Defining the Target Operating Model
One of the questions I frequently ask when working with organisations undertaking major transformation is:
Can you clearly describe how your organisation will actually operate on Day One?
It sounds like a simple question. But the answer is often far more complicated than it should be.
We can spend enormous amounts of time defining the technology solution, developing project plans, establishing milestones and managing delivery, yet still lack a sufficiently clear picture of the organisation we are actually trying to create.
This is where the Target Operating Model (TOM) becomes so important.
A TOM is not simply an organisational chart, a process map or a document produced during the design phase. It is a representation of how the future organisation is intended to operate, bringing together the capabilities, people, processes, technology, systems, procedures and other organisational elements needed to deliver the strategic intent.
Importantly, it doesn't need to be perfect or completely defined at the outset. It needs to be sufficiently articulated to provide a clear direction, guide decisions and support the analysis and planning required to get there, including managing the inherent organisational risk. And it needs to evolve as the transformation progresses.
Because if we haven't sufficiently defined how the future organisation will operate, how can we confidently assess what needs to change, or plan how to get there?
This is one of the fundamental challenges I often see with organisations. We have plans and sometimes impact analysis – but based on what? If you aren’t clear how the organisation needs to operate at go-live how have you created plans to transition to this point?
Understanding Go-Live Risk
And it raises a much bigger question about how we approach implementation and the associated risk connected with the go-live.
Perhaps we need to spend less time asking whether the project is on track, and more time asking whether we understand the organisation we are creating for go-live.
This is Part 1 of a series exploring the role of Target Operating Models in strategic and transformative change.
About the authors
Tracey Penington
Tracey is a Transformation Specialist, Futurist and Entrepreneur but has spent most of her career developing solutions… View profile
Related services & courses
ACADEMY COURSES
Target Operating Model 1-Day Workshop
In this workshop, we will explore the essential elements of a TOM and how it can become the blueprint of an organisation…
