SherbyNet - /page/wikibook/entry.mu

Micron Document

<!DOCTYPE html>

<title>Target operating model</title>

</head>

<span id="openzim-page-title" class="mw-page-title-main"><span class="mw-page-title-main">Target operating model</span></span>

</h1>

</header>

/* start https://en.wikipedia.org/ */

.mw-parser-output .ambox{border:1px solid #a2a9b1;border-left:10px solid #36c;background-color:#fbfbfb;box-sizing:border-box}.mw-parser-output .ambox+link+.ambox,.mw-parser-output .ambox+link+style+.ambox,.mw-parser-output .ambox+link+link+.ambox,.mw-parser-output .ambox+.mw-empty-elt+link+.ambox,.mw-parser-output .ambox+.mw-empty-elt+link+style+.ambox,.mw-parser-output .ambox+.mw-empty-elt+link+link+.ambox{margin-top:-1px}html body.mediawiki .mw-parser-output .ambox.mbox-small-left{margin:4px 1em 4px 0;overflow:hidden;width:238px;border-collapse:collapse;font-size:88%;line-height:1.25em}.mw-parser-output .ambox-speedy{border-left:10px solid #b32424;background-color:#fee7e6}.mw-parser-output .ambox-delete{border-left:10px solid #b32424}.mw-parser-output .ambox-content{border-left:10px solid #f28500}.mw-parser-output .ambox-style{border-left:10px solid #fc3}.mw-parser-output .ambox-move{border-left:10px solid #9932cc}.mw-parser-output .ambox-protection{border-left:10px solid #a2a9b1}.mw-parser-output .ambox .mbox-text{border:none;padding:0.25em 0.5em;width:100%}.mw-parser-output .ambox .mbox-image{border:none;padding:2px 0 2px 0.5em;text-align:center}.mw-parser-output .ambox .mbox-imageright{border:none;padding:2px 0.5em 2px 0;text-align:center}.mw-parser-output .ambox .mbox-empty-cell{border:none;padding:0;width:1px}.mw-parser-output .ambox .mbox-image-div{width:52px}@media(min-width:720px){.mw-parser-output .ambox{margin:0 10%}}@media print{body.ns-0 .mw-parser-output .ambox{display:none!important}}

/* end https://en.wikipedia.org/ */

</style>

<p><b>Target operating model</b> is a description of the desired state of the <a href="Operating_model" title="Operating model">operating model</a> of an organization. When working on the operating model, it is normal to define the "as is" model and the "to be" model. The target operating model is the "to be" model. It is possible to produce a target operating model for a business or a function within a business or a government department or a charity.

</p><p>There are many different frameworks identifying the components of a target operating model. Hence each project to define a target operating model will focus on slightly different aspects depending on the challenge facing the organisation. Some target operating models are created to help with the link between information technology and strategy, others to help with the link between organisation design and strategy, and so on. A target operating model converts strategy ideas into operational plans.

</p><p>One framework described in the <a href="Operating_model" title="Operating model">operating model</a> definition comes from Ashridge Executive Education – POLISM.<sup id="cite_ref-1" class="reference"><a href="#cite_note-1"><span class="cite-bracket">[</span>1<span class="cite-bracket">]</span></a></sup><sup id="cite_ref-2" class="reference"><a href="#cite_note-2"><span class="cite-bracket">[</span>2<span class="cite-bracket">]</span></a></sup> This stands for

</p>

<ul><li>P – processes and capabilities;</li>

<li>O – the organization, i.e. the people that are needed to run the processes or deliver the capabilities, and the organisation structure, accountabilities, incentives and culture that will support and nurture these people;</li>

<li>L – the locations, buildings, infrastructure and other assets and resources needed inside the organisation to support the processes and capabilities;</li>

<li>I – the information systems and other cross-organisation or cross-location links needed to support the processes and capabilities, especially the software applications that are needed to process the information;</li>

<li>S – the suppliers and business partners needed outside the organisation to support the processes and capabilities and the types of agreements between this organisation and these partners.</li>

<li>M – the management systems and processes for developing strategy, planning, setting targets, managing performance and continuous improvement.</li></ul>

<p>A simpler framework is used in the literature on Enterprise Architecture. Strategy is converted into capabilities, using a capability map, and each capability is described in terms of "people", <i>process</i> and <i>technology</i>.

</p><p>A target operating model can be a one-page document – the operating model Canvas is an example.<sup id="cite_ref-3" class="reference"><a href="#cite_note-3"><span class="cite-bracket">[</span>3<span class="cite-bracket">]</span></a></sup> It can also be 10 pages or 100 pages.<sup id="cite_ref-4" class="reference"><a href="#cite_note-4"><span class="cite-bracket">[</span>4<span class="cite-bracket">]</span></a></sup> If the document is more than 100 pages it becomes a manual rather than a model.

