Build A Future-ready Operating Model That Actually Works
The Busy Consultant’s Guide to Target Operating Model Design is a practical, step-by-step handbook for leaders and consultants tasked with translating strategy into a coherent, executable operating model. It clarifies what a target operating model really is—and is not—by distinguishing it from strategy, org charts, and isolated process or technology initiatives. The guide introduces a clear set of core design dimensions and explains when a TOM redesign creates value, and when it simply adds complexity.
Built for real-world use, the book walks readers through framing the mandate, translating strategy into operating requirements, designing end-to-end value streams, and aligning organization, governance, people, technology, sourcing, and performance management into a single integrated design. It emphasizes pragmatic methods, rapid diagnostics, and stress-testing designs through “day in the life” scenarios rather than over-engineering. With practical templates, checklists, and guidance on business cases, roadmaps, change management, and implementation governance, the guide equips teams to design operating models that are clear, resilient, and deliverable—turning strategic intent into sustained operational performance.
Table of Contents
Chapter 1. Introduction: What a Target Operating Model Really Is
1.1 Why Your Company Needs a Target Operating Model
1.2 Strategy vs. Operating Model: Drawing the Line
1.3 The 8 Core Design Dimensions of a TOM
1.4 Typical Triggers for a TOM Redesign (and When Not to Do One)
Chapter 2. Framing the Effort and Clarifying the Mandate
2.1 Who Is the True Sponsor and Decision-Maker?
2.2 Defining Scope: Enterprise vs. Business Unit vs. Function
2.3 Clarifying Objectives and Value Targets Up Front
2.4 Drafting the TOM Mandate and Charter (Template & Checklist)
Chapter 3. From Strategy to Operating Requirements
3.1 Translating Strategy into Operating Model Design Principles
3.2 Identifying Critical Value Streams and Customer Promises
3.3 Defining Guardrails: Risk, Regulatory, and Other Non-Negotiables
3.4 Strategy-to-TOM Cascade (Step-by-Step Guide)
Chapter 4. Mapping the Current State Without Drowning in Detail
4.1 When You Need a Current-State Diagnostic—and When You Don’t
4.2 Rapid Current-State Mapping: Processes, Org, Tech, Metrics
4.3 Prioritizing Pain Points, Bottlenecks, and Failure Modes
4.4 The “As-Is” Fact Pack (Minimal Viable Diagnostic Template)
Chapter 5. Designing End-to-End Value Streams and Processes
5.1 Choosing the Right Level of Process Detail
5.2 Defining End-to-End Value Streams and Journey Owners
5.3 Standardization vs. Localization: A Practical Approach
5.4 Process Design Tools: Swimlanes, SIPOC, and E2E Blueprints
Chapter 6. Organization Design and Governance
6.1 Choosing the Macro-Structure: Product, Region, Function, Platform
6.2 Decision Rights, Forums, and Governance Architecture
6.3 Designing Spans, Layers, and Critical Roles
6.4 Org Design Playbook (Design Criteria and Common Patterns)
Chapter 7. People, Skills, and Culture in the TOM
7.1 Identifying Critical Roles and Capabilities for the Target State
7.2 Workforce Planning for the Target Operating Model
7.3 Culture Shifts Required by the New TOM
7.4 Capability-Building Roadmap (Checklist and Examples)
Chapter 8. Technology, Data, and Architecture in Plain Business Terms
8.1 Linking Technology Choices to Value Streams and Journeys
8.2 Core Systems, Platforms, and Integration Patterns
8.3 Data Ownership, Governance, and Analytics Use Cases
8.4 Working Effectively with IT, Architecture, and Security Teams
Chapter 9. Sourcing, Partnerships, and Location Strategy
9.1 Make vs. Buy vs. Partner: A Simple Decision Framework
9.2 Shared Services, Centers of Excellence, and Outsourcing Models
9.3 Location Footprint: Onshore, Nearshore, Offshore, Hybrid
9.4 Designing Vendor Governance and SLAs
Chapter 10. Performance Management, KPIs, and Incentives
10.1 Linking the TOM to Enterprise KPIs and Value Creation
10.2 Designing Metrics for Value Streams, Functions, and Teams
10.3 Performance Review Cadence and Management Routines
10.4 Aligning Incentives with the Target Operating Model
Chapter 11. Risk, Controls, and Compliance by Design
11.1 Defining Risk Appetite and Risk Ownership in the TOM
11.2 Designing Controls into Processes and Systems (Not On Top)
11.3 First, Second, Third Line of Defense: Practical Setup
11.4 Regulatory Interfaces and Assurance Mechanisms
Chapter 12. Designing the Target Operating Model: An End-to-End Method
12.1 The TOM Design Cycle: From Principles to Blueprints
12.2 Iterating Across Dimensions: Avoiding Local Optimization
12.3 Stress-Testing the Design: Scenarios and “Day in the Life”
12.4 The One-Page Target Operating Model Summary (Template)
Chapter 13. Quantifying Impact and Building the Business Case
13.1 Identifying Cost, Revenue, Risk, and Experience Levers
13.2 Estimating Benefits and Investments with Reasonable Rigor
13.3 Phasing Benefits: Quick Wins vs. Structural Changes
13.4 Building an Executive-Ready TOM Business Case Pack
Chapter 14. Roadmapping and Sequencing the Transformation
14.1 Principles for Sequencing: Risk, Dependency, and Value
14.2 Designing Waves, Pilots, and MVPs
14.3 Managing Dependencies: Tech, Org, Process, and People
14.4 The TOM Roadmap: Structure, Milestones, and Deliverables
Chapter 15. Governance and Delivery Model for TOM Implementation
15.1 Choosing the Right Transformation Governance Model
15.2 Role of the Transformation Office (and Common Failure Modes)
15.3 Workstream Design and Integration Routines
15.4 Tracking Progress: RAID Logs, Dashboards, and Course Corrections
Chapter 16. Change Management for Operating Model Shifts
16.1 Translating TOM Design into a Compelling Change Story
16.2 Stakeholder Mapping and Engagement Tactics
16.3 Communications, Training, and Change Interventions
16.4 Managing Resistance and Protecting Early Wins
Chapter 17. TOM Design in Common Strategic Contexts
17.1 Post-Merger Integration: Designing a Combined Operating Model
17.2 Carve-Outs and Stand-Ups: Building a TOM from Scratch
17.3 Cost Turnarounds and Restructurings: When Money is Tight
17.4 Special Situations: Joint Ventures, Spin-Offs, and Alliances
Chapter 18. Using External Consultants to Support TOM Design and Implementation
18.1 Deciding When External Support Is Justified
18.2 Scoping and Structuring Consultant Support Around Your Leadership Team
18.3 Working Effectively with Large Consulting Firms
18.4 Working with Independent Consultants from the Umbrex Community
Chapter 19. Practical Tools, Templates, and Checklists
19.1 Project Startup Pack (Charters, Stakeholder Maps, Interview Guides)
19.2 Design Workshop Templates and Exercises
19.3 Standard TOM Deliverables: Examples and Checklists
19.4 Common Pitfalls and “Smell Tests” for TOM Designs
