Defining and Implementing Target Operating Model (TOM)

  • The objective of high level Target Operating Model development is to identify the high level elements of the future operating model’s layers as follows:
    • Customer channels
    • Products and Services
    • Organizational and Operational structure
    • Processes
    • People
    • Systems infrastructure
    • Premises and Locations
  • When developing the components of a high level TOM, there is a key requirement to ensure that there is vertical consistency across the layers.
  • There may be some inconsistencies within the layers that may not be addressed at this high-level stage. These will have to be recorded and dealt with later.
  • A key challenge in developing and implementing a TOM based on our experience is to ensure it delivers the business strategy and goals and helps enable differentiation for the organization from the competition.

Target Operating Model Deliverables

The typical initial engagement and requirement is to define the initial key Target Operating Model frameworks and components.

Based on our experience and over a relatively short period we would define and demonstrate the value and how any the Business and Operating models would be designed and defined in BusinessOptix and how they could support the associated linkage of processes and, other key documents such as procedures, supplier, operational and training materials.

The key deliverables would typically cover the following four areas:

  1. A High Level Target Operating Overview Framework
  2. Functional Component Target Operating Model Framework
  3. List of key Business Architecture IT Components
  4. High Level Functional Model
Target Operating Model

The Need for Business Alignment

To define and implement an effective aligned Group Business Operating Model our experience has shown that there is a need to have four core components clearly defined.

• Failure to have these four areas aligned typically leads to the optimum model or solution being compromised and ultimately impacting the benefit realization.