An Operating Model is not just a set of processes that guide an organization's daily operations, but a strategic framework that integrates people, technology, and processes to achieve long-term goals.
Through this framework, organizations can orchestrate decision-making, resource management, and service delivery in a cohesive manner. In the context of a diversified, multisectoral holding group, the importance of a robust Operating Model is magnified due to the need to manage diverse business lines that require unique yet coherent operational approaches. The challenge lies in balancing the flexibility needed to adapt each business line with the necessity of maintaining a centralized strategy that ensures efficiency and consistency across the organization.
When considering Customer Experience (CX), the Operating Model takes on even greater significance. In today’s experience-driven economy, companies no longer compete solely on price or product quality but on their ability to deliver meaningful and seamless interactions to their customers. A well-designed Operating Model becomes the backbone that ensures every interaction—from the first touchpoint to post-sale service—aligns with customer expectations. To achieve this, the design of the model must prioritize CX, integrating customer-centric processes that enable consistent, reliable, and personalized delivery.
This essay will explore how companies, particularly those operating in diversified environments, can design and optimize their Operating Model to enhance the customer experience. Additionally, it will examine how leading companies across various industries have leveraged their Operating Models to transform customer experience and the best practices that can be adopted to build a competitive advantage through a CX-focused approach.
>> Importance of customer experience (CX) design <<
The Operating Model and its impact on Customer Experience
As previously mentioned, an Operating Model defines the mechanisms through which an organization creates and delivers value. For companies operating in a multisectoral environment, the model must be tailored accordingly.
An Operating Model is the framework that establishes how an organization delivers value, integrating people, processes, and technology to achieve its strategic objectives. It coordinates the flow of operations and decision-making across various functions, departments, and business lines. In a diversified and multisectoral holding group, the complexity of managing multiple business lines makes a robust Operating Model essential for maintaining consistency, efficiency, and flexibility.
From a Customer Experience (CX) perspective, the Operating Model is crucial in defining the quality of interactions between a company and its customers. A company's ability to consistently meet customer expectations depends on the smooth functioning of its operations. When well-designed and strategically aligned, an Operating Model enhances customer satisfaction, engagement, and trust, driving long-term loyalty. This essay will explore how the Operating Model can be designed and optimized with customer experience as a primary focus.
For multisectoral organizations, the Operating Model must accommodate diverse business lines while ensuring operational consistency. When CX is integrated into the Operating Model's design, the organization can consistently deliver value through optimized service delivery, simplified processes, and customer-centric operations.
The impact on CX is direct: a well-executed Operating Model improves service reliability, reduces friction in customer interactions, and ensures that customer touchpoints align with expectations. A prime example is Unilever, which redesigned its Operating Model to focus on customer needs across its diverse product range. By restructuring its supply chain and distribution networks, Unilever enhanced product availability and reduced delivery times, significantly improving overall customer satisfaction.
Furthermore, integrating CX into the Operating Model builds trust by ensuring that services and products are consistently delivered as promised. Trust is critical in industries such as financial services or healthcare, where customer interactions are pivotal. Operational failures, such as service delays or poor communication, can severely damage customer trust. Conversely, when operations are aligned with CX principles, customers are more likely to engage with the brand over the long term.
An Operating Model tailored to enhance CX plays a pivotal role in building customer engagement and fostering loyalty. Engagement goes beyond transactional interactions—it is the emotional connection customers feel towards a brand based on their experiences. A frictionless and reliable customer journey builds this connection, encouraging repeat business and deepening loyalty.
Consider the example of Zara, a global retail giant known for its fast fashion business model. Zara’s Operating Model is designed to rapidly respond to changing customer preferences by reducing lead times between design and product availability. This operational agility enables Zara to engage customers by offering new products that are always in line with current trends, fostering strong customer loyalty.
Customer loyalty is also driven by the reliability of service delivery. A strategically aligned Operating Model that prioritizes customer needs ensures that services are predictable and consistent. This, in turn, reduces customer churn and increases retention rates. In competitive industries like telecommunications, companies like Verizon have re-engineered their Operating Models to offer personalized service bundles, proactive customer support, and tailored communication, all aimed at retaining high-value customers.
Revolutionizing the Customer Experience with a superior operating model
A superior Operating Model transforms the role of CX from being merely a service function to a key driver of business growth. By embedding CX into the core of its operations, a company can deliver personalized, responsive, and differentiated experiences that create a competitive edge. For multi-sectorial enterprises, this approach ensures that CX is not treated as an afterthought but as an integral part of the business’s growth engine.
For example, Disney has revolutionized the customer experience in its theme parks through a digitally enhanced Operating Model. By integrating digital technologies such as the MagicBand, Disney allows customers to access services, make payments, and manage reservations seamlessly. This not only improves the on-site experience but also drives greater customer satisfaction, as interactions are simplified and personalized.
An Operating Model designed with CX at the forefront enables businesses to continuously refine their value propositions in response to customer feedback and market trends. Netflix has effectively used its Operating Model to refine its content offerings based on customer data. By understanding viewer preferences and adjusting its content acquisition strategy accordingly, Netflix provides a tailored entertainment experience, contributing to its rapid global growth and high levels of customer engagement.
Designing a frictionless customer experience with a strategic Operating Model
A frictionless customer experience requires the Operating Model to align seamlessly with the company’s overall business strategy. Every process, from back-office operations to customer-facing services, must be optimized to ensure that customers encounter minimal delays, errors, or obstacles throughout their journey. This operational coherence is crucial in sectors where high competition and low switching costs mean that customers can easily move to a competitor.
For example, Uber’s Operating Model integrates ride-hailing services with customer preferences, GPS data, and real-time feedback loops to deliver an experience that minimizes friction. Customers can request rides, track their drivers, and provide feedback—all through a single app. This frictionless experience has been a key factor in Uber’s global success and has contributed to its reputation for innovation in CX.
