#93 Target Operating Model: The key to successful transformation

#93 Target Operating Model: The key to successful transformation

Target Operating Model: The key to sustainable corporate success

In uncertain times, it is not enough to simply make individual adjustments. Companies that want to be successful in the long term need a clear strategic direction and an organization that supports them in this. But this is precisely where many fail: Instead of taking a systematic approach, they often reorganize haphazardly. In the latest episode of "Hope is not a strategy", we talk about why the Target Operating Model (TOM) is the decisive factor for a sustainable corporate structure.

Structure follows strategy - not the other way around

Many companies react to economic challenges with rapid measures. Costs are cut, departments restructured, employees made redundant. However, if these changes are made without a strategic basis, more harm than good is done. Without a clear target picture, every reorganization remains reactive - and often leads to the same problems recurring soon. The Target Operating Model provides a sound basis. It defines how an organization must be optimally positioned in order to effectively implement its strategy. This is not just about processes or hierarchies, but about the entire way a company works. Those who approach this step correctly avoid blind actionism and create an organization that works efficiently in the long term.

Change needs clarity

A company without a target image is like a ship without navigation. If it is not clear which markets, customers and business models are the focus, internal structures are also difficult to define. A target operating model provides this clarity. It helps to set priorities, deploy resources in a targeted manner and reduce complexity. Many companies do not have the problem that they are not optimizing enough - but that they are doing it in the wrong places. Processes are revised without questioning the overarching strategy. This leads to unused potential and inefficient processes. With a structured approach, it is possible to manage transformation in a targeted manner instead of getting lost in short-term measures.

Leadership determines success

A target operating model must be implemented consistently. This is where managers are needed. They not only have to make decisions, but also lead the organization through the change. This includes communicating a clear vision, asking the right questions and involving employees in the change process. Without strategic leadership, even the best model will be ineffective. Change only works if it is understood and supported. Companies that manage to develop and actively implement a clear target operating model are not only more resilient - they also secure a decisive competitive advantage in the long term.

Transformation with a plan - instead of blind actionism

If you really want to make your company fit for the future, you can't just rely on short-term adjustments. A well thought-out target operating model creates the basis for sustainable success. In this podcast episode, we talk about why this strategic approach is so important - and how you can use it for your company.

🚀 Listen to the episode now and transform your company in a targeted way!



SHOWNOTES

Christian Underwood

Strategy Summit 2025 

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