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Operating Model and Organization Design

What operating model and organization does the work now require? We design how work is organized across units, roles and decision-making, and translate it into the operating model and organization structure needed to make it work.

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What We Work On

Organizations are often redesigned by moving boxes and reporting lines. But an organization structure is the result of a series of more fundamental choices: where work should sit, how units should work together, who should own which decisions and how responsibilities should be distributed.

Those choices become even more important as technology and AI change how work gets done. Activities move, roles change, some coordination disappears while new accountabilities emerge. Keeping the old operating model around the new work creates complexity instead of capturing the value of the change.

We start with how the organization needs to operate, then design units, roles, responsibilities, decision rights and the management structure around it. The organization is shaped by what the work needs, rather than by the structure that happens to exist or the people currently in it.

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1. Target Operating Model

We define what work the company runs where, with what authority and through what way of working, and clarify how roles are split between center and field, and between business units and support functions.

2. Organization Structure Design

We build the unit structure, its segmentation and the reporting lines, and close the overlaps, gaps and unnecessary complexity in the current structure.

3. Governance and Decision Rights

We define which decision is made at which level and in which forum, and align decision rights, approval flows and management routines with the operating model.

4. Management Layers and Span of Control

We assess the number of layers and each manager's span of control, and balance the management load so managerial capacity matches the work being managed.

5. Roles, Responsibilities and Authorities

We define the boundaries between roles, their areas of responsibility and their levels of authority.

6. Job Architecture and Title Structure

We place roles into job families and career levels, simplify the title structure and establish one consistent language for roles across the company. Once it is clear which family and which level a role belongs to, career paths become visible as well.

7. Job Evaluation and Grading

We evaluate positions with our own AI-based evaluation model, build the company's grade structure on those scores and map each grade to market pay benchmarks. Because the model works from organizational structure data, the entire population is evaluated against the same criteria in a single pass, and every result can be reviewed together with its rationale.

8. Critical Roles

We identify the positions that are critical to business continuity against objective criteria, and set succession priorities.

9. Restructuring and Post-Merger Integration

Through growth, downsizing, mergers and acquisitions, we design the target structure and build the integration roadmap for moving to it.

Beyond Expectations

Project Deliverables

Target operating model and authority structure
Organization structure and unit responsibilities
Governance and decision rights matrix
Span of control and layer analysis
Job architecture and title structure
Job evaluation results and grade structure
Critical role inventory
Roadmap to the target structure
Related Expertise

Job Evaluation and Grading

A consistent way to evaluate roles and build the grade structure behind the organization.

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Organizational Development

Assessing and strengthening the wider organizational system as strategy, work and business conditions change.

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Restructuring and Integration

Designing and transitioning to a new organization during growth, consolidation, mergers or major transformation.

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Management Consulting

Addressing strategy, structure and processes together to support corporate development and sustainable growth.

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Organization Design: Frequently Asked Questions

What is organization design?

Organization design is the process of aligning structure, roles, decision rights, management layers and ways of working with what the business needs to achieve. It goes beyond drawing an organization chart; it determines how work and accountability are distributed across the organization. For a closer look at the concept and when it should be revisited, see our article on organizational design.

What is a target operating model?

A target operating model defines how an organization needs to operate to deliver its strategy: where work sits, how capabilities are organized, how units interact, where decisions are made and how responsibilities are distributed.

When should an organization redesign its operating model or structure?

Common triggers include growth, new business models, AI and technology adoption, restructuring, mergers and acquisitions, duplicated responsibilities, slow decision-making, unclear accountabilities and excessive organizational complexity.

How does AI affect organization design?

AI can change which activities people perform, the scope of roles, coordination requirements and where decisions can be made. Organization design translates those changes in the work into changes in roles, accountability, management structure and the operating model. How work is divided between people and AI is the focus of our work and workforce design service.

Is job evaluation part of organization design?

It can be. Once roles and their relative scope are clear, job evaluation can be used to establish their relative organizational value and create a consistent grading structure.

Redesigning your organization?

Tell us what is changing in your business and how your organization works today. We'll help determine what needs to change in the operating model, structure and roles.

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