Target Operating Model #1

from David Shaffer, Linked IN 14 June 13 enhanced by Peter/CXO Wiz4biz

Charters. The success of the process is measured through implementation – correlated with defining key action items. One means of effective implementation is the development of “Charters” whereby budgets, action steps, milestones, responsibilities, resource commitments & accountability are documented & reviewed at management meetings. It is important to limit the number of Charters to a manageable size and to segregate charters into short & long term plans. Again, the key is to focus & address, any gaps between current and target operating models.

The following are general steps that integrate the Strategic Planning process into the definition of the TOM leading to the defined actions within the charters.

Definitive Statements of Vision, Mission & Core Values

Financial Targets & Models for the Next 3-5 Year Period with Emphasis on Years 1-3
o Revenue sources
o Allocations of Resources
o Compensation Considerations
o EBITDA Measurement
o Budgeting – best case, most likely, & worst case considerations

Target Operating Model [TOM] that Includes
o Organizational Considerations
o Roles & Responsibilities
o Performance Measurement – quality, professionalism, goals & objectives
o Delivery Mechanisms
o Product Development (IP)
o Management Reporting
o Information Management Considerations

Revenue Generation
o Products
o Services
o Clients
o Sales Methodology & Process
o Sales & Marketing Tools
o Best Practice – Lead Management & Follow-Up

[ Gap Analysis, Key Action Items, Monitor & Control Initiatives + Summary in Premium Content ]