Thursday, November 20, 2025

What is an operating model?


An operating model is the backbone of any organization. It outlines how the company delivers value to its customers, operates on a day-to-day basis, and achieves its strategic objectives.

McKinsey research shows that even top-performing companies achieve only about 70 percent of their strategies’ full potential, due in no small part to shortcomings in their operating models. But in today’s fast-paced business landscape, having an effective and well-defined operating model is crucial for closing this strategy-to-performance gap, adapting to changing market conditions, and achieving long-term success. 

A robust operating model serves as a guiding framework for decision-making, resource allocation, innovation, and many other critical activities and practices in the business—all in the service of improving efficiency and generating sustainable growth.

To learn more about operating models and how they can enable organizations to realize their full potential, read on ...

McKinsey-explainers/what-is-an-operating-model

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