Target operating model for an AI-native organisation
Design what agents do, what people decide and how the work improves.
A target operating model for an AI-native organisation sets out how people and AI agents work together: the roles, decision rights, governance, workflows and technology that support the business. It makes clear what an agent may do, who checks its work and who remains accountable.
Start with a task your team knows well. Their knowledge of the exceptions and handoffs helps you decide where AI could be useful, what needs human judgement and how to test the new way of working. The Tenhaw Way provides a published starting point for the product and delivery practices, free to use with your own team.
What this guide draws on.
Our experience is in product and delivery operating models. At HSBC, James Rooney co-led the design, piloting and refinement of a model prepared for 500 teams. That was a role held inside the bank and a delivery programme, separate from Tenhaw contracts and from AI transformation. The case record describes a planned 2026 global rollout; it does not establish a completed rollout.
The Tenhaw Way and its 17 how-to guides are published and used on our engagements. In specialty insurance, our contribution includes operating-model workshops and their structured outputs, alongside a working AI proof of concept. This supports the practices described here. We have not taken an entire organisation from a traditional model to an AI-native one at scale.
On this page
Why it matters
DORA's 2025 research on AI-assisted software development finds that AI can reinforce both effective practices and existing problems. It points to the organisation's technical and working practices as important conditions for getting value from AI. This is software-development research, rather than evidence of an enterprise-wide AI transformation.
That gives a team a useful question to investigate: what needs to change around the tool? A pilot may work well with its original users, while the next team has different records, approval responsibilities or support needs. Explore those differences with the people involved, alongside the system's performance and access requirements.
Decisions to work through
4 questions to resolve as the work changes
A useful pilot meets a different working day
The next team may handle different cases, rely on another system or need a different person to approve the result. Model capability, data quality and integration can all matter, alongside roles and governance. Map those differences with the teams before scaling. An operating model gives you a shared design to test and adapt as you learn.
The build changes, and the review needs to catch up
AI can help people research, draft code, write tests and examine a design. The team still needs to agree how that output will be checked and what evidence permits release. Work through those decisions with developers and product colleagues, including where existing practices already work well. Review skills and clear requirements become part of the change.
Decision owners need a clear boundary
An agent that drafts a recommendation needs different authority from one that changes a customer record. State what it may read, propose or change, when a person must approve and how to escalate an exception. Give each decision a human owner with the authority and information to act. Design this with the people doing the work and the relevant risk colleagues before deployment.
The design needs a trial in everyday work
A proposed workflow may depend on access the platform cannot provide, or add review work that its users have no time to do. Bring architecture, operational knowledge and adoption into the same design conversation. Try a representative workflow with the team and use what happens to improve the roles, system and support arrangements together.
Design with your team
7 steps to shape, test and improve the design
- 01
Start with a workflow your team knows
Pick a result worth improving and walk through how the work happens today. Invite the people who handle it, including those who receive the handover. They know which cases need an extra check and which steps exist because another system is awkward. Use that knowledge to sketch what an agent could do and what people would do around it.
The Tenhaw Way gives you a published starting point for the product and delivery practices: four values, two delivery modes, approval gates, quarterly roadmaps and seven recurring reviews and activities. Use the free guides to try the relevant practices and fit them to your organisation's controls.
- 02
Give the outcome a value you can check
Agree a monetary target, a baseline, a measurement period and a business owner. Show the assumptions behind the estimate so the team can question and improve them. Time recovered is capacity; it becomes a cash saving only when spending changes.
In The Tenhaw Way, epics that deliver an outcome carry planned contributions to its target. Compare their total with the target and give any gap an owner. Tech Debt and Bug Budget epics reserve capacity separately. Monthly outcome validation checks what value has been realised, including when it falls short of the plan.
- 03
Choose how each team will build with AI
The Tenhaw Way describes two delivery modes. In AI-augmented delivery, developers write code with AI support, using outcomes, epics, stories and optional chapters. In AI-native delivery, the model builds and developers direct and verify it. The tracked unit is an outcome ticket at epic level, containing the outcome, its planned value contribution, user journeys and test requirements.
Make the mode a standing choice for each team, based on its work and ability to review and verify the result. Different teams can use different modes within one operating model. A move between them needs practice and evidence; it is not a requirement for every team.
- 04
Agree what agents may do and what people decide
Assess decisions by their consequence, observability and reversibility. Frequent tasks that are easy to check and undo may be candidates for bounded automation. Consequential, contested or hard-to-reverse decisions stay with people. Agree the permissions, evidence, approval requirements and escalation route with the relevant risk and operational colleagues, and name the accountable person before deployment.
