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Operating Model

How the enterprise actually works: the flows of work that turn requests into value, and the way they are run.

Operating Model: practitioners at work
The structure.
Who reports to whom.
The work.
How requests become value, across teams.
The model.
The flows of work, and how they are run.
EXHIBIT 1 · STRUCTURE AND WORK ARE DIFFERENT VIEWS
THE STRUCTURE
Executive
Commercial
Operations
Sales
Service
Supply
Finance
THE WORK · ORDER-TO-CASH
GET
Order arrives
SORT
Routed to a path
DO
Fulfilled
PROVE
Invoiced and proven
IMPROVE
Reviewed
The org chart shows who reports to whom. The operating model is how the work moves across them.
Why it is no longer optional
A new strategy has been approved. Will the business actually run any differently?

Leaders are now asked to show how a strategy changes the way the business operates, not only what it funds. When the operating model stays the same, the results usually do too.Only 48% of digital initiatives meet or exceed their business outcome targets.Gartner, 2025 CIO and Technology Executive Survey, n = 3,186

Definition

What is an operating model?

Ask most people to describe how their company works and they will describe the structure: the divisions, the functions, the reporting lines. The structure matters, but it is not how the work gets done. Work gets done in flows that cross the structure: an order moves from sales to operations to finance; a hiring request moves from a manager to HR to IT.

The operating model is the collection of those flows and the way they are run. It is what a customer, an employee or a regulator actually experiences. It is also what a transformation has to change if results are going to change.

An operating model is a collection of integrated end-to-end value streams and lifecycles/workflows engineered and orchestrated to produce scalable value.

That is the layer ZBTOS teaches you to work on.

Two things often get the same name.

The structure
Divisions, functions, roles and reporting lines. A restructure changes these. On its own, it leaves the flows of work as they were.
The operating model
The value streams and workflows the enterprise runs, and how each one takes in, routes, does, proves and improves its work.
Four leaders at a conference table discussing how the business actually runs
Why it matters
Why the operating model matters in a transformation

A transformation can be fully active, with every workstream green, and still leave the operating model unchanged. When that happens, the strategy was approved, the projects were delivered, and the business runs as before.

1
Results live in the operating model.
Cost, speed, quality and customer experience are produced by the flows of work, not by the structure above them.
2
It is what a transformation changes.
Zero-Based Transformation™ starts from what the operating model must become, and works back to the initiatives.
3
It can be read.
Unlike strategy intent, the operating model is observable: the work is either flowing differently or it is not.
The ZBTOS approach

How ZBTOS reads an operating model

ZBTOS reads every flow in an operating model through the same five functions, called GSDPI™: Get. Sort. Do. Prove. Improve.® Each function is a standing part of every flow, present whether or not anyone is managing it.

GET
Work enters.
SORT
Work is routed.
DO
Work is performed.
PROVE
Completion and value are evidenced.
IMPROVE
The flow learns.

Reading every flow the same way lets sponsors compare them, and lets practitioners see which functions no single team owns across the enterprise. How to read a flow, and how to read a function across many flows, is taught in the Foundation Course.

Where it is taught

Learn it, then apply it to your own transformation.

Already running
Every operating model already routes, proves and improves its work. The question is whether anyone governs how.

An inbox, a spreadsheet and a standing meeting can be a routing function. Reading the operating model starts with what is actually running, not with the org chart.

Questions

Is an operating model the same as an org chart?

No. An org chart shows who reports to whom. The operating model is how work flows across those people and teams, from a request arriving to its value being proven.

How is it different from a target operating model?

A target operating model describes an intended future state, usually as structure, roles and capabilities. The operating model is what the work actually runs on today.

Where does ZBTOS teach this?

In the Foundation Course, where a cohort from across your enterprise reads the operating model of a shared case, and in the Practitioner Intensive, on one of your own live transformations.

Foundation Course · two days
Learn to read the operating model your enterprise actually runs.
Explore the Foundation Course →Request program information ›

Not ready for a course? Get the ZBTOS Briefing › New reads on the operating model, as they are published.

ZBTOS by ETEGY

Training, assessment and support for transformation capability.

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Zero-Based Transformation™, ZBTOS™, GSDPI™, Voice of the System™ and Traceability Ratio™ are trademarks of ETEGY. Get. Sort. Do. Prove. Improve.® is a registered trademark of ETEGY. Privacy · © 2026 ETEGY