The Target Operating Model

Introduction
The Target Operating Model (TOM) is one of the most important concepts within the MSP (Managing Successful Programmes) framework. It describes the desired future state of an organisation once a programme has delivered its outcomes and benefits. Understanding the TOM is essential for anyone studying MSP, as it links the strategic vision of a programme to the practical realities of how an organisation will operate day-to-day after transformation.

Why the Target Operating Model is Important
Programmes exist to drive transformational change. Without a clear picture of what the organisation should look like at the end of that change, it becomes difficult to plan, measure progress, or confirm success. The TOM provides that clear picture.

Key reasons it matters include:
1. It bridges vision and reality - The vision statement describes the desirable future in aspirational terms, while the TOM translates this into a concrete, operational description.
2. It guides design and delivery - The TOM helps shape the programme's projects and workstreams by defining exactly what capabilities and structures must be created.
3. It supports benefits realisation - By defining the future operating state, the TOM enables the identification and measurement of benefits.
4. It manages transition - Understanding the gap between the current and future state allows for planned, controlled transition rather than disruptive change.

What the Target Operating Model Is
The Target Operating Model is a representation of how an organisation will operate to deliver its strategy and achieve its intended outcomes. It describes the future state across a number of dimensions, often summarised using models such as POTI:

P - Processes: The business processes, operations, workflows, and functions required in the future state.
O - Organisation: The organisational structures, roles, responsibilities, staffing levels, culture, and required skills.
T - Technology: The IT systems, infrastructure, tools, buildings, equipment and other physical or digital assets.
I - Information: The data and information required to operate, including how information flows and is managed.

The TOM is not a single static document but evolves as understanding of the change matures. It captures the end state, but intermediate operating models may also be defined for phased transitions.

How the Target Operating Model Works
The TOM operates as a central reference point throughout the programme lifecycle:

1. Defining the current state - Before designing the future, the organisation assesses how it currently operates across the POTI dimensions.
2. Designing the future state - Using the vision as guidance, the desired future operating model is defined in detail.
3. Performing gap analysis - The difference between current and future states reveals what change is required, informing the design of projects and the blueprint.
4. Planning transition - The programme plans how to move from current to target state, often through incremental steps and tranches.
5. Measuring and confirming - As capabilities are delivered and embedded, progress towards the TOM is tracked, and benefits are measured against expectations.

The TOM works closely with other MSP concepts such as the vision, the benefits management approach, and the design and delivery of new capabilities. It ensures that all change activity is aligned with a common, well-understood destination.

How to Answer Questions on the Target Operating Model in an Exam
Exam questions on the TOM often test your understanding of what it contains, how it differs from the vision, and how it supports transformation. Approach these questions by:

1. Clearly distinguishing the TOM (a detailed operational description of the future state) from the vision (an aspirational, high-level statement).
2. Being able to list and explain the POTI dimensions - Processes, Organisation, Technology, and Information.
3. Linking the TOM to gap analysis, blueprint design, transition planning, and benefits realisation.
4. Recognising that the TOM may include intermediate states, not just the final end state.

Exam Tips: Answering Questions on The Target Operating Model
Tip 1: Memorise the POTI acronym and be ready to give an example for each element. Scenario questions often ask you to categorise items into these dimensions.
Tip 2: Watch for questions that confuse the vision with the TOM. The vision is aspirational and outward-facing; the TOM is detailed and operational.
Tip 3: Emphasise the TOM's role in enabling gap analysis - examiners like candidates who connect current state, future state, and the gap between them.
Tip 4: Remember that the TOM supports benefits identification and measurement; connect it to the benefits management approach where relevant.
Tip 5: In scenario-based questions, read carefully to identify whether a described element belongs to processes, organisation, technology, or information.
Tip 6: Use precise MSP terminology. Avoid vague answers - the examiner rewards clear links between the TOM and other programme management concepts.

Conclusion
The Target Operating Model is a cornerstone of effective programme management in MSP. It transforms an abstract vision into a practical, measurable description of the future organisation. By mastering its purpose, its POTI structure, and how it drives design, transition, and benefits realisation, you will be well equipped both to apply it in practice and to answer exam questions with confidence.