{"id":9676,"date":"2026-06-30T09:40:57","date_gmt":"2026-06-30T08:40:57","guid":{"rendered":"https:\/\/www.humatica.com\/?p=9676"},"modified":"2026-06-30T09:40:57","modified_gmt":"2026-06-30T08:40:57","slug":"tom-series-part-iii-implementing-the-tom-turning-design-into-financial-results","status":"publish","type":"post","link":"https:\/\/www.humatica.com\/de\/insights\/tom-series-part-iii-implementing-the-tom-turning-design-into-financial-results\/","title":{"rendered":"TOM Series Part III: Implementing the TOM &#8211; Turning Design Into Financial Results"},"content":{"rendered":"<p><em>This is the final article in a three-part series on designing and implementing a fit-for-purpose Target Operating Model. In Part I, we explored how to recognise when an operating model is no longer aligned with business needs. In Part II, we addressed how to design a TOM that genuinely translates strategy into a multi-dimensional blueprint, covering structure, governance, processes, capabilities, technology, and KPIs. In this concluding article, we tackle the hardest part of the journey: turning that design into lasting organisational change.<\/em><\/p>\n<p>Many organizations believe that designing a Target Operating Model is the hard part. In reality, the opposite is true. Design creates clarity; implementation creates change. And change, especially behavioural change, is where most TOM efforts fail.\u00a0<sup>[9]<\/sup><\/p>\n<p>A TOM is only as strong as the organization&#8217;s ability to adopt and sustain it. Implementation requires leadership alignment, structured execution discipline, thoughtful change management, and systems that reinforce the new ways of working. Without these elements, even the best TOM becomes a document that sits in a drawer while the organization gradually slides back into old habits.\u00a0<sup>[9][10][11]<\/sup>\u00a0Organizations that follow a disciplined set of implementation principles dramatically improve their odds.\u00a0<sup>[13]<\/sup><\/p>\n<h3>1. Start with a Compelling Case for Change<\/h3>\n<p>Transformation efforts should always begin with a clear foundation: the case for change. People rarely change because someone tells them to. They change when they understand why the current model no longer works, what the risks of inaction are, and what will improve for them and for the business.<\/p>\n<p>A compelling narrative forms the emotional foundation of implementation. It aligns leaders, helps employees understand the journey, and shapes expectations for what is ahead. The case for change should link the TOM directly to the company&#8217;s value creation plan, strategy, and performance pain points, for example: &#8220;We cannot meet our five-year growth plan with our current siloed structure; here is how the new model will help us win.&#8221;\u00a0<sup>[9]<\/sup><\/p>\n<p>A fact-based case for change creates urgency and buy-in. This is most effective when sharing data on the current model&#8217;s weaknesses, such as duplications, cost overhead, decision-making delays, and customer satisfaction gaps, to get everyone on board with why change is needed. Vague appeals to &#8220;transformation&#8221; or &#8220;agility&#8221; are insufficient; leaders and employees need to see specific evidence that the current model is holding the organization back, and concrete ways the new model will make work better.\u00a0<sup>[1]<\/sup><\/p>\n<h3>2. Achieve Deep Leadership Alignment Before Anything Else<\/h3>\n<p>Leadership alignment is the make or break factor. Research identifies it as one of the strongest predictors of redesign success, and its absence as one of the most reliable predictors of failure.\u00a0<sup>[12][13]<\/sup><\/p>\n<p>Alignment means more than agreeing on a slide deck. It requires clarity on new decision rights, shared expectations on cross-functional collaboration, commitment to the governance model, and readiness to lead by example. If leaders are not fully aligned, the organization will not follow. This is particularly critical for middle management: when these managers revert to old behaviours, the entire implementation stalls from the middle.\u00a0<sup>[9]<\/sup><\/p>\n<p>Alignment is best achieved through structured workshops where leaders work through real scenarios in the new model, making decisions and resolving ambiguities in practice before go-live. This turns abstract design into lived understanding.<\/p>\n<h3>3. Sequence Implementation Like a Transformation<\/h3>\n<p>Implementation is not a one-week activity, but it is also not a multi-year journey. Strong implementation requires structured project governance that treats the TOM rollout as a genuine transformation programme.