Fundamentals for an Operating Model

In this first chapter, we will set the context for the remainder of this book and clarify some terms. In an industry full of buzzwords and ambiguity, we felt that level-setting and providing context deserves a chapter of its own. This will help you understand the rest of this book and communicate better based on agreed-upon terms and associated semantics.

In this chapter, you will learn about various concepts related to your strategy, goals, mission, vision, and objectives by looking at different frameworks. Additionally, you will explore different definitions of operating models and extract essential insights from them. This chapter will also delve into the significance of culture in creating high-performing organizations and teams, along with other important topics, such as capability and platform engineering. Overall, this chapter aims to equip you with a comprehensive understanding of the key elements that are necessary for successful organizational management.

Our goal is to provide you with answers to the following inquiries:

• What exactly is an operating model and what is its significance?
• How does an operating model relate to strategy?
• What frameworks are available concerning operating models?
• How can you effectively implement an operating model in your organization?

By addressing these questions, we hope to equip you with a comprehensive understanding of operating models and their role in organizational success. By the end of this chapter, you will know what an operating model is and learned about business operating models and how we can translate them into technology operating models.