What Is an Operating Model?
Turning Strategy into Action
#Strategy #Fundamentals
You’ve got your strategy. You’ve clarified your business model. Now comes the real test: Can your business actually deliver on its promise — consistently, efficiently, and at scale?
That’s the job of your operating model.
At Jogi Business Solutions (JBS), we often describe the operating model as the engine room of your business. It’s what connects your big ideas with the day-to-day actions that serve your customers and generate results.
So, What Is an Operating Model?
An operating model defines how your business is organized to deliver value — including your people, processes, tools, and structure.
In simple terms, it answers:
“How do we actually get things done around here?”
It translates your strategy (what you want to achieve) and business model (how you make money) into execution (how you run the business every day).
Key Components of an Operating Model
There are many ways to frame an operating model, but at JBS, we focus on five core components:
- Processes
The workflows and steps that deliver your product or service.
- People & Roles
Who does what? What skills are needed? How is accountability structured?
- Technology & Tools
What systems power your operations — from CRMs to accounting platforms to project management software?
- Structure & Governance
How is your business organized? Centralized or decentralized? Who makes decisions?
- Metrics & Management
How do you track performance and stay aligned with your strategy?
Example: Imagine you run a small online bookkeeping service. Your strategy is to focus on freelancers and solopreneurs. Your business model is a monthly subscription for tiered services.
Your operating model might include:
- Standardized onboarding processes for new clients
- Virtual bookkeepers assigned by client type
- A cloud-based accounting tool (e.g., QuickBooks Online)
- A customer success lead who checks in monthly
- Weekly team huddles and a dashboard to track client satisfaction and churn
That’s your operating model in action — connecting vision to value.
Why a Weak Operating Model Hurts
Even the best strategy will fail if your business can’t execute it. A shaky operating model often shows up as:
- Confused roles and duplicated work
- Inconsistent customer experiences
- Missed deadlines and dropped balls
- Overreliance on one or two “hero” employees
- Growth that leads to chaos instead of scale
If your strategy is the plan, and your business model is the logic, your operating model is the machinery — and when it breaks, everything slows down.
Tips for Designing or Improving Your Operating Model
You don’t need to overhaul everything overnight. Start by asking:
- Are our roles clearly defined?
- Do our tools support our processes — or get in the way?
- Where are we losing time or dropping the ball?
- How do we measure performance, and how often do we review it?
- What parts of our operations feel clunky, manual, or inconsistent?
Small tweaks — like standardizing a key process or clarifying a role — can have outsized impact.
Your operating model is where your business lives and breathes — it’s how ideas become action. Getting it right doesn’t mean perfection, but it does mean intentionality. When your strategy, business model, and operations are aligned, you create a business that’s not only smart — but scalable.