Next Operating Model™

Redesigning the Organisation for Human + AI Execution

The operating model has traditionally defined how organisations manage people, processes and performance through hierarchical structure.

This definition is no longer sufficient. AI introduces distributed execution capability that fundamentally changes how work is performed.

The Next Operating Model™ describes how organisations must evolve from management systems to capability orchestration systems.

Executive Framework Graphic

Operating Model Evolution Architecture

Transition from traditional operating model to Human + AI capability system design.

Problem Narrative

Traditional operating models assume predictable, human-only workflows.

AI disrupts these assumptions by introducing distributed execution across human and machine capability.

Legacy assumptions

Clear role definitions

Linear execution flows

Hierarchical accountability

Centralised decision ownership

AI-driven reality

Non-linear workflows

Distributed decision systems

Hybrid human + AI execution

Capability-based rather than role-based organisation

Strategic Tension

Most organisations embed AI into legacy operating models.

Incremental approach

AI is layered onto existing structures without redesign.

Structural constraint

Legacy operating models limit AI value creation.

FAIC perspective

Operating model redesign is a prerequisite for AI workforce effectiveness.

FAIC Perspective

The operating model is no longer a management system. It is a coordination system.

Governance structure

Defines accountability and decision rights across human and AI systems.

Workforce layer integration

Aligns human teams with AI capability systems.

Orchestration systems

Ensures coordinated execution across distributed capability.

Execution design

Structures how work flows across hybrid systems.

Decision flow architecture

Defines how decisions are made across humans and AI.

Organisational alignment

Ensures enterprise coherence across all capability layers.

AI Workforce Layer™ Integration

AI Workforce Layer™ introduces distributed capability across enterprise systems.

The Next Operating Model™ ensures this capability is structured, governed and orchestrated.

AI Workforce Governance Alignment

AI Workforce Governance embeds accountability into operating model design.

Governance and execution become integrated rather than separate layers.

Executive Insights

Operating models now determine AI value realisation.

Operating models are no longer organisational charts — they are execution systems.

AI transforms operating models into distributed capability systems.

Governance without orchestration creates control without coordination.

Legacy operating models limit AI value more than technology constraints do.

Strategic Discussion

Explore how your organisation can redesign its operating model for the Human + AI Workforce Era™.

Use Cases

Where the Next Operating Model™ applies

Enterprise transformation

Redesigning organisation-wide operating structures.

AI integration programmes

Embedding AI into core operational systems.

Hybrid workforce design

Aligning human and AI capability systems.

Decision system redesign

Improving distributed decision-making flows.

Workflow restructuring

Transforming execution systems across the enterprise.

FAQ

Next Operating Model™ Questions

What is the Next Operating Model™?

The Next Operating Model™ is an FAIC framework describing how organisations must redesign structure, governance and execution systems for the Human + AI Workforce Era™.

Why is it needed?

Because traditional operating models cannot support distributed AI workforce capability.

How is it different?

It shifts from hierarchy-based management to capability-based orchestration systems.

Is it a technology framework?

No. It is an organisational design and operating system framework.

What role does governance play?

Governance defines accountability within execution systems.

What role does orchestration play?

Orchestration ensures coordinated execution across human and AI contributors.

What is the AI Workforce Layer™?

It introduces distributed capability that must be integrated into the operating model.

When should organisations adopt it?

When AI begins to materially impact workforce execution systems.

Authority Statement

The operating model is now an execution system, not a management structure.

The Next Operating Model™ defines how organisations coordinate human and AI capability at enterprise scale.