Tom guide final

THE GUIDE TO 

TARGET OPERATING MODEL 

DESIGN AND IMPLEMENTATION

WHY THIS 

GUIDE? 

According to Wikipedia, an annual report is a 

comprehensive report on a company's activities 

throughout the preceding year. Annual reports 

are intended to give shareholders and other 

interested people information about the 

company's activities and financial performance. 

They may be considered as grey literature. Most 

jurisdictions require companies to prepare and 

disclose annual reports, and many require the 

annual report to be filed at the company's 

registry. Companies listed on a stock exchange 

are also required to report at more frequent 

intervals (depending upon the rules of the stock 

exchange involved). 



throughout the preceding year. Annual reports 

are intended to give shareholders and other 


company's activities and financial performance. 

They may be considered as grey literature. 

02

TABLE OF 

CONTENT 

04 

BLOG 

08 

INFOGRAPHIC 

10 

OUR 

APPROACH 

03

THE IMPORTANCE OF 

TAKING AN ALL-EMBRACING 

CONSULTATIVE APPROACH 

TO TARGET OPERATING 

MODEL DEVELOPMENT 

GRAHAM TURNBULL REFLECTS ON TARGET OPERATING MODEL WORK PAST AND 

PRESENT, LOOKING AT THE KEY ELEMENTS HE BELIEVES ARE IMPORTANT FOR 

SUCCESSFUL DESIGN, WIDESPREAD ACCEPTANCE AND SUSTAINABLE 

IMPLEMENTATION. 

I’ve been involved with many organisations 

over the years where I have either been a 

customer of change, the facilitator of 

change, or a happy by-stander witnessing 

its implementation. 

I’m fascinated by the mechanics of it, 

but even more fascinated with the 

psychology. I’ve been lucky enough to 

have delivered operating models on an 

end to end basis many times alongside 

some very capable people. 

04

There are many players within any change. 

Each have their own agendas, opinions, 

desires and fears which are all ever present, 

but seldom universally taken into account. 

With Target Operating Models the number 

of stakeholders becomes far greater. The 

scale of change is also greater, and as such 

the psychological factor is multiplied. I’ve 

seen this bring out and magnify natural 

character traits in many people during what 

is probably going to be the biggest 

programme of work an organisation will 

undertake. 

1. EMBRACING YOUR STAKEHOLDERS 

The Emperor/Empress – These people may be 

directly responsible for the business area itself 

– Preconceived ideas about how a business 

should be run tend to result in a design that 

they themselves desire, rather than be defined 

by customers and users. It is important to 

challenge their thinking, asking them what 

their customers really want and if their vision 

will deliver this. A compromise design that 

delivers exactly what customers need, whilst 

still giving the leader most of what they’d be 

happy with can be a good tactic. 

These character traits are the natural 

preferences of an individual that will be 

exaggerated by the stress of change. I’m not 

going to go into the detail of the change 

curve here, but that journey tends to revert 

humans to their natural psychological 

preferences. If you are undertaking a Target 

Operating Model design, it is important to 

be aware, and inclusive, of all stakeholders 

inside and outside of the organisation so 

that their perspectives can be harnessed 

and insecurities allayed. 

For this reason, an all-embracing and 

consultative approach to Target Operating 

Model development is the only way to 

achieve widespread acceptance and 

sustainability of a proposed transformation. 

I’m going to break down this approach into 

two areas: 1) Embracing your Stakeholders 

and 2) The approach itself. 

“MANY CONSULTANTS SKIP 

CURRENT STATE ANALYSIS, WITH 

THE RATIONALE THAT ONLY THE 

FUTURE IS IMPORTANT. HOWEVER, I 

SEE THIS AS A REALLY IMPORTANT 

OPPORTUNITY TO ENGAGE WITH 

The Perfectionist – The person often in 

charge of the TOM design or 

implementation. Often they will be directly 

accountable for the success of the 

programme and therefore failure is not an 

option. It can, if not managed, lead to 

paralysis by analysis rather than forging 

ahead with a reasonable amount of data 

and insight. This leads to time and money 

being burnt at an alarming rate in a 

programme that will undoubtedly already 

have tight timescales and budget. The key 

is to remain pragmatic and ensure that the 

building blocks of the business are 

prioritised by importance and cost, so that 

analysis can be rightsized for the tasks at 

hand. 

