A McKinsey operating model for those leaders who embrace Pantakinesis™
- sciart0
- Jun 19
- 2 min read
Updated: Jun 19
While your strategic goals may be the right ones, is the organization built to achieve them? New research reveals a dynamic system that creates value in the face of the dynamic nature of a fuller vantage of reality: Pantakinesis™
Excerpt (from the first link above): "Every ambitious CEO will tell you that the way to beat the odds is to have the right strategy. That’s because a smart, actionable strategy is the foundation for how a company allocates its scarce resources, including people, capital, and materials.
Yet even the best strategy does not magically yield a strong performance. For that, companies need an effective operating model that is intentionally designed to deliver four outcomes that all organizations covet: clarity, speed, skills, and commitment. The right operating model is what can turn strategic potential into market-beating results.
Leaders understand this, which is why they frequently try to adapt their operating models. Two-thirds of the organizations we surveyed have redesigned their operating models in the past two years, and half of the organizations say they plan to embark on a redesign in the next two years.
Numbers like that highlight the ongoing challenge of creating a high-functioning organization that consistently generates value. McKinsey research indicates that even high-performing companies have a 30 percent gap between their strategy’s full potential and what is actually delivered, which can be attributed to shortcomings in their operating models.
Given the scale of this gap, we decided the time was ripe to update the best practices for operating model design. Our analysis, based on academic research, interviews with hundreds of executives, and extensive experience working on redesigns, yielded a new approach: a dynamic system composed of 12 elements (including purpose, talent, leadership, and rewards) that can be tailored to an organization’s particular circumstances and goals. We call this the “Organize to Value” system."