KPMG Target Operating Model

A target operating model might sound like something for your business analysts to sink their teeth into, but it's something we believe that leaders within your business should embrace to secure a better and more strategic functional transformation to the cloud.

There are many challenges during a functional transformation program (eg. finance, HR) - none more so than envisioning what you can achieve and validating that it will work for your organisation. So, it is worthwhile understanding the fundamental role the KPMG Target Operating Model can play in achieving this.

The initial stages of your transformational journey can have the most profound impact on your ultimate outcome. It's during this stage that the big decisions are made and the place you are trying to end up is determined. The quality of the outcome is in direct relation to how clearly you understand where you are trying to go. Business leaders should be the driving force for the vision, but need a starting point to work from. That's where KPMG's Target Operating Model can help empower you to move to a 'best in class' vision.

Part of the problem with 'traditional' target operating models is that they're often not comprehensive enough in scope. If they only cover the traditional process-people-technology relationship, they can miss where the work will get done, how it will be reported and measured and how it will be governed and controlled. To overcome this weakness, the KPMG Target Operating Model includes not three, but six 'layers' - Process, People, Service Delivery Model, Technology, Performance Insights and Governance.

Understanding how all six components of your Target Operating Model layers relate to each other is key to creating an integrated and highly functional solution. They provide unparalleled visibility of each potential change and their corresponding consequence.

Each of the six layers contain a number of 'assets' which are predefined and are designed to help you get to where you need to be sooner. Each asset can be thought of as a collection of solution accelerators comprised of hundreds of predefined or prebuilt processes, workflows, definitions, integrations, reports, dashboards and even training programs. Using this combination of assets to suit your organisation goes a long way towards helping you to envision where you are heading and validate that it will work for you.

The goal of the KPMG Target Operating Model, is to turn a potentially standard cloud implementation project into a dynamic functional transformation. The KPMG Target Operating Model is based on a deep understanding of how transformation works within, and across, an enterprise.

It does this by building on the excellent work of the wider functional and specialist practices across the KPMG network of member firms to help you envision your model, on your chosen cloud platform (or a short-list of cloud platforms), for your particular business. This is why we - and you - can be so confident of the outcome and the value potential it brings.

We've written a Target Operating Model guide for CXOs (and other business leaders) which expands on this theme and can be shared in your organisation. Please do take the time to download it here: