The Operating Model of Creativity

Strategy as a system, not a pitch. How disciplined structure turns imagination into sustainable value.

Essays on Strategy, Creativity and Management | Edition 01


Introduction

What turns creative intention into value that can be repeated without making the work itself repetitive?

Creative businesses often know what they stand for long before they know how the organisation should operate. Their identity, aesthetic and standard may be remarkably clear, while pricing, decision-making, capacity planning and financial information remain largely informal. In the early stages, that informality can be an advantage because the founder remains close enough to the work to resolve ambiguity personally.

The management problem arrives later. As the business grows, the same informality that once created speed begins to carry more economic consequence than it was designed for. Pricing affects capacity, capacity affects quality, investment decisions affect cash, and more people need to exercise judgement without the founder being present in every room.

That is where an operating model earns its place. Its purpose is not to standardise creativity, but to distinguish between what should become repeatable and what must remain distinctive.

Strategy, in that sense, is a system rather than a pitch.


1. The Lesson Behind the Mirror

When I joined Suitsupply in Amsterdam as a junior business analyst, I believed strategy was about numbers. The company was expanding across continents, opening stores in London, New York and Hong Kong with the confidence of a brand that saw style as a global language. My role was to analyse performance data: store margins, conversion rates and cash cycles. Yet I learned more from my non-financial colleagues than from the spreadsheets I was building.

One afternoon, a senior visual merchandiser stopped by my desk with a question that had nothing to do with KPIs. "Do you know why we use mirrors with a slight warm tint in every fitting room?", I didn't "Because people buy confidence, not clothing."

It was a small lesson with a large consequence. Strategy, I realised, is not only rational alignment. It is emotional architecture. A business grows not because it plans better, but because it understands the psychology behind its operations. At Suitsupply, data did not compete with design, it amplified it. That experience shaped how I now view the creative economy: as a system that thrives when financial structure and creative intuition coexist.

What interested me later was not simply that commercial analysis and design could coexist. It was that they performed different functions. The mirror did not need a spreadsheet to justify every customer interaction, and the spreadsheet did not need to determine the colour of the mirror. Each discipline was useful because the organisation understood where it belonged.

That distinction becomes increasingly important as creative businesses grow.

Edition 1_1 Jeff Sarfo


2. The Paradox of Creative Growth

Creative enterprises often begin with strong intuition and relatively little formal structure. The founder is close to the client, the work and the economics at the same time. Decisions can be made quickly because context travels through proximity rather than through systems.

As scale arrives, the organisation does not suddenly need less intuition. It needs a better way to determine where intuition remains essential and where repeated decisions no longer need to depend on it. How Fast-Growing Companies Can Make Better Decisions, published by Harvard Business Review, describes a similar inflection point in fast-growing companies, where founder-led and informal decision-making comes under pressure as operational complexity, financial management and oversight become harder to coordinate.

Consider what begins to interact as a business expands. Pricing determines which work is economically sensible. Capacity affects both margin and creative quality. Hiring changes the fixed-cost base before it changes output. Investment decisions determine whether the organisation develops reusable capability or simply becomes busier. Governance affects how quickly people can act when the founder is no longer available to make every judgement personally.

None of those questions is inherently creative or financial. They are management questions created by the interaction between the two. That is why I no longer see structure as something introduced after creativity has done its work. Good structure is part of the mechanism through which creative judgement can continue to operate as the organisation becomes more complex.

The challenge is translation: turning what the founder knows intuitively into enough organisational capability for other people to act well, without reducing the business to a manual.


3. Strategy as a System

An operating model is the practical expression of that translation. It connects strategic intent to the way decisions, information, resources and accountability move through the organisation.

A New Operating Model for a New World, published by McKinsey & Company, similarly describes an operating model as a system of interconnected choices rather than an organisational chart alone. The research connects operating-model design with organisational clarity, speed, capability and commitment, reinforcing the idea that strategy becomes meaningful only when the organisation is capable of delivering it.

