Designing the Future Operating Model with AI 

November 4, 2024 thehrobserver-hrobserver-technology

Building a future-proof operating model requires aligning structures with strategies, anticipating market changes, and creating models that are scalable and adaptable. Traditionally, this process was slow and relied on external consultants.

AI tools like ChatGPT are changing that, allowing HR professionals to co-create operating models using real-time feedback and AI insights. This article explores how a large UAE-based multinational across retail, automotive, and real estate is using AI to design models that are resilient and scalable. 
 
Strategic Alignment and Operating Models 

Operating models must align with strategy, ensuring that structures support long-term goals. AI tools like ChatGPT facilitate this by enabling real-time collaboration across departments, ensuring the operating model reflects current and future objectives. 

One UAE-based multinational used ChatGPT to design a lean operating model aligned with its strategy of digital expansion and cost-efficiency. AI helped review all components—functions, processes, and reward systems—so that they matched the company’s long-term growth goals. 

How ChatGPT Supports Operating Model Design 

  1. Cross-Functional Brainstorming 
    One challenge in designing operating models is gathering input from multiple departments. ChatGPT acts as a collaborative tool, helping teams co-create structures and align objectives. 
     
    Example:The HR and operations teams of the multinational used ChatGPT to brainstorm a hybrid retail operating model. The AI generated five structural options considering priorities like cost control, employee experience, and customer service. 
     
    Prompt Example: ”We are exploring a hybrid retail operating model integrating e-commerce and physical stores. Provide several options based on different operational priorities.” 
     
    ChatGPT helped the teams weigh trade-offs, leading them to a model that balanced cost efficiency with customer needs. 
  1. Aligning Structure with Strategy 
    Operating models must reflect strategic priorities. ChatGPT helps organisations map out how their structure supports strategy, ensuring roles, processes, and reporting lines align with business goals. 
     
    Example:The multinational’s automotive division used ChatGPT to integrate electric vehicles (EVs) into their operating model. ChatGPT suggested changes to reporting lines and identified key roles (e.g., EV specialists) to support this new focus. 

    Prompt Example: ”Our automotive division is focusing on electric vehicles. How should we modify our operating model to align with this strategy?” 
     
    These recommendations helped optimise the division’s structure for its EV strategy. 
  1. Simulating Future Scenarios for Resilience 
    Operating models need to adapt to market changes. ChatGPT allows organisations to simulate different scenarios and see how their structures would perform under various conditions. 
     
    Example:In the retail division, ChatGPT simulated peak-season operations with increased customer demand. It recommended temporary roles to manage the workload without major restructuring. 
     
    Prompt Example: ”Simulate how our retail model will perform during peak sales periods. Recommend adjustments to optimize workforce efficiency.” 
     
    This process helped the company anticipate bottlenecks and introduce flexibility into its structure. 

Building a Scalable and Adaptive Operating Model 

Scalability is key to designing an operating model that can grow without disrupting operations. ChatGPT helps HR teams identify which parts of the model can scale smoothly and which need adjustments. 

Example: For the real estate division, ChatGPT suggested dividing operations into regional clusters. This allowed services to scale without adding unnecessary managerial layers, maintaining operational consistency while staying agile to local market conditions. 

Benefits of AI in Operating Model Design 

  1. Faster Strategic Alignment 
    ChatGPT speeds up the connection between strategy and structure by providing tailored suggestions aligned with business goals. 
  1. Reduced Design Complexity 
    AI consolidates multiple inputs into clear recommendations, reducing the complexity of the design process. 
  1. More Agile Structures 
    Organisations can quickly iterate on their models to keep up with market changes, ensuring long-term agility. 

Overcoming Challenges in AI-Driven Design 

While AI provides clear benefits, there are challenges to address: 

  1. Data Accuracy and Bias: 
    AI-generated insights depend on accurate data. Organisations must input relevant, unbiased data to get meaningful outputs. 
  1. Adapting to AI Tools: 
    Teams may need training to effectively use AI tools like ChatGPT. Workshops can help employees learn how to frame prompts and interpret AI recommendations. 
  1. Gaining Leadership Buy-In: 
    Leaders must see the value in using AI for operating model design. Showing early success and how AI improves decision-making can help secure buy-in. 

A Practical Example: Lean Automotive Model Design 

The multinational’s automotive division used ChatGPT to design a lean operating model focused on EV production. After brainstorming and simulating future scenarios, the team developed a structure that: 

  • Reduced hierarchical layers to speed up decision-making. 
  • Introduced EV-focused leadership roles. 
  • Integrated regional clusters to improve market responsiveness. 

ChatGPT helped align the model with their strategic focus on EVs, preparing the company for future growth. 

Conclusion 

Designing future-proof operating models requires balancing strategy alignment, scalability, and adaptability. Tools like ChatGPT empower HR professionals to create models that reflect strategic priorities while remaining flexible enough to adapt to changes. As shown by a large UAE-based multinational, AI tools are indispensable in designing resilient and scalable operating models. 

For HR professionals, integrating AI tools leads to faster decision-making and more agile structures—key factors for success in today’s fast-changing business environment. 

Author
Fred Haentjens

AI Strategist & Advocate and author of Mastering AI: From Insight to Impact

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