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Operating Model CanvasFrom Van Haren Publishing
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The journey from strategy to operating success depends on creating an organization that can deliver the chosen strategy. This book, explaining the Operating Model Canvas, shows you how to do this. It teaches you how to define the main work processes, choose an organization structure, develop a high-level blueprint of the IT systems, decide where to locate and how to lay out floor plans, set up relationships with suppliers and design a management system and scorecard with which to run the new organization. The Operating Model Canvas helps you to create a target operating model aligned to your strategy.
The book contains more than 20 examples ranging from large multi-nationals to government departments to small charities and from an operating model for a business to an operating model for a department of five people. The book describes more than 15 tools, including new tools such as the value chain map, the organization model and the high-level IT blueprint. Most importantly, the book contains two fully worked examples showing how the tools can be used to develop a new operating model.
This book should be on the desk of every consultant, every strategist, every leader of transformation, every functional business partner, every business or enterprise architect, every Lean expert or business improvement champion, in fact everyone who wants to help their organization be successful.
- Sales Rank: #217845 in Books
- Published on: 2017-04-12
- Original language: English
- Dimensions: 9.54" h x 1.00" w x 6.97" l,
- Binding: Hardcover
- 224 pages
About the Author
Van Haren Publishing (VHP) publishes about best practices and standards in the field of IT & IT Management, Enterprise Architecture, Business Management and Project Management. We publish worldwide using our widespread international network of distribution partners
Most helpful customer reviews
0 of 0 people found the following review helpful.
A useful extension to the Business Modeling practice
By Brian K. Seitz
I am typically a skeptic about follow-the-leader books. That is books the co-op the look and feel of other books to what disappoint either contain no new information or didn't fully understand and translate their content into the other books model. I'm pleased to say Campbell, Gutierrez, Lancelott did an excellent job 1) following the model 2) adding new content and insight to another aspect of enterprise in a concise and entertaining way.
While there continues to be more and more books putting forth how to document or map strategy --there are dozens on the market so good, some not so good-- its rare to find a book that 1) Is both conceptual and practical, helping you not only document but develop such 2) focusing on the critical aspect of strategy (vision) to manifestation (planning). Operating Model Canvas does an excellent job of such.
Words of caution to the potential reader: If you're looking at creating a business (strategy) model this is not the book, buy Business Model Generation. If on the other hand you've got you business model(s) or are in process of doing such and want to define how you're going to operationalize these, this is the book for you. I look forward to converting this canvas into another module for the Enterprise Architecture courses and tool suite I've been developing for the Zachman Framework praxis
0 of 0 people found the following review helpful.
The Power of Multilevel Business Model Visualization and Value Chain Delivery Design
By Rod King, PhD
In today’s Volatile, Uncertain, Complex, and Ambiguous (VUCA) environment, organizational alignment is vital in order to rapidly achieve competitive advantage. It’s essential that everyone in an organization knows how the organization creates, delivers, and captures/shares value. Everyone must know how they fit in and contribute to achieving the organization’s strategy, vision, and mission. In short, it’s imperative for everyone in the organization to be familiar with the structure and operation of its business model. Everyone must be on the same page if the organization is to effectively and efficiently achieve its strategy (value proposition) and consequently, vision.
Although there are various tools for visualizing a business model, today’s dominant visualization tool is the Business Model Canvas that is presented in the book, “Business Model Generation” by Alexander Osterwalder and Yves Pigneur. The Business Model Canvas is usually presented at a single level on one page with 9 micro-blocks. In my recent book – “Business Model Canvas: A Good Tool with Bad Instructions? – I note that the power of the Business Model Canvas lies in its application as a tool for multilevel business modeling, pain solving, and design. Consequently, I am pleased to see that Andrew Campbell and his co-authors have applied multilevel system thinking to the Business Model Canvas. In particular, they aggregate the three building blocks on the backend of the Business Model Canvas, that is Key Partners, Key Resources, and Key Activities and call the aggregation or meso-block, the “Operating Model Canvas.” The resulting diagram, which contains the Operating Model Canvas, is referred to as an “Enhanced Business Model Canvas.”
According to Campbell et al, “The Operating Model Canvas is a framework that describes the main elements of the operations of an organization.” They add, “The Operating Model Canvas can be used to understand the operations of a whole business, even where the business has multiple product lines and multiple geographies.” In terms of aggregated building blocks, the Business Model Canvas can be said to consist of five mutually exclusive but interdependent sub-models: Operating model; Strategy model; Customer Development model; Revenue model; Cost model. While recognizing the interdependencies between these sub-models, the Operating Model Canvas focuses on the Operating model. In their book, Campbell et al advise: “Before you fill out a Canvas … you need to understand the front end.”