For example, an agent could gather approved records and draft a reply to a supplier enquiry. The service team checks whether the records support the answer and decides which replies need approval. Try the awkward cases with them: missing records, conflicting information and a request outside the agreed scope. Their feedback should change the design before it is used more widely.
- 05
Keep a shared basis for approving and reviewing work
Both product and engineering approve an epic before it leaves Ready for Dev. AI-augmented teams also need at least one product-approved story; AI-native teams put the user journeys and test requirements on the outcome ticket. The AI-native build is complete when those tests pass and the named journeys are demonstrated working, with people verifying the result.
Each delivery roadmap covers one quarter and reserves capacity for tech debt and bugs. Retrospectives run every two weeks; health checks and outcome validation run monthly. Assign the review responsibilities and use what the team learns to adjust the work. Measuring business value can continue beyond the quarter in which the work ships.
- 06
Design the organisation and architecture together
The operating-model lead and agentic architect work with your product, engineering, operational and risk colleagues. For each proposed change, check the platform, data, integration and access it needs, the person responsible and the support required in everyday use. Those findings should inform both designs.
The Agentic Design Team produces the target operating model, technical architecture, governance framework and a sequenced build plan. Design is a distinct engagement: your own teams, Tenhaw or another supplier can carry out the subsequent build.
- 07
Let the team's experience shape the next version
Give adoption a named owner and review it monthly alongside delivery and value. Watch people use the workflow, invite them to question it and check what has become easier or needs more support. Pairing, practice and feedback help people develop the skills to operate and improve the system. Your people function retains responsibility for workforce consultation, redeployment and employment decisions.
On the specialty-insurance engagement, one client engineer paired through a two-week proof of concept and reported 70% confidence in running the process independently afterwards. That was one person's self-assessment at the end of a prototype build. It is useful feedback to pair with observed use, quality and support needs when planning the next stage.
Try The Tenhaw Way and its how-to guides with your team. The method is free to read and use; applying it takes your team's time. Start with an outcome, the decisions around it and a way to measure what changes.
If you need help designing across functions, an Agentic Design Team pairs a senior operating-model lead with an agentic architect. They design the operating model and architecture with your people, typically over two to four months at £35,000 to £55,000 a month excluding VAT. The retainer can end on 30 days' written notice from either party. It finishes with a sequenced build plan that you can execute yourselves, with us or with another supplier.
If you first need to establish where AI could create value, the AI Readiness Audit is a separate four-week engagement at a fixed £44,000 excluding VAT, led personally by James Rooney.
Prefer to talk it through? Ask us on a discovery call →
Sources
The research behind this guide, with a note on what each source supports. Follow the links to read the findings in context.
DORA, State of AI-assisted Software Development 2025Research on how organisational conditions affect AI-assisted software development. It informs the discussion of working practices; it is not evidence of Tenhaw delivering an enterprise-wide AI transformation.Explore the next part of the work
Continue into delivery, governance or the investment case. Each guide explains its approach and the scope of the experience behind it.
Document intelligence to business intelligence
Getting information out of PDFs and into something the business can decide with.
DeliveredAI-native SDLC and product delivery lifecycle
Changing how software gets specified, built and shipped once AI is in the room.
DeliveredVoice agents and conversation intelligence
Turning conversations into structured intelligence, and holding conversations that take real actions.
DeliveredEnd-to-end agentic workflow implementation
Taking one whole business process agentic, rather than assisting the humans doing it.
Our approachAgent evaluation and assurance
Why AI pilots never reach production, and what it takes to get one through the gate.
Our approachAI governance and regulatory evidence
Building the evidence as a by-product of the work, rather than assembling it under deadline.
Bring a workflow or a decision to a call. We can explore what would be useful to test with your team.
Talk it throughWhat would you like to work better?
A 30-minute discovery call with James Rooney. Bring the workflow, the decision or the unfinished idea. We will explore where to start, explain how our experience fits and outline a rough scope for you to consider.
30 minutes with James · a rough scope whether you engage us or not
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Questions this guide answers
What is a target operating model for an AI-native organisation?
It describes how your organisation works when AI agents perform a meaningful share of the work: its structure, roles, decision rights, governance and ways of working. It makes clear what an agent may do, what a person must approve, who is accountable and how the result will be checked.