\u00a0<sup>[9]<\/sup><\/p>\n<p>This includes establishing a dedicated PMO or transformation office, setting clear milestones and sprint-based work plans, sequencing initiatives by priority and dependency, tracking risks proactively, and maintaining regular check-ins and progress reporting.<\/p>\n<p>Priorities should be clear: What do we implement first? What can wait? What must change immediately for the model to function? This clarity reduces confusion and prevents the organization from being overwhelmed.\u00a0<sup>[10][11]<\/sup><\/p>\n<p>With the right focus from leadership teams and support to run the process, the time between TOM design start and go-live is normally only 10 to 14 weeks. If the process is shorter, key decisions will be rushed, hindering the ability to make the right choices or failing to gain buy-in. A longer process leads to transformation fatigue and absorbs too much energy from the day-to-day operation of the company.<\/p>\n<p>Successful TOM design and implementation require a small dedicated team to manage the process, keep the pace of transformation, document decisions and implications, and maintain the required focus. Recent research emphasises that stacking this redesign team with top talent and expertise is itself a significant predictor of success.\u00a0<sup>[13]<\/sup><\/p>\n<h3>4. Engage and Activate the Organization<\/h3>\n<p>A common pitfall is top-down implementation, which can breed scepticism or passive resistance, especially in the middle management layer. Instead, the most effective approach is to co-create implementation details with key leaders and involve managers in design workshops, trade-off assessments, and the design of specific processes and workflows.\u00a0<sup>[9]<\/sup><\/p>\n<p>Communicate transparently throughout implementation, explaining how team roles will change and listening to concerns. People are more likely to embrace a new model if they feel heard and see their feedback incorporated. In practice, this could mean running pilots in certain departments, holding Q&amp;A sessions, and training managers to lead their teams through the transition.<\/p>\n<p>Effective change management also means clarifying &#8220;WIIFM&#8221;, or &#8220;What&#8217;s in it for me&#8221;, for employees at every level. Show how the new model makes their work better: less duplication, clearer career paths, faster decisions, greater autonomy. If employees only hear about what the company gains, engagement will be shallow. When they understand what\u00a0<em>they<\/em>\u00a0gain, commitment deepens.\u00a0<sup>[9]<\/sup><\/p>\n<p>Communication needs to be continuous: before, during, and after go-live. Update everyone on progress, celebrate early wins, and reinforce the vision. Resistance is not failure; it is information. When harnessed properly, it reveals where the design needs refinement and where additional support is required.\u00a0<sup>[10][11]<\/sup><\/p>\n<h3>5. Put the Right People in the Right Roles<\/h3>\n<p>A key benefit of a TOM implementation is the opportunity to select the right candidates for new or changed roles. However, the single biggest mistake is to appoint future leaders at the beginning of the process, before new roles have been thoroughly defined. This leads to suboptimal design choices shaped around pre-assigned managers rather than around what the strategy requires.<\/p>\n<p>It is critical to first design and sign off the TOM, substructures, resources, management processes, roles, and responsibilities. These define the requirements for the skills and capabilities needed from future leaders and enable an objective assessment and appointment process.<\/p>\n<p>In many cases, companies will choose a mix of existing leaders and new talent to fill new or changed roles. It is important to assess whether current managers have the skills and mindset for the new model. Some may require coaching or role changes. A transparent and objective leadership appointment process that matches well-defined roles with qualified internal candidates is critical for credibility, reducing rumours and anxiety while ensuring that the new operating model has capable leaders at every level.\u00a0<sup>[13]<\/sup><\/p>\n<p>Additionally, each person&#8217;s responsibilities in the new model should be clarified through updated job descriptions and RACI matrices for key processes, so there is no ambiguity from day one. When people understand their responsibilities and have the skills to fulfil them, the new operating model functions as intended.