type
sm-banner
gradient-overlay
dark
background-image
space_digital_abs_sml.jpg
background-image-mobile
space_digital_abs_mob.jpg
eyebrow
Article
title
Operating model transformation
subtitle
Strategies to scale faster, build resilience, create capacity and drive growth
date
November 11, 2026
breadcrumb
Home Insights Services Managed services
text-color
light
Operating model transformation
  • Managed services

What is an operating model and why does it matter?

Your operating model defines how your organization uses people, processes, technology and governance to execute your strategy. While your business model defines what value your company creates, an operating model determines how that value is delivered consistently and at scale.

reimagine_hub_graphic_v2.png

Key components of an operating model

  • People: Organizational structure, leadership, culture and talent
  • Process: Workflows, capabilities and decision making
  • Technology: Systems, data and digital tools
  • Governance: Oversight, accountability and controls

Why your operating model matters

  • Aligns strategy and execution
  • Improves operational efficiency
  • Supports scalability
  • Increases clarity and accountability

What is operating model transformation?

Operating model transformation is the process of redesigning how your people, processes, technology and governance work together to support business growth, improve operational efficiency and increase resilience.

What are the signs your operating model needs to change?

Organizations often revisit their operating models when growth creates operational strain, limits scalability or increases complexity.

Operating model transformation is often pursued when organizations:

Leading organizations are reimagining how critical functions operate by combining technology, specialized talent and managed services to improve performance, increase resilience, create capacity and support sustainable growth.

How can organizations reduce operational strain? 4 common approaches

Organizations typically utilize four approaches to address operating model challenges: process optimization, automation, specialized talent or managed services.

1. Redesign internal processes

Organizations may improve performance by simplifying workflows, clarifying responsibilities or updating governance structures.
Best for:

  • Clearly identified inefficiencies
  • Limited complexity growth
  • Strong internal expertise

2. Increase automation

Technology investments can reduce repetitive work and improve consistency.
Best for:

  • Highly repetitive processes
  • Data-intensive workflows
  • Standardized activities

3. Add specialized talent

Staff augmentation and contract resources can fill specific expertise gaps.
Best for:

  • Project-based needs
  • Temporary capacity shortages
  • Specialized technical requirements

4. Adopt a managed operating model

Organizations can transfer defined responsibilities to experienced specialists while maintaining oversight and strategic control.
Best for:

  • Persistent capacity challenges
  • Ongoing operational needs
  • Regulatory complexity
  • Scalability requirements
  • Access to specialized expertise

The right option depends on your organizational goals, operational maturity and the nature of the challenge being addressed.

Staff augmentation versus managed services: What's the difference?

To strengthen the operating model, many companies turn to staff augmentation and managed services strategies. Staff augmentation adds talent to an existing operating model while managed services provide ongoing support through a combination of people, processes, technology and governance.

Staff augmentation Managed services
Addition of specialized talent Addition of talent, process and technology
Management by company Management shared by company and provider
Short-term need Ongoing operational need
Expanded capacity Transformed delivery

Both approaches can help address capacity challenges, but they solve different problems.

Staff augmentation adds specialized talent to your existing team. Your organization continues to manage the people, processes and outcomes.

Managed services provide ongoing support for a defined function through a combination of talent, processes, technology and governance, helping your organization improve scalability, consistency and operational resilience.

Generally speaking, staff augmentation helps when you need additional resources; managed services help when you need a more sustainable operating model.

Explore solutions by function

Finance

Is your reporting taking too much time and stifling strategic planning efforts?

Reimagine your finance function

Technology

Are your systems, infrastructure and applications becoming harder to manage?

Reimagine your technology function

Security

Is your risk exposure increasing faster than your internal capabilities can keep up?

Reimagine your security function

HR

How are talent acquisition, retention and workforce support affecting your resources?

Reimagine your people function

Payroll

Are growing compliance demands and workforce expectations putting pressure on your payroll operations?

Reimagine your payroll function

Data and analytics

Do your decision makers have the trusted insights and scalable reporting they need?

Reimagine your data function

Fund administration

Is growth creating greater operational complexity and increasing investor demands?

Reimagine your fund operations

Tax

How difficult and resource-intensive is keeping pace with changing tax requirements?

Reimagine your tax function

How organizations are reimagining critical functions

Organizations rarely improve operational performance through a single initiative. Leading organizations combine process optimization, technology modernization, specialized talent and managed services to create more scalable operating models.

See how organizations have strengthened critical functions to address capacity challenges and improve performance:

Section Title
Section Subtitle
Layout
feature
Pages
  • /insights/industries/life-sciences/from-science-to-scale-how-biopharma-geron-transformed-with-rsm
  • /insights/services/managed-services/government-contractor-strengthens-compliance-and-cybersecurity-by-outsourcing
  • /insights/services/managed-services/outsourcing-fuels-success-for-global-energy-business
  • /insights/services/managed-services/investment-firm-gets-a-new-start-with-managed-services
  • /insights/industries/health-care/transforming-financial-operations-for-an-expanding-surgery-practice
Cards per Row
3
Number of Rows
2
Order By
date
Sort Order
descending
Show CTA Button
true
Override CTA Label
blank
Carousel On Mobile
true
Legacy Carousel on Mobile Style
true
Carousel Swiper Text
Swipe for more insights
Link Target
Same Tab

Why operating model transformation affects every business function

Finance, technology, security, HR and data teams do not operate independently. Challenges in one function often create inefficiencies across the organization. Effective operating model transformation improves coordination across people, processes, technology and data to support scalable growth.

Frequently asked questions

What are the signs an operating model needs to change?
Common indicators include difficulty hiring specialized talent, increasing operating costs, compliance challenges, outdated processes, technology complexity, limited visibility into performance metrics and an inability to scale efficiently as the organization grows.
How can organizations scale operations without adding headcount?
Scalable operating models combine efficient processes, technology enablement, workforce flexibility and specialized support to help organizations adapt to changing business demands while maintaining quality and control.
How can organizations improve operational resilience?
Organizations often improve resilience by strengthening governance, standardizing processes, modernizing technology, enhancing data quality, increasing automation and gaining access to specialized functional expertise.
Which business functions most commonly benefit from outsourcing, co-sourcing or staff augmentation?
Finance and accounting, tax, payroll, HR, information technology, cybersecurity, data and analytics, applications management, and fund administration are the most common functions that benefit from some form of outsourcing model as business needs evolve.