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The Synergy of Business Operating Model and Business Plan

Picture of Dean Rigby

Dean Rigby

Founding Partner

Every organisation, whether small or large, usually starts with a vision of how it wants to impact the world. This vision is often captured in the mission statement, and the business plan outlines how it intends to achieve that vision. As the business grows, it needs an adaptable operating model that flexes as your business grows but is always aligned to support the business strategy and ensure that the organisation is running efficiently and effectively. Your operating model must be aligned with your mission and business plan objectives, as this synergy creates a competitive advantage for your business.

1. Enhances Efficiency

Having an effective operating model ensures smooth operations, optimal employee productivity, and enhanced cost control. The model should align human resources, technology and processes to achieve maximum efficiency. If the business model is inconsistent with the business plan or mission, it can become more challenging to achieve the strategic objectives outlined in your business plan. A strong alignment between the operating model and the business plan will reduce friction that can negatively impact the performance of your business.

2. Enables Growth

Aligned operating models will help to prioritise your growth strategies and stimulate the growth of the business by reducing friction and creating momentum as the operational infrastructure will be optimised to support expansion. For example, if a company is expanding globally, the operating model needs to cater to the needs of the global market by being globally oriented. Every company has its unique model, and its essential to identify the one that works best. Growth is an exciting prospect, and the business model must scale to efficiently support new processes, technology, structure, and outlets.

3. Boosts Employee Engagement

An aligned operating model enables employees to feel a sense of purpose and understand how their contribution fits into the broader organisation’s goals. They understand how their initiatives align with the business objectives, which ultimately fuels their motivation to work towards achieving the business goals.

4. Enhances Customer Experience

Your operating model should be designed to deliver on the mission and objectives in the business plan. This means that you must identify customer requirements and expectations, then clearly outline how you intend to satisfy these expectations. On the other hand, if the business plan and operating model are not aligned, the customer experience and satisfaction levels are usually negatively impacted. A lack of clear process can lead to operational failures, which discourages customers.

5. Competitive Advantage

When the business model aligns with the plan, you create a competitive advantage as you’re able to adapt quickly and efficiently to changing market conditions. The business model’s agility helps steer through industry disruption and uncertainty, while the effectiveness of the model ensures the organisation runs without interruption. When companies operate efficiently, they often save money. The savings can be directed to areas such as product development, market expansion, or enhancing customer experiences, which ultimately creates a competitive advantage.

Organisations with effective operating models aligned with the business plan gain a distinct advantage over competitors. This operational efficiency enables you to confidently and quickly pivot to new ideas, innovate, and remain relevant in your industry. When the operating model works well, the business plan achieves its mission, and the organisation enjoys the benefits of growth, engaged employees, and happy customers. As a founder or owner, identify an operating model that aligns with your business plan today, and create the processes, people, and technology necessary to support the direction you want to go.