An Operating Model is like a blueprint that shows how a company runs its day-to-day business. It describes how people, processes, and technology work together to deliver value to customers. Think of it as an instruction manual that explains who does what, how decisions are made, and how work flows through the organization. Consultants help companies design and improve their operating models to make the business run more smoothly and efficiently. Similar terms you might hear include "business model," "organizational design," or "business architecture," but an operating model is specifically about how the company executes its strategy in practical terms.
Led transformation project to redesign the Operating Model for a Fortune 500 retail company
Developed new Operating Model to improve efficiency and reduce costs by 30%
Created Target Operating Model recommendations for post-merger integration
Implemented Future State Operating Model for digital transformation initiative
Typical job title: "Management Consultants"
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Q: Can you describe a complex operating model transformation you've led and what were the key challenges?
Expected Answer: Look for answers that demonstrate experience in managing large-scale change, stakeholder management, and measuring success through concrete metrics. They should mention how they handled resistance to change and ensured sustainable implementation.
Q: How do you approach designing an operating model for a company going through a digital transformation?
Expected Answer: Strong answers should cover assessment of current state, consideration of future technology needs, change management, and how to balance efficiency with innovation. They should mention involving key stakeholders and ensuring the model supports business strategy.
Q: What are the key components you consider when analyzing an operating model?
Expected Answer: Should mention people, processes, technology, governance, and organizational structure. Look for examples of how these components interact and their impact on business performance.
Q: How do you measure the success of an operating model implementation?
Expected Answer: Should discuss both quantitative metrics (cost reduction, efficiency gains, processing times) and qualitative factors (employee satisfaction, customer experience, clarity of roles).
Q: What is an operating model and why is it important?
Expected Answer: Should be able to explain that it's how a company organizes itself to deliver value to customers, covering basic elements like processes, people, and technology.
Q: What's the difference between a business model and an operating model?
Expected Answer: Should explain that a business model is about what value the company provides and how it makes money, while an operating model is about how the company delivers that value through its day-to-day operations.