Make-or-buy economics: Target operating model and decision rights

Design the make-or-buy operating model: sourcing committee, supplier management, contract terms, retained capability, and decision rights.

Asset IDSTX-A0175

CategoryOperating Model, Org and Systems Design

TierRead and Download

Prepared byStratenity Advisory Team

Executive summary

A method for deciding who manages bought activities, what contracts must contain, what capability stays, and how sourcing decisions are reviewed.

What is inside

What the operating model covers

The asset walks a design lead through the committee, supplier management, contract terms, retained capability, the refocused in-house operation, decision rights, and controls. It includes an operating model table, a role map, and an approval matrix, with a worked synthetic case.

A make-or-buy committee and annual review
Supplier relationship management for bought activities
Contract terms that protect price, capacity, quality, and exit
Retained engineering, test, and inspection capability

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Stratenity Advisory Team. (2026). Make-or-buy economics: Target operating model and decision rights. Stratenity Library. https://www.stratenity.com/resources/library/operating-model-design/make-or-buy-economics-target-operating-model-and-decision-rights

Stratenity Advisory Team. "Make-or-buy economics: Target operating model and decision rights." Stratenity Library, 2026, www.stratenity.com/resources/library/operating-model-design/make-or-buy-economics-target-operating-model-and-decision-rights.

Stratenity Advisory Team. "Make-or-buy economics: Target operating model and decision rights." Stratenity Library, 2026. https://www.stratenity.com/resources/library/operating-model-design/make-or-buy-economics-target-operating-model-and-decision-rights.

Stratenity Advisory Team (2026) Make-or-buy economics: Target operating model and decision rights. Stratenity Library. Available at: https://www.stratenity.com/resources/library/operating-model-design/make-or-buy-economics-target-operating-model-and-decision-rights (Accessed: the date of access).

@misc{stratenity_stxa0175, author = {{Stratenity Advisory Team}}, title = {Make-or-buy economics: Target operating model and decision rights}, year = {2026}, publisher = {Stratenity Library}, howpublished = {\url{https://www.stratenity.com/resources/library/operating-model-design/make-or-buy-economics-target-operating-model-and-decision-rights}}, note = {Asset ID STX-A0175} }

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Make-or-buy economics: Target operating model and decision rights

What the operating model covers

This is a taste. The full library goes deeper.

Stratenity is the AI Operating System for Strategic Execution™.

Stratenity is the AI Operating System for Strategic Execution^™.