<\/p>\n<h3>6. Align KPIs, Processes, and Systems to Reinforce the Change<\/h3>\n<p>People follow what gets measured. If KPIs and incentives contradict the new operating model, the old behaviours will persist. A new TOM can fail if legacy systems or metrics continue to reinforce the old way of working.\u00a0<sup>[9]<\/sup><\/p>\n<p>TOM implementation succeeds when KPIs support end-to-end performance rather than siloed departmental metrics, processes are redesigned to match the new structure rather than layered onto old workflows, systems automate new ways of working rather than recreate legacy processes, and data enables faster and better decisions.\u00a0<sup>[1]<\/sup><\/p>\n<p>For example, if the TOM emphasises cross-unit collaboration, performance reviews and bonuses must include shared team goals, not just individual or departmental objectives. If the model streamlines decision-making authority, then approval workflows in systems need to reflect the new governance.<\/p>\n<p>Implementing aligned KPIs is ideally done by go-live. However, making the required systems changes often takes longer than the TOM design and operational implementation. The systems alignment should not be underestimated, as it is critical to support the new TOM. Yet system implementation should not hold back go-live; the organization may need to work with interim solutions until the underlying systems and KPIs are fully adapted.\u00a0<sup>[1]<\/sup><\/p>\n<p>This is also where AI and automation play an increasingly important role: freeing capacity, reducing errors, improving forecasting, and accelerating execution. Organizations that embed AI into their redesigned processes, rather than bolting it onto legacy workflows, capture significantly more value from both the operating model change and the technology investment.\u00a0<sup>[10][11]<\/sup><\/p>\n<h3>7. Institutionalise the New Model Through Governance and Rituals<\/h3>\n<p>Governance is where the TOM becomes real. Without deliberate governance rhythms, organizations drift back toward old habits within weeks of go-live.<\/p>\n<p>Leaders must create a consistent cadence of business reviews that reflects the new model&#8217;s priorities, cross-functional governance forums where shared objectives are tracked and trade-offs are resolved, simple escalation pathways that reinforce the new decision rights, and rituals that make the new ways of working visible and habitual.<\/p>\n<p>These rhythms create stability during the transition and embed the new ways of working into the organisational DNA. They also signal to the broader organization that the change is not temporary; it is the new standard.<\/p>\n<p>Governance should be lightweight but consistent. Over-engineering governance with too many forums, reports, and committees risks recreating the very bureaucracy the new TOM was designed to eliminate. The goal is clarity and rhythm, not complexity.<\/p>\n<h3>8. Monitor, Adjust, and Improve Continuously<\/h3>\n<p>No TOM is perfect on day one. High-performing organizations monitor early warning signs, such as decision-making bottlenecks, role confusion, or declining engagement, and adjust roles and processes as needed. They review governance effectiveness after 90 and 180 days and assess capability needs continuously.<\/p>\n<p>Implementation is a journey, not an event. Operating models are not static; they need to evolve with strategy, technology, and market dynamics.\u00a0<sup>[9]<\/sup>\u00a0Companies that proactively monitor their TOM&#8217;s effectiveness and make iterative improvements maintain momentum and avoid the gradual erosion that caused the previous model to fail.<\/p>\n<p>Building this continuous improvement capability into the model itself, through regular health checks, feedback mechanisms, and periodic design reviews, ensures that the TOM remains fit for purpose as the business evolves.<\/p>\n<h3>Conclusion<\/h3>\n<p>Target Operating Model implementation success comes from aligning rigorous project planning with human factors. Organizations that follow this formula turn TOM design into tangible performance improvements, and create new ways of working that stick.<\/p>\n<p>The evidence is encouraging: redesign success rates have tripled over the past decade, driven by more disciplined approaches to leadership alignment, change management, talent selection, and incentive design.\u00a0<sup>[13]<\/sup>\u00a0Organizations that follow a comprehensive set of implementation principles have dramatically higher odds of meeting their objectives.