For a creative business, this does not require importing the machinery of a large corporation. In many cases, doing so would simply replace useful informality with unnecessary process. The objective is narrower: to make explicit the recurring decisions whose ambiguity has become expensive.

Who can approve commercial exceptions? Which elements of delivery should follow the same process every time? Which decisions affect the identity of the business strongly enough to require the founder’s judgement? What information does management need before a capacity problem becomes a delivery problem? Which investments build capability that can be used repeatedly rather than merely adding activity? Those questions turn strategy from presentation into infrastructure.

A good operating model therefore does not ask the organisation to choose between discipline and creativity. It asks where discipline creates the conditions in which creativity can continue to matter.

Boardroom Reframe

The usual view: Structure is treated as the price a creative business eventually pays for growth, with increasing scale assumed to require increasing standardisation.

The management view: The real design problem is not whether to standardise, but where variation creates value. Repeatable work should become easier and more consistent, while judgement should remain free where differentiation depends on it.

The boardroom question: Which activities should run the same way every time, and where would standardisation destroy the very difference customers are paying for?

Standardise the wrong thing and the business becomes scalable and forgettable.


4. Financial Thinking as Protection

The same principle applies to finance. Financial thinking earns its place in a creative organisation when it creates foresight rather than merely reporting what has already happened.

The questions are practical. What does excellent work genuinely cost once revisions, senior attention and unused capacity are included? Where does margin create room to choose, and where does a weak margin quietly remove that room? Which investments build reusable capability, intellectual property or a stronger market position, and which simply add more activity?

These are not questions designed to turn a founder into a CFO. They are questions about optionality.

A business with a clear understanding of cash, margin and capacity can decide when to experiment, when to protect the core and when an opportunity is worth absorbing short-term inefficiency. A business without that understanding can make exactly the same decisions, but it does so without knowing what those decisions consume.

This matters particularly in creative businesses because part of their value frequently sits outside the immediate transaction. A concept, method, format, relationship or piece of intellectual property may create value repeatedly, even though the first commercial agreement prices only the initial output. Financial discipline helps management distinguish between activity that is being sold once and capability that may compound.

In that sense, financial thinking is not the opposite of creative freedom. It is one of the ways an organisation preserves the ability to choose what to do next.


5. From Creativity to Enterprise Value

As a creative business grows, enterprise value depends progressively less on whether one person can produce exceptional work and more on whether the organisation can make good decisions repeatedly.

That shift is easy to underestimate. The founder may still be central to taste and direction, but value increasingly sits in the organisation’s ability to preserve that standard through other people, allocate capital with intention, price work coherently, understand its capacity and decide without unnecessary delay.

The operating model is what connects those elements. It makes clear which decisions belong close to creative judgement and which should be governed by repeatable rules. It also allows the organisation to recognise when the economics supporting the work are beginning to diverge from the ambition driving it.

Jeff Sarfo Suitsupply HQ

At MUNDUS CRAS, this is where strategic finance, management and execution meet. The objective is not to make distinctive businesses more corporate, but to strengthen the management behind them so that financial information, decision-making and organisational structure support the next stage of the business rather than compete with it.

For creative and founder-led businesses in particular, that distinction matters. The purpose of structure is not to replace the instinct that created the business. It is to prevent every future decision from continuing to depend on the same individual instinct.


Conclusion

Creative businesses do not need structure everywhere. They need it where repeated ambiguity begins to consume time, margin, capacity or judgement.

A strong operating model therefore does something quite specific. It standardises what the organisation should not have to reinvent, while protecting the areas in which variation, taste and judgement continue to create the value customers recognise.

That is why structure and creativity are not natural opponents. The question is not how much structure a creative organisation should have, but where structure makes the organisation more capable without making the work more ordinary.

The best operating model does not make a distinctive business look conventional. It makes the conventional parts of running the business reliable enough that the distinctive parts have more room to remain distinctive.

Summary Takeaway

If you remember one thing from this essay, let it be this : structure should standardise what is repeatable, never what is distinctive. An operating model earns its place when it makes the business more reliable without making the work more ordinary.


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