The Pragmatist – The opposite of the 

Perfectionist. Often this is my own natural 

preference. I do need to consciously focus on 

my teams, ensuring that every conclusion and 

recommendation is data driven and made 

through solid insight. Too much pragmatism 

can lead to something being missed. I would 

recommend a Devil’s Advocate be appointed 

within any team to challenge ideas and 

designs, or having regular team sessions 

where design conclusions can be peer 

reviewed. There’s always something you’ll have 

missed. 

ALL LAYERS OF STAFF IN AN 

ORGANISATION" 05

The Bureaucrat – Target Operating 

Models often take a long time to develop 

and deploy. This doesn’t have to be the 

case if an Agile approach to governance is 

adopted. Project management and 

governance is very important, essential in 

my opinion, but too much can slow down 

decision making. I often find that there are 

too many layers of governance, with 

decisions being made by those without the 

information or insight. Fewer meetings and 

layers can promote decisiveness and lead 

to a faster design of higher quality. Helping 

bureaucrats to take a step back to see the 

bigger picture, highlighting where decision 

making bottlenecks are before suggesting 

a smoother path with just as much control 

can be a good approach to follow. 

The Militant – Often a participant or 

colleague within the business who 

undertakes the services and processes. 

This behaviour is born from fear of change, 

which is natural for all humans. It is their 

natural reaction and is not intended to be 

malicious. They genuinely fear what the 

change will mean for them personally. Over 

communication and involvement is the key 

here, and they can soon become your 

closest ally if you articulate what’s in it for 

them and remove the fear of the unknown. 

The Champion – The opposite of the Militant. 

They get change and they’ve experienced it 

before. Instinctively they know that embracing 

it will secure their future. It is the same 

natural driver as that seen in the Militant, 

fearing what the change will mean for them, 

but it is exhibited differently. They want to 

safeguard their place in a future world by 

being as close to the changes as possible.They 

too can be your closest ally, but be mistrusted 

by others. Regular communication and a 

reminder that not everybody is able to get on 

board with changes as quickly as they are 

helps to steady the boat. 

Your customers – the 

most important stakeholder 

of all. Whilst we can say our 

most important asset is our 

people, without your customers you have 

no revenue. Without revenue you would 

have no business and without a business 

you have no people. This is why customers 

should always be held as the most 

important stakeholder of all. Every choice 

we make, every process we create, must 

be in line with what our customers want 

and need. Fully analysing this cohort is a 

major element of the all-inclusive 

approach that I will now introduce at a 

high level. 

2. MY ALL-INCLUSIVE APPROACH TO 

TARGET OPERATING MODEL 

DEVELOPMENT 

"EVERY CHOICE WE MAKE, EVERY 

PROCESS WE CREATE, MUST BE IN 

LINE WITH WHAT OUR 

CUSTOMERS WANT AND NEED." 

When it comes to the design and 

implementation of operating models, I use 

a deliberately structured approach that 

follows an all-encompassing and 

consultative method, ensuring every 

stakeholder, especially those that I’ve 

covered above, are fully involved. 

The first step of this approach focuses on 

tackling vision and strategy. This is crucial to 

ensure that my clients and I know what the 

aims of the organisation are. This aligns the 

management team (often comprising many of 

the stakeholder characters I discussed with you 

earlier) to a common goal. My clients are then 

able to assess if each project currently in their 

project portfolio is aligned to this strategy. 

06

More often than not, half of the change 

portfolios I help clients to review are not 

delivering anything related to where their 

organisation needs to be. Sometimes 

£millions in budgeted spend can be 

avoided and re-purposed. 

