How to Know When You’ve Outgrown Your Operating Model

The Comfortable Plateau

Operating models are like scaffolding – they support growth, until they start limiting it. The problem? Most businesses don’t notice they’ve outgrown their model until the pain becomes visible – in delays, dropped balls, or missed revenue.

But the warning signs come earlier.

We often meet clients who say things like:

  • “We’re growing fast, but we can’t keep up.”

  • “We’ve hired more people, but productivity hasn’t improved.”

  • “Decisions take too long, or get made twice.”

All of these point to the same issue: the operating model isn’t scaling with the business.

Five Signs You’ve Outgrown It

  1. Decisions stall or duplicate. Too many approval layers. Conflicting accountabilities. Or worse – no one owns it.

  2. Delivery feels chaotic. Even small changes feel hard. Priorities shift constantly. Firefighting becomes the norm.

  3. Leadership is stretched thin. Senior people are drowning in detail. Middle layers don’t have clarity or trust.

  4. You’re reinventing the wheel. Different teams solving the same problems. No repeatable playbooks.

  5. You’ve added headcount – and created confusion. Growth wasn’t matched by clarity. The org chart looks better. The outcomes don’t.

What a Modern Model Needs

Modern operating models must do three things:

  • Align around outcomes, not just functions

  • Enable decision-making at the right level

  • Support growth without adding unnecessary complexity

That means rethinking roles, reporting, rituals, and rhythm. It’s not just a restructure – it’s a reset.

At Relentica, we often start with a current-state heatmap – mapping where decisions live, where friction occurs, and where duplication costs time and value. Then we co-design a model with clear accountability, simplified governance, and leaner delivery structures.

What Change Looks Like in Practice

When organisations revisit their operating models, common shifts include moving from product- to customer-aligned teams, simplifying decision hierarchies, and clarifying roles. These are principles we focus on — reducing friction, aligning teams to outcomes, and enabling faster decisions.

We use structured diagnostics, heatmaps, and co-design sessions to make those changes real — helping leadership rethink how they’re structured to grow. The gains? More clarity. Less duplication. Better momentum. And operating rhythm that matches ambition.

The Takeaway

You don’t need to wait for dysfunction to act. If your teams feel slow, your leaders feel thin, and your results feel harder than they should – it’s time to revisit the model.

Outgrowing your operating model isn’t failure. Staying in one that no longer fits? That is.

Who Else Does This Work

Consultancies like Slalom, Newton, and Elixirr all support clients with operating model design. There’s no monopoly on this space – and rightly so. It’s a critical area for scaling firms. We believe what sets Relentica apart is our focus on pace and pragmatism. We don’t build models that look good in decks – we build ones that work in practice.

Relentica