Summary

This conversation explores the intricacies of the Target Operating Model (TOM), focusing on key strategic themes such as cost leadership versus differentiation, centralised versus devolved strategies, and the balance between risk aversion and risk-taking cultures.

David Winders, The Sixsess Consultancy’s Target Operating Model (TOM) Course Principal Facilitator, provides insights into how organisations can assess their operating models against these themes using a strategy mirror, and gives practical examples from various industries to illustrate the concepts discussed.

Takeaways

Cost leadership is about efficiency, not just low prices.

Differentiation involves unique product offerings.

Devolved strategies allow for market responsiveness.

Resource-based view focuses on leveraging internal capabilities.

Transparency in organisations requires robust governance.

Risk aversion can stem from cultural factors.

Fluid organisations can adapt quickly to changes.

Banking sectors are typically risk-averse due to regulations.

Understanding your operating model is crucial for strategic alignment.

Titles

Navigating the Target Operating Model

Cost Leadership vs. Differentiation Explained

Sound Bites

“Cost leadership is not about lowest price.”

“Fluid organisations can change very quickly.”

“Where do YOU sit in your operating model?”

Chapters

00:00 Introduction to the Strategy Mirror

00:48 Understanding Cost Leadership vs. Differentiation

05:39 Centralised vs. Devolved Strategies

07:03 Resource-Based View vs. Marketing Focus

09:44 Transparency vs. Opaqueness in Organisations

10:36 Risk Aversion vs. Risk Taking Cultures

12:15 Structured vs. Fluid Organisational Responses

12:56 Real-World Examples of Operating Models

16:52 Conclusion and Future Directions

Useful Links

The Sixsess Consultancy’s Target Operating Model Courses

https://sixsess.org/tom-courses-q4-2024/

The Sixsess Consultancy’s Webpage
https://sixsess.org/

Keywords

Target Operating Model, TOM, Cost Leadership, Differentiation, Centralised Strategy, Devolved Strategy, Resource-Based View, Marketing, Transparency, Risk Aversion, Structured Organisations, strategy mirror, Resource Based View, RBV