A Target Operating Model (TOM) is the blueprint that defines how an organization will operate to deliver on its strategy. It specifies the future state across structure, processes, technology, governance, and people. It answers the question that strategy documents leave open: not what the organization wants to achieve, but how it will actually get there.
The stakes of getting this right are significant. McKinsey research indicates that even high-performing companies have a 30% gap between their strategy's full potential and what is actually delivered, and that gap is largely attributable to shortcomings in the operating model. A well-designed TOM closes that gap by connecting strategic intent to the operational mechanics that determine day-to-day execution.
35-slide PowerPoint
$49.00
$49.00 | 35-slides | Best for: Executives and integration leads designing and presenting a Target Operating Model during strategic transformation
EDITOR'S REVIEW
This deck stands out for its end-to-end Target Operating Model design framework, guiding readers from the rationale to actionable steps rather than presenting a stand-alone model. A concrete detail is the inclusion of capability maps and functional layers, along with explicit views on transformation scope and a worked example TOM to ground discussions. It is particularly useful for senior sponsors and program leads steering strategic transformations who need a repeatable blueprint to align operating models with strategic objectives. [Learn more]
30-slide PowerPoint
$29.00
$29.00 | 30-slides | Best for: Executives and transformation leads planning cross-functional operating model redesigns with Lean and CoE focus
EDITOR'S REVIEW
This deck stands out by offering an end-to-end operating model redesign anchored in Lean thinking and a formal emphasis on Functional Centers of Excellence, linking value-stream design to cross-functional execution. It includes slide templates you can reuse in your own presentations. The framework is especially helpful for executives and transformation leads orchestrating cross-functional redesigns that blend Lean methods with CoE governance. [Learn more]
48-slide PowerPoint
$49.00
$49.00 | 48-slides | Best for: Operations and transformation leaders designing a TOM using Business Model and Operating Model canvases
EDITOR'S REVIEW
This deck differentiates itself by embedding both the Business Model Canvas and the Operating Model Canvas into a Target Operating Model framework, providing a concrete, end-to-end path from objectives to implementation within a 48-page PowerPoint deck. A concrete detail buyers wouldn’t guess from the title is that it covers organization models such as functional, divisional, matrix, and network, and maps an explicit implementation strategy with real-world use cases. This resource is most beneficial for operations and transformation teams aiming to align strategic intent with the practical design and rollout of a TOM. [Learn more]
30-slide PowerPoint
$29.00
$29.00 | 30-slides | Best for: Executives and transformation leads redesigning operating models to align strategy, governance, and capabilities
EDITOR'S REVIEW
This deck differentiates itself by pairing 6 core design principles with diagnostic questions and practical implementation guidance, turning strategy-to-execution alignment into an actionable design exercise. It includes tangible deliverables like slide templates and governance-oriented tooling, a detail buyers wouldn't guess from the title alone. The resource is particularly useful for executives, transformation leads, and strategy teams during operating-model redesigns, strategic planning sessions, or governance and decision-rights work. [Learn more]
26-slide PowerPoint
$29.00
$29.00 | 26-slides | Best for: Executives and transformation leads designing next‑gen operating models with autonomous teams and modular platforms
EDITOR'S REVIEW
This deck stands out by tying Lean Management principles to a Next-gen Operating Model built around 4 pillars—Autonomous cross-functional teams, Flexible modular platforms, Connected management systems, and an Agile, customer-centric culture—offering a practical blueprint for digital transformation. It also includes slide templates for immediate use in client presentations, a detail that helps teams translate concepts into tangible deliverables. The resource is most valuable to executives and transformation leads who are shaping next-generation operating models and need a clear, actionable path to align strategy, operations, and culture. [Learn more]
32-slide PowerPoint
$29.00
$29.00 | 32-slides | Best for: M&A integration leads and corporate development teams defining a post‑deal "To Be" operating model
EDITOR'S REVIEW
This deck pairs a four-phase integration process with a practical case study, providing a structured, actionable approach to building the Target Operating Model after a deal. It defines 6 core TOM elements—Vision with CSFs, Organizational Structure, Process Organization and Core Processes, Systems and Technology, Property Rights and Contracts, and Assets—and includes customizable slide templates plus guidance on stakeholder mapping and communication plans. The case study demonstrates a To Be TOM across functions such as Logistics, Manufacturing, Procurement, Marketing, and Controlling, offering concrete lessons on pitfalls and implementation considerations for teams responsible for post-close integration. [Learn more]
32-slide PowerPoint
$29.00
$29.00 | 32-slides | Best for: Strategy and customer-experience leaders redesigning operating models to shift from product to customer-centric delivery
EDITOR'S REVIEW
This deck integrates the McKinsey Decision Journey with a six-building-block blueprint for a customer-centric operating model, making the shift more actionable than typical strategy slides. It includes templates for your own business presentations and highlights the Decision Journey as a structured way to map touchpoints across the customer path. It is particularly valuable for strategy and customer-experience teams redesigning operating models around customer value and segmentation to align streams and deliver differentiated value. [Learn more]
29-slide PowerPoint
$29.00
$29.00 | 29-slides | Best for: Executives and IT leads designing a component-centric GenAI operating model for enterprise-scale deployment
EDITOR'S REVIEW
This deck distinguishes itself by presenting a component-centric GenAI Operating Model organized around 6 core elements, with an embedded governance and data-management framework that guides implementation. It also includes slide templates and a governance-risk checklist, and is described as crafted by former McKinsey and Big 4 consultants. It’s especially valuable for executives, integration leads, and IT teams planning a scalable GenAI deployment who need a practical blueprint to align data, governance, and development approaches. [Learn more]
24-slide PowerPoint
$29.00
$29.00 | 24-slides | Best for: Transformation leads and executives translating strategy into aligned operating models and decentralized IT governance
EDITOR'S REVIEW
This deck stands out by presenting a practical three-phase "Fit Transformation" framework that ties strategic intent to a lean operating model. The 3 phases—Translate the Corporate Strategy, Align the Operating Model, and Manage the Transformation—offer a concrete execution path that goes beyond generic reform talk. It’s particularly relevant for transformation leads and executives steering enterprise-wide change who need actionable templates and governance considerations to sustain the program. [Learn more]
Excel template, PDF
$89.00
$89.00 | Excel workbook + supplemental tools | Best for: Business and technology leaders implementing Kanban for advanced analytics transformation, risk management, and data governance
EDITOR'S REVIEW
This deck stands out by pairing a Target Operating Model Kanban approach with a practical, cross-functional governance lens for advanced analytics and data governance initiatives. A concrete detail from the description is that it’s delivered as an Excel file containing 1,000+ records that can be imported into Airtable, Monday, Smartsheet, or Power BI. It’s most useful for senior business and technology leaders guiding analytics transformations and risk-management programs who need to organize work across teams and track KPI-driven progress without disrupting live delivery. [Learn more]
Components of a Target Operating Model
A TOM typically covers 6 dimensions: processes (how work flows), organization and governance (who decides what), technology and data (what systems enable the work), people and capabilities (what skills and roles are required), performance metrics (how success is measured), and culture (what behaviors are expected and reinforced).
The most common mistake in TOM design is treating these dimensions independently. Organizations redesign their process flows without adjusting governance, or deploy new technology without redefining the roles and skills needed to use it. The result is an operating model where the components conflict with each other. McKinsey's 2025 research on operating model redesigns found that success rates have improved to 63%, up from just 21% a decade ago. The difference is that leaders are now treating operating model design as a system rather than a set of isolated structural changes.
One practical framework for TOM design is the POLISM model: Processes, Organization, Locations, Information, Suppliers, and Management systems. It provides a structured checklist that ensures no critical dimension is overlooked. The Operating Model Canvas is another widely used approach that maps capabilities, value streams, and organizational structure in a single visual format.
Designing a Fit-for-Purpose TOM
A key principle in TOM design is "fit-for-purpose" rather than "best-in-class." The right operating model is not the one that copies the most admired company in the industry. It is the one that best supports the organization's specific strategy, competitive position, and operational context.
The design process should start with capability mapping. Identify the capabilities required to execute the strategy. Assess the current maturity of each capability. Define the target maturity. Then design the processes, people, technology, and governance needed to close the gap. This approach anchors the TOM in what the organization needs to do well, rather than in org chart rearrangements that may or may not create value.
Differentiating capabilities deserve the most attention. These are the capabilities that directly drive competitive positioning and should receive disproportionate investment in the TOM. Support capabilities (HR operations, facilities management, general IT) should be designed for efficiency and reliability. Trying to make every capability "world-class" dilutes focus and burns resources.
Managing the Transition from Current to Target State
The gap between the current operating model and the TOM is where transformation happens. It is also where most transformations fail. McKinsey research shows that 70% of business transformations fail to achieve their intended objectives, and the root causes are consistently organizational rather than technical: unclear targets, poor incentive alignment, under-resourced execution, and insufficient attention to culture change.
Managing the transition requires robust Change Management and Project Management governance. The transition should be sequenced into waves, rather than attempted as a single "big bang." High-impact, lower-risk areas go first. Each wave delivers measurable results that build organizational confidence for the next phase.
Risk Management is integral to TOM transitions. People risks include resistance to change and loss of key staff during the transition period. Process risks include business disruption as teams learn new ways of working. Technology risks include integration failures and data migration issues. The organizations that navigate transitions well anticipate these risks explicitly and build mitigation plans into the program timeline.
Keeping the TOM Current
A TOM is not a one-time deliverable. It is a living document that should evolve as the organization's strategy, competitive environment, and technology landscape change. Organizations that design a TOM, implement it, and then archive the document will find their operating model drifting out of alignment with strategy within 18 to 24 months.
The governance mechanism for keeping the TOM current is a regular review cadence, typically annual, where the executive team assesses whether the current operating model still supports the strategic direction. This review should examine whether the assumptions behind the original TOM design still hold, whether new capabilities are needed, and whether the performance metrics indicate that the operating model is delivering as intended.
Flevy's Target Operating Model frameworks and templates are designed for this ongoing cycle. They provide the structured formats for capability assessments, gap analyses, transition planning, and performance tracking that make TOM design a repeatable discipline, rather than a one-time consulting engagement.
PowerPoint (25)
Excel (6)
MS Word (1)
