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COMPEL Glossary / operating-model

Operating Model

An operating model defines how an enterprise structures its teams, processes, governance mechanisms, and technology to deliver its strategy.

What this means in practice

An AI operating model specifies how AI decisions are made, who has authority over AI initiatives, how AI work is prioritized and executed, and how AI systems are governed in steady-state operations. The COMPEL framework distinguishes between its own operating model (which governs the transformation program) and the client organization's AI operating model (which governs AI in steady state after transformation). COMPEL's operating model comprises ten cross-functional roles, a stage-level RACI matrix, explicit decision rights, and a three-tier escalation framework. The client's operating model is an output of transformation, progressively taking over as the organization matures.

Why it matters

An AI operating model determines whether AI capability is sustainable and scalable or fragile and dependent on individual heroics. Without a clear operating model, AI decisions lack accountability, governance becomes ad hoc, and organizations cannot scale beyond isolated projects. The operating model is the institutional infrastructure that separates organizations with lasting AI capability from those with temporary experiments.

How COMPEL uses it

COMPEL distinguishes between its own operating model (governing the transformation program) and the client's AI operating model (governing AI in steady state). The Organize stage establishes the transformation operating model with ten cross-functional roles and a stage-level RACI matrix. The Model stage designs the target steady-state operating model that progressively takes over as the organization matures through COMPEL cycles.

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