The front-end of a Business Model Canvas consists of two sub-models: Customer Development (Customer Segment/Customer Relationship/Channels) model and Strategy (Value Proposition/Product/Service) model. For rapid prototyping, the front-end of the Business Model Canvas approximates to what Osterwalder and Pigneur call the “Value Proposition Canvas,” its components of which are a Value Map (illustrating trade-offs of Value Proposition/Product/Service) and Customer Profile (illustrating trade-offs of Customer Segment). With regard to the Operating Model Canvas for a startup, the initial deliverable from the Value Proposition Canvas is a validated Value Proposition as well as problem-solution fitness. For an established company, it is assumed that product-market fitness has been achieved so that the value proposition reflects a validated strategy and job-to-get-done.
Rather than the topics of Key Partners, Key Resources, and Key Activities, the Operating Model Canvas uses six topics that are summarized using the acronym, POLISM: Process; Organization; Locations; Information; Suppliers; Management Structure. I would have preferred use of the acronym, SOILMP, which starts with “Suppliers” and ends with “Process.” The latter acronym, which emphasizes the sequence of elements in a supply chain or value chain, facilitates understanding of the logic of the value creation system especially when reading blocks of sticky notes on the Operating Model Canvas.
A key question, which a prospective buyer is likely to ask, is: What are the main benefits of an Enhanced Business Model Canvas when compared to a Business Model Canvas? In other words, if someone already has the Business Model Generation book, why should that person buy the book on the Enhanced Business Model Canvas and in particular, the Operating Model Canvas? My short answer is that unlike in the Business Model Generation book, the Operating Model Canvas book helps people to rapidly develop and master skills for Multilevel Business Modeling as well as Operational and Modular Design. After reading the Operating Model Canvas book, one should be fluent at zooming in and out of building blocks while analyzing or designing an operational (business) model. Expert analysts and designers notwithstanding highly effective leaders are adept at multilevel analysis, design, and operation of modules. Also, the Operating Model Canvas presents 5 Core Tools and 13 Additional Tools for facilitating multilevel business modeling and value chain delivery design. This comprehensive toolkit increases the versatility of applications of the (Enhanced) Business Model Canvas in projects for business model improvement and innovation.
In conclusion, the book on the Operating Model Canvas is excellent. The content is beautifully presented as well as full of interesting examples from for-profit and not-for-profit organizations. The book also notes that an operational model can be presented at various levels of granularity: from documents of 1-page Operating Models through 10 and 100-page Operating Models (Value Chain Maps) to 1,000-page Operating Models (Process Manuals for the Organization/Functional Units). Nevertheless, the focus of the book is on a 1-page Operating Model. My serious concern is not with the book’s Operating Model per se but with the framework in which it is embedded, that is, the Business Model Canvas. In my book on the Business Model Canvas, I highlight “12 Handicaps” of the Business Model Canvas. Although the Operating Model Canvas eliminates some of the handicaps, it would have been great, if Andrew Campbell et al had pointed out residual handicaps or constraints of the Business Model Canvas and consequently, the Operating Model Canvas. It is important to note that the Business Model Canvas does not accurately model "coupled" platforms or multisided markets such as in Uber, Shell, and Benefits Department. The Business Model Canvas does not usually show relationships between different customer segments such as in Uber.
In spite of the aforementioned omission regarding inherent limitations of the Business Model Canvas, I highly recommend the Operating Model Canvas book especially for people who want to effectively and efficiently improve the performance of a process, business unit, or the whole of their organization. Andrew Campbell et al’s “Operating Model Canvas” is a valuable resource.
0 of 0 people found the following review helpful.
Operating models - the next level of enterprise maturity
By Peter Murchland
The Business Model Canvas provided a simple, practical and powerful means of enabling Boards and Executives in public, private and community sector organisations to consider existing and new business models that would be fundamental to their viability in the rapidly changing ecosystems in which they operate. Yet, a viable business model does not guarantee a successful enterprise.
The Operating Model Canvas is the next link in the chain, providing a simple, practical and powerful tool for CEOs and Executives to formulate operating models which will either realise their proposed business models, or prompt serious re-consideration of business models that "sound good" but are not feasible for their organisation. The Operating Model Canvas will be helpful in reducing the risk of failure in executing business strategy, prompting early attention to critical elements required for a viable operating model that can give effect to organisations' business model and strategy.
A great step forward in addressing the gap between business models and successful enterprises!
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