Most organizations don’t fail because of strategy. They fail because the operating model cannot carry the strategy. Even the most compelling vision will stall if decision rights, incentives, ownership, data flows, and governance routines remain unchanged. Strategy sets ambition, but the operating model determines throughput—how fast, how consistently, and how credibly an institution can deliver.
Why operating models—not strategies—determine performance
Well-written strategies are becoming common. But execution remains uneven because operating models still carry legacy constraints:
- Decision rights designed for stability, not transformation
- Ambiguous accountability that dilutes ownership
- Incentives that reward activity, not outcomes
- Governance cycles that are too slow for modern transformation speed
- Siloed workflows that break end-to-end delivery
The gap between aspiration and delivery is almost always a system gap, not a strategy gap.
The restructuring illusion
Changing org charts creates the appearance of transformation, but:
- It does not change who truly decides
- It does not change how work moves
- It does not clarify who owns benefits
- It does not shift how conflicts are resolved
- It does not fix bottlenecks in approvals
Organizational restructuring is cosmetic unless paired with operating model redesign. Without redesign, individuals adapt the structure back to old routines.
The four elements that determine throughput
High-performing institutions treat the operating model as an integrated “delivery engine.” Four elements determine flow:
1. Decision rights
Clarity on:
- Who recommends
- Who decides
- Who must be consulted
- Who should not be consulted
This accelerates closure and eliminates rework driven by escalation or ambiguity.
2. Accountability for delivery and benefits
Accountability must be:
- Named
- Documented
- Measurable
- Visible in governance
- Tied to consequences
Capabilities only scale when outcomes—not tasks—have clear owners.
3. Governance cadence
Governance should match the rhythm of transformation:
- Monthly strategic alignment
- Bi-weekly portfolio management
- Weekly operational steering
- Time-bound escalation pathways
Velocity depends more on governance design than on team size.
4. Incentives that shape real behavior
People follow what is measured.
Alignment requires:
- Incentives tied to outcomes
- Role-based KPIs
- Recognition mechanisms
- Disincentives for delay or scope drift
Otherwise, the strategy competes with operational pressures—and loses.
Designing for Saudi reality
In Saudi Arabia’s institutional environment, operating models must balance:
- Formal governance and regulatory expectations
- Speed required by national transformation agendas
- Coordination across ministries, regulators, municipalities, SOEs, and private players
- Capacity constraints in new or scaling institutions
The goal is not “less governance.” It is governance designed for throughput—tight where risk is high, fast where agility is essential.
What high-performing operating models enable
Institutions with strong operating models exhibit:
- Rapid decision cycles
- Predictable execution
- Faster issue resolution
- Cohesive cross-functional delivery
- Clear ownership of outcomes
- Stronger credibility with stakeholders, boards, and regulators
They deliver strategy because they are built to.
A practical approach to operating model redesign
- Define value streams: What must flow end‑to‑end?
- Map decision points: Where does work get stuck?
- Assign rights and ownership: Clarify roles with no overlap.
- Redesign governance: Faster cadence, fewer forums, clearer remits.
- Align incentives: Tie rewards to outcomes and throughput.
- Pilot and refine: Iterate with real cases—not theoretical diagrams.
Operating models evolve; they are not “implemented.”
Conclusion
If strategy is the destination, the operating model is the vehicle.
Transformations succeed when institutions fix the vehicle early—so decisions close, work flows, and execution becomes a capability, not a struggle. Without a redesigned operating model, strategy remains aspirational. With one, it becomes inevitable.
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