</p><p>Target operating models provide the vision for organisations undergoing change. The reason for any new model is likely to be a new strategy or new <a href="Business_model" title="Business model">business model</a> or a significant failure in the performance of the existing operations for one or more stakeholders. Hence work on target operating models should be closely linked to strategy work. Form follows function; in other words target operating models follow strategy. A target operating model project typically also includes the roadmap over time that specifies what the company needs to do to move from the "as is" to the "to be".<sup id="cite_ref-5" class="reference"><a href="#cite_note-5"><span class="cite-bracket">[</span>5<span class="cite-bracket">]</span></a></sup>

</p><p>A good place to start is with a value-chain map.<sup id="cite_ref-6" class="reference"><a href="#cite_note-6"><span class="cite-bracket">[</span>6<span class="cite-bracket">]</span></a></sup> First identify the value propositions (the products and services) that the organization is offering. Then define, for each value proposition, the value chain of activities that is needed to deliver the proposition. Different value chains can then be present above or underneath each other in a "map", in order to identify steps that can be "aggregated" across chains to gain <a href="Economies_of_scale" title="Economies of scale">economies of scale</a> or "standardised" to gain consistency or "kept separate" to gain local adaptation. These choices then lead directly to organisational implications.

</p><p>Target operating model OM work can be done at different levels of detail. At the highest level is the strategy or the design principles. Then comes a rough sketch, probably in the form of a value chain map or organisational model. Then comes more and more layers of detail arriving finally at job descriptions for every job, floor layouts for offices or factories, <a href="Performance_indicator" title="Performance indicator">Key Performance Indicators</a> for every department, draft contracts for every supplier, data input and output specifications for every software application, etc.

</p><p><b>Regional target operating model</b>

</p><p>A regional target operating model is a transformational project with solution covering across regions. It forms regional standards for implementation across regions. This type of model should capture the as-is of the organization design, business capabilities, business processes and supporting technology components. It will define the to-be organization design, business capabilities, business processes and required supporting technology capabilities. The high level business benefits of this model should also be articulated. For identified gaps in the technology capabilities, the business requirements should be captured to facilitate the next phase of work – solution evaluation.

</p>

<ul><li><a href="Business_model" title="Business model">Business model</a></li>

<li><a href="Operating_model" title="Operating model">Operating model</a></li>

<li><a href="Business_plan" title="Business plan">Business plan</a></li>

<li><a href="Business_process_modeling" title="Business process modeling">Business process modeling</a></li>

<li><a href="Business_reference_model" title="Business reference model">Business reference model</a></li>

<li><a href="Strategic_management" title="Strategic management">Strategic management</a></li>

<li><a href="Strategic_planning" title="Strategic planning">Strategic planning</a></li>

<li><a href="Strategy_dynamics" title="Strategy dynamics">Strategy dynamics</a></li>

<li><i><a href="The_Design_of_Business" title="The Design of Business">The Design of Business</a></i></li>

<li><a href="Enterprise_architecture" title="Enterprise architecture">Enterprise architecture</a></li></ul>

<div class="mw-heading mw-heading2"><h2 id="References">References</h2></div>

/* start https://en.wikipedia.org/ */

.mw-parser-output .reflist{margin-bottom:0.5em;list-style-type:decimal}@media screen{.mw-parser-output .reflist{font-size:90%}}.mw-parser-output .reflist .references{font-size:100%;margin-bottom:0;list-style-type:inherit}.mw-parser-output .reflist-columns-2{column-width:30em}.mw-parser-output .reflist-columns-3{column-width:25em}.mw-parser-output .reflist-columns{margin-top:0.3em}.mw-parser-output .reflist-columns ol{margin-top:0}.mw-parser-output .reflist-columns li{page-break-inside:avoid;break-inside:avoid-column}.mw-parser-output .reflist-upper-alpha{list-style-type:upper-alpha}.mw-parser-output .reflist-upper-roman{list-style-type:upper-roman}.mw-parser-output .reflist-lower-alpha{list-style-type:lower-alpha}.mw-parser-output .reflist-lower-greek{list-style-type:lower-greek}.mw-parser-output .reflist-lower-roman{list-style-type:lower-roman}

