What common mistakes to avoid in your operating model

Operating models are the backbone of any successful organization. They provide a structure for decision-making, resource allocation, and goal-setting. However, just like any complex system, operating models can suffer from dysfunctions that hinder their effectiveness. These dysfunctions can manifest themselves in various ways and have far-reaching consequences that can affect the entire organization. In this blog post, we'll take a close look at the most common dysfunctions of an operating model and explore strategies to prevent them from happening in the first place. So, if you're looking to optimize your organization's performance and avoid costly mistakes, read on!

Ineffective Communication Channels

One of the most common dysfunctions in an operating model is ineffective communication channels. This occurs when there are communication breakdowns between team members or departments, which can lead to missed deadlines, errors, and ultimately reduced productivity.

To prevent this dysfunction, it's essential to establish clear lines of communication within the organization. Utilize tools like email, messaging apps or project management software to keep everyone updated on progress and ensure that everyone is aware of their responsibilities.

Regular meetings with all stakeholders may also be helpful in clarifying objectives and tasks required for successful execution. Creating a culture where open dialogue is encouraged promotes transparency - so employees feel comfortable raising concerns without fear of retribution.

Organizations must provide training about how they communicate professionally and effectively face-to-face & virtually, including writing emails/messages and conducting virtual meetings/webinars/seminars/conferences without any language barriers while keeping cultural sensitivity intact across diversified teams worldwide from different locations & backgrounds for effective collaboration towards achieving business goals.

Poorly Managed Information Flow

Effective communication is critical to the success of any organization. In an operating model, poorly managed information flow can lead to delays in decision-making and a lack of alignment among team members. This dysfunction occurs when there are no clear channels for sharing information, or communication is not prioritized.

To prevent this dysfunction, it's important to establish regular communication channels such as daily stand-up meetings or weekly status updates. These channels should be structured to ensure that everyone has the opportunity to share their thoughts and feedback.

Another way to combat poor information flow is by implementing a knowledge-sharing culture within the organization. By encouraging employees to share their expertise and ideas with each other, you'll promote more openness in communication which could lead to more efficient solutions.

Finally, using technology platforms like collaboration tools or project management software can make it easier for teams located in different geographies/countries/time zones, etc., to communicate effectively while mapping out workflows necessary for successful project completion.

Inadequate Resource Allocation Strategies

One of the most common dysfunctions in an operating model is the inadequate allocation of resources. This can happen when organizations fail to assess their needs and allocate resources accordingly properly. In some cases, resources may be allocated based on political considerations rather than actual needs. This can lead to a situation where some teams are over-resourced while others are under-resourced.

To avoid this dysfunction, it is important to have a clear understanding of the organization's goals and objectives. This will help to ensure that resources are allocated in a way that supports these goals. It is also important to regularly review resource allocation strategies to ensure they align with the organization's needs.

Another key factor in avoiding this dysfunction is a transparent and collaborative decision-making process for resource allocation. This can help to ensure that decisions are made based on objective criteria rather than personal preferences or politics. By taking these steps, organizations can avoid the dysfunction of inadequate resource allocation and ensure that their operating model is optimized for success.

Outcomes are created internally.

When outcomes are created internally without external input, there is a risk of developing tunnel vision. This can lead to teams being too focused on the details and not seeing the bigger picture, resulting in missed opportunities or unforeseen obstacles. One way to prevent this dysfunction is by inviting external stakeholders, customers, or industry experts to provide feedback early in the process. The fresh perspective they bring can help identify blind spots and offer new insights that may have been overlooked otherwise. Additionally, the cross-functional collaboration between different organizational departments can foster innovation and promote a more holistic approach to achieving goals. By breaking down silos and encouraging open communication across teams, organizations can avoid operating solely from their own internal bubble.

Teams are created functionally.

Teams are created functionally in an operating model when departments or functional areas are siloed and work independently. This can lead to poor collaboration and communication, resulting in missed opportunities and inefficiencies. To prevent this dysfunction, organizations should create cross-functional teams that bring together individuals from different departments to work toward a common goal. These teams should have clear objectives, roles, and responsibilities, and be empowered to make decisions and take action. By breaking down silos and promoting collaboration, organizations can improve communication, increase efficiency, and drive innovation. Additionally, diversity within these teams can bring new perspectives and ideas to the table, leading to better outcomes.

The skills don’t match the high-value work required.

Skills don't match high-value work: One of the most common dysfunctions in an operating model is the mismatch between skills and high-value work. Companies often hire employees based on their qualifications, without taking into account whether they have experience in handling tasks that are critical for business growth. This results in workers lacking the expertise necessary to perform certain roles or functions effectively. To avoid this dysfunction, companies need to evaluate potential hires not just on paper but also through practical tests or assessments.

The company should also invest resources in training programs that help employees acquire new skills required for high-value work. Investing time and money into employee development can significantly reduce turnover rates while improving overall performance by creating a workforce with specialized knowledge and relevant expertise.

In conclusion, when thinking about hiring people or identifying skill gaps within your current team, it's important to be aware of what is valued most highly by your customers, stakeholders, and shareholders to ensure you match those needs with the appropriate talent.

Measures are created after the work is decided.

It's a common mistake to decide on the work first and then create measures for it later. This approach can result in poor outcomes as the team may not have a clear idea of what they are working towards. It's important to establish metrics right from the beginning that align with company goals, so teams know what success looks like. An effective way to do this is by developing key performance indicators (KPIs) for each project or initiative at its inception stage. This helps ensure that resources are allocated efficiently and effectively based on a shared understanding of success criteria. Additionally, KPIs should be consistently monitored and updated if needed throughout an initiative's lifecycle, ensuring it stays aligned with both business objectives and provides valuable insights into progress made towards achieving those objectives over time.