The Operating Model That is Eating the World

Undercurrent – a consultancy firm helping organisations with the rapidly changing environment – shared an operating model todays fastest growing, and most impactful companies are using. Examples of these companies are e.g. Tesla, Airbnb, Dropbox, Evernote, Uber. According to Undercurrent – and I fully agree – today’s largest and most important organisations face two critical challenges:

  1. The world around them is changing faster than ever.
  2. Their own scale and complexity are working against them.

Only organisations that become responsive will thrive – responsive to their customers, culture, competition, technology, regulation, and all other forces of disruption.

The operating model according to Undercurrent

The operating model of these companies consist of five nested domains: Purpose, Process, People, Product and Platform. They are nested because each P informs the remaining Ps inside it (e.g. Purpose informs choices you’ll make about Process, People, Product, etc.). In each case, important value shifts are redefining the work of the organisation. Because the value shifts and new ways of working that define this model were largely born in the software community among these responsive organisations, we often refer to them as a “Responsive Operating System” or “Responsive OS.” This manifests in a visionary (not commercial) Purpose that guides an agile (not linear) Process that enables People who make (not manage) Products built to evolve (not built to last) which become Platforms for the world (not just your company) to build upon. 

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Check this article for an in depth explanation of this model, or the companies website.