Target operating model design

AZH utilizes a proven methodology and wide-ranging experience to aid clients in creating effective operating models for their companies


ServicesCompliance Advisory | Compliance Healthcheck

Target operating model: what does good look like?

AZH leverages a proven methodology and extensive expertise to assist clients in crafting optimal operating models for their organizations, encompassing all necessary layers such as capabilities, processes, organizational design, key functions, roles and responsibilities, sourcing strategies, locations, data management, technology integration, performance metrics, and governance structures.

Developing an integrated operating model that aligns all components to effectively execute the strategy:

  • Ensuring a cohesive operating model that drives revenue growth and business success 
  • Optimizing organizational resources to efficiently deliver the strategy and improve profitability 
  • Creating a target operating model that fosters ownership and successful implementation by stakeholders, rather than a theoretical framework.

Target operating model: a solid framework

Creating an effective target operating model is essential for aligning an organization's structure with its strategic objectives. Our team collaborates closely with clients to develop and implement the precise operating model required to realize their goals.

Working with AZH on our target operating model initiative has been truly impressive. Their ability to understand our needs and translate them into a solid model, while providing valuable insights and challenges, has been exceptional. The support on change management has greatly boosted our Covid recovery efforts, resulting in a detailed plan to implement the target operating model within our recovery strategy. AZH's commitment and client-focused approach have been outstanding, making them a fantastic partner to collaborate with.


Developing a target operating model: overcoming the obstacles

Organizations are frequently faced with challenges in aligning their operational structure with their strategic objectives. This discrepancy may arise from a lack of intentional design in their evolution. A need for change may be prompted by the emergence of a new strategic direction or a rapid shift in the external business landscape. Additionally, recent acquisitions or divestitures could necessitate organizational realignment.

The rapid evolution of the business landscape in response to digital transformation, climate change, sustainability, diversity, equity, and inclusion, as well as the shift towards hybrid work models and other post-pandemic developments, is necessitating a reevaluation of organizational structures.

Developing the optimal operating model: A comprehensive strategy

For clients in need of target operating model consulting, The AZH offers:

  • A collaborative and partnership-driven approach that emphasizes extensive engagement with client stakeholders. Our team takes charge of setting the pace, facilitating meetings and workshops, and challenging conventional thinking.
  • An expectation of close collaboration with your existing teams to define and contribute to deliverables, leveraging their expertise under our guidance.
  • The capability to swiftly grasp the intricacies of your unique business while also providing exposure to a diverse range of clients across various industries, offering fresh perspectives and valuable insights.
  • Seasoned leadership, unwavering energy, and genuine enthusiasm. We deploy senior professionals who operate at the appropriate level, eschewing junior consultants focused on mundane process documentation.

Achieving an optimal operating model: navigating potential challenges

Our extensive delivery expertise can assist in mitigating common challenges that may render a meticulously designed target operating model unfeasible or underutilized, ultimately becoming a costly investment with limited impact.

"Developing a target operating model necessitates a methodical approach to thoroughly strategizing how to drive impactful change throughout your organization. It is imperative that every facet of your operations are harmonized and synergistic. Crafting a target operating model is a complex endeavor, requiring a comprehensive, cross-functional, and cross-business initiative that must be spearheaded from the highest echelons of the company."

Customers frequently inquire about...

What steps should we take to effectively implement our new business strategy and ensure its successful delivery?

How can I develop and implement effective strategies to streamline and optimize my business operations in the aftermath of a significant acquisition?

What strategies can I implement to optimize my operational processes in order to improve efficiency and drive cost savings across all departments within the organization?

What strategies should I implement to realign my current business model in order to effectively support and capitalize on growth opportunities in emerging regions?

How can we identify areas for streamlining processes, optimizing resources, and reallocating time to focus on value-added activities?

How can we strategically transform our business operations to thrive in a post-pandemic landscape, incorporating flexible work arrangements and enhancing the resilience of our supply chain networks?

What changes can we make to our business model to support sustainability efforts and minimize our carbon impact?

How can I create a customized target operating model that is tailored to meet the specific needs and objectives of my business?