Target Operating Model

Overview

The Target Operating Model (TOM) deliverables package is a comprehensive Tier 2 consultancy-standard documentation suite that transforms organizational assessment data into executive-ready operating model documentation. This package provides strategic vision and practical implementation guidance for organizational transformation initiatives through Current, Transition, and Target state analysis.

Example

Download: Alpine Shire Council Target Operating model

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Purpose and Scope

Primary Objective

Comprehensive operating model deliverables that provide both strategic vision and practical implementation guidance for organizational transformation initiatives, meeting the standards of leading global consulting firms.

Key Applications

• Strategic Transformation: Guide organizational evolution from current to target state

• Executive Decision-Making: Board-ready documentation for transformation approval

• Implementation Planning: Detailed roadmaps and governance frameworks

• Stakeholder Alignment: Clear communication of transformation vision and benefits

• Risk Management: Comprehensive risk assessment and mitigation strategies

Core Components

Executive Deliverables Package

The TOM package consists of four primary executive deliverables:

Executive Summary Document

• Organization Overview: Organization name, mission, and strategic context

• Current State Assessment: High-level summary of existing operating model strengths and challenges

• Future State Vision: Clear articulation of target operating model objectives and benefits

• Transformation Imperative: Business case for change driven by strategic drivers

• Implementation Overview: High-level roadmap with key milestones and timelines

• Investment and Benefits: Financial implications and expected returns

• Risk Assessment: Key transformation risks and mitigation strategies

Current-Transition-Target State Narrative

Three-state narrative structure covering:

• Current State: Today's operating model characteristics, capabilities, performance baseline, and key challenges

• Transition State: Transformation phases, critical success factors, and change management approach

• Target State: Future operating model vision, strategic alignment, capability enhancement, and value creation

Capability Transformation Analysis

• Current Capability Maturity: Existing capabilities with maturity level mapping

• Capability Gaps: Missing or underdeveloped capability identification

• Target Capability Architecture: Future state capability requirements definition

• Transformation Priorities: Capability development initiative sequencing

• Investment Requirements: Resource allocation for capability building

Implementation Roadmap

Multi-year transformation timeline:

• Year 1 (Foundation Building): Phase 1 initiatives, key milestones, success metrics

• Year 2-3 (Scale and Enhancement): Phase 2 initiatives, integration points, risk mitigation

• Year 4-5 (Optimization and Embedding): Phase 3 initiatives, business-as-usual transition, continuous improvement

Document Structure

Required Output Sections

Detailed Operating Model Blueprints

Organizational Structure Design

Comprehensive organizational design artifacts including:

• Current State Organization Chart: Board level, operational level, and support functions mapping

• Target State Organization Chart: Governance layer, strategic layer, operational layer, and enabling layer structure

Capability Architecture Blueprint

Detailed capability mapping covering:

• Current State Capability Map: Strategic, core, and supporting capabilities with maturity assessment

• Target State Capability Map: Enhanced strategic capabilities, new core capabilities, digital capabilities, and integrated capabilities

Process and Service Models

Comprehensive process architecture including:

• Value Stream Maps: Current state processes, target state processes, and transformation requirements

• Technology enablers and automation integration

• Performance improvement targets

Technology Architecture Overlay

Technology enabler mapping including:

• Current Technology Landscape: Existing systems documentation

• Target Technology Architecture: Future state technology specifications

• Integration Requirements: System integration needs analysis

• Digital Transformation Initiatives: Technology transformation project roadmap

Diagnostic and Design Artifacts

Stakeholder Analysis and Engagement Strategy

Comprehensive stakeholder mapping including:

• Stakeholder Power-Interest Grid: Power level, interest level, and engagement strategy matrix

• Stakeholder Impact Assessment: Champions, resistors, neutral stakeholders, and communication plans

Risk and Issue Management Framework

Comprehensive risk management approach including:

• Risk Register: Risk category, description, impact, probability, and mitigation strategy documentation

• Issue Escalation Matrix: Critical, high, medium issues with monitoring framework

Performance Measurement Framework

Comprehensive performance management system including:

• KPI Hierarchy: Strategic KPIs, operational KPIs, and leading indicators

• Measurement frequency and accountability structures

• Dashboard requirements and improvement targets

Implementation Support Tools

Transformation Governance Design

Comprehensive governance framework including:

• Steering Committee: Chair, members, frequency, and responsibilities

• Program Management Office: Director, functions, resources, and tools

• Working Groups: Specific focus areas, membership, deliverables, and timelines

Change Management Strategy

Comprehensive change management approach including:

• Change Impact Assessment: High, medium, and low impact groups with change readiness evaluation

• Change Enablement Plan: Communication strategy, training and development, reinforcement mechanisms

Business Case and Investment Planning

Comprehensive investment framework including:

• Financial Analysis: Investment requirements, benefit realization, return on investment

• Technology, human resources, process reengineering, and change management cost analysis

• Cost savings, revenue enhancement, risk mitigation, and strategic benefits quantification

Document Standards

Document Structure Standards

• Executive Documents: Clean, professional formatting with executive summaries, key findings, and recommendations

• Technical Blueprints: Detailed diagrams, process flows, and technical specifications

• Implementation Tools: Practical templates, checklists, and governance frameworks

Visual Design Standards

• Consistent Branding: Professional color scheme and typography

• Clear Information Hierarchy: Logical section organization and navigation

• Effective Data Visualization: Charts, graphs, and infographics for complex data

• Interactive Elements: Hyperlinked navigation and cross-references

Quality Assurance Standards

• Accuracy Verification: Cross-reference all data points with JSON source

• Consistency Checking: Ensure alignment across all deliverables

• Stakeholder Validation: Include confidence levels and data quality indicators

• Professional Review: Meet Tier 1 consultancy documentation standards

Key Features and Outputs

Strategic Focus Areas

• Organizational Transformation: Comprehensive current-to-target state evolution

• Capability Development: Structured capability maturity and enhancement planning

• Implementation Excellence: Detailed roadmaps with governance and risk management

• Stakeholder Engagement: Comprehensive communication and change management

• Financial Planning: Investment analysis with benefit realization tracking

• Performance Management: KPI frameworks with measurement and accountability

Document Characteristics

• Executive-ready formatting: Board-level presentation quality

• Comprehensive coverage: End-to-end transformation documentation

• Practical implementation focus: Actionable tools and frameworks

• Professional consulting standards: Tier 1 consultancy quality and rigor

• Integrated deliverables: Consistent and aligned documentation suite

• Evidence-based analysis: Data-driven insights and recommendations

Quality Validation

Validation Requirements

• Comprehensive coverage of all transformation aspects

• Executive-level presentation quality and standards

• Practical implementation tools and frameworks

• Consistent integration across all deliverables

• Professional consulting documentation standards

• Evidence-based analysis and recommendations