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BENEFITS OF THIS POWERPOINT DOCUMENT

1. Provides guidance when building target operating models
2. Comprehensive steps in target operating model process
3. Provides a solid checklist of things required for TOM development

TARGET OPERATING MODEL PPT DESCRIPTION

Read Marcus Overview

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MARCUS OVERVIEW

This synopsis was written by Marcus [?] based on the analysis of the full 35-slide presentation.

Executive Summary
The "How to Build a Target Operating Model (TOM)" presentation provides a structured approach for organizations aiming to define and implement an effective Target Operating Model. This comprehensive PowerPoint deck outlines the purpose, benefits, and development process of a TOM, ensuring alignment with strategic objectives and enhancing operational efficiency. Users will gain insights into the critical components of a TOM, including capability maps, transformation scope, and the importance of customer interaction. This resource is designed to facilitate stakeholder buy-in and guide organizations through their transformation journeys.

Who This Is For and When to Use
•  Corporate executives overseeing strategic transformations
•  Integration leaders responsible for aligning operational capabilities with business goals
•  Consultants advising organizations on operational improvements
•  Project managers tasked with implementing change initiatives

Best-fit moments to use this deck:
•  During strategic planning sessions to align operational capabilities with corporate vision
•  In workshops focused on defining transformation scopes and outcomes
•  When developing capability maps to assess current versus desired states
•  For stakeholder presentations to gain buy-in on proposed operational changes

Learning Objectives
•  Define the purpose and components of a Target Operating Model
•  Identify the benefits of implementing a TOM in alignment with corporate strategy
•  Develop a comprehensive transformation scope that includes all relevant service areas
•  Create capability maps to assess current and future operational needs
•  Establish frameworks for measuring performance and customer satisfaction
•  Design a visual TOM that effectively communicates complex details to stakeholders

Table of Contents
•  Purpose of a TOM (page 3)
•  Benefits of a TOM (page 4)
•  Building an Example TOM (page 5)
•  Transformation Scope (page 6)
•  Developing the TOM (page 7)
•  Capability Maps (page 11)
•  Example of a TOM (page 13)
•  Summary (page 34)

Primary Topics Covered
•  Purpose of a TOM - The TOM outlines the future operational structure necessary to achieve strategic objectives and desired outcomes.
•  Benefits of a TOM - A TOM aligns operational capabilities with corporate strategy, facilitating stakeholder understanding and accelerating decision-making.
•  Transformation Scope - Defines the service areas and enabling programs necessary for effective transformation within the organization.
•  Developing the TOM - A detailed process for creating a TOM, including defining outcomes, services, and capability types.
•  Capability Maps - Tools for assessing current capabilities against desired future states, identifying gaps and areas for improvement.
•  Example of a TOM - Illustrates how a TOM can be visually represented to convey complex information to stakeholders.

Deliverables, Templates, and Tools
•  Target Operating Model template for defining operational structures
•  Capability mapping templates for assessing current and future states
•  Transformation scope framework to outline service areas and enabling programs
•  Visual representation tools for stakeholder presentations
•  Performance measurement frameworks to assess customer satisfaction and operational efficiency
•  Documentation templates for capturing stakeholder feedback and insights

Slide Highlights
•  Overview of the TOM's purpose and its alignment with strategic objectives
•  Visual representation of the transformation scope, detailing service area programs
•  Capability maps illustrating current versus desired operational capabilities
•  Example TOM slide showcasing a visual model for stakeholder engagement
•  Detailed questions to guide the development of the TOM across various components

Potential Workshop Agenda
Introduction to Target Operating Model (30 minutes)
•  Overview of TOM purpose and benefits
•  Discussion on alignment with corporate strategy

Developing the TOM (90 minutes)
•  Identify key service areas and outcomes
•  Create capability maps to assess current and future states

Stakeholder Engagement Strategies (60 minutes)
•  Techniques for visual representation of the TOM
•  Best practices for facilitating stakeholder buy-in

Customization Guidance
•  Tailor the TOM template to reflect specific organizational goals and strategic objectives
•  Adjust capability maps to incorporate unique service areas and operational needs
•  Modify performance measurement frameworks to align with organizational metrics and KPIs
•  Update visual representations to suit stakeholder preferences and communication styles

Secondary Topics Covered
•  Customer interaction strategies within the TOM
•  Integration of technology and infrastructure in the operating model
•  Cultural and behavioral considerations in implementing a TOM
•  Governance structures to support TOM execution

Topic FAQ

What exactly is a Target Operating Model and what components should it include?

A Target Operating Model (TOM) defines an organization’s desired future operating state, aligning capabilities to strategic objectives. Core components described include processes, organizational structure, technology, performance metrics, customer interaction strategies, governance, and service delivery definitions, typically documented using capability maps and a TOM template.

How do capability maps support assessing current versus future capabilities?

Capability maps provide a visual representation of existing operational strengths and weaknesses against a defined future state, helping teams identify gaps and prioritise improvements. Organizations use capability mapping templates to document current and target states and to inform transformation scope and program planning.

