Why does a Target Operating Model help our clients?

Turning a Vision into reality and executing a Strategy are amongst the most difficult things an organisation and its leadership have to do. This is particularly true when significant changes to the strategy or business model, driven by opportunities or challenges, must be achieved, for example, responding to a major change in the market environment, taking advantage of major new growth opportunities/new markets, building new capabilities and services, or leveraging new technologies.

Carrying out a TOM project delivers “Programme benefits” to the organisation.

In addition, since the project engages and involves the organisation, it also delivers “Collaboration Benefits” to those taking part; this enhances the capability of the organisation and its ability to drive and deal with future change.

Developing a TOM supports the leadership of an organisation by systematically generating a comprehensive picture of the future and a roadmap of how to achieve it.

What is a Target Operating Model?

A Target Operating Model is a mechanism or model through which an organisation’s Strategy and Vision can be enabled, deployed and applied to the operation. Typically, a Target Operating Model is a “future state” high-level operational design or representation of how the organisation and its processes can be structured to more efficiently and effectively deliver its value.

By developing and executing a TOM an organisation moves towards realising its Strategy in the real world; so a TOM can be considered as a transformation engine, enabling re-engineering and redesign of the organisation.

Existing Processes

  1. To be improved

2. To be remain

3. To be eliminated

New Processes

  1. To be discovered

2. To be designed

3. To be implemented

<<<<< To be integrated & interfaced within the organisation >>>>>

A Target Operating Model is the engine developed to dynamically enable continuous transformation of the operation and its service delivery.

A TOM has no fixed format and can be described in a one-page document or in dozens of pages depending on the organisation, its needs and the desired level of detail.

How do we do it?

Organisations are complex systems and there are many frameworks and approaches to developing a Target Operating Model, depending on the challenges facing the organisation. At Catalyst we focus on a PTPO approach: creating a model with these elements:-

PROCESSES

The Value Streams and methods organisation uses to deliver Value and carry out its work. How do these processes interact, and what is the optimum architecture?

TOOLS/TECHNOLOGY

The systems and infrastructure the organisation’s people use; this can include information technology and software, production equipment, plant and vehicles, etc.

PEOPLE

The skills, capabilities, behaviours and culture of the organisation’s people.

ORGANISATION

The structures, policies, governance and management systems used to control and support the Processes and People. Organisation also looks at management of performance and continuous improvement.

GEOGRAPHY

Multinational organisations will also address location and region-specific aspects of the model, giving a PTPOG approach

Catalyst begins Target Operating Model assignments by engaging with the organisation’s leadership in reviewing the Vision, Strategy, Strategic Essentials and Objectives/Targets. It is essential that these aspects are well thought through and “robust”. In support of this we assess the Balanced Scorecard and Business Model Canvas(es) for the organisation, and where these do not exist we will work with the leadership to generate them.

To be most effective, a Target Operating Model programme should engage and involve a wide “slice” of the organisation from multiple levels in multiple functions. The programme must also leverage existing “good practice”, and operate within an effective Governance/PMO framework.

Bringing these elements together Catalyst consultants use a Strategy Deployment-Hoshin Kanri approach, in a series of interactive workshops, to develop the initiatives and projects
required to re-engineer/develop the vision and detail for each part of the PTPO framework.

Projects and initiatives are carried out by the organisation staff, led or coached by Catalyst consultants as required. The in-depth involvement of the organisation’s people ensures outputs are credible, comprehensive and “bought-into” by the teams; this is essential to support the Change Management activities which are a vital part of the programme.

Outputs from the Operating Model re-engineering are reviewed via a Quality & Acceptance Review process, and then go on to Piloting or Quick Wins execution as required. The delivered model is then ready for implementation, which can be done with support from Catalyst. Ultimately a TOM programme drives readiness for transformation in the organisation.

Target Operating Model Image 3

How can Catalyst help?

Configuring and Planning this approach in detail.

Provide World-class expertise and experience.

Organising and Facilitating the Workshops.

Facilitate any unusually complex Workstreams and projects if and as required.

Train and Coach the constituent Project Leaders.

Plan and execute effective Change Management and communications to stakeholders.

Catalyst’s experience and expertise in designing and leading TOM delivery ensures that programmes are effective, carried out at pace and meet their objectives.

Contact Us

If you would like to find out more about the Target Operating Model and how it could help you and your organisation, then please feel free to contact us. You can do this by clicking on the button below and we will be happy to help.