Operating Models & Transformation Delivery

Teams may be unclear about who owns decisions, processes may cut across departments awkwardly or customer journeys may feel fragmented. Leaders may also find that performance issues are repeatedly discussed but rarely resolved because responsibilities are not clear.

Misalignment can also appear when technology, governance and organisational structure are designed separately rather than as part of one connected model. This creates gaps between how the organisation wants to work and how it actually operates.

The earlier these signs are recognised, the easier it is to address them. Left unresolved, operating model misalignment can undermine transformation delivery and long-term performance.

A successful Target Operating Model provides practical clarity.

It should explain how the organisation will operate, how decisions will be made, how teams will work together and how outcomes will be measured. It should connect strategy to delivery in a way people can understand and apply.

The best TOMs are not overly theoretical. They are grounded in operational reality and supported by a clear implementation plan. They consider people, process, technology, data, governance and customer outcomes as connected parts of the same system.

A TOM is only successful if it is adopted. That means engaging the people who will work within it and making sure it helps them deliver better outcomes.

A practical view of a Target Operating Model

At Cross 8, a Target Operating Model defines how an organisation delivers its strategy in practice. A TOM typically considers governance, products and services, processes, technology, data, people, customers, suppliers, location and costs to create an operating environment capable of delivering strategic objectives consistently.

The most successful operating models connect these elements through effective governance, practical implementation and sustainable change. The most effective operating models do not stop at design. They provide a practical blueprint for delivery, governance and sustainable change.

Whilst every organisation is different, a well-designed TOM generally considers governance, products and services, processes, technology, data, people, customer outcomes, locations, suppliers and costs. These components need to work together as a connected system rather than being designed independently.

Many operating model programmes focus heavily on structure or technology. However, sustainable improvement comes from understanding how decisions are made, how work flows through the organisation and how people, processes and systems interact to deliver value.

A successful TOM provides practical clarity. It helps leaders understand how the organisation needs to work in the future and provides a clear route from design into implementation.

A future operating model may be well developed, visually clear and agreed by senior stakeholders, but implementation requires different disciplines. People need to understand what changes, leaders need to make decisions, processes need to be embedded and governance needs to support the new way of working.

Failure often happens when the TOM is treated as a document rather than a delivery programme. If accountabilities, transition planning, communication and adoption are not properly managed, the organisation may continue operating much as it did before.

Successful implementation requires practical planning, ownership and sustained leadership attention.

Organisational design focuses on structure, reporting lines, responsibilities and capabilities. A Target Operating Model takes a broader view and considers how the organisation functions as a whole.

A TOM typically includes organisation structure alongside governance, processes, technology, data, customer journeys, supplier relationships and performance measures.

An organisation can restructure without changing the operating model. Equally, an organisation can improve its operating model without significantly changing reporting lines. The most successful transformation programmes consider both together to ensure the organisation is aligned around its strategic objectives.

Technology should support the way the organisation needs to operate. Processes should make it easier for people to deliver outcomes. People need the clarity, capability and confidence to work in the intended way.

Misalignment happens when technology is implemented without process redesign, or when processes are changed without considering the people who use them. It can also happen when organisational structures remain unchanged but expectations shift significantly.

Alignment starts with understanding the outcome the organisation wants to achieve. From there, the operating model can define how people, process and technology need to work together.

Good governance is not about adding bureaucracy. It is about clarity. It should define who makes decisions, how issues are escalated, how progress is measured and how the organisation remains aligned to the intended benefits.

Without effective governance, programmes can become slow, fragmented or overly dependent on informal relationships. With the right governance, leaders can make better decisions more quickly and delivery teams can work with greater confidence.

Governance should support delivery, not obstruct it.

A design may describe the future state, but delivery requires sequencing, ownership, stakeholder engagement, change planning and measurable outcomes. The organisation needs to understand what will change, when it will change and how it will be supported.

A practical transition plan is essential. This should identify priorities, dependencies, risks, capability needs and governance arrangements. It should also explain how progress will be measured.

The organisations that make this transition well treat implementation as part of the operating model journey, not as a separate activity after design is complete.

Creating accountability starts with defining decision rights, ownership and escalation routes. People need to know who is responsible, who needs to be consulted and who has authority to make decisions.

This becomes especially important in transformation programmes where workstreams, business teams and external partners all interact. Without clarity, issues can drift and decisions can slow.

An effective operating model makes accountability visible. It helps people understand their role in delivering outcomes and reduces reliance on informal workarounds.

That means designing around how customers experience the organisation, not only around internal functions. Processes, technology, data and accountability should support the customer journey rather than create hand-offs, delays or confusion.

When operating models are designed without customer outcomes in mind, organisations can become efficient internally while still creating poor experiences externally.

A good operating model connects operational performance with customer value. It helps teams understand not just what they do, but how their work contributes to the overall customer experience.

A focused review of a specific function may be completed relatively quickly. A full organisation-wide redesign involving people, process, technology, governance and customer journeys will naturally take longer.

The important point is that operating model redesign should not be rushed into implementation before the organisation understands the consequences. It needs enough thinking to create clarity, but not so much that it becomes theoretical or disconnected from delivery.

A phased approach often works best, combining clear design principles with practical delivery planning and early opportunities to create value.

Measures may include improved decision-making, clearer accountability, reduced duplication, better customer outcomes, improved efficiency, stronger governance or faster delivery of strategic priorities.

It is important to define success early. Otherwise, organisations can complete the redesign but struggle to prove whether it has delivered value.

A good operating model creates visible improvement in how work gets done. It should make the organisation easier to lead, easier to operate and better able to deliver its objectives.