<\/p>\n<p>In a world of constant disruption, where AI is reshaping workflows, market conditions shift rapidly, and competitive advantages are increasingly short-lived, operating model agility is no longer optional. Companies that proactively transform their TOM and implement it effectively gain speed, clarity, and resilience. Those that wait risk finding that the gap between strategy and execution has grown too wide to bridge.<\/p>\n<p><small>[1] Brooke Weddle &amp; Deepak Mahadevan, McKinsey &amp; Company (2023), What is an operating model and why does it matter? https:\/\/www.mckinsey.com\/featured-insights\/mckinsey-explainers\/what-is-an-operating-model<br \/>\n[2] Accelare (n.d.), Org Chart vs. Operating Model: Which Method is Best for Your Business? https:\/\/www.accelare.com\/blog\/org-chart-vs-operating-model-which-method-is-best-for-your-business<br \/>\n[3] Capstera (n.d.), Target Operating Model https:\/\/www.capstera.com\/target-operating-model\/<br \/>\n[4] OC&amp;C Strategy Consultants (2023), Fundamentals of the Target Operating Model https:\/\/www.occstrategy.com\/en\/article\/fundamentals-of-the-target-operating-model\/<br \/>\n[5] Strategy&amp; (PwC) (n.d.), Capabilities-Driven Strategy + Growth https:\/\/www.strategyand.pwc.com\/gx\/en\/unique-solutions\/capabilities-driven-strategy\/operating.html<br \/>\n[6] Shilu Acharya, Ritec Group (2023), 5 Signs Your Operating Model Isn&#8217;t Serving You https:\/\/www.ritecgroup.com\/post\/5-signs-your-operating-model-isn-t-serving-you<br \/>\n[7] Julie Choo (2017, updated 2023), How To Design A Target Operating Model (TOM) That Delivers https:\/\/strategyjourney.com\/target-operating-model-that-delivers\/<br \/>\n[8] Julie Choo (2023), How To Setup A Resilient Agile Target Operating Model For Transformation Success https:\/\/strategyjourney.com\/how-to-setup-a-resilient-agile-target-operating-model-for-transformation-success-5-actionable-tips\/<br \/>\n[9] Hunter Kafcsak &amp; Alexis Pugh, Propeller (2023), Common Operating Model Pitfalls &amp; How to Avoid Them https:\/\/propeller.com\/blog\/why-operating-models-fail-and-how-to-get-yours-back-on-track<br \/>\n[10] Vibranium Bridge Strategy Consulting (2023), Reimagining Operating Models for an AI-Powered Economy https:\/\/www.vibraniumbridge.com\/post\/reimagining-operating-models-for-an-ai-powered-economy<br \/>\n[11] Don Purdon (2023), The Impact of AI on Your Organisational Operating Model https:\/\/www.linkedin.com\/pulse\/impact-ai-your-organisational-operating-model-don-purdon-e7v8c<br \/>\n[12] McKinsey &amp; Company (2025), A new operating model for a new world https:\/\/www.mckinsey.com\/capabilities\/people-and-organizational-performance\/our-insights\/a-new-operating-model-for-a-new-world<br \/>\n[13] McKinsey &amp; Company (2025), The new rules for getting your operating model redesign right https:\/\/www.mckinsey.com\/capabilities\/people-and-organizational-performance\/our-insights\/the-new-rules-for-getting-your-operating-model-redesign-right<br \/>\n[14] Mural (2025), Unpacking Organizational Misalignment: Where Leaders &amp; Operators Disagree https:\/\/www.mural.co\/blog\/unpacking-organizational-misalignment<br \/>\n[15] Happily.ai (2026), The Hidden Cost of Misalignment: How Growing Companies Lose 20% of Payroll to Wasted Effort https:\/\/happily.ai\/blog\/hidden-cost-of-misalignment-2026\/<br \/>\n<\/small><\/p>\n","protected":false},"excerpt":{"rendered":"<p>This is the final article in a three-part series on designing and implementing a fit-for-purpose Target Operating Model. In Part I, we explored how to&hellip;<\/p>","protected":false},"author":18,"featured_media":9679,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","inline_featured_image":false,"footnotes":""},"categories":[8,27,28,12],"tags":[],"class_list":["post-9676","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-insights","category-operating-model-re-design","category-organizational-change-assurance","category-services"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>TOM Series Part III: Implementing the TOM - Turning Design Into Financial Results - Humatica<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.humatica.com\/de\/insights\/tom-series-part-iii-implementing-the-tom-turning-design-into-financial-results\/\" \/>\n<meta property=\"og:locale\" content=\"de_DE\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"TOM Series Part III: Implementing the TOM - Turning Design Into Financial Results - Humatica\" \/>\n<meta property=\"og:description\" content=\"This is the final article in a three-part series on designing and implementing a fit-for-purpose Target Operating Model. 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