Organizations rarely fail because of weak strategic ideas. They fail because execution falters. A poorly designed Operating Model is often the culprit, creating friction, duplication, and wasted energy. Even when leaders commit to redesign, results can disappoint. The reason is not the framework itself but the way it is applied.
Every framework comes with traps, and Operating Model Design is no exception. There are six common pitfalls that undermine its effectiveness. Leaders who understand them—and take deliberate steps to avoid them—can protect their organizations from costly mistakes and accelerate execution.
Why Pitfalls Happen
Operating Model work is inherently complex. It touches every part of the organization: structure, governance, processes, technology, and culture. It involves trade-offs that affect power, resources, and roles. In such a charged environment, it is no surprise that missteps are frequent. Pitfalls often arise from good intentions—leaders try to please everyone, move too fast, or simplify where discipline is required. The result is models that look promising on paper but collapse in practice.
Recognizing these pitfalls early is critical. The cost of rework is high. The reputational impact of a failed redesign is even higher.
Pitfall 1: Overcomplication
Many leaders mistake complexity for sophistication. They design elaborate structures, multi-layered governance forums, and detailed decision matrices. The intent is to cover every possible scenario. The effect is paralysis.
Overcomplicated Operating Models confuse rather than clarify. Leaders spend more time navigating processes than making decisions. Employees waste energy interpreting reporting lines rather than delivering outcomes.
The fix is discipline. Simplicity is not about ignoring complexity but about making the essential explicit. A small set of design principles should anchor decisions. Structures should be as simple as possible to meet strategic requirements, not more.
Pitfall 2: Weak Linkage to Value
An Operating Model that is not tied directly to sources of value creation is doomed. Leaders sometimes treat design as an organizational chart exercise. They debate reporting lines without asking whether choices support customer priorities or strategic goals.
The result is a model that looks tidy but adds little to performance. Execution continues to falter because the model does not reinforce what matters most.
The fix is rigorous linkage. Every design choice should be tested against sources of value. Does this allocation of resources support our critical capabilities? Do these decision rights accelerate speed-to-market? Does this governance forum help us allocate capital effectively? If the answer is no, redesign is required.
Pitfall 3: Ignoring Cultural Realities
Structures and processes are only half the story. Culture determines how people actually behave. Leaders who design Operating Models without considering cultural strengths and weaknesses often face resistance or failure.
For example, a highly collaborative culture may struggle with centralized, top-down decision-making. A culture built on entrepreneurial autonomy may resist heavy-handed governance. Ignoring these realities creates friction that no amount of structural clarity can fix.
The fix is balance. Design must preserve cultural strengths while addressing weaknesses. Diagnostic assessments help identify what to protect and what to change. Transformation is more credible when it builds on what already works.
Pitfall 4: Poor Sequencing
Operating Model implementation is not a single event. It is a sequence of decisions and actions. Leaders often try to do everything at once, creating confusion and overloading the organization.
The fix is logical sequencing. Early choices such as structure and governance establish the foundation. Capability-building and ways of working follow. Sequencing creates momentum and avoids overwhelming the organization with simultaneous changes.
Pitfall 5: Static Design
Some leaders treat Operating Models as one-off projects. They redesign, announce, and then move on. But strategy evolves. Markets shift. Technology advances. What worked yesterday may fail tomorrow.
The fix is iteration. Operating Models should be revisited periodically to ensure alignment with strategy. They should be flexible enough to evolve as priorities change. Treating design as static risks creating a model that becomes obsolete quickly.
Pitfall 6: Weak Implementation Discipline
The most damaging pitfall is weak follow-through. Leaders approve design choices but fail to enforce them. Decision rights remain unclear. New processes are not embedded. Metrics and feedback loops are ignored. Employees revert to old habits.
The fix is discipline. Implementation requires governance mechanisms, performance management, and reinforcement from leadership. It requires visible commitment to living the new model, not just approving it. Without discipline, even the best design fails.
Lessons from Practice
A global service organization that evaluated multiple Operating Model options illustrates the importance of avoiding pitfalls. Its leadership did not simply choose a structure. They applied design principles rigorously, sequenced implementation, and reinforced decisions through governance. The result was a “matrix with functional leadership” model that balanced global scale with local agility.
The lesson is clear: success is not about clever structures. It is about disciplined design, careful sequencing, cultural sensitivity, and relentless implementation.
What Leaders Must Confront
- Are we designing for simplicity or drifting into unnecessary complexity?
- Is every choice linked directly to sources of value creation?
- Are we preserving cultural strengths while addressing weaknesses?
- Is our implementation sequenced or overwhelming?
- Do we treat design as static or iterative?
- Are we enforcing discipline in execution or allowing drift?
These questions cut through noise and force leaders to focus on what makes Operating Models effective.
The Payoff of Avoiding Pitfalls
Avoiding pitfalls is not glamorous work. It requires saying no to complexity, pushing back on preferences, and insisting on discipline. Yet the payoff is significant. Organizations that avoid these traps see faster execution, greater alignment, and stronger performance. They waste less energy on internal friction and more on delivering outcomes.
Pitfalls are not inevitable. They are choices. Leaders who recognize and address them build Operating Models that endure. Leaders who ignore them find themselves repeating redesigns every few years, burning time and credibility.
Operating Model Design is not about clever diagrams. It is about building the scaffolding that lets strategy live. Pitfalls are the cracks in that scaffolding. Fix them early, and the structure holds. Leave them unattended, and the entire framework weakens.
Interested in learning more about the steps of the approach to Operating Model Design? You can download an editable PowerPoint presentation on Operating Model Design here on the Flevy documents marketplace.
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