We have categorized 13 documents as TOM. All documents are displayed on this page.

Peter Drucker, the father of modern management, once stated, "Efficiency is doing things right; effectiveness is doing the right things." This sentiment aptly captures the essence of Target Operating Models (TOM)—a strategic tool designed to ensure that organizations not only operate efficiently but are also aligned in their operations with broader business objectives. For Fortune 500 C-level executives, understanding and leveraging TOM is integral to steering large enterprises through the turbulent waters of today's business landscape. Learn more about TOM.

Did you know?
The average daily rate of a McKinsey consultant is $6,625 (not including expenses). The average price of a Flevy document is $65.

DRILL DOWN BY SECONDARY TOPIC


DRILL DOWN BY FILE TYPE

  Open all 13 documents in separate browser tabs.
  Add all 13 documents to your shopping cart.


Trusted by over 10,000+ Client Organizations
Since 2012, we have provided best practices to over 10,000 businesses and organizations of all sizes, from startups and small businesses to the Fortune 100, in over 130 countries.
AT&T GE Cisco Intel IBM Coke Dell Toyota HP Nike Samsung Microsoft Astrazeneca JP Morgan KPMG Walgreens Walmart 3M Kaiser Oracle SAP Google E&Y Volvo Bosch Merck Fedex Shell Amgen Eli Lilly Roche AIG Abbott Amazon PwC T-Mobile Broadcom Bayer Pearson Titleist ConEd Pfizer NTT Data Schwab




Read Customer Testimonials

  •  
    "Flevy is our 'go to' resource for management material, at an affordable cost. The Flevy library is comprehensive and the content deep, and typically provides a great foundation for us to further develop and tailor our own service offer."

    – Chris McCann, Founder at Resilient.World
  •  
    "FlevyPro provides business frameworks from many of the global giants in management consulting that allow you to provide best in class solutions for your clients."

    – David Harris, Managing Director at Futures Strategy
  •  
    "If you are looking for great resources to save time with your business presentations, Flevy is truly a value-added resource. Flevy has done all the work for you and we will continue to utilize Flevy as a source to extract up-to-date information and data for our virtual and onsite presentations!"

    – Debbi Saffo, President at The NiKhar Group
  •  
    "I am extremely grateful for the proactiveness and eagerness to help and I would gladly recommend the Flevy team if you are looking for data and toolkits to help you work through business solutions."

    – Trevor Booth, Partner, Fast Forward Consulting
  •  
    "[Flevy] produces some great work that has been/continues to be of immense help not only to myself, but as I seek to provide professional services to my clients, it give me a large "tool box" of resources that are critical to provide them with the quality of service and outcomes they are expecting."

    – Royston Knowles, Executive with 50+ Years of Board Level Experience
  •  
    "I have found Flevy to be an amazing resource and library of useful presentations for lean sigma, change management and so many other topics. This has reduced the time I need to spend on preparing for my performance consultation. The library is easily accessible and updates are regularly provided. A wealth of great information."

    – Cynthia Howard RN, PhD, Executive Coach at Ei Leadership
  •  
    "As a consultant requiring up to date and professional material that will be of value and use to my clients, I find Flevy a very reliable resource.

    The variety and quality of material available through Flevy offers a very useful and commanding source for information. Using Flevy saves me time, enhances my expertise and ends up being a good decision."

    – Dennis Gershowitz, Principal at DG Associates
  •  
    "The wide selection of frameworks is very useful to me as an independent consultant. In fact, it rivals what I had at my disposal at Big 4 Consulting firms in terms of efficacy and organization."

    – Julia T., Consulting Firm Owner (Former Manager at Deloitte and Capgemini)



Flevy Management Insights: TOM

Peter Drucker, the father of modern management, once stated, "Efficiency is doing things right; effectiveness is doing the right things." This sentiment aptly captures the essence of Target Operating Models (TOM)—a strategic tool designed to ensure that organizations not only operate efficiently but are also aligned in their operations with broader business objectives. For Fortune 500 C-level executives, understanding and leveraging TOM is integral to steering large enterprises through the turbulent waters of today's business landscape.

A Target Operating Model provides a clear blueprint of how an organization's resources should be structured and operated to achieve its strategic intentions. It encompasses the organization's structure, governance, processes, and infrastructure, presenting a holistic view of how individual components interplay to create value.

For effective implementation, take a look at these TOM best practices:

Explore related management topics: Target Operating Model Governance

Strategic Value of TOM to the C-suite

At the helm of large enterprises, C-level executives are charged with ensuring that every facet of the organization is pulling in the same direction. Herein lies the value of TOM:

  1. Alignment with Vision: TOM ensures that daily operations, from the front office to the back office, are in sync with the company's strategic vision.
  2. Operational Excellence: By outlining best practices and streamlined processes, TOM lays the groundwork for increased efficiency and reduced operational risks.
  3. Flexibility: In a rapidly changing business environment, TOM offers a framework that can be adapted to accommodate shifts in market dynamics or strategic priorities.
  4. Enhanced Stakeholder Value: A well-defined TOM translates into improved services and products, driving stakeholder satisfaction and, by extension, value.

