A target operating model (TOM) is a high level view of the future state of the organisation at the operational level. It defines the relationships between people, processes, technology, products, customers, and markets which together differentiate the organisation from its competitors. A target operating model (TOM) is developed through an iterative modelling process based on participation by managers, supervisors and process experts within the organisation.
Why is it valid
Reports clearly show that organisations with a well-designed operating model consistently experience higher operational efficiencies and customer satisfaction. The majority of organisations fail to entirely implement their vision and strategic plan because they do not fully understand how the changes they plan to introduce will affect their current operating model.
What you will experience
The organisation's vision and strategy are deconstructed and mapped onto the benefits expected to be returned from a change initiative. It is through properly implemented changes that the outcomes are translated into benefits.
As changed processes and behaviours have an impact, the current operating model adapts, sometimes causing unintended and unacceptable consequences. This emergent operating model needs to be compared to the planned target operating model consultant to ensure appropriate actions are taken.
The first steps are to identify and quantify the specific fundamental parameters (i.e. those factors in the environment that are the drivers of business performance) and build models showing how they interact and change as new levels of performance are introduced.
With this, the Board can analyse the alignment of the prospective project portfolio with its intended strategy, enabling them to confirm or modify it to achieve the operational performance needed.
How you might start
CITI leads target operating model consultant design interventions. These can last for a calendar year or more depending on the size of the planned change and its associated complexity and risks. It is not a continuous engagement, but rather a small number (three to four) of high intensity, high throughput interventions to provide the greatest value.
Working closely with often many stakeholders, we ensure that business processes are fit for purpose and aligned with the new strategy, with our focus on facilitating the speedy resolution of the many issues TOM implementations generate.
Tools and techniques used
Target operating model consultant BIP SIPP Blueprint
"The classic training model, taking individuals out of the business to sit in a classroom for a week at a time, was not going to work for us. But at the same time, we knew we needed to raise our game in managing change. I have to say, your people are brilliant!"