A critical step in Data Management Organization design is identifying the best-fit operating model for the organization. The operating model is a framework articulating roles, responsibilities, and decision-making processes. It describes how people and functions will collaborate.
A reliable operating model helps create accountability by ensuring the right functions within the organization are represented. It facilitates communication and provides a process to resolve issues. While it forms the basis for the organizational structure, the operating model is not an Organization-Chart – it is not about putting names in boxes, but about describing the relationship between the component pieces of the organization.
There are basically, five following Operating Models and each one has it’s own Pros-n-Cons:
- Decentralized Operating Model
- Network Operating Model
- Centralized Operating Model
- Hybrid Operating Model
- Federated Operating Model
Identifying the Best Model for an Organization
The operating model is a starting point for improving data management and data governance practices. Introducing it requires an understanding of how it may impact the current organization and how it will likely need to evolve over time. Since the operating model will serve as the structure through which policies and processes will be defined, approved, and executed, it is critical to identify the best fit for an organization.
Assess whether the current organizational structure is centralized, decentralized, or a combination, hierarchical or relatively flat. Characterize how independent divisions or regions are. Do they operate almost self-sufficiently? Are their requirements and goals very different from each other? Most importantly, try to determine how decisions are made (e.g., democratically or by fiat), as well as how they are implemented.
The answers should give a starting point to understand the organization’s location on the spectrum between decentralized and centralized.
Whichever model is chosen, remember that simplicity and usability are essential for acceptance and sustainability. If the operating model fits the culture of a company, then data management and proper governance can be embedded in operations and aligned with strategy. Keep these tips in mind when constructing an Operating Model:
- Determine the starting point by assessing current state Tie the operating model to organization structure
- Take into account:
- Organization Complexity + Maturity
- Domain Complexity + Maturity
- Scalability
- Get executive sponsorship – a MUST for a sustainable model
- Ensure that any leadership forum (steering committee, advisory council, board) is a decision-making body
- Consider pilot programs and waves of implementation
- Focus on high-value, high-impact data domains
- Use what already exists
- Never take a One-Size-Fits-All approach
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