Operating model design follows a structured process: diagnose the current state, define the target state, design the model, and implement with change management.
Operating model design is one of the most consequential exercises a business can undertake. Done well, it creates the structural foundation for sustained performance. Done poorly, it produces a reorganisation that disrupts the business without improving it.
The process Loop Business Consulting uses — embedded in our OP3 Methodology™ — follows four stages.
The starting point is an honest, rigorous assessment of the current operating model. This is not a political exercise — it is a diagnostic. We map the current structure, governance, processes, and performance frameworks, and we assess how well they are serving the business's strategic objectives.
The diagnostic typically reveals three types of issues: structural issues (the wrong people in the wrong roles, or the wrong roles altogether); governance issues (unclear decision rights, too many approvals, or decisions being made at the wrong level); and performance issues (unclear accountability, misaligned incentives, or insufficient measurement).
The target operating model is defined by the strategy. Before designing the model, we establish clarity on the strategic objectives the model must serve — the markets the business is targeting, the capabilities required to win in those markets, and the performance outcomes the model must deliver.
The target state is not an aspiration. It is a specific, concrete description of how the business will be structured, governed, and managed in the future — including the roles, the decision rights, the processes, and the performance frameworks.
With the current state diagnosed and the target state defined, the design work begins. This involves: organisational structure design (reporting lines, spans of control, role design); governance design (decision rights, committee structures, escalation protocols); process design (the key workflows that must change to support the new model); and performance framework design (the KPIs, rhythms, and accountability structures).
The most well-designed operating model will fail if the implementation is poorly managed. Change management is not a communication plan — it is the deliberate management of the human transition from the current state to the target state. It includes leadership alignment, stakeholder engagement, capability development, and the ongoing monitoring and adjustment required to embed the new model.
In our work with a major Australian telecommunications provider, we managed the integration of three operational units with over 600 role transitions, achieving 100% adoption of new processes and ways of working. This outcome was only possible because the implementation was managed with the same rigour as the design.
Contact Loop Business Consulting at [loopbc.com.au](https://www.loopbc.com.au) to discuss operating model design for your business.
Loop Consulting Group works with Australian businesses scaling from $5M to $50M. If this question reflects a challenge you're facing, let's talk.