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  • Writer's pictureSchüberl Consulting

Approach to success: the target operating model as a bridge between vision and reality

Updated: Apr 15

Form follows function - Find out how a target operating model helps you to optimally align your organisation to achieve your strategy.

A target operating model (TOM) is a framework that supports companies in designing their business processes and structures in such a way that they are optimally aligned with the achievement of strategic corporate goals.

The document is to be understood as a blueprint that helps managers to design, set up and optimise processes and structures. It is an important step between the strategy and all important functions and therefore comprises all essential design elements of a company:

  1. Goals

  2. Services and processes

  3. IT architecture

  4. Organisational structure

  5. Supplier relationships

  6. Corporate management / governance

  7. Sites

Depending on requirements, a target operating model can be presented as a simple one-pager or as a complex manual with hundreds of pages. It is also possible to apply the framework to the entire organisation or just to a single function/unit.

What are the objectives of a target operating model?

Identify a strategic window

It provides a comprehensive picture of what the future state of the company could look like in all business and technology areas.

Develop components for a business architecture

The construction of the target operating model provides the essential building blocks for a business and system architecture.

Enabling transparency through levers

It shows how an organisation or business unit can deliver value and which value drivers play an important role in this.

Consider both hard and soft factors

The model has the flexibility to include all relevant aspects for a specific problem: Structures, systems, personnel, style, shared values, suppliers, processes, IT, ...

The major advantage of a target operating model: "Once defined, it can be used and adapted indefinitely!"

The structured and clear approach to designing the target operating model creates transparency in the structure of the entire organisation. Adjustments in the event of a need for change are quickly identified, significantly increasing the agility of the organisation.

Preview: Stay tuned for Part 2, in which we will guide you through the practical process of designing a target operating model.

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