/* end https://en.wikipedia.org/ */

</style><div class="reflist">

/* start https://en.wikipedia.org/ */

.mw-parser-output cite.citation{font-style:inherit;word-wrap:break-word}.mw-parser-output .citation q{quotes:"\"""\"""'""'"}.mw-parser-output .citation:target{background-color:rgba(0,127,255,0.133)}.mw-parser-output .id-lock-free.id-lock-free a{background:url("./mw/Lock-green.svg")right 0.1em center/9px no-repeat}.mw-parser-output .id-lock-limited.id-lock-limited a,.mw-parser-output .id-lock-registration.id-lock-registration a{background:url("./mw/Lock-gray-alt-2.svg")right 0.1em center/9px no-repeat}.mw-parser-output .id-lock-subscription.id-lock-subscription a{background:url("./mw/Lock-red-alt-2.svg")right 0.1em center/9px no-repeat}.mw-parser-output .cs1-ws-icon a{background:url("./mw/Wikisource-logo.svg")right 0.1em center/12px no-repeat}body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .id-lock-free a,body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .id-lock-limited a,body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .id-lock-registration a,body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .id-lock-subscription a,body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .cs1-ws-icon a{background-size:contain;padding:0 1em 0 0}.mw-parser-output .cs1-code{color:inherit;background:inherit;border:none;padding:inherit}.mw-parser-output .cs1-hidden-error{display:none;color:var(--color-error,#d33)}.mw-parser-output .cs1-visible-error{color:var(--color-error,#d33)}.mw-parser-output .cs1-maint{display:none;color:#085;margin-left:0.3em}.mw-parser-output .cs1-kern-left{padding-left:0.2em}.mw-parser-output .cs1-kern-right{padding-right:0.2em}.mw-parser-output .citation .mw-selflink{font-weight:inherit}@media screen{.mw-parser-output .cs1-format{font-size:95%}html.skin-theme-clientpref-night .mw-parser-output .cs1-maint{color:#18911f}}@media screen and (prefers-color-scheme:dark){html.skin-theme-clientpref-os .mw-parser-output .cs1-maint{color:#18911f}}

/* end https://en.wikipedia.org/ */

</style><cite class="citation news cs1"><a rel="nofollow" class="external text" href="https://opexsociety.org/body-of-knowledge/operating-model">"What is an operating model? - Operational Excellence Society"</a>. <i>Operational Excellence Society</i>. 12 May 2016.</cite></span>

</li>

<li id="cite_note-2"><span class="mw-cite-backlink"><b><a href="#cite_ref-2">^</a></b></span> <span class="reference-text"><cite class="citation web cs1"><a rel="nofollow" class="external text" href="http://www.hult.edu/exec/dom">"Designing Operating Models"</a>.</cite></span>

</li>

<li id="cite_note-3"><span class="mw-cite-backlink"><b><a href="#cite_ref-3">^</a></b></span> <span class="reference-text"><cite class="citation web cs1"><a rel="nofollow" class="external text" href="http://www.operatingmodelcanvas.com/">"Home"</a>. <i>operatingmodelcanvas.com</i>.</cite></span>

</li>

<li id="cite_note-4"><span class="mw-cite-backlink"><b><a href="#cite_ref-4">^</a></b></span> <span class="reference-text">Campbell, A, Gutierrez, M, Lancelott, M, "operating model Canvas", Van Haren Publishing, 2017</span>

</li>

<li id="cite_note-5"><span class="mw-cite-backlink"><b><a href="#cite_ref-5">^</a></b></span> <span class="reference-text"><a rel="nofollow" class="external text" href="http://www.sbs.oxford.edu/school/work-our-students/strategic-consulting-projects/testimonials">Said Business School & University of Oxford – Strategic Consulting Projects – viewed on January 16th 2014</a> <a rel="nofollow" class="external text" href="https://web.archive.org/web/20140116183435/http://www.sbs.oxford.edu/school/work-our-students/strategic-consulting-projects/testimonials">Archived</a> 2014-01-16 at the <a href="Wayback_Machine" title="Wayback Machine">Wayback Machine</a></span>

</li>

<li id="cite_note-6"><span class="mw-cite-backlink"><b><a href="#cite_ref-6">^</a></b></span> <span class="reference-text"><cite class="citation web cs1"><a rel="nofollow" class="external text" href="https://ashridgeonoperatingmodels.com/2018/06/12/value-chain-maps/">"Value Chain Maps"</a>. 12 June 2018.</cite></span>

</li>

</ol></div></div>

<div class="mw-heading mw-heading2"><h2 id="Further_reading">Further reading</h2></div>

<ul><li><a rel="nofollow" class="external text" href="https://web.archive.org/web/20130903103511/http://fusion-fr.com/notredemarche.html">Fusion Business Solutions – Notre démarche vers la concrétisation des avantages</a></li>

<li><a rel="nofollow" class="external text" href="https://archive.today/20140113160712/http://dfcg-news.com/la-maitrise-des-risques-lies-aux-contrats-externalisation/">Le Blog de la DFCG – La maîtrise des risques liés aux contrats d’externalisation</a> <span class="languageicon">(in French)</span></li>

<li><a rel="nofollow" class="external text" href="https://fr.slideshare.net/stuart1403/target-operating-model-definition">Defining the business future state – Maddison Ward</a></li>

<li><a rel="nofollow" class="external text" href="http://ashridgeonoperatingmodels.com">Ashridge Business School blog on operating models</a></li></ul></div><div><div class="zim-footer">

This article is issued from <a class="external text" title="Last edited on 2024-08-23" href="https://en.wikipedia.org/wiki/?title=Target_operating_model&oldid=1241813835">Wikipedia</a>. The text is available under <a class="external text" href="https://creativecommons.org/licenses/by-sa/4.0/deed.en">Creative Commons Attribution-Share Alike 4.0</a> unless otherwise noted. Additional terms may apply for the media files.

</div>

</div></div>

</div>

</main>

</div>

</body></html>