Operating Model Design

From Framework to Organizational Structure

An operating model defines how an organization structures people, processes, technology, and partnerships to deliver value. ITIL v5 provides the conceptual framework; this content translates that framework into practical organizational design decisions.

Key Design Inputs from ITIL v5

1. Value Chain Patterns

The Value Chain describes five patterns that define which lifecycle activities an organization performs:

2. Four Dimensions

Every organizational design decision should be evaluated against the Four Dimensions:

Team Topology Models

Model A: Functional Teams (Traditional)

Teams are organized by technical function: network, servers, applications, database, security, service desk.

Advantages:

• Deep technical specialization
• Clear career paths
• Efficient resource utilization

Disadvantages:

• Handoffs between teams create delays
• No single team owns the end-to-end service
• "Throw it over the wall" culture

Alignment: Functional teams align well with individual management practices but poorly with lifecycle activities.

Model B: Product Teams (Modern)

Cross-functional teams are organized around a product or group of related products. Each team includes development, operations, and support capabilities.

Advantages:

• End-to-end ownership
• Faster decision-making
• Direct alignment with value streams

Disadvantages:

• Potential duplication of skills
• Harder to maintain standards across teams
• Requires mature engineering culture

Alignment: Product teams naturally align with the Product and Service Lifecycle.

Model C: Platform and Stream Teams (Team Topologies)

Based on the Team Topologies model (Skelton and Pais), four team types interact:

This model provides the strongest alignment with v5's value stream and lifecycle concepts.

Model D: Hybrid (Most Common)

Most organizations use a hybrid model:

• Product/stream-aligned teams for customer-facing services
• Shared services for common capabilities (service desk, security, compliance)
• Platform team for infrastructure and tooling
• Centre of excellence for practice standardization and governance

Design Process: Step by Step

Step 1: Map Your Value Streams

Before designing teams, map actual value streams. A value stream is the end-to-end flow of work from a customer need to a delivered outcome.

Step 2: Identify Required Capabilities

For each value stream, identify which ITIL practices and lifecycle activities are needed:

• Which of the 34 practices are critical?
• Which lifecycle activities does the value stream traverse?
• What skills, tools, and information are required?

Step 3: Choose a Team Topology

Based on your value streams, organizational size, and culture:

Step 4: Define Governance Interfaces

Regardless of topology, define how teams interact with governance:

• Approval workflows: Who approves changes, releases, and exceptions?
• Escalation paths: How do incidents, risks, and decisions escalate?
• Reporting lines: What information flows to governance bodies and when?
• Standards and policies: How are cross-cutting standards maintained?

Step 5: Design RACI for Lifecycle Activities

Create a RACI (Responsible, Accountable, Consulted, Informed) matrix for each lifecycle activity:

Step 6: Define Interaction Modes

How do teams interact? The three primary modes:

Anti-patterns in Operating Model Design

Related Pages

• Value Chain (five value chain patterns)
• Four Dimensions (organizational design inputs)
• ITIL Roles (role definitions)
• Measuring Success (metrics for operating model effectiveness)
• DevOps & SRE Integration (integrating DevOps into the operating model)

Last updated on April 2, 2026

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