Building your Target Operating Model is one of those things that, on paper, looks like a neat and tidy process. But in reality, it’s a bit like trying to assemble flat-pack furniture without instructions—it’s going to take some time, some wrong turns, and maybe a few heated discussions.
A Target Operating Model, or TOM for short, is the blueprint for how an organisation runs. Think of it as the playbook for how everything works together—people, processes, and technology, all working in sync. It’s not just about what you’re doing today; it’s about where you want to be tomorrow and how you’re going to get there.
When I first dive into a TOM project, I start with one key question: Where do we want to be? Sounds simple enough, but this is where things get interesting. What does success look like to you, and how will you measure it? This is where defining the vision and strategy comes in.
From my experience, everything starts with the customer. It’s all about understanding their voice—what do they need? What are their pain points? Gathering this data is the backbone of a solid strategy. But it’s not just about the customer; it’s about what people in the organisation want as well, from leaders to front-line staff.
Let’s not forget innovation. Everyone talks about it, but it’s more than a buzzword. It’s figuring out what we can do differently from our competitors to add value. And, most importantly, it’s measuring success. KPIs will keep you on track—without them, it’s like navigating with no coordinates.
A key side note: don’t forget about change management. Getting people on board early with a strong Case for Change and a clear understanding of your stakeholders will save you headaches down the line. A RACI model at this stage will make your life much easier when it comes time for adoption.
After the vision and strategy, it’s time to assess where you are right now. What’s happening with your operations? Are people actually using the tech as intended? What do your KPIs look like today? Data is everything here—collect as much as you can, and then dive in.
Ideation is where strategy starts to take form. It’s about crafting ideas that align with the vision and drive value. Once you have those ideas, it’s time to prioritise them based on value vs effort.
And here’s where we get to alignment—people, process, and tech. Everything has to work together. Too often, organisations rush to implement shiny new tech without aligning people and processes, leading to underutilised solutions.
Once you’ve got your ideas, it’s time to map them out. A roadmap is your guide to bringing the TOM to life. Don’t forget the importance of tracking benefits and having a solid plan for managing change.
Finally, as you progress, monitoring becomes crucial. Make use of tools like PMO tracker and benefit logs to stay on track. And when you hit your milestones, don’t forget to celebrate the wins and roadshow your successes to build momentum for future phases.
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