For a product team, that includes choosing how developers use AI, defining approval gates and agreeing the evidence needed before a change ships. The Tenhaw Way publishes the product and delivery core of our model in full, free for you to adopt with your team.
How is this different from a Big Four target operating model?
Compare the proposed team, scope, evidence and implementation responsibilities. Big Four services vary by firm and engagement, so the useful comparison is with the proposal you are considering.
Tenhaw's Agentic Design Team is two senior practitioners: an operating-model lead and an agentic architect. They design the roles, decision rights, governance and technical architecture together with your people, and produce a sequenced build plan. The service covers design; implementation needs its own delivery plan and resources. You can read and try the published ways of working, The Tenhaw Way, before deciding whether to engage us.
Do we restructure before deploying agents, or after?
Test a useful workflow before committing to a broad restructure. Establish the permissions, approval responsibilities and safeguards needed for that pilot, then use what your team learns to design the wider changes before scaling.
A pilot might show that an agent can prepare a reliable first draft, while reviewers still need better access to supporting records. That points to a specific change in work and responsibilities. Map those changes with the people involved, check what the architecture can support and decide which roles or reporting lines, if any, need to change.
What actually changes for a team in an AI-native operating model?
The team changes how it specifies, builds and verifies work. In AI-augmented mode, developers write code with AI assistance and work from stories, adding chapters only when a story needs smaller pieces during the build.
In AI-native mode, the developer directs a model from a complete outcome ticket at epic level. It carries the outcome, its planned currency contribution, key user journeys and test requirements. The developer verifies the change through passing tests, demonstrated journeys and human review.
Product and engineering approvals remain in both modes. The mode is a standing choice for the team, made with the people doing the work. Completing the build provides release evidence; outcome validation checks the business value afterwards.
Who is accountable when an agent gets something wrong?
Name an accountable person with the authority to oversee the agent's work before deployment. The operating model should record the decisions that person owns, what the agent may do, which actions need human approval and where questions or incidents go.
Work through a difficult case with your operations, engineering and risk colleagues. If the agent proposes an incorrect change, who can spot it, stop it and put it right? Give those people the access, records and time they need to carry that responsibility, and test the escalation path alongside the workflow.
What about the people side: roles, spans and layers, workforce transition?
Start with the work people do and the decisions they need to make. Explore how AI changes that work with the affected teams, including the exceptions they handle and the expertise they want to develop. Use those findings to design roles, responsibilities and any changes to management spans or layers.
Tenhaw's design work includes accountability for agent decisions and a specification for the Head of AI role you may recruit into. Your organisation and people function retain ownership of workforce consultation, redeployment and employment decisions. Bring them into the design early so those responsibilities and the support people need are part of the plan.
How long does target operating model design take, and what does it cost?
Tenhaw's Agentic Design Team typically runs for two to four months at £35,000–£55,000 per month, excluding VAT. The pair comprises an operating-model lead holding the interim Head of AI seat and an agentic architect, with partner oversight. Retainers are cancellable on 30 days' written notice either way.
The outputs are a target operating model, technical architecture, governance framework and a sequenced build plan that your teams, Tenhaw or another supplier can execute. Building the systems is a separate scope. You can also adopt The Tenhaw Way and its how-to guides for free, with your own people taking the work forward.
Why do target operating models fail to get implemented?
Implementation becomes difficult when the design asks for capabilities the platform cannot support, leaves delivery responsibilities unclear or gives the people affected little chance to shape how it will work. AI introduces further questions about permissions, human approvals and how agent actions will be checked.
Develop the operating model and architecture together, then try the proposed ways of working with representative teams. Their feedback should change the design before a wider rollout. Give each next step an owner, capacity and a way to assess progress, so the handover provides a practical basis for implementation.
Will AI fix a weak operating model?
AI can help with a task, but unclear priorities or decision rights still need people to resolve them. Faster drafting, for example, may add to an approval queue if nobody has the authority or time to review the output.
Trace one piece of work with the people who handle it. Find where it waits, what gets reworked and which decisions are difficult to make. Then test whether AI, a change in responsibilities or a simpler workflow improves the result. A baseline gives you and your team a way to see what helped.
How do you move a team from AI-augmented to AI-native?
Explore the change with the team through a real, bounded build. Practise writing a complete outcome ticket, directing the model, reviewing its changes and verifying the named user journeys. Use what happens to decide whether AI-native delivery suits that team's work and what support it needs.
If the team adopts the mode, make it a standing way of working, with clear responsibilities for writing, review and verification. Review the team's experience alongside observed performance and the help people still need.
