Target Operating Model (TOM) Design

Architecture for scalable, compliant, and efficient operations

A well-designed Target Operating Model (TOM) provides the blueprint for how your financial institution should operate. Our practice designs future-state TOMs that balance efficiency, control, and regulatory compliance—delivering sustainable competitive advantage.

Is this you?

• Broken handoffs between Front Office, Middle Office, and Back Office
• Unclear ownership of key processes and controls
• Inefficient or overlapping teams doing duplicate work
• Lack of standardisation across regions or business lines
• Audit findings linked to accountability gaps
• Scaling challenges as volumes or complexity grow

Financial institutions need clear operating models to function effectively.

What we deliver

Future-State TOM

• Organization design - How teams should be structured
• Process architecture - Key capabilities and workflows
• Technology landscape - Systems and integrations
• Operating principles - How you work

Roles & Responsibilities Model (RACI)

• Clear accountability - Who does what
• Decision rights - Who approves what
• Escalation paths - When things go wrong
• Handoff protocols - Smooth transitions between teams

Control Frameworks & Governance Model

• First line controls - Operational teams
• Second line oversight - Risk and compliance
• Third line assurance - Internal audit
• Governance forums - OpCo, SteerCo, RiskCo

Capabilities Matrix

• Current capabilities - What you have today
• Target capabilities - What you need
• Gap analysis - What's missing
• Priority roadmap - What to build first

Service Catalogue & Operating Principles

• Service definitions - What each team delivers
• SLAs - Performance expectations
• Operating principles - How decisions are made
• Ways of working - Standards and protocols

Implementation Roadmap (30/60/90 days)

• Quick wins - Immediate improvements (30 days)
• Foundation builds - Core capabilities (60 days)
• Full transformation - Complete TOM (90+ days)

What this solves

Broken Handoffs

Design clear transitions between FO/MO/BO with defined handoff protocols, data requirements, and SLAs.

Unclear Ownership

RACI matrices and accountability frameworks ensure everyone knows who owns what.

Inefficient or Overlapping Teams

Identify duplication, right-size teams, and design efficient org structures.

Lack of Standardisation

Create consistent processes across regions, business lines, and legal entities.

Audit Findings Linked to Accountability Gaps

Clear ownership and control frameworks close audit findings permanently.

Deliverables

You receive a complete TOM package:

Future-state TOM (organization, process, technology, data)
RACI matrices for all key processes
Control framework (1st/2nd/3rd line model)
Governance model (OpCo, SteerCo, committees)
Capabilities matrix with gap analysis
Service catalogue with SLAs
