In MSP (Managing Successful Programmes) 5th edition, the Target Operating Model (TOM) describes how an organisation will operate to deliver its objectives once the programme's transformation is complete. It is a core focus of the Design theme, which defines the future state, and connects closely wi…In MSP (Managing Successful Programmes) 5th edition, the Target Operating Model (TOM) describes how an organisation will operate to deliver its objectives once the programme's transformation is complete. It is a core focus of the Design theme, which defines the future state, and connects closely with the Organization theme that establishes governance and roles. The POTI model is a practical framework used to design a complete and coherent Target Operating Model, ensuring no dimension of change is overlooked. POTI stands for four interconnected elements. 'P' represents Processes (and business models), covering the value streams, workflows, functions, and operational activities needed to deliver outcomes and benefits. 'O' represents Organization, addressing structures, roles, responsibilities, staffing levels, skills, culture, and supply chains required to operate effectively. 'T' represents Technology, encompassing the IT systems, infrastructure, tools, equipment, buildings, and other physical or digital assets that enable the future ways of working. 'I' represents Information (and data), focusing on the data, knowledge, reporting, and information flows required to support decision-making and operations in the new environment. Using POTI ensures the TOM is holistic, because these four dimensions are interdependent; changing processes without aligning organisation, technology, or information leads to gaps and failed transformation. The Design theme uses POTI to move from the current operating model, through intermediate states delivered by tranches, to the target state. Each dimension must be defined consistently to maintain alignment with the programme vision and blueprint. The Organization theme complements this by ensuring the right governance, leadership, sponsorship, and stakeholder engagement are in place to design and implement the model. By systematically addressing Processes, Organization, Technology, and Information, MSP practitioners create a robust, achievable, and integrated Target Operating Model that supports sustainable capability, enables benefits realisation, and provides a clear picture of how the organisation will function after change.
Designing the Target Operating Model (POTI)
Introduction to Designing the Target Operating Model (POTI) Within the MSP (Managing Successful Programmes) framework, one of the key organizational and design themes is the design of the Target Operating Model (TOM). The Target Operating Model describes how the organization will operate once the programme has delivered its capabilities and the desired outcomes have been embedded. The POTI model is a structured way of ensuring that the design of the future operating model is coherent, complete, and balanced across four essential dimensions: Processes, Organization, Technology, and Information.
Why is it Important? Designing a robust Target Operating Model is critical because programmes exist to create lasting change and to deliver new ways of working. Without a clear model of the future state, a programme risks delivering outputs (products or capabilities) that do not fit together or that fail to enable the intended benefits.
The POTI model matters because: • It ensures completeness - all four aspects of the future organization are considered, so nothing is overlooked. • It ensures coherence - the four elements must be aligned and integrated so they work together as a whole. • It supports benefit realization - a well-designed operating model is the platform on which outcomes and benefits are delivered. • It reduces risk - considering all dimensions early reduces the chance of gaps or conflicts emerging later in delivery or transition.
What is the POTI Model? POTI is an acronym for the four dimensions of the Target Operating Model that must be designed and integrated:
P - Processes: The business processes, operational models, functions, and services required to operate in the future state. This covers how work will be done, the value chains, and the operational activities.
O - Organization: The organizational structure, roles, responsibilities, skills, culture, staffing levels, supply chains, and the way people are organized to deliver the new capabilities.
T - Technology: The technology, IT systems, tools, equipment, buildings, accommodation, and infrastructure needed to support the new ways of working.
I - Information: The information and data required to operate, including data models, information flows, reporting, and the knowledge needed to run the business.
How Does it Work? The POTI model is used to structure the design of the future (target) state. Programme designers use it to: • Describe the current operating model as a baseline. • Design the target operating model across each of the four POTI dimensions. • Identify the gaps between the current state and target state. • Ensure the four elements are integrated - for example, a new process (P) may require new technology (T), new skills and roles (O), and new information flows (I).
The Target Operating Model informs the blueprint (design of the future state) and helps define the projects and activities needed within the programme's delivery plan. It is revisited and refined throughout the programme as understanding matures. Importantly, all four dimensions must be considered together - changing one without addressing the others leads to an incomplete or unworkable design.
How to Answer Exam Questions on POTI Exam questions on the Target Operating Model often test whether you can recognize each POTI element and understand why an integrated design is necessary. Questions may present scenarios and ask you to classify aspects of a design into the correct POTI dimension, or to identify why a design is incomplete.
To answer effectively: • Memorize the four letters and what each stands for: Processes, Organization, Technology, Information. • Be able to give examples for each dimension. • Understand that POTI supports the design of the future state and links to the blueprint and benefits. • Read scenario questions carefully to match described elements to the correct dimension.
Exam Tips: Answering Questions on Designing the Target Operating Model (POTI) • Learn the acronym cold - P (Processes), O (Organization), T (Technology), I (Information). This is the most frequently tested fact. • Watch for classification questions - if a scenario mentions job roles, staffing, culture or skills, it is Organization; systems, tools, equipment and buildings are Technology; data, reports and information flows are Information; ways of working and functions are Processes. • Emphasize integration - if asked why POTI is useful, stress that all four must be designed together and be coherent, not in isolation. • Link POTI to the future state - remember it describes the target operating model, which underpins the blueprint and benefit realization. • Avoid confusing Technology with Information - Technology is the physical/system infrastructure, Information is the data and knowledge that flows through it. • Use the elimination technique for multiple choice - rule out answers that only address one dimension when the question implies the need for a complete model. • Keep answers concise and structured - if a written response is required, address each of the four dimensions explicitly to demonstrate full coverage.
Summary The POTI model is a simple but powerful checklist that ensures the Target Operating Model is designed completely and coherently across Processes, Organization, Technology, and Information. Mastering the acronym, being able to classify examples, and understanding the importance of integration will help you confidently answer exam questions on Designing the Target Operating Model.
