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How To Design an Operating
Model
Tip for Business Analysts
Step 1: Define the scope of the
operating model
This approach is exactly the same as that
needed for defining the scope of any project in
business analysis
Step 2: Bear in mind the following
(simple) description of an operating
model
‘’The operating model is required to answer
who/what/when/where/ how are operations
performed’’
The aforementioned definition indicates that an
operating model should include relevant
operations, inputs, outputs, resources, and
controls (rules, instructions etc)
Step 2: Cont.
Learning about operating models, I was
overwhelmed with hundreds of articles
explaining differences between business and
operating model design and strategy. But, I
have noticed that every presented operating
model was based on who/what/when/where/
how elements, thus realizing that the identical
structure was used for building both business
and operating models.
Step 2: Cont.
Therefore, turn your business process model
into an operating model by adding the
following:
• Controls – you can present them as inputs to
the processes
• Resources (not just roles) needed for the
processes to be conducted
Step 2: Cont.
Step 3: Present the operating model
graphically with a type of diagram that
will include all of the elements
mentioned in Step 2.
The major issue for me was that I could not find standard
diagrams intended for designing operating models as
they seemed to miss. On the other hand, I could not
interpret any of the examples of operating models that
I had an opportunity to see, and I needed ‘my’
operating model to be understood by both IT and non-
IT audience. Therefore, I decided to use one of business
model diagrams to create the operating model, and it
worked fantastic.
My choice was/is IDEF0 diagram, but any other type of
diagram for business process modelling will do equally
well.
Step 3: Cont.

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How To Design An Operating Model: Tip For Business Analysts

  • 1. How To Design an Operating Model Tip for Business Analysts
  • 2. Step 1: Define the scope of the operating model This approach is exactly the same as that needed for defining the scope of any project in business analysis
  • 3. Step 2: Bear in mind the following (simple) description of an operating model ‘’The operating model is required to answer who/what/when/where/ how are operations performed’’
  • 4. The aforementioned definition indicates that an operating model should include relevant operations, inputs, outputs, resources, and controls (rules, instructions etc) Step 2: Cont.
  • 5. Learning about operating models, I was overwhelmed with hundreds of articles explaining differences between business and operating model design and strategy. But, I have noticed that every presented operating model was based on who/what/when/where/ how elements, thus realizing that the identical structure was used for building both business and operating models. Step 2: Cont.
  • 6. Therefore, turn your business process model into an operating model by adding the following: • Controls – you can present them as inputs to the processes • Resources (not just roles) needed for the processes to be conducted Step 2: Cont.
  • 7. Step 3: Present the operating model graphically with a type of diagram that will include all of the elements mentioned in Step 2.
  • 8. The major issue for me was that I could not find standard diagrams intended for designing operating models as they seemed to miss. On the other hand, I could not interpret any of the examples of operating models that I had an opportunity to see, and I needed ‘my’ operating model to be understood by both IT and non- IT audience. Therefore, I decided to use one of business model diagrams to create the operating model, and it worked fantastic. My choice was/is IDEF0 diagram, but any other type of diagram for business process modelling will do equally well. Step 3: Cont.