When should an organization review or develop a new TOM?

A TOM should be reviewed during strategic planning cycles or after significant organisational changes, such as mergers, major transformation programs, or periods of sustained organisational flux. Regular reviews help ensure alignment between operations and strategy and guide updates to capability maps and performance metrics.

What are the typical steps in developing a TOM during a workshop?

Typical steps include defining TOM purpose and desired outcomes, mapping service areas, creating capability maps to assess current and future states, specifying transformation scope and enabling programs, and developing a visual TOM for stakeholder engagement, often using structured questions and templates.

How should buyers assess the cost versus value of TOM templates and toolkits?

Evaluate whether a toolkit accelerates alignment, provides ready-to-use templates (e.g., capability maps, transformation scope frameworks), and supplies stakeholder visuals and measurement frameworks that reduce custom build time. The tangible value often lies in templates like capability mapping and performance measurement frameworks.

What should I look for in a TOM toolkit for a rapid executive workshop?

For rapid workshops, prioritise a toolkit with a concise TOM template, capability mapping templates, transformation scope framework, visual representation slides, and customization guidance to adapt slides quickly. The Flevy product How to Build a Target Operating Model (TOM) includes these items in a 35-slide PowerPoint.

How can I use visualisation to gain stakeholder buy-in for a new operating model?

Use clear visual TOM slides that map outcomes, service areas, and capability gaps, supported by concise documentation of impacts and stakeholder feedback mechanisms. Visual tools combined with documentation templates help communicate complexity and facilitate buy-in using example TOM slides and stakeholder engagement guidance.

What metrics and frameworks are used to measure TOM implementation success?

TOM success is measured with performance metrics tied to operational efficiency and customer satisfaction, supported by performance measurement frameworks and KPIs. Use these frameworks to track improvements in service delivery and customer interaction, leveraging measurement templates to document results.

Document FAQ
These are questions addressed within this presentation.

What is a Target Operating Model?
A Target Operating Model (TOM) defines the desired future state of an organization's operations, aligning capabilities with strategic objectives to enhance performance.

Why is a TOM important for organizations?
A TOM provides clarity on how an organization will operate in the future, ensuring that all stakeholders understand the necessary changes and their implications.

How can organizations assess their current capabilities?
Organizations can use capability maps to evaluate their existing operational strengths and weaknesses against the desired future state outlined in the TOM.

What are the key components of a TOM?
Key components include processes, organizational structure, technology, performance metrics, and customer interaction strategies.

How can a TOM facilitate stakeholder buy-in?
A well-designed TOM is visually engaging and clearly communicates complex information, making it easier for stakeholders to understand and support proposed changes.

What role does customer interaction play in a TOM?
Customer interaction is central to the TOM, as it directly influences service delivery and overall customer satisfaction.

How often should a TOM be reviewed and updated?
A TOM should be reviewed regularly, particularly during strategic planning cycles or following significant organizational changes.

What tools can assist in developing a TOM?
Tools such as capability mapping templates, performance measurement frameworks, and visual representation software can aid in developing an effective TOM.

Glossary
•  Target Operating Model (TOM) - A framework outlining the desired future state of an organization's operations.
•  Capability Map - A visual representation of current and desired operational capabilities.
•  Transformation Scope - The range of service areas and programs involved in an organizational transformation.
•  Stakeholder Buy-In - The process of gaining support and agreement from key stakeholders for proposed changes.
•  Performance Metrics - Measures used to assess the effectiveness and efficiency of operations.
•  Customer Interaction - The ways in which customers engage with an organization throughout their journey.
•  Governance Structure - The framework that defines roles, responsibilities, and decision-making processes within an organization.
•  Cultural Alignment - The degree to which an organization's culture supports its strategic objectives and operational goals.
•  Service Delivery - The process of providing services to customers in accordance with established standards.
•  Operational Efficiency - The ability of an organization to deliver services effectively while minimizing waste and costs.
•  Visual Representation - Tools and techniques used to convey complex information in an easily understandable format.
•  Strategic Objectives - The long-term goals that guide an organization's direction and decision-making.
•  Organizational Structure - The arrangement of roles, responsibilities, and communication within an organization.
•  Change Management - The process of managing the transition from a current state to a desired future state within an organization.
•  Business Processes - The series of tasks and activities that organizations undertake to deliver services and achieve objectives.
•  Customer Satisfaction - A measure of how well an organization's services meet customer expectations.
•  Service Area - A specific domain within an organization that focuses on delivering particular services.
•  Enabling Programs - Initiatives designed to support the implementation of a TOM across various service areas.
•  Operational Views - Perspectives that outline how different components of the TOM interact and function together.
•  Performance Improvement - Efforts aimed at enhancing the effectiveness and efficiency of organizational operations.

Source: Best Practices in Target Operating Model PowerPoint Slides: How to Build a Target Operating Model (TOM) PowerPoint (PPTX) Presentation Slide Deck, R Bradley Consulting

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