The next step focusses simultaneously 

on Outline Requirements and Current State 

diagnostics. The former places great 

emphasis on the wants and needs of every 

customer persona and internal user. 

Through a technique called Kano Analysis, a 

clear picture is developed of who a client’s 

customer categories are, what makes them 

tick, what each of them need as a minimum 

from a service, and what would really excite 

them. This analysis can involve focus 

groups, workshops, mystery shopping and 

going back to the floor. Design Principles 

will emerge from this, which will clearly 

define every decision that we take with 

respect to the operating model creation. 

Internal needs of those undertaking 

services on behalf of customers are also 

important. The all-inclusive approach I 

recommend will identify most of the 

stakeholder characters that I’ve described, 

enabling them to be prioritised and 

managed as appropriate through a 

stakeholder management plan. Current 

State Analysis is important to identify a lot 

of these needs, and discover the challenges 

that people face on a daily basis within the 

organisation. Many consultants skip 

Current State analysis, with the rationale 

that only the future is important. 

However, I see this as a really important 

opportunity to engage with all layers of staff 

in an organisation, allowing them to vent 

their frustrations. This plants the seed for 

change. I also involve these colleagues in 

future state design, creating the processes 

needed to achieve what their customers 

want. This makes the target operating 

model design their own. They buy into it and 

there is far lower opposition to change, 

particularly where challenging culture may 

have presented a problem to acceptance. 

IN CONCLUSION 

Clearly, some design choices will be made at 

a senior level without the involvement of all 

staff. This is normal and should be 

expected. There is a business to run at the 

end of the day and sometimes tough 

decisions need to be made. However, the 

message stays the same. TOM design for the 

most part MUST be all-inclusive in order for 

the right design to be achieved from the 

ground up. By following an all-inclusive 

consultative approach to Target Operating 

Model design, every persona’s need 

becomes clearly understood and every 

stakeholder and their character traits can be 

managed. This is crucial for change 

acceptance, saving time as well as your 

sanity when it finally comes to the not 

insignificant task of implementation. 

"I OFTEN FIND THAT THERE ARE TOO MANY 

LAYERS OF GOVERNANCE, WITH DECISIONS 

BEING MADE BY THOSE WITHOUT THE 

INFORMATION OR INSIGHT." 

07

06 

I N F O G R A P H I C

I N F O G R A P H I C 

07

06 

A P P R O A C H I N T R O

PHASE 1 

STRATEGY DEVELOPMENT 

According to Wikipedia, an annual report 

is a comprehensive report on a 

company's activities throughout the 

preceding year. Annual reports are 

intended to give shareholders and other 


company's activities and financial 

performance. They may be considered as 

grey literature. Most jurisdictions require 

companies to prepare and disclose 

annual reports, and many require the 


registry. Companies listed on a stock 

exchange are also required to report at 

more frequent intervals. 
















ACCORDING TO WIKIPEDIA, AN ANNUAL REPORT IS A COMPREHENSIVE 

REPORT ON A COMPANY'S ACTIVITIES THROUGHOUT THE PRECEDING YEAR. 

ANNUAL REPORTS ARE INTENDED TO GIVE SHAREHOLDERS AND OTHER 

INTERESTED PEOPLE INFORMATION ABOUT THE COMPANY'S ACTIVITIES AND 

FINANCIAL PERFORMANCE. THEY MAY BE CONSIDERED AS GREY LITERATURE. 

MOST JURISDICTIONS REQUIRE COMPANIES TO PREPARE AND DISCLOSE 

ANNUAL REPORTS, AND MANY REQUIRE THE ANNUAL REPORT TO BE FILED AT 

THE COMPANY'S REGISTRY. COMPANIES LISTED ON A STOCK EXCHANGE ARE 

ALSO REQUIRED TO REPORT AT MORE FREQUENT INTERVALS. 

