Business & Operating ModelStandard Methodology

Business & Operating Model Alignment

AIA's recurring 'What / How' framework linking business definition (services, channels, customers) to operating-model design (people, infrastructure, systems & technology, culture, processes), used repeatedly across public-sector clients to align mandate, strategy, operating model and organisational design.

What it is

A two-part diagnostic and design framework: the 'Business' (WHAT) layer defines services, channels and customers against the mandate; the 'Operating' (HOW) layer defines the people, infrastructure, systems & technology, culture and processes needed to deliver on that mandate efficiently. AIA has applied this same structure, largely unchanged, across at least four different public-sector clients (CSIR, a GEMS innovation unit, an ESR entity, and further public-sector governance reviews).

Problem it solves

Organisational design projects often start with structure; this framework forces clients to first agree what they are there to do (mandate → business) before deciding how they will be organised to do it (operating model).

When to use

  • A client needs to redesign or validate its operating model against its mandate
  • An organisational design or restructuring project needs a defensible starting diagnostic

When not to use

  • The mandate itself is contested or under active political/legislative revision — resolve the mandate question first

Key questions

  • What processes drive delivery and information flow to clients/customers? (Business)
  • What infrastructure, systems and staff capability/culture are needed? (Operating)
  • How must resources be utilised for efficiency?

Inputs

  • Legislative or organisational mandate
  • Current service catalogue and customer/channel map
  • Current org structure, systems and culture assessment

Steps

  1. 1Define the future state through mandate & strategyEstablish services, channels and customers required by the mandate and strategy (the 'Business'/WHAT layer).
  2. 2Design the operating modelDefine people, infrastructure, systems & technology, culture and processes needed to deliver the business layer (the 'Operating'/HOW layer).
  3. 3Align operating to businessTest and adjust the operating model until it is capable of delivering the defined business layer efficiently.

Outputs

  • Business/operating model alignment diagnostic
  • Target operating model design
  • Input to organisational structure design

Common mistakes

  • Designing the operating model (structure, systems) before the business/mandate layer is agreed
  • Reusing a prior client's content instead of the framework structure

How to tailor

The Business (services/channels/customers) and Operating (people/infrastructure/systems/culture/processes) categories are fixed; the specific content in each box must be rebuilt per client mandate.

Source visuals

Business & Operating 'What/How' alignment framework
Business & Operating 'What/How' alignment framework
operating modelorganisational alignmenttarget operating modelbusiness modelmandate alignment
Custodian: Corporate Support. Internal (staff access). Source: AIA_Methodologies_2024.pptx (slides 44, 45, 46, 47, 121).