Target Operating Model
(TOM)
Why
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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