When is it most appropriate to use a Target Operating Model?

A Target Operating Model (TOM) is most appropriately used during strategic transformation or organizational change. This is because a TOM serves as a blueprint that outlines how an organization can operate effectively to achieve its strategic goals. It encompasses the necessary structures, processes, and technology required to support the vision and objectives of the organization.

In times of change, such as mergers, acquisitions, or significant shifts in business strategy, having a clear TOM helps various stakeholders understand what the organization aims to achieve and how it will adapt its operations accordingly. The model will typically highlight areas like new roles, redesigned processes, and technology implementations that are essential for the successful transition to the new operating state.

Using a TOM in this context ensures that the organization aligns its resources and capabilities with its long-term strategy, thereby facilitating smoother transitions and minimizing disruptions during periods of transformation.