A description of the operating model of an organisation

Moreover, it provides a common understanding of the organisation by allowing people to visualise the organisation from a variety of perspectives across the value chain as every significant element of business activity is represented. When everything is working in harmony together, then the entire system is incredibly efficient.

From there, the orders filter on down through the spokes so that a maximum level of efficiency can be maintained. In this context it is often referred to as the target operating modelwhich is a view of the operating at a future point in time. What the hub and spoke business model accomplishes is centralization.

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.

Before we kick off let us identify and share a few definitions that will help us to understand the process a little better and help to minimize confusion in terms and terminology later. Your organisations Operating Model is the definition of the operational processes as controlled by your management which result in the production of your output.

In so doing it will enable the organisation to continue to operate optimally and continue to achieve its corporate objectives and goals.

Explanation of the Hub and Spoke Business Model

It is normally identified and typified by a series of organisational models or themes. It will define the to-be organization design, business capabilities, business processes and required supporting technology capabilities.

Operating model

This gives the hub and spoke business model one unique advantage: M - the management systems and processes for developing strategy, planning, setting targets, managing performance and continuous improvement.

People, processes and technology are key components underlining any TOM and are critical to ensure its success. TOM work can be done at different levels of detail. Deploying the right model can help to ensure that our clients remains abreast of any developments to successfully achieve its strategic goals.

Operating models are also changing to accommodate new ways of working, such as "agile". If an organisation has not already undergone such a transformational journey, the time needed to develop and realise its TOM may be substantial, however, this should not necessarily be seen as something new and costly.

The IOMs can be defined as operational states following significant transformational initiatives e. Download the Target Operating Model structure Deloitte and Target Operating Model We have delivered Target Operating Models across all industry sectors and to address a wide range of business strategies.

Target Operating Model - TOM

The high level business benefits of the RTOM should also be articulated. Business architects, who typically help design the target operating modelensure that change is managed in an orderly way.

As we described before, the target operating model is delivered by a series of programmes and projects.1 Job Description Job Title: Programme Manager – Target Operating Model About SLC Student Loans Company is a non-profit making Government-owned organisation set up in.

The hub and spoke business model was pioneered by the transportation industry, but the lessons that have been learned from those who have implemented this model have been adopted by companies in every industry. Target Operating Model at a glance The primary purpose of a Target Operating Model is to enable the application of a corporate strategy or vision to a business or operation.

It is a high level representation of how a company can be best organised to more efficiently and effectively deliver and execute on the organisation's strategy. I am often asked the question, “What is the difference between Target Operating Model (TOM) and Organisational Design (OD)?” I tend to find that while TOM is generally well-understood, there is a lack of consensus among academics, HR practitioners, HR generalists and those outside the HR function when it comes to the working definition.

Target operating model

Target operating model (TOM) is a description of the desired state of the operating model of an organisation. When working on the operating model, it is normal to define the "as is" model and the "to be" model.

Although a TOM provides the description of an organisation’s target operating state, to confidently determine the correct direction and roadmap the start point also needs to be understood – this is the organisation’s Current Operating Model (COM).

A description of the operating model of an organisation
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