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Every few years, organisations redraw their operating model. Teams shift, charts change, and new processes are introduced.
Yet within 12 months, the same problems reappear: duplicated effort, blurred accountability, and technology that doesn’t fit together.
That’s because most operating models are built around how the organisation works, not what the organisation needs to be able to do.
Why the Structure-First Approach Fails
Starting with structure feels logical. It’s tangible. You can see boxes, lines, and reporting chains. But structure doesn’t explain value creation.
Without a clear definition of the underlying capabilities, the essential things the business must do well to achieve its strategy, you end up optimising noise.
You get teams improving their own processes in isolation. You get systems that solve local problems but create global ones. You get a strategy that can’t be executed because everyone’s pulling in different directions.
A Capability Model Creates the Common Ground
A capability model strips away noise and focuses on what matters most. It defines what must exist, regardless of who does it or how.
It’s the one layer that doesn’t change every time a restructure happens.
When leaders design their operating model around capabilities, they get a single source of truth about what the organisation actually does and what needs to improve.
It gives decision-makers clarity about:
- Which investments enable strategic outcomes
- Where duplication and waste exist
- How technology, process, and people align
Turning Clarity into Advantage
The most adaptable organisations use their capability model as a map, one that connects strategy to delivery.
When everyone understands the same structure of “what” the business does, the “how” becomes easier to improve.
That’s when operating models start working with change, not against it.
The Takeaway
You can’t build a lasting operating model on an unstable foundation. Define your capabilities first, then let structure, process, and technology follow. It’s how organisations create clarity, move faster, and keep strategy and execution aligned.
