IT Operating Model Design - Insights from Richard Keenlyside

In today’s fast-paced digital world, designing an effective IT operating model is crucial for organisations aiming to thrive. I have spent years helping businesses navigate the complexities of IT strategy and digital transformation. Through my experience, I have come to understand that a well-crafted IT operating model is not just a framework; it is the backbone of sustainable growth and operational excellence.

Understanding the Importance of IT Operating Model Design

An IT operating model defines how technology functions within an organisation. It outlines the structure, processes, roles, and governance needed to deliver IT services effectively. Without a clear operating model, businesses risk inefficiencies, misaligned priorities, and missed opportunities for innovation.

When I work with clients, I emphasise that the IT operating model must align tightly with the organisation’s overall strategy. This alignment ensures that IT investments support business goals, whether that means accelerating digital transformation, improving customer experience, or enhancing operational efficiency.

A practical example is a global manufacturing firm I advised recently. They struggled with fragmented IT processes across regions, leading to inconsistent service delivery and high costs. By redesigning their IT operating model, we introduced standardised processes and clear accountability, which reduced downtime and improved responsiveness.

IT operating model in action at a corporate office

Key Components of an Effective IT Operating Model

Designing an IT operating model involves several critical components. I always start by focusing on these five pillars:

1. Governance and Leadership

   Clear governance structures define decision-making authority and accountability. Leadership must champion IT initiatives and ensure alignment with business priorities.

   
   

2. Service Delivery Model

   This defines how IT services are provided, whether through internal teams, outsourced partners, or a hybrid approach. It includes service management processes like incident resolution and change management.

   
   

3. Organisational Structure

   The structure should support collaboration and agility. This might mean creating cross-functional teams or centres of excellence focused on innovation.

   
   

4. Technology and Tools

   Selecting the right technology stack and tools is essential. They must support automation, integration, and scalability.

   
   

5. Performance Metrics and Continuous Improvement

   Establishing KPIs and feedback loops helps monitor effectiveness and drive ongoing enhancements.

   
   

Each of these components must be tailored to the organisation’s size, industry, and maturity level. For example, a startup may prioritise agility and rapid innovation, while a large multinational might focus on standardisation and risk management.

Aligning IT Operating Model with Business Strategy

One of the most common pitfalls I see is when IT operates in a silo, disconnected from the broader business strategy. To avoid this, I recommend embedding IT leadership within strategic planning processes. This ensures technology initiatives directly support business objectives.

For instance, if a private equity firm is acquiring a portfolio company, the IT operating model should be designed to enable rapid integration and scalability. This might involve consolidating IT systems, harmonising processes, and establishing clear governance to manage risks.

I often advise clients to use a business capability map as a tool. This map links business functions to IT capabilities, highlighting where technology can add value or needs improvement. It provides a clear visual guide for prioritising IT investments.

Business capability mapping for IT operating model alignment

Practical Steps to Design Your IT Operating Model

Designing an IT operating model can seem daunting, but breaking it down into manageable steps makes the process more approachable. Here is a practical roadmap I use with clients:

1. Assess Current State

   Conduct a thorough review of existing IT processes, organisational structure, technology, and governance. Identify pain points and gaps.

   
   

2. Define Future State Vision

   Collaborate with business leaders to articulate the desired future state. This includes strategic goals, service expectations, and cultural considerations.

   
   

3. Design Operating Model Components

   Develop detailed designs for governance, service delivery, organisational structure, technology, and performance metrics.

   
   

4. Develop Implementation Roadmap

   Prioritise initiatives based on impact and feasibility. Create a phased plan with clear milestones and resource requirements.

   
   

5. Execute and Monitor

   Implement changes iteratively, monitor performance, and adjust as needed. Continuous improvement is key to long-term success.

   
   

Throughout this process, communication and stakeholder engagement are vital. I encourage regular workshops and feedback sessions to ensure alignment and buy-in.

Leveraging IT Operating Model Design for Digital Transformation

Digital transformation is a top priority for many organisations today. However, without a robust IT operating model, transformation efforts often falter. I have seen firsthand how a well-designed operating model can accelerate digital initiatives by providing clarity and structure.

For example, a global financial services company I worked with wanted to implement advanced analytics and automation. By redesigning their IT operating model, we established a centre of excellence for data analytics, integrated agile delivery teams, and introduced governance frameworks to manage data privacy and security.

This approach enabled them to deploy new digital capabilities faster and with greater confidence. It also fostered a culture of innovation and continuous learning.

If you want to explore more about strategic IT leadership and digital transformation, I recommend visiting my website for further details.

Building Resilience and Agility into Your IT Operating Model

In today’s volatile business environment, resilience and agility are non-negotiable. Your IT operating model must be designed to adapt quickly to changing market conditions, regulatory requirements, and technological advances.

I advise organisations to embed flexibility by:

• Adopting modular architectures that allow components to be updated independently

• Implementing agile methodologies for faster delivery and iteration

• Establishing clear escalation paths to manage risks and incidents promptly

• Investing in workforce skills development to keep pace with emerging technologies

  
  

By doing so, IT becomes a strategic enabler rather than a bottleneck. This mindset shift is essential for sustainable growth.

Final Thoughts on IT Operating Model Design

Designing an IT operating model is a strategic investment that pays dividends in operational efficiency, innovation, and business alignment. It requires a clear vision, disciplined execution, and ongoing refinement.

I encourage organisations to view their IT operating model as a living framework that evolves with their business. By focusing on governance, service delivery, structure, technology, and performance, you can build a resilient foundation for digital success.

If you are ready to transform your IT function and drive sustainable growth, consider partnering with experts who understand the nuances of IT operating model design. Together, we can navigate the complexities and unlock your organisation’s full potential.

Thank you for reading, and I look forward to sharing more insights on strategic IT leadership and digital transformation in future posts.