David Winders of The Sixsess Consultancy breaks down the Core Components of a Target Operating Model (TOM).
A Target Operating Model (TOM) is essential for aligning an organisation’s operations with its strategic objectives.
Take a look at The Sixsess Consultancy’s Target Operating Model Courses:
https://sixsess.org/tom-courses-q4-2024/
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 CCPPOLDAT+ 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/
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