This week I would like to reflect on the operating model of a business. In my experience this critical business model is quite often not given the attention or direction it is so duly required. Most companies leave this level of decision making to leadership either in a specific business units or divisions. Giving them more lateral than they I believe they should have.
The problem with this approach is there are never any synergies across the different business units or divisions. When this is the case having a shared service, such ast IT, to support them is often quite reactive. I believe business units and divisions are given this type of autonomy because they may be doing well with bringing in money for the business; which leads to senior leadership giving more slack. Though this is good in the short term, long term it could erode the business and ultimately lead to the demise.
Defining a clear operating model for the business that all share services can execute to is key to a company becoming dynamic and agile. Enterprise architecture typically will show the value of defining the operating model and given case studies and examples of how this can be successful.