--- title: HOW DOES YOUR OPERATING MODEL IMPACT ALIGNMENT? description: Some companies are highly centralized, some are highly decentralized. 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[January 2024 (1)](https://www.shiftpoints.com/blog/archive/2024/01) - [February 2025 (1)](https://www.shiftpoints.com/blog/archive/2025/02) 09-10-19 ## HOW DOES YOUR OPERATING MODEL IMPACT ALIGNMENT? ![LinkedIn-Post_Whichfactor](https://www.shiftpoints.com/hs-fs/hubfs/SOCIAL%20MEDIA%20QUOTE%20IMAGES/LinkedIn-Post_Whichfactor.jpg?width=1150&name=LinkedIn-Post_Whichfactor.jpg)Companies 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](https://www.shiftpoints.com/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](mailto:start@shiftpoints.com) or [www.shiftpoints.com](https://www.shiftpoints.com). 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