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05-14-19

HOW YOUR OPERATING MODEL IMPACTS ALIGNMENT

BlueprintCompanies operate in many ways. Some are highly centralized, others are highly decentralized.

Your corporate operating model is a key factor in deciding how to create alignment.

The following list is not meant to be exhaustive but can help you articulate your operating model.

The “One Business” Company

  • Company competes primarily in One Market
  • Most likely, the company is organized functionally (sales, marketing, manufacturing, etc.)
  • Most likely, there is One P&L

 

The Highly Centralized Corporation

  • Big, strong corporate headquarters
  • Most of the big decisions are made at corporate
  • Divisions are partially autonomous
  • Alignment is primarily created “top-down” by corporate

 

The Multidivisional Corporation

  • Strong corporate headquarters and strong divisions
  • Division leaders are General Managers
  • An even balance of power between corporate and divisions
  • Cross-divisional alignment is created by corporate

 

The Federation

  • Moderately strong corporate headquarters
  • Autonomous divisions, often led by Presidents
  • Only a small amount of “top-down” corporate-level alignment
  • Alignment is primarily created at the divisional level
  • Small focus on cross-divisional alignment

 

The Conglomeration – A Company of Companies

  • Small corporate headquarters
  • Company Presidents are highly autonomous
  • Alignment is primarily created at the operating company level
  • Little or no focus on cross-company alignment

 

The Association

  • Corporate has very little power
  • Members choose to affiliate—or not
  • Members pay to be a part of the association
  • Corporate has limited decision authority, and primarily exists to serve the members
  • Alignment is often around a common agenda

 

The Denomination

  • Many different operating models
  • Some have very strong corporate-driven alignment … others have very little
  • Always bound together by One Doctrine and/or One Tradition

 

The Abomination

  • If your company is in this category, you definitely need my upcoming book, Drive One Direction!

 

What is your company’s operating model?

 

SHIFTPOINTS® helps companies unleash the accelerating power of alignment, because

Alignment is the ultimate competitive advantage™.

Contact us at start@shiftpoints.com or www.shiftpoints.com.