A Target Operating Model (TOM) is essential for aligning an organisation’s operations with its strategic objectives.
Each component within TOM—processes, technology, people and culture, organisation structure, location strategy, and performance management—plays a critical role in translating strategy into effective action.
Processes ensure consistency by defining workflows that lead to efficient outcomes. Technology supports scalability and innovation, enabling the organisation to meet goals with the right infrastructure.
People and culture align roles and behaviours with strategic aims, fostering collaboration and accountability.
The organisation structure clarifies reporting lines and responsibilities to avoid redundancies and promote focused efforts.
Location strategy ensures resources are positioned optimally for operational efficiency, and performance management sets KPIs to monitor progress and facilitate continuous improvement.
For TOM to succeed, these components must integrate cohesively, supporting one another to drive alignment and efficiency.
Using frameworks like CCPOLDAT+ and POLISM helps organisations design balanced models that minimise common pitfalls like rigidity and misalignment.
Understanding and implementing each component of TOM effectively equips organisations to navigate operational challenges and achieve strategic success.
You can read our full article on this subject here – The Sixsess Consultancy’s “Insights” Blog:
https://sixsess.org/insights-blog/
and/or join us on one of our residential courses or call us to arrange your own organisation’s bespoke in-house Target Operating Model course:
https://sixsess.org/tom-courses-q4-2024/
Chris Fox, of StratNavApp, our Strategic Partner, also explains how TOM fits into a strategy here:
https://www.stratnavapp.com/Articles/stratchat-operating-models
Barry Eustance
Principal Consultant
The Sixsess Consultancy
Tel:023 8212 1891
Email: clientservices@sixsess.org