The alignment between the Operating Model and the business strategy is particularly important in industries like telecommunications, where customers expect reliable connectivity, transparent billing, and rapid problem resolution. Vodafone’s Operating Model leverages automation and self-service tools to improve response times and reduce errors, providing a frictionless experience that enhances customer loyalty.
Gaining competitive advantage by focusing on Customer Experience
Companies that excel at integrating CX into their Operating Models gain a significant competitive advantage, particularly in industries with high customer interaction volumes. A well-designed Operating Model allows companies to respond to customer needs more rapidly, offer personalized services, and maintain operational efficiency. The result is a unique value proposition that competitors find difficult to replicate.
In the financial services sector, for instance, digital banks like Monzo and N26 have disrupted traditional banking models by designing their Operating Models around mobile-first customer experiences. Their agility in offering real-time updates, transparent fee structures, and seamless user interfaces has allowed them to carve out a competitive niche, attracting tech-savvy customers who prioritize convenience and personalization.
Similarly, in the retail industry, brands like Nike have gained an edge by leveraging their Operating Models to create immersive customer experiences both online and offline. Nike’s Direct-to-Consumer strategy, supported by its Operating Model, has enabled the brand to control its retail operations more effectively, offering personalized shopping experiences and enhancing customer loyalty through its Nike+ membership program.
Best practices for enhancing customer experience in an Operating Model
Successful Operating Models incorporate best practices that are centered on customer needs and expectations. One of the critical elements is the definition of buyer personas in both B2B and B2C environments. By understanding the different personas, companies can tailor their Operating Models to meet specific needs, whether through personalized services or targeted communication strategies.
In the automotive industry, for example, Tesla’s Operating Model is built around a direct-to-customer approach, bypassing traditional dealerships. This enables Tesla to maintain a direct relationship with its buyers, tailoring the purchasing experience to different customer personas—from tech enthusiasts to environmentally conscious consumers.
Extending the customer journey beyond the enterprise is another best practice for enhancing CX through the Operating Model. This involves integrating suppliers, partners, and third-party service providers into the Operating Model to ensure that all touchpoints deliver a consistent and high-quality experience. DHL, for instance, extends its operational processes to include third-party logistics providers, ensuring that its customers receive timely deliveries regardless of geographic location.
>> The end of private property? The impact of Airbnb and Uber <<
Measuring the success of an Operating Model
The success of an Operating Model is not only measured by internal efficiency but also by the impact it has on customer experience. Key performance indicators (KPIs) such as Net Promoter Score (NPS), customer retention rates, and customer satisfaction scores are essential metrics for evaluating the effectiveness of an Operating Model initiative. Additionally, operational metrics such as time-to-resolution for customer issues and the percentage of automated processes can provide insights into the efficiency of the Operating Model in delivering superior customer experiences.
For example, in the hospitality industry, Marriott has implemented a data-driven Operating Model to improve customer service across its global network of hotels. By tracking customer satisfaction and operational performance in real-time, Marriott can quickly address service issues and enhance its guest experience.
Future trends in Operating Models
Looking ahead, Operating Models will continue to evolve with the adoption of emerging technologies such as artificial intelligence (AI), machine learning (ML), and automation. These technologies will enable companies to deliver even more personalized and efficient customer experiences by automating routine processes, predicting customer preferences, and offering real-time solutions.
In retail, companies like Alibaba are already leveraging AI to create highly personalized shopping experiences. By integrating AI into its Operating Model, Alibaba’s e-commerce platforms can predict customer needs, provide tailored recommendations, and automate supply chain management, ensuring a seamless shopping experience for its users.
The Operating Model is a critical driver of customer experience, particularly in a multi-sectorial, diversified holding group. By aligning operations with customer needs and ensuring a frictionless, consistent journey, companies can build trust, drive engagement, and enhance customer loyalty. As businesses look to the future, embracing innovative technologies and strategies within their Operating Models will be key to staying competitive and delivering exceptional customer experiences.
>> TESLA Lessons for the Business World <<
The design and implementation of an efficient Operating Model focused on customer experience (CX) are fundamental to the success of any company, especially in a multisectoral and diversified context. Throughout this essay, we have analyzed how a well-aligned Operating Model can be a key differentiator for businesses seeking not only to improve operations but also to optimize every customer touchpoint. A strategic focus on CX, driven by a robust Operating Model, can make the difference between a company that merely competes in its market and one that leads in terms of innovation, customer satisfaction, and loyalty.
Examples of leading companies like Unilever, Zara, and Disney demonstrate that integrating CX at the heart of the Operating Model enhances not only individual interactions but also operational efficiency, reduces friction, and strengthens customer trust and loyalty. These cases highlight how a continuous focus on customer experience, supported by an adaptive and user-centric Operating Model, can be the key to achieving a sustainable competitive advantage in an increasingly demanding environment.
Looking ahead, trends like digitalization, personalization, and operational agility will remain crucial. Companies must adapt quickly to new customer expectations, which means Operating Models must be flexible enough to evolve with market demands and emerging technologies. Implementing solutions such as artificial intelligence, automation, and data-driven decision-making will be key factors in ensuring operations remain aligned with changing customer expectations.
In conclusion, an Operating Model aligned with business strategy and focused on CX is essential for any company aiming to stand out in a competitive environment. As customers increasingly expect personalization, speed, and efficiency, an organization's ability to deliver exceptional experiences will depend directly on how it integrates CX into its operational structure. Organizations that prioritize customer experience within their Operating Models will not only see improvements in customer satisfaction and retention but will also be better positioned to capitalize on future opportunities and maintain their relevance in the market.
Get our template the Customer Journey
Documentary References: