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A Target Operating Model (TOM) defines the future-state of how an organization operates, including structure, governance, processes, roles, capabilities, and enabling platforms.
A Target Operating Model (TOM) is a coherent future-state blueprint for an organization’s operational effectiveness. It bridges strategy and execution by defining how value is delivered (value streams), how accountability is distributed (roles, decision rights, governance), how work is organized (structures, processes, collaboration), and which capabilities, data, and technologies enable it. A TOM acts as a reference model for transformations, reorganizations, operating-model redesign, scaling, and standardization. Typical TOM building blocks include operating principles, organizational and team structure, decision and governance model, process and service design, capability model, sourcing/partnering, KPI system, and platform/tool enablement.
Time from proposal/change request to decision, including governance loops.
Duration from idea/discovery to production release for key value streams.
Achievement of defined service level objectives across products/services.
A platform function is established as an enablement team with clear service offerings, SLOs, and interfaces to stream-aligned teams.
Multiple country organizations are aligned through shared capability definitions, governance, and standard processes.
After an acquisition, a shared operating model is defined to gradually converge responsibilities, processes, and systems.
Define goals, scope, and guiding principles for the TOM
Model value streams, capabilities, and accountability areas
Define target structure (teams, roles, interactions)
Design governance, decision rights, and cadence
Anchor enablement (platforms, skills, data) and metrics