What’s your Target Operating Model? And why every business needs one

If you’re looking to scale up your business, taking that first leap could be as simple as asking yourself one simple question:

Does my business have a Target Operating Model?

If the answer is “no”, read on to find out what a Target Operating Model is and why your business needs one now.

And if your answer is “yes”? Well, read on anyway. You never know, you might discover something new!

Your Target Operating Model is the foundation on which your scaled-up business is built

When we work with a new business, we want to know how close it is to running on a Target Operating Model.

Put simply, this is a map to the future success of your business, signposting the path from where your company is now, to the full achievement of its strategic objectives.

If it sounds complicated, don’t worry, with Melo’s help it needn’t be.

In fact, we’ve broken it down into three key areas:

1. Having the right people

Success starts with the people around you. You’ll need to ask yourself some important questions, like:

• Have we got the right people on the bus?
• Does each member of the team understand our vision?
• Are they working towards our mission goals?
• Do they align with our company’s core values?

Your recruitment processes are key here, and that’s true across the business. From your highest-paid leaders to your newest office juniors, you’ll want to know that everyone is on board.

And that means not just tagging along, but actively driving your business forward.

You can find out more about how to use The GC Index (aka “the Game-Changing Index”) to recruit great leaders in our latest blog.

Once you’ve hired the right people, you’ll want to keep this talent close. That means focusing on staff retention.

Ask yourself:

• Are my staff working to the right pay grade?
• Are they motivated in what they do?
• Do they have the tools to really excel?

Thinking about the answers to these questions will help you run your business to a Target Operating Model.

2. Understanding your processes

If someone strolled into your office off the street, would they be able to pick your business up and continue to run it?

It’s not likely to happen, granted, but could they?

It might seem strange but it really is key. What it boils down to is having clear, transparent processes, that everyone understands and follows to the letter. So everyone is pulling in the same direction to achieve the company’s goals

At Melo, we can help you establish and then document your internal and client-facing processes, ensuring they align with your company’s overall goals.

3. Technology to enhance, not replace

Some businesses make mistakes when it comes to technology.

There… we’ve said it.

One of the most common problems we encounter is tech being employed to “fix” an issue, but actually being used to sticky-plaster over the cracks.

For tech to work, you first need to iron out the problems and perform diagnostics to get to the root of your issues. Only at this point can you bring tech in to make things run more quickly, more smoothly, or at a lower cost.

That’s why we say:

• People
• Process
• Technology

And the order is all-important.

Technology is there to (among other things):

• Simplify your processes
• Make tasks repeatable
• Ensure your business is scalable
• Create an effective training environment.

Remember that tech is your friend – but only when used wisely.

Get in touch

Together, these three simple steps can help you to design a Target Operating Model that aligns with your business goals and desired outcomes, within a set framework that fits with your company ethos.

It might sound complex, but with Melo’s help, it could be as simple as 1, 2, 3.

In fact, it’s what Melo’s “Progress” team do. If you don’t know what your Target Operating Model is, or you don’t know how close you are to working to one, drop us a line at hello@melo.co.uk or call 0113 4656 111 for a chat.