In our specialty insurance proof of concept, one client engineer paired throughout the two-week build and reported 70% confidence in running the process unaided. That was one person's self-assessment at the end of the build; independent delivery and sustained adoption still need to be observed.
Does an AI target operating model replace the one we already have?
It can evolve the operating model you already have. Start by identifying which decisions, responsibilities and workflows change when agents take on part of the work, and keep the arrangements that continue to serve your organisation well.
Bring the changes into one coherent model, including any transition arrangements. Different teams can use AI-augmented or AI-native delivery within it, with each holding a standing choice of mode. Shared governance should make ownership and dependencies clear while allowing those differences in how teams build.
Is redesigning the operating model just another reorg?
It can include changes to reporting lines, but the design also covers decisions, responsibilities, governance and daily work. Sometimes clearer ownership or a better handoff will address the problem without a new organisation chart.
For example, if an agent prepares a customer response, the model should say who checks the evidence, who can approve sending it and who handles an exception. Walk through that process with the people who will use and support it. Their experience helps you decide which structural changes would improve the work.
Which functions have to be in the room for an AI-native operating model?
Include the people who do the work, the people who support it and those with authority to approve changes. That usually brings together product, engineering or architecture, operations, risk and security, with finance helping define value and the people function owning workforce consultation and transition. An executive sponsor needs the authority to resolve decisions across those groups.
Give affected teams a real role in designing and testing the workflow, with named ownership for adoption. Tenhaw contributes an operating-model lead and an agentic architect. James Rooney provides partner oversight on every engagement and leads audits personally.
How do you know if the problem is your operating model or the technology?
Follow one workflow from request to completed result and examine both. Poor output quality, unreliable integrations or missing data point to technical work. Repeated waits for a decision, unclear ownership or approvals that nobody can give point to operating-model work. The two can interact, so check the evidence with the people handling the exceptions.
At Globelynx, delivery lead times fell by 60% within six months during work on planning, coordination, supplier arrangements and operational insight. The figure was measured with the client from its delivery data. It is our measurement of our own work, has not been independently audited and does not isolate the effect of any one change. It provides an example to investigate, not a forecast for your organisation.
Isn't it too early to redesign the organisation while AI changes so fast?
You can define responsibilities and a way to review decisions while the technology develops. Clear accountability, approval requirements, escalation paths and value measures give teams a stable basis for testing new capabilities.
Treat the work delegated to agents as something to revisit with evidence. A task being frequent or easy to reverse is a useful starting point, but you still need to test reliability, permissions, monitoring and recovery. Your teams and risk colleagues can agree when the evidence supports changing that boundary, without committing the whole organisation to one vendor's current features.
Does going AI-native mean fewer approval gates and lighter process?
Both delivery modes retain product and engineering approval before an epic leaves Ready for Dev, and human review of the change. AI-augmented teams also need a product-approved story attached; AI-native teams put the user journeys and test requirements on the outcome ticket itself.
The quarterly roadmap includes Tech Debt and Bug Budget epics with allocated capacity. Retrospectives, health checks and outcome validation keep their published cadence. AI can help prepare work for those decisions, while the people responsible check the evidence. Passing tests and demonstrating journeys establish that the work functions; validating value after release establishes what it achieved.
How do you tell whether a new operating model has actually been adopted?
Look at how people carry out the work and ask what they find useful or difficult. Can the team write a usable ticket, apply the approval gates, review an agent's changes and handle an exception? Does feedback lead to changes people can see? Review that evidence alongside releases, quality and the support the team still needs.
Keep adoption and business value visible as separate questions. Outcome work carries currency targets and planned contributions from delivery epics; maintenance epics carry capacity budgets. Monthly outcome validation compares live results with the baseline and measurement plan, recording value realised, not realised or still too early to assess. A team can be using the method while a longer-term benefit is still being measured.
Does an operating model redesign cover the whole business or just delivery?
Tenhaw's published model and delivery evidence centre on product and delivery, together with the functions whose decisions enable that work. The Tenhaw Way is free to adopt and is used on every Tenhaw engagement. Redesigning finance, HR and operations across an entire enterprise is a broader scope to agree explicitly.
At HSBC Global Payment Solutions, James Rooney co-led the design, piloting and refinement of an operating model intended for 500 teams. This was founder track record in a delivery programme, not an AI transformation. The published study records a model designed and tested for a planned 2026 rollout; it does not report a completed global rollout. Our evidence does not yet show an organisation transformed end to end into an AI-native enterprise.