Operating Model Design vs. Organizational Design: Which Comes First?

Operating model design and organizational design are closely related but distinct disciplines that form the backbone of successful enterprise transformation. Yet despite their critical importance, these concepts are frequently confused or conflated, leading to transformation failures that could have been avoided. The most costly mistake is getting the sequence wrong. Organizations routinely design new org charts before defining their target operating model, creating structures that perpetuate current-state constraints rather than enabling future-state capabilities. This approach dooms transformation efforts from the start, no matter how much change management energy is applied afterward. This guide clarifies the fundamental distinction between these disciplines, explains their interdependency, and provides a practical framework for sequencing them correctly to maximize transformation success.