A Target Operating Model (TOM) is used to document both the way an organization intends to do business in the future, as well as the changes necessary to get there. It may cover one or multiple dimensions such as processes, capabilities, employees and/or infrastructure. Furthermore, there are various levels of granularity possible, from a rough sketch of a strategy to a holistic framework which covers all change activities to the last detail.
A TOM typically serves various stakeholders, each with different expectations. Additionally, it needs to create a tangible link to the current business model in order to visualize required changes, but without losing sight of the big picture.
In order to successfully develop a TOM, scope and purpose need to be established in advance and meet the approval of all stakeholders. Experience shows that creating an appropriate Target Operating Model in advance of implementing significant changes in an organization can play a major role in ensuring that the changes are implemented efficiently and effectively.
- Definition of fit-for-purpose Target Operating Models and methodologies.
- Creation of Target Operating Models with internal and external resources.
- Set-up of client-specific governance in order to enable audit-proof sign-off by all stakeholders.