Explore related management topics: Best Practices Operational Risk

Components of an Effective TOM

To create an impactful Target Operating Model, several components need to be carefully defined and integrated:

  • Operational Strategy: This encapsulates the objectives the TOM aims to achieve and the value it seeks to deliver.
  • Processes and Capabilities: Clearly defined processes, paired with the necessary capabilities, ensure that operations are both efficient and effective.
  • Technology and Infrastructure: This involves the tools, systems, and physical infrastructure required to support the model.
  • People and Culture: No TOM can succeed without considering the human element—this entails defining roles, responsibilities, and fostering a culture aligned with the TOM's objectives.
  • Governance and Metrics: This ensures that the TOM remains on track, with clear governance structures and performance metrics in place.

Modern Considerations in TOM Design

As the business world evolves, so do the considerations for designing and implementing a TOM:

  • Digital Transformation: With the advent of AI, machine learning, and automation, modern TOMs need to incorporate these elements to remain competitive.
  • Sustainability: Today's enterprises are under pressure to operate sustainably. TOMs should reflect this, incorporating eco-friendly processes and practices.
  • Remote Work Paradigm: The COVID-19 pandemic has shifted the work paradigm. TOMs now need to consider remote work, flexible operations, and digital collaboration tools.
  • Regulatory Compliance: Especially for global enterprises, TOMs need to be designed with an eye on the diverse regulatory landscapes of different regions.

Explore related management topics: Machine Learning Remote Work Compliance

Best Practices for Implementing a TOM

Implementing a Target Operating Model is not a task to be taken lightly. A few best practices can guide the journey:

  • Stakeholder Engagement: Involve all relevant stakeholders—from employees to partners—to ensure that the TOM is comprehensive and practical.
  • Pilot Programs: Before a full-scale rollout, test the TOM through pilot programs to identify potential pitfalls and areas of improvement.
  • Continuous Review: The business landscape is dynamic. Regularly review and refine the TOM to ensure it remains relevant and effective.
  • Change Management: Understand that implementing a TOM will bring change. Invest in change management practices to smoothen the transition.

Explore related management topics: Change Management

TOM FAQs

Here are our top-ranked questions that relate to TOM.

What role does organizational culture play in the successful implementation of a Target Operating Model, and how can it be aligned?
Organizational culture is crucial for the successful implementation of a Target Operating Model, requiring alignment through leadership, strategic planning, and communication to achieve strategic objectives and adaptability. [Read full explanation]
How can a Target Operating Model facilitate a company's agility in responding to market changes?
A Target Operating Model enhances a company's agility by defining operations, roles, and processes for Strategic Agility, Operational Excellence, and a Culture of Innovation, enabling swift adaptation to market changes. [Read full explanation]
How does the integration of sustainability goals into the Target Operating Model influence business strategy and operations?
Integrating sustainability goals into the Target Operating Model transforms Strategic Planning, drives Innovation, enhances Operational Excellence, and necessitates Leadership and Culture shifts, leading to improved profitability, brand reputation, and resilience. [Read full explanation]
What are the key considerations for integrating ESG (Environmental, Social, and Governance) principles into a Target Operating Model?
Integrating ESG principles into a Target Operating Model involves Strategic Alignment, Leadership Commitment, embedding into Core Business Processes, robust Data Management and Reporting, and fostering Continuous Improvement and Innovation for resilience and value creation. [Read full explanation]

Recommended Documents

Related Case Studies

Target Operating Model Transformation for a Global Financial Services Firm

Scenario: A multinational firm in the financial services industry is grappling with a fragmented Target Operating Model.

Read Full Case Study

Operational Excellence & Target Operating Model (TOM) Design in Specialty Chemicals

Scenario: The organization is a specialty chemicals producer in North America facing challenges in aligning its operations with strategic objectives.

Read Full Case Study

Target Operating Model Refinement for Education Sector in Digital Learning

Scenario: The organization is a mid-sized educational institution that has recently transitioned to a hybrid learning model.

Read Full Case Study

Target Operating Model Transformation for an IT Services Firm

Scenario: An established IT services firm in North America has been struggling with its Target Operating Model due to a rapid expansion into new markets and technologies such as artificial intelligence and cloud computing.

Read Full Case Study

Live Events Strategy for Independent Music Venues in Urban Areas

Scenario: An independent music venue located in a major urban area is facing a critical juncture in defining its Target Operating Model to stay competitive and profitable.

Read Full Case Study

Customer Experience Strategy for Luxury Retail in APAC

Scenario: A prominent luxury retail brand in the Asia-Pacific region is at a critical juncture, needing to redefine its Target Operating Model to stay competitive.

Read Full Case Study

Explore all Flevy Management Case Studies




Flevy is the world's largest knowledge base of best practices.


Leverage the Experience of Experts.

Find documents of the same caliber as those used by top-tier consulting firms, like McKinsey, BCG, Bain, Deloitte, Accenture.

Download Immediately and Use.

Our PowerPoint presentations, Excel workbooks, and Word documents are completely customizable, including rebrandable.

Save Time, Effort, and Money.

Save yourself and your employees countless hours. Use that time to work on more value-added and fulfilling activities.



Download our FREE Organization, Change, & Culture, Templates

Download our free compilation of 50+ slides and templates on Organizational Design, Change Management, and Corporate Culture. Methodologies include ADKAR, Burke-Litwin Change Model, McKinsey 7-S, Competing Values Framework, etc.