Owning a business and trying to make it grow is a constant transformational journey. From a Start-Up to a mega organization with new resources and strategies is an exciting journey.

With these unforeseen changes, business analysts and managers might sometimes lose focus on the company’s main objectives and how to run. This is why the target operating model was created.

The document is responsible for a part of the business plan lifecycle and highlights things like the business vision, mission, and what to do to achieve them. It can directly impact the future state of a business.

A target operating model is a tool that helps project managers to keep on a consistent track of the business and its strategy journey. It is a document that will directly impact the project management and the strategy adopted by the team to reach a desired state.

It will influence aspects like technology, resources, and business processes, no matter if it's a start-up or a consolidated company.

The operating models can also be considered a description of the desired state of an operating business and the strategy created by business analysts and department heads to reach this state. It focuses on the strategies and processes, not just a simple company goal or concept.

Although many people think they are the same thing, there are several differences between operating and business models. We could say that the business model regards the design of a business and its functions. On the other hand, the operating model says about the strategic part of an organization thinking about its future state.

The business model also focuses more on the product offering and customers' journey in a business. It also highlights the revenue streams, helping big and small companies to evaluate their ecosystem and change it if needed.

On the other hand, the operating model works with three basic questions directly impacting the business model: how, where, and when. These questions regard all aspects of a business, from technology to resources and processes.

While the business model is more of a part of the design of an organization, the operating model is responsible for the strategy. The business model needs the operating model to work.

There are lots of different target operating model types that you can use, each one with a specific purpose. You must deeply analyze your company to understand which one of these types will fit your needs better.

Here are the most common types of target operating model and their differences:

Large Organization Target Operating Model

As the name suggests, this kind of operating model is destined for organizations that already have some market time and are consolidated in a specific category. In these businesses, the future state is much more predictable, and there is little space for growth in technology and innovation.

In these cases, the target operating model is more a tool that department heads use to communicate future changes than a strategy tool. The template will more likely be used to present new processes and short-term strategies.

Government Organizations Target Operating Model

As you might expect, there is no massive focus on the customer journey or product offering. The main focus in these cases is societal changes. These operating models typically work over 25 years and are planned by subject matter experts.

In these cases, the target operating model typically features many different KPIs and usually runs around S.M.A.R.T objectives. Since this operating model runs over a long time, it has to be planned in-depth and with a great strategic process since these actions tend to impact different areas.

Start-Up Organization Target Operating Model

When creating this kind of model for a startup, you should consider several different things. First, it is no surprise that every day is a fight for survival in this kind of company.

The target operating model should have a period of not more than a year and a half. This happens because this business model tends to change quickly, from the concept to the vision and organization process of the company, making the future state quite unsure.

At the same time, it is essential to have a well-structured and clear target operating model for gathering investors. Accomplishing this means you are more likely to achieve your objectives and goals in a shorter period of time.

Now that you know what a target operating model is and the different types of it, it is time to start building your own template. Every category must be thought out in-depth to guarantee that it will fit all your expectations and be effective.

With this in mind, here are the main categories you need to feature in your template to make a good target operating model. Be sure to follow the correct order for a clearer understanding of your business needs and proper strategy.

Business Objectives

The first thing you will add to your PowerPoint template is your company's business objective. This model's objective is way different than the business model.

Here the objective is not attached to goals. Instead, it is directly related to why you own this company. Your vision, mission, and why you do what you do.

It is also good to include what you want to reach with your business and how you want to impact the world around you. This category regards your purpose.

Strategy

The next item to include in your target operating model is your company's strategy. You should include information about the products your business provides and to which public.

You can also list the channels your company uses to communicate with the public and how the message is delivered, from the tone to the language used. It is basically a synthesis of what you do.

Process, Information, and Analysis

This step requires a deeper understanding of your company and a strategic look at what you need to improve. How will you translate that vision and mission to the rest of the world?

You also have to analyze your resources and employees to see the most critical points to guarantee that your customers receive your products and services. You also need to understand what you need to do to gather information about your customers and their needs.

Capability

This section regards how you make things happen. It is directly attached to the technology factor of a company.

You may also want to include the skills needed for the company to achieve the desired product result. It is also vital to list all improvements the company will keep making to guarantee customer quality.

Location

The last category regards the locations you need to be on to deliver the products in the most efficient and optimized way. Not only this, but you also need to analyze and list where your customers are located.

This category impacts decisions about online shopping options, and the focus on eCommerce and digital marketing, for example.

When it comes to creating templates for your operating models, PowerPoint is undoubtedly the best option. The software has an enormous set of tools and features that can build perfect PowerPoint templates for your business without the need to have subject matter experts.

Also, Microsoft Office is an industry-standard that can be used for numerous organizational tasks. This avoids the need for different specialized software packages for doing various tasks.

If you don’t have a Microsoft Office activation key, you can find Microsoft Office 2021 Professional Plus Key Retail Global at RoyalCDKeys for a considerably lower price when compared to Microsoft Store. This way, you save money that can be used for other services regarding your organization.

Template #2

Target operating model with activities and practices. Indicated for businesses with lots of teams that need a deeper organization.

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Template #3

Function organization model. Separated into four major categories and indicated for simple management projects.

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