07










PHASE 2 

ESTABLISH ‘AS IS’ OPERATING 

MODEL & OUTLINE REQUIREMENTS 































06

According to Wikipedia, an annual report is a comprehensive report on a 

company's activities throughout the preceding year. Annual reports are 

intended to give shareholders and other interested people information about 

the company's activities and financial performance. They may be considered 

as grey literature. Most jurisdictions require companies to prepare and 

disclose annual reports, and many require the annual report to be filed at the 

company's registry. Companies listed on a stock exchange are also required to 

report at more frequent intervals. 

PHASE 3 

DESIGN ‘TO BE’ TOM OPTIONS 































07

PHASE 4 

DETAILED BLUEPRINT DESIGN & 

TRANSITION PLANNING 








































06

PHASE 5 

EXECUTION & IMPLEMENTATION 

According to Wikipedia, an annual 

report is a comprehensive report on a 



intended to give shareholders and 

other interested people information 

about the company's activities and 

financial performance. They may be 

considered as grey literature. Most 

jurisdictions require companies to 

prepare and disclose annual reports, 

and many require the annual report to 

be filed at the company's registry. 

Companies listed on a stock exchange 

are also required to report at more 

frequent intervals. 

According to Wikipedia, an annual 

report is a comprehensive report on a 



intended to give shareholders and 

other interested people information 

about the company's activities and 

financial performance. They may be 


jurisdictions require companies to 

prepare and disclose annual reports, 

and many require the annual report to 

be filed at the company's registry. 

Companies listed on a stock exchange 

are also required to report at more 

frequent intervals. 










07

TIPS & 

ADVICE 

06

EXECUTION & 

IMPLEMENTATION 



throughout the preceding year. Annual reports are 

intended to give shareholders and other interested 

people information about the company's activities and 

financial performance. They may be considered as grey 

literature. Most jurisdictions require companies to 

prepare and disclose annual reports, and many require 

the annual report to be filed at the company's registry. 

Companies listed on a stock exchange are also required 

to report at more frequent intervals. 

07

06 

C A S E S T U D Y I N T R O

CASE STUDY 

DESIGNING A TARGET 

OPERATING MODEL 

SHARED SERVICES 

THE CLIENT 

A shared services organisation that works in partnership with large government agencies to provide 

back office processing capabilities. 

THE CHALLENGE 

A newly created shared 

services business was created 

to support Central 

Government efficiency drives. 

Their purpose was to 

centralise all key support 

functions including HR 

Services, Finance & 

Accounting, Procurement & 

Technology. 

They absorbed c.1200 staff from 

existing Central Government 

functions via a TUPE 

arrangement across 9 UK sites. 

They needed to develop a TOM 

to reduce cost by 30%. 

The client also inherited service 

penalty contracts, so service 

levels needed to be maintained 

and ultimately improved whilst 

the TOM was implemented. 

THE SOLUTION 

Using our TOM approach, 

we worked with teams 

across all 9 sites to 

completed detailed ‘as-is’ 

view of the operating model 

to ensure we were working 

from an accurate 

baseline.Once agreed, we 

then: 

Created a new TOM design 

with transition plan. 

Created a detailed benefits 

case to be used for 

investment linked to the 

new TOM. 

Mentored a select group of 

internal consultants to 

enable them to implement 

all recommendations on 

THE RESULTS 

We agreed a new 

organisation-wide TOM 

which involved the creation 

of 4 centres of excellence. 

We produced a detailed 

transition plan to 

rationalise the business 

considering all TOM layers. 

The plan was designed to 

enable a rapid transition 

however would not put 

service delivery at risk. 

We created an 18 months’ 

Benefits Realisation Plan 

down to the lowest level of 

detail to ensure that the 

benefits would be realised. 

We built internal capability 

so the business were able 

to manage the full TOM 

implementation. 

07

CASE STUDY 



FLEET SERVICES 

THE CLIENT 

The Fleet Services division of a large UK emergency services organisation. 

THE RESULTS 

THE CHALLENGE 

The client needed support to 

redesign the Fleet Services’ 

operating model. The initial phase 

of work aimed to: 

Scope operational 

requirements (by close 

engagement with end service 

users). 

