An operating model is a strategic blueprint that outlines how an organisation’s various components, including its organisational structure, processes, capabilities, and technologies, work together to achieve its business objectives. It provides detailed guidelines on how resources are allocated, tasks are performed, and decisions are made across the organisation.  By defining roles, responsibilities, and workflows, the operating model ensures that the organisation operates efficiently, effectively, and in alignment with its overarching strategy.  Example: A retail company uses a centralised operating model where all inventory is managed from a single warehouse and distributed to stores as needed.