While each has their own unique role in helping their business or agency execute the strategy, there is a common structure and approach high performing functions use to scale their value to the business: an effective operating model.
This blog series will highlight key attributes of an operating model based on my work and Oxygens over the years – at Oxygen we call this our Operating Model blueprint. It’s designed to help shared service leaders and their teams think about how to better scale what they do by
Whether you are a team of one or a couple hundred, this blog series is meant to be a helpful reference guide to running your shared services function as a ‘business within a business'. Each month, we will highlight a key attribute of operating model, define the function and purpose, use real client stories of what worked or didn't while also looking for feedback from others on their experiences.
As businesses evolve, shared services are expected to do more than just cut costs—they must drive efficiency, enhance customer experience, and enable business growth. However, many shared services leaders still operate with outdated models that limit agility, digital integration, and cross-functional collaboration.
In this blog series, we will break down the key components of a modern shared services operating model—from governance and technology to talent strategy and performance measurement. This first post sets the stage by defining what an operating model is, why it matters, and how leaders can rethink their approach for maximum impact.
Simply put, an operating model defines how shared services deliver value to their internal customers. It includes:
✅ Organization – the functional organization structure, culture, roles, and staffing model needed to create and deliver the shared service
✅ People (talent & capabilities) – workforce skills and up-skilling to support evolving business needs
✅ Demand Manage (Intake) – How do you prioritize inbound requests (reactive demand) versus shaping demand (proactive demand) to better manage expectations with your internal customers and stakeholders
✅ Project Management, Governance & Decision-Making – Who owns what, and how decisions are made across functions
✅ Processes & Workflows – Standardization, automation, and best practices for operational efficiency in service delivery
✅ Technology Enablement – Digital tools, AI, automation, and cloud-based service delivery.
✅ Performance Metrics – How success is measured, optimized, and improved and the criticality of reporting out the business impact to your stakeholders
Many shared services organizations still operate under legacy models that:
🚨 Are too rigid, leading to slow response times and inefficiencies.
🚨 Lack technology integration, making it hard to scale automation and analytics.
🚨 Have siloed service structures, creating friction between departments.
🚨 Struggle with scalability, making it difficult to support business growth.
To stay competitive shared services must evolve by:
🔹 Prioritizing automation & digital workflows (e.g., AI-driven HR service desks, automated marketing analytics, and IT self-service portals).
🔹 Enabling business agility through flexible service delivery models that adapt to changing demands.
🔹 Adopting data-driven decision-making with real-time workforce analytics, customer engagement insights, and service performance tracking.
🔹 Enhancing user experience with customer-centric service design for employees, partners, and customers
In the next post, we’ll break down the core attributes of the Organizational layer of the high-impact shared services operating model—from organizational structure to different staffing models to consider.
👉 Stay tuned and follow the series! What challenges are you facing with your shared services operating model? Let our experts help you - contact us today.
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