Target Operating Model (TOM)

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.