In times of transformation, M&A, or strategic change, the Target Operating Model (TOM) often gets sidelined. Yet, it plays a central role in turning ideas into execution.
Here are five reasons why itโs worth your attention:
1. Alignment of Strategy with Execution
The TOM defines the structures, processes, and behaviors that hold the organization togetherโincluding your corporate culture. With this clarity, teams across all functions can make faster, more informed decisions.
2. Fit-for-purpose Structures
Is your current organization still the right one? TOM design helps re-assess roles, capabilities, capacities, and governance โ without jumping into re-org mode too early.
3. Operational Efficiency
TOM work shines a light on overlaps, gaps, and friction. It enables process improvements and more effective use of resources.
4. Integration or Carve-out Readiness
In M&A, TOMs help ensure smooth transitions โ by defining what needs to work โDay 1โ and how the future setup will look.
5. People Engagement
A clearly communicated TOM builds trust. It helps people understand their role in the bigger picture โ and reduces uncertainty in change.
My take:
Designing a TOM is not about adding complexity. Itโs about giving transformation a backbone.
๐ฌ Have you recently worked on your TOM? Iโd love to hear how you approached it.
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