimization: Streamlining Processes for Better Performance

4 min readAug 9, 2023

It is not new that the business landscape is fiercely competitive, especially in the current times. Numerous businesses thrive every day to stand out from the crowd. Organizations are constantly trying to gain a competitive edge over their contenders. But how do you make your business hold the winning flag?

One key strategy that has been a game-changer is optimizing the operating model. By fine-tuning and streamlining the processes, businesses can unlock new efficiency levels, agility and ultimately deliver better customer value.

Operating model optimization is an enticing notion, but putting it into practice successfully has its difficulties. Keep reading to learn about how you can optimize your operating model and streamline processes.

Understanding Operating Model, Its Elements and Benefits

An organization’s procedures, capabilities, and resources are referred to as its operating model in terms of its structure and design. It includes all of the components that specify how work is done, decisions are made, and resources are distributed within the organization. It also offers a plan for the company’s structure, job descriptions, and supporting tools.

Elements of an Operating Model

Processes and Workflows: The operating model defines the flow of activities, including functions, workflows, and standard operating procedures.
Roles and Responsibilities: It clarifies the roles, responsibilities, and decision-making authority by identifying the key functions, teams, and individuals involved in various processes and activities.
Systems and Technologies: It encompasses software applications, data management systems, communication platforms, and other tech infrastructure for streamlined and effective process execution.

Benefits of an Operating Model

Improved Efficiency and Productivity: Process streamlining removes inefficiencies, redundancies, and bottlenecks, which results in cost savings, waste reduction, and optimal resource utilization.
Enhanced Agility and Adaptability: An optimized operation makes it easier to make well-informed decisions and operational changes and take advantage of emerging trends and technology.
Better Customer Experience: It enables businesses to satisfy customer expectations, deliver products and services more effectively, offer personalized experiences, and boost satisfaction and loyalty.
Scalability and Growth: The operating model offers a structure that makes it possible to repeat processes, allocate resources wisely, and seamlessly incorporate new skills, while promoting sustainable growth.

Few Strategies to Streamline an Operating Model

Optimizing an operating model requires a systematic approach and careful consideration of various elements. Here are key steps to effectively optimize an operating model:

Process Analysis and Reengineering

The first step towards optimization is to conduct a detailed review of the current processes. Businesses can utilize process mapping, value stream analysis, and data-driven insights to find bottlenecks, inefficiencies, and development opportunities. Process reengineering includes redesigning strategies to eliminate non-value-added activities, simple workflows and optimizing resource allocation.

Agile and Lean Principles

The improvement of the operating model can be greatly aided by adopting agile and lean principles. Agile processes encourage dynamic and flexible work practices, empowering organizations to adjust fast and progressively produce value. To increase efficiency and effectiveness, lean concepts emphasize removing waste, lowering variability, and continually improving operations.

Automation and Digitization

Adopting automation and digitization technologies can boost operational effectiveness by streamlining operations. To automate repetitive activities, reduce errors, and increase productivity, businesses can use Robotic Process Automation (RPA), Artificial Intelligence (AI), and workflow management systems. By digitizing manual processes and switching to digital platforms, operations can be streamlined, and data can be accessed more quickly.

Role Alignment and Empowerment

For successful and efficient execution, defining roles and responsibilities inside the operational model is essential. Roles need to be clearly defined, in line with strategic goals, and supported by the right level of decision-making authority. Employees may make better decisions, boost creativity, and perform better when given authority, clear guidelines, and the necessary tools.

Cross-Functional Collaboration and Communication

Operating model optimization requires fostering cross-functional cooperation and communication. Organizations should promote collaboration between various teams and departments, create efficient communication channels, and support knowledge sharing. This makes smoother coordination, enhanced problem-solving, and better decision-making possible.

Continuous Improvement and Learning Culture

A culture of ongoing learning and growth must be established for long-term success. Operational excellence is fueled by encouraging staff members to share ideas, try novel strategies, and learn from triumphs and failures. Organizations may adapt and improve over time by regularly assessing performance, getting feedback, and putting feedback loops in place.

Conclusion

It’s critical to remember that optimization is a dynamic process that requires ongoing assessment, revision, and adaptation. Businesses can maximize the value they provide and respond to changing market dynamics by simplification and alignment of their operational models with client wants and desired objectives.

A global technology consultancy, Thoughtworks, provides a streamlined operating strategy that prioritizes customer needs. Organizations can define outcomes, construct relevant measures, design the correct tasks, identify necessary skills, and set up efficient teams by prioritizing the demands of the customers. This customer-centric strategy guarantees that teams are in tune with the value they produce and enables businesses to calculate the impact precisely.