Organizations often spend months defining their Strategy and only days figuring out how to run it. The result: a growing gulf between ambition, Strategic Planning, and operational reality. Leadership expects traction. Teams struggle with ambiguity. Execution stalls.
The Operating Model Canvas (OMC) was created to close that gap. It is a delivery framework that forces discipline into how work is structured, performed, and governed. OMC transforms Strategic intent into concrete, scalable operating designs.
Let us take decarbonization as a timely example. Large industrial manufacturers are publishing ESG goals, committing to Net Zero by 2040 or 2050. But the path to that goal runs straight through Procurement, Supplier Engagement, Operations, Logistics, and reporting systems. The OMC enables the entire sustainability agenda to be operationalized—mapping what needs to change, who owns it, and how progress is measured.
At its core, OMC breaks operations into 6 dimensions:
- Processes – The work flows that deliver the outcomes customers value.
- Organization – The people, roles, reporting structures, and governance.
- Locations – Where operations occur and how they are distributed.
- Information – The technology, data, and analytics that support execution.
- Suppliers – External contributors to capability, input, or capacity.
- Management System – The operating cadence, Key Performance Indicators (KPIs), and improvement tools.
Each of these dimensions gives the leadership team something rare: operational visibility. What most organizations manage today is cost centers and project lists. The OMC manages how work happens—and whether it aligns with Strategy.
Execution Is Not a Project—It Is a System
There is a habit in many organizations to treat execution as a series of projects. Fix this process. Stand up that tool. Train this team. But if the underlying operating model is not aligned, these projects solve nothing.
The OMC helps identify what needs to be redesigned—not just deployed. For example, Digital Transformations often begin with technology investment. But when mapped against the OMC, it becomes clear that data ownership is unclear, processes are inconsistent, and the Management System still operates on monthly reviews.
The OMC framework creates coherence. It tests whether the elements of the Operating Model reinforce each other or cancel each other out. If incentives reward speed but governance slows Decision making, Strategy is undermined.
It also creates readiness. Most Transformations fail not because of bad design, but because no one owns the outcomes. The OMC forces explicit ownership, documented controls, and performance loops.
Let’s break down the front end of Execution: Processes and Organization.
Processes
Every Strategy depends on key flows. New product introduction. Claims processing. Loan origination. The Processes dimension identifies those flows and makes them measurable.
It distinguishes between core, enabling, and supporting processes. It does not map everything. It targets what drives value. It names owners. It defines service levels. It sets controls.
The value here is not just visibility. It is traceability. When a KPI moves, the leadership team knows which process is responsible, who owns it, and where to intervene.
Organization
Many organizations suffer from structural ambiguity. Dotted-line reporting, overlapping charters, matrixed teams with no decision rights. The Organization element of the OMC brings order to this.
It defines the structure—functional, agile, hybrid—and shows how it supports the Strategy. It maps roles to workflows, ensures handoffs are clear, and links performance accountability to actual outcomes.
This alignment is especially critical in complex environments like global shared services or digital delivery hubs. When teams operate across geographies and time zones, the absence of structural clarity becomes Execution risk.
Case Study
A global food manufacturer had aggressive growth targets in emerging markets. Strategy called for doubling output in 3 years. The Execution plan relied on new facilities, revamped Supply Chains, and digitized Demand Forecasting.
But operational friction threatened everything. Each country had its own Forecasting Model. Plants had different performance baselines. Supplier performance was measured inconsistently.
OMC exposed the misalignment. Processes were redefined end to end—from demand signal capture to plant scheduling. The Organization view revealed decision bottlenecks and unscalable reporting lines. The Information layer showed that no common data model existed across markets.
Within one quarter, the company rolled out a shared OMC across 5 regions. Performance reviews were standardized. Supplier agreements were harmonized. Inventory turns improved, forecast accuracy increased, and market responsiveness grew.
FAQs
Can the OMC support compliance and risk initiatives?
Yes. The Management System dimension explicitly includes risk controls, compliance routines, and escalation paths.
How do we get buy-in from functional leaders?
Involve them in workshops for each dimension. When leaders see the misalignments exposed, they engage. OMC is not imposed—it is co-created.
Can the OMC evolve over time?
Yes. It is not a static model. It should be refreshed quarterly or with each strategic pivot.
How detailed does each layer need to be?
Only to the level required for operational control. OMC is a blueprint, not a procedural manual.
What is the first step to applying the OMC?
Start by defining the value proposition and the Strategic goals. Then build the high-level POLISM view to support it.
Closing Thoughts
The power of the Operating Model Canvas is not in the elegance of its design. It is in the clarity it forces. It reveals the cracks in Execution. It shows what must be aligned. It moves the conversation from theory to traction.
In most organizations, Performance Management lives in dashboards. Strategy lives in boardrooms. Execution lives in the gap between. OMC closes that gap. It brings all 3 into 1 system.
That is the discipline of Execution. Not just setting direction. Not just tracking results. But designing the system that makes results inevitable.
Interested in learning more about the other key dimensions of the Operating Model Canvas? You can download an editable PowerPoint presentation on Operating Model Canvas (OMC) here on the Flevy documents marketplace.
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