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Target operating model 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. The target operating model is the "to be" model. 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.
There are many different frameworks identifying the components of a target operating model. Hence each project to define a target operating model will focus on slightly different aspects depending on the challenge facing the organisation. Some target operating models are created to help with the link between information technology and strategy, others to help with the link between organisation design and strategy, and so on. A target operating model converts strategy ideas into operational plans.
One framework described in the operating model definition comes from Ashridge Executive Education – POLISM. This stands for
A simpler framework is used in the literature on Enterprise Architecture. Strategy is converted into capabilities, using a capability map, and each capability is described in terms of "people", process and technology.