Operating Model Canvas
A visual framework that helps executives and architects design and communicate an organization's operating model on a single page, breaking it down into six key elements: Processes, Organization, Locations, Information, Suppliers, and Management System.
Definition
The Operating Model Canvas is a strategic tool for designing how a company will deliver its value proposition. While the Business Model Canvas describes how an organization creates, delivers, and captures value, the Operating Model Canvas describes how it will deliver that value. It provides a structured way to think about the key components of the operating model. The canvas is built around the core value creation work of the organization, which is described in the Processes section. The other five sections then describe how the organization, locations, information systems, suppliers, and management systems will support these core processes.
Origin & Context
The Operating Model Canvas was developed by Andrew Campbell, Mikel Gutierrez, and Mark Lancelott, and is detailed in their book, Operating Model Canvas.
Why It Matters
It provides a simple, visual, and holistic way to design and communicate an operating model. It helps to ensure that all the key components of the operating model are considered and that they are aligned with each other and with the overall strategy. For business architects, it is a powerful tool for facilitating conversations with senior leaders about operating model design.
Common Misconceptions
- Myth: The Operating Model Canvas is the same as the Business Model Canvas.
- Reality: The Business Model Canvas is about the what and why of the strategy. The Operating Model Canvas is about the how of the strategy. The two are complementary.
Practical Example
A low-cost airline uses the Operating Model Canvas to design its operations. The core Processes are fly aircraft safely and on-time and sell tickets directly to customers. The Organization is structured around pilots, cabin crew, and ground staff, with minimal management overhead. The Locations are secondary airports with low landing fees.
Industry Applications
- Any
- The canvas is a generic tool that can be used to design the operating model for any type of organization, from a manufacturing company to a hospital to a government agency.
Related Terms
- Operating Model: The Operating Model Canvas is a tool for designing an operating model.
- Target Operating Model: The Operating Model Canvas is often used to design the target operating model.