Design Principles for Robust Operating Model (PowerPoint PPTX Slide Deck)

STRATEGY DEVELOPMENT PPT DESCRIPTION

This product (Design Principles for Robust Operating Model) is a 30-slide PPT PowerPoint presentation slide deck (PPTX), which you can download immediately upon purchase.

Designing an effective Operating Model is one of the most critical levers for translating Strategy into Execution. Too often, organizations either fail to evolve fast enough to match new strategic priorities, or over-engineer designs that create complexity without adding value.

To effectively construct an Operating Model, we should follow certain design principles. These design principles translate strategic intent into a small, fact-based set of objective criteria for building the Operating Model. By codifying principles, organizations ensure that Operating Models focus on value, clarify decision rights, and protect cultural strengths, while addressing weaknesses.

In this PPT presentation, we discuss 6 core design principles to follow in Operating Model Design:

1. Focus on key sources of value
2. Highlight critical decisions
3. Set clear scope and boundaries
4. Define the role of the center
5. Build essential capabilities
6. Preserve strengths, fix weaknesses

Each of these principles is discussed in depth, including diagnostic questions and examples. Other topics covered include design principles implementation, common pitfalls, core areas of an Operating Model, among others.

This deck on Operating Model Design also includes slide templates for you to use in your own business presentations.

Source: Best Practices in Strategy Development, Operating Model PowerPoint Slides: Design Principles for Robust Operating Model PowerPoint (PPTX) Presentation Slide Deck, LearnPPT Consulting

STRATEGY DEVELOPMENT PPT SLIDES

Core Design Principles for Effective Operating Model Development

This PPT slide outlines the core design principles that shape an effective Operating Model, emphasizing how strategic intent is translated into actionable criteria. It begins by stating that design principles serve as a bridge between strategy and operational execution, focusing on requirements that the model must support, strengths to leverage, and weaknesses to address. The left side highlights 3 key attributes of effective principles: they should be directly linked to value creation and priorities, specific enough to guide trade-offs, and concise enough to fit on a single page. These criteria ensure clarity and focus in the design process.

On the right, the slide details 6 core principles that underpin the Operating Model Design. These are visually represented in a circular diagram, indicating their interconnected nature. The first principle emphasizes focusing on key sources of value, while the second advocates for highlighting critical decisions. The third stresses setting clear scope and boundaries, and the fourth involves defining the role of the center. The fifth principle calls for building essential capabilities, and the sixth underscores the importance of preserving strengths and fixing weaknesses. These principles collectively serve as a practical checklist for designing a resilient and aligned operating structure.

The bottom banner reinforces that these principles are fact-based, specific, and brief, ensuring the design remains anchored in value rather than personal preferences. The overall message is that a disciplined, principle-driven approach enhances strategy execution by providing clarity and focus. This document would be valuable for executives seeking a structured method to translate strategic intent into operational reality, ensuring alignment and efficiency across the organization.

Translating Strategic Ambitions into Operating Model Design Principles

This PPT slide outlines how strategic requirements influence the development of an Operating Model, emphasizing the translation of strategy into actionable design principles. It begins by stating that strategic inputs form the foundation of the Operating Model, including ambition, target markets, growth sources, and key drivers of value.

These inputs are essential for defining what the organization aims to achieve and how it plans to succeed. The slide then discusses organizational assessment, which evaluates strengths, weaknesses, cultural traits, and critical decision points, highlighting the importance of understanding internal capabilities and gaps.

The core message is that these elements inform the design principles, which serve as a blueprint for structuring the operating framework. The right side of the slide describes the output as a one-pager that distills insights from strategic inputs and organizational assessments into practical design guidance. This set of principles directs structural choices, governance mechanisms, and capability development priorities.

The slide underscores the importance of aligning strategic ambitions with operational design, ensuring that the operating model effectively supports strategic goals. The blue banner at the bottom reinforces that clear strategic requirements are vital to shaping an operating model that truly serves the organization’s strategy, not just its structure.

Overall, the slide offers a structured approach to translating strategic ambitions into a coherent operational framework, which is crucial for executing strategic initiatives effectively. It is a useful resource for executives seeking to align operational design with strategic intent, ensuring that every element of the operating model is purpose-driven and aligned with organizational ambitions.

Design Principles for Effective Centralized Operating Models

This PPT slide outlines the importance of establishing a clear role for a central unit within an organization to support scalable growth while empowering local teams. It emphasizes that a well-defined center's role is crucial for balancing efficiency and responsiveness. The core design principle is to define what the center should do, focusing on decision-making authority and process management. The overview stresses that the center's function should be deliberate and add value, providing clarity on activities that are centralized versus decentralized. It highlights that the center must clarify decision rights, avoid duplication, and adapt its role as the organization evolves to align with strategic priorities.

The details section offers practical guidance, such as identifying which decisions should be managed centrally to capture economies of scale, and clarifying where authority resides across business units, functions, or geographies. It underscores the importance of avoiding overlap by ensuring only one part of the organization owns each decision. The center's role should evolve with the organization, shifting from oversight to enabling local execution, depending on strategic needs.

Diagnostic questions are included to help assess whether the current setup creates value beyond oversight, whether decision criteria are clear, and if units understand their decision-making scope. Examples illustrate how different organizations—ranging from a multinational pharma company to a retailer and a tech firm—centralize functions like R&D, branding, procurement, and cybersecurity to enhance efficiency while maintaining flexibility.

Overall, the slide offers a structured approach for designing a central function that supports scale without stifling local agility. It suggests that clarity in the center’s role, decision rights, and ongoing adaptation are key to achieving this balance.

Structured Evaluation of Operating Models Based on Design Principles

This PPT slide presents a detailed case study illustrating how a global service company evaluated and selected an operating model based on design principles. It begins with a brief background, noting the company's decade-long acquisition strategy and the need to update its operating model to reflect current scale and organizational realities.

The core content compares 4 different models—country-based, matrix with country leadership, matrix with functions leadership, and global functions—against 7 design principles. These principles focus on leveraging scale, expertise, organizational alignment, supplier relationships, speed, duplication elimination, and regulatory influence.

The color coding indicates the relative difficulty of implementing each principle within each model, with red signifying harder, yellow indicating improvement potential, and green denoting easier implementation. The analysis shows that Model 3, the matrix with functions lead, best satisfies the design principles, especially in balancing global scale with local agility and regulatory influence.

A key insight is that the structured evaluation process led to an evidence-based decision, emphasizing the importance of rigorous assessment over assumptions. The slide underscores that the right model is not chosen arbitrarily, but through disciplined evaluation aligned with strategic design principles.

For executives, this case demonstrates a systematic approach to model selection, emphasizing the importance of clear criteria and objective analysis. It also highlights that model choice impacts operational flexibility, regulatory influence, and the ability to leverage scale, which are critical considerations for large, complex organizations. The final note reinforces that the best model is identified through thorough evaluation, not guesswork, providing a blueprint for strategic decision-making in organizational design. This slide offers a practical example of how to approach complex model selection with clarity and discipline, making it valuable for leaders overseeing transformation initiatives or organizational restructuring.