What Is an Operating Model? A Complete Guide for Enterprise Architects

In the dynamic landscape of modern business, many organizations have grown organically, adding processes and structures incrementally over time. This often results in a complex and unplanned legacy operating model. While such models can support success, they frequently lack the strategic alignment and efficiency needed for sustained growth. Transitioning from this ad-hoc approach to an intentional operating model design enables organizations to develop operating models that are strategically aligned, efficient, and coherent.

In this blog, we explore how shifting to intentional design can help organizations create fit-for-purpose operating models within EA best practices. We will discuss what operating models are, why they are essential, and provide insights on how to design them effectively. By the end, you’ll understand how a well-designed operating model can improve overall effectiveness and support strategic objectives, paving the way for future success.

An operating model defines how your organization delivers value — connecting strategy with day-to-day execution through people, processes, and technology.
Most companies struggle not because their strategy is wrong, but because their operating model hasn’t kept up. In this guide, you’ll learn what an operating model is, how to identify the right level for your organization, and how to design one that actually works.

Operating models can exist at various levels. In some cases, a one-page operating model for the entire organization might be sufficient. In others, detailed operating models with standard operating procedures provide step-by-step instructions for routine operations. Opinions on the best approach vary widely, but the key is to choose the level of detail that best suits your organization’s needs.

Operating models are typically defined on different levels, based on their purpose and audience 

For our business transformation initiatives, we choose a balanced approach. In our blog “The Power of Enterprise Architecture Operating Model”, we discuss using capability maps to structure the organization. We also mention value chains or high-level process maps as alternatives, but here we will focus on capabilities. Capability maps provide a solid foundation on which to build target operating models, offering overall structure and serving as a navigation point.

Typically, there will be an operating model for each key capability. In some cases, multiple capabilities may be combined into one operating model or a single capability may have multiple operating models. However, as a general rule, you will have one operating model per capability.

For each capability we need to design its inner workings – the operating model

Capabilities define the “what” of an organization’s functions. But when we delve deeper into each capability, we uncover the “how” – the essence of an operating model. This encompasses:

• The tasks required to deliver the capability’s value proposition
• The individuals or teams responsible for executing these tasks
• The locations where these tasks are carried out
• The necessary information for task completion
• The software and technologies utilized in the process.

TIP: While you have the flexibility to determine the level of detail in your operating model, keeping it concise on a single page is advisable to avoid confusion. This approach enables you to focus on crucial elements and their interconnections, ultimately enhancing clarity and effectiveness.

This is what the operating model for an airport’s passenger handling capability could look like.

It is divided into levels representing the BDAT stack:

• Business
• Data
• Application and
• Technology

The example illustrates an airport’s passenger handling process, detailing interactions among business actors, processes, application components, and equipment across four main business processes: Check-In, Security Screening, Immigration & Customs, and Boarding.

• Check-In: Check-In Staff initiate the Check-In process, supported by the Check-In Application, which validates passenger information and assigns seats. This process utilizes self-service kiosks and check-in counters. The Passenger data object is central, interacting with both the Seat Map for seat assignments and the Check-In application services.
• Security Screening: Security Personnel conduct the Security Screening process, supported by the Security Screening Application and X-ray machine, generating screening results. The process ensures that all passengers and their baggage are screened for security threats.
• Immigration & Customs: Immigration Officers handle the Immigration & Customs process, using the Immigration & Customs Application and passport scanners to process passport information and customer declaration forms.
• Boarding: Boarding Staff then manage the Boarding process, supported by the Boarding Application and boarding pass scanners, ensuring passenger verification and eligibility for priority boarding. The Passenger data object flows through these processes, ensuring seamless transitions and data integrity throughout the passenger’s journey.

Of course, you can add more layers or use other elements. ArchiMate, for example, offers over 60 elements that can help you with this.

TIP: But make sure you don’t go into too much detail. After all, you also want non-architects to be able to understand it. You should therefore limit the variety of elements to a maximum of 10 element types. There are other results in EA: Strategy maps, roadmaps, process architectures, application and technology architectures … so it is not necessary to pack everything into your operating models.

• You can use operational models to effectively explain the functioning of one or more capabilities. You can do this with a single diagram.
• You can explain the context for planned changes. Stakeholders will more easily understand what is at stake and which parts of the organization are affected.
• You can use it for modelling architectural threats. Risks can be more easily identified and their impact more easily determined.
• For capability-based planning, you need to define a roadmap with requirements for your strategic capabilities. The operating model helps you to identify weaknesses and optimization potential and to derive strategic requirements.
• You can use it to describe target operating models. This allows you to define, discuss and communicate how you want to work in the future.

TIP: Of course, it takes effort to create operating models and keep them up to date. Find as many interested parties as possible: CxOs, risk managers, strategic planners … the number of interested stakeholders will define your success.

The best thing is that you may have already defined much of what is necessary for this. For example, in application portfolio management, where you have defined the catalogue of your applications, or in strategic management, where you have defined your capability maps. This saves a lot of time and ensures that everything is harmonized.

A business model defines how a company creates value and generates revenue. An operating model defines how that value is actually delivered — through people, processes, and technology.

An operating model typically includes processes, organizational structure, technology, and governance.
Capabilities are often used as a starting point to design the operating model — when you zoom into a capability, it reveals the underlying processes, systems, and organizational elements that enable value delivery.

Start by mapping your organization’s capabilities, then identify gaps between your current and target state. Tools like ArchiMate and ADOIT allow you to visualize and analyze your operating model in a structured way.

A capability is what your organization needs to be able to do to deliver value — independent of how it is structured or who performs it.

An operating model is the bridge between strategy and execution. Whether you are designing one from scratch or improving an existing one, the key is making it visible, structured, and aligned with your organization’s capabilities.

As we’ve seen in this guide, tools like ArchiMate and ADOIT give you a structured way to model, analyze, and communicate your operating model — so the right people can make the right decisions faster.

Ready to design your operating model? Explore how ADOIT the Enterprise Architecture Tool can help you get started.