Target Operating Model (TOM)
Why
Organizations face a dynamic and competitive landscape where achieving strategic objectives requires clear alignment between vision, operations, and resources. A Target Operating Model (TOM) serves as a blueprint for aligning people, processes, technology, and governance to ensure operational efficiency, customer satisfaction, and scalability. It bridges the gap between an organization’s strategy and its day-to-day execution, ensuring sustainable growth and resilience in a fast-changing environment.
How
A Target Operating Model is created by:
> Defining Strategic Goals – Clarifying the desired outcomes, such as improved efficiency, customer focus, or market expansion.
> Analyzing the Current State – Assessing existing processes, structures, and capabilities to identify gaps and inefficiencies.
> Designing the Future State – Mapping out how the organization will operate, integrating optimal processes, technologies, and resource structures.
> Engaging Stakeholders – Collaborating across departments to ensure alignment and buy-in for the vision.
>Implementing the Model – Rolling out changes in phases to manage risks and enable smooth transitions.
> Continuously Improving – Monitoring performance and refining the operating model to adapt to new challenges and opportunities.
This approach combines strategic vision with practical steps to create a coherent and scalable framework for operations.
Result
By creating and implementing a Target Operating Model, organizations achieve:
> Strategic alignment, ensuring that all functions and processes work cohesively toward overarching business goals.
> Operational excellence, with streamlined processes, improved resource allocation, and optimized workflows.
> Enhanced agility, enabling faster adaptation to market changes, new technologies, or regulatory requirements.
> Improved user experience, by embedding user-centric processes and technologies into the operating model.
> Sustainable growth, through better scalability, cost-effectiveness, and a resilient organizational structure.
References
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