A New Operating Model for a New World: Closing the Strategy-to-Performance Gap
Strategy gets the headlines—but it’s your operating model that writes the results. Discover how to rewire your organization for speed, clarity, and value in a volatile world.
In every boardroom I’ve ever walked into, someone inevitably says: “We have a solid strategy—why aren’t we performing better?”
The truth is simple and uncomfortable: strategy without execution is a hallucination, and most organizations don’t fail for lack of ideas—they fail because their operating model can’t keep up. That’s why the real differentiator today isn’t what’s on paper—it’s how you bring it to life. And that’s where your operating model comes in.
Why Strategy Alone Isn’t Enough
Your business might have a brilliant vision, sharp market positioning, and ambitious growth targets. But unless your operating model is intentionally designed to deliver that vision, you’re leaving performance on the table.
👉 According to McKinsey, even high-performing companies leave up to 30% of their strategy’s potential unrealized, due to operating model shortcomings.
So let’s break this down. What do high-performing operating models actually do?
They deliver four critical outcomes:
- Clarity: People know the “why,” the “what,” and the “how.”
- Speed: Decisions are fast. Execution is faster.
- Skills: Talent is aligned, capable, and empowered.
- Commitment: Culture amplifies strategy, not hinders it.
Without these, strategy is just wishful thinking in a PowerPoint deck.
From 7S to 12: Rethinking the Model for a Dynamic World
Remember the McKinsey 7S framework? Great in its time. But today’s world is too fast, too fragmented, and too fluid for static models.
Enter the “Organize to Value” system—a modern, 12-element approach designed to respond to geopolitical shifts, digital disruption, and changing workforce dynamics.
These 12 elements are:
- Purpose
- Value agenda
- Structure
- Ecosystem
- Leadership
- Governance
- Processes
- Technology
- Behaviors
- Rewards
- Footprint
- Talent
They’re not a checklist. They’re a system. And smart organizations design them together, not in isolation.
Building Your Unique “Fingerprint”
Every organization has a fingerprint—a unique configuration of these 12 elements.
The goal isn’t to copy the latest Silicon Valley trend. It’s to build a model that fits your strategy, culture, and context.
You can:
- Tweak a few elements to move to an adjacent fingerprint
- Or go all in and shift the entire system to create transformative change
Either way, it starts with diagnosing your current fingerprint.
Why Structure Is Overrated (But Still Matters)
Here’s the hard truth: Structure won’t save you. Yet it’s the first thing most execs reach for when performance lags.
Sure, matrix vs agile vs product platform models matter—but they’re only one piece of the puzzle.
High performers today often combine emergent structures (like enterprise agile or decentralized networks) with:
- Cross-functional squads
- Empowered product owners
- Fast decision-making protocols
- Real-time data visibility
Structure should enable, not constrain.
The Four Questions Every CEO Must Ask
Before launching into a massive redesign, start here:
- Where is the strategy-to-performance gap?
- What outcomes do we need—clarity, speed, skills, commitment?
- How do our 12 operating model elements interact today?
- Are we refining the model, or are we reinventing it?
Answer honestly, and you’ll know whether you’re ready for evolution or revolution.
From Operating Model to Competitive Advantage
Done right, your operating model becomes your edge.
It’s how you allocate scarce resources—people, capital, attention—in alignment with your value agenda. It’s how decisions get made. How teams are formed. How AI is deployed. How culture reinforces—not resists—change.
And it’s how you move from strategy as aspiration to strategy as outcome.
Final Thought: You Can’t Scale What You Can’t Operationalize
Great strategy makes you smart.
A great operating model makes you fast.
But only when both work together do you become unbeatable.
In 2025 and beyond, the winners won’t be the ones with the boldest slides. They’ll be the ones with the clearest fingerprints, the strongest systems, and the most committed people.
So, before your next big strategy offsite, ask yourself:
“Do we have the operating model to make it real?”
If the answer’s even slightly uncertain… it’s time to roll up your sleeves.