The 5 Signals Your Operating Model is Holding You Back

By Axel Schnütgen

When Hard Work Still Feels Like Running in One Place 

Picture this: your leadership team gathers for a quarterly review. Everyone has worked harder than ever, yet the results fall short. Projects dragged longer than expected, costs increased, and departments quietly blame each other. On paper, the strategy is solid. But in practice, progress is stuck. 

Many leaders assume the problem lies in execution or even resistance to change. The truth is often less obvious but far more powerful: the operating model itself is holding the organization back. Decision-making, ownership, and cross-functional flow, these structures define whether strategy becomes reality or stalls. 

At SpaceOf.foundation, we see this pattern across industries. Vision and talent are not the issue. Outdated or unclear operating models are. If any of the following five signals feel familiar, your operating model may be silently working against you. 

Signal 1: Constant Firefighting Instead of Proactive Planning 

From urgency to exhaustion If your teams spend more time reacting to problems than anticipating them, your operating model is misaligned. Meetings turn into emergency response sessions, energy is drained, and leaders are left managing crises instead of shaping the future. 

Example : A product launch delayed because marketing waits on R&D, while supply chain rushes to catch up. Instead of coordinated planning, every function scrambles at the last minute. 

Why it matters : Constant firefighting leaves no space for innovation or long-term thinking. An effective operating model creates rhythm and foresight, so teams spend less time reacting and more time building. 

Signal 2: Decision Bottlenecks at Senior Levels 

When everything flows upward Another red flag is when even minor choices require senior sign-off. Leaders become bottlenecks not because they want to, but because the operating model does not define clear decision rights. 

Why it happens : Managers hesitate to act without explicit approval, worried about overstepping. The result is endless back-and-forth, delayed timelines, and frustration across levels. 

What it costs : Lost speed, stalled momentum, and leaders drowning in tactical issues instead of guiding strategy. 

The fix : A strong operating model distributes decision rights closer to the work. This empowers managers to act, keeps projects moving, and frees senior leaders to focus on direction, not details. 

Signal 3: Departments Work in Silos Without Cross-Functional Flow 

Optimized in parts, failing as a whole Organizational structures with departments can create efficiency within the department, but they can slow down cross-functional execution. 

Example : IT rolls out a digital platform that departments do not understand how to use. Marketing pushes for speed, while finance imposes controls that stall delivery. None of this is about unwilling people, it’s about structures that don’t promote integration. 

Impact : Silos increase costs, slow transformation, and frustrated employees who see effort wasted. 

Solution : Redesigning the operating model around outcomes, rather than functions, that involve relevant departments improves workflow. When teams, processes, and technology are connected, the whole organization moves together. 

Signal 4: Ownership of Outcomes is Unclear 

Activity without accountability Teams deliver tasks, but who owns the end result? If no one takes responsibility, accountability fades, and finger-pointing takes over. 

Why it happens : Operating models often assign activities but miss an overall person responsible for the outcome. A transformation might list dozens of initiatives, but without clear overall ownership, progress drifts. 

Impact : Leaders measure activity rather than value. Teams disengage, trying to avoid being blamed when things go wrong. 

The answer : An effective operating model makes ownership explicit. Clear accountability ensures that leaders track outcomes, not just tasks, and teams feel empowered to deliver. 

Signal 5: Repeated Initiatives Fail to Produce Lasting Results 

Déjà vu of failed transformation Perhaps the clearest signal is when initiatives keep repeating without lasting success. Digital roadmaps, restructuring programs, or customer-centric campaigns all begin with enthusiasm but fade without impact. 

Why it happens : The operating model is not built to sustain change. Processes, roles, and governance are misaligned with long-term transformation. 

What it costs : Years of effort, millions in investment, and a culture that grows cynical about the next “big initiative.” 

The way forward : Transformation only sustainable when the operating model embeds collaborative, cross-functional change becomes into daily business. It’s not just about new processes, but about creating a culture where teams share accountability, leaders make aligned decisions, and silos give way to flow. That’s when change moves from one-off projects to part of the organization’s DNA.  

turning it from a project into part of the organization’s DNA. 

The Hidden Cost of Ineffective Operating Models 

These signals are not small frustrations. They translate into real losses: projects take longer, costs escalate, employees lose trust, and competitors get ahead. Misaligned operating models are one of the leading causes of failed transformations, draining value from even the strongest strategies. 

How SpaceOf Rewires Operating Models for Agility and Clarity 

At SpaceOf, we know these problems from experience. We have lived them as executives and solved them with clients. Our work focuses on three principles that directly counter the five signals: 

1. Clarity at the Top We help leadership articulate a clear, unified narrative. This eliminates firefighting by aligning everyone on outcomes and ensuring that teams understand why change matters. 
   
2. Execution That Works We design structures that empower decision-making at the right levels. This removes bottlenecks, creates accountability, and speeds up delivery. 
   
3. Connected for Value We align people, processes, and technology to break silos. This ensures cross-functional collaboration and makes change sustainable. 
   

Together, these principles turn operating models from barriers into accelerators of transformation. 

A Real-World Example 

A global client came to SpaceOf after multiple failed transformation attempts. Every initiative was treated as separate, owned by different functions, with no accountability for overall results. 

We aligned the leadership on one clear narrative, redesigned the operating model around outcomes, clarified decision rights, and created cross-functional councils. Within a year, duplicate initiatives dropped by 40%, delivery speed improved by 25%, and employee trust in leadership rose sharply. 

The strategy had not changed. The operating model had. 

From Signals to Solutions 

When change slows, the instinct is to blame execution. But the real problem often lies deeper. An ineffective operating model silently undermines strategy, leaving leaders stuck in cycles of firefighting, bottlenecks, silos, unclear ownership, and repeated failures. 

These signals are warnings, but they are also opportunities. With clarity, execution, and connection, leaders can rewire operating models to power transformation instead of holding it back. 

Visit www.spaceof.com to learn how SpaceOf helps organizations move forward with clarity and agility.