Undertake a detailed Current 

State Analysis to identify a 

detailed catalogue of services 

delivered by Fleet Services with 

opportunities for improvement. 

Develop options for operating 

models for Fleet Services to 

deliver those services and 

support the selection of a 

preferred way forward for 

each. 

06 

THE SOLUTION 

Reinvigoration used their 

detailed TOM approach to work 

closely with the client to: 

Carry out a high level service 

category service options 

assessment to narrow down 

all potential options from a 

long list to a short list. 

Design a high-level Operating 

Model showing the preferred 

way forward and how the 

division should be structured 

to deliver this. 

Production of a High Level 

business case for the 

Operating Model. 

Write a detailed Business 

Justification Paper to gain 

approval and funding for 


During the engagement, 

Reinvigoration collaborated with 

local staff and end users to make 

their input an integral part of the 

TOM design. 

The development of trust and high 

deep relationships with staff and 

senior stakeholders within other 

departments and governance 

forums allowed us to progress 

rapidly against tough timescales. 

A number of detailed deliverables 

were achieved including: 

Development and approval of the 

Business Justification Paper. 

High level TOM design 

Long list of service TOM options, 

narrowed to a recommended 

shortlist of preferred options 

High Level TOM Design 

All deliverables were signed off 

by all internal governance groups 

to successfully draw this first 

phase of activity to a close.

THE CHALLENGE 

The HR Service Delivery (HRSD) 

organisation had grown rapidly 

in response to customer 

demand, leading to variation in 

roles, structure, processes and 

cost of servicing across the 

EMEA region. 

As such, elements of the global HR 

operating model were not fully 

coherent, so a review was 

required to identify and design the 

future TOM. 

CASE STUDY 



FINANCIAL SERVICES (BANKING) 

THE SOLUTION 

THE CLIENT 

We carried out a 

comprehensive analysis of 

A global investment the existing bank, HRSD headquartered Operating in Europe. 

model, across multiple EMEA 

locations. This current state 

was documented and agreed 

with key business 

stakeholders before 

progressing further. 

Next, a TOM vision was 

developed, together with design 

principles upon which the 

future TOM would be built. 

These considered the needs to 

service users, but also key 

business drivers that were at 

play in the organisation. 

Detailed TOM design activity 

was then undertaken in 

collaboration with local teams. 

This led to us highlight a 

number of potential options for 

each service category, with the 

preferred options highlighted 

with data-driven justification. 

All options were supported with 

a business case to allow the 

business to be confident in the 

selection of the best solution. 

THE RESULTS 

Benefits of over CHF 4 million 

were achieved through the TOM 


Once the preferred TOM was 

selected, a detailed 

implementation roadmap was 

07

ABOUT US 

According to Wikipedia, an annual report is 

a comprehensive report on a company's 

activities throughout the preceding year. 

Annual reports are intended to give 

shareholders and other interested people 

information about the company's activities 

and financial performance. They may be 


jurisdictions require companies to prepare 

and disclose annual reports, and many 

require the annual report to be filed at the 

company's registry. Companies listed on a 

stock exchange are also required to report 

at more frequent intervals (depending upon 

the rules of the stock exchange involved). 

According to Wikipedia, an annual report is 

a comprehensive report on a company's 

activities throughout the preceding year. 

Annual reports are intended to give 

shareholders and other interested people 

information about the company's activities 

and financial performance. They may be 

considered as grey literature. 

Where we are 

TODAY

GET IN 

TOUCH 

REINVIGORATION 

Landore court 

49 Charles Street (3rd floor) 

Cardiff 

CF10 2GD 

PHONE: 

EMAIL: 

WEBSITE: 

LINKEDIN: 

TWITTER: 

+44 (0) 2920789955 

INFO@REINVIGORATION 

WWW.REINVIGORATION.COM 

REINVIGORATION 

@REINVIGORATION_

WWW.REINVIGORATION.COM 

Energising Businesses Through 

Operational Transformation

Tom guide final

Create successful ePaper yourself

Delete template?

Save as template?