The COO is typically the executive most directly affected by operating model design and most likely to lead a redesign. Understanding the principles of operating model design — translating strategy into structure, managing the accountability architecture, building operational capability — is essential for any COO.
The COO is typically the executive most directly affected by operating model design — and the one most likely to be asked to lead an operating model redesign.
Translating strategy into structure. When the CEO sets a new strategic direction, the COO is responsible for designing the operating model changes that allow the organisation to execute it. This requires understanding which structural elements need to change, which can stay the same, and how to sequence the changes to minimise disruption.
Managing the accountability architecture. The COO is responsible for the accountability architecture — the system of roles, responsibilities, decision rights and performance expectations that determines how work gets done. When this architecture is unclear or misaligned, the COO is typically the first to see the consequences in escalations, conflicts and execution failures.
Building operational capability. The COO is responsible for building the operational capability — the processes, systems and workforce skills — that allow the organisation to execute its strategy consistently.
The COO should initiate an operating model redesign when: the organisation is consistently failing to execute its strategy; when accountability is unclear and escalations are frequent; when the organisation is scaling rapidly; or when a significant strategic change requires a new operating model.
Contact Loop Consulting Group at [loopbc.com.au](https://www.loopbc.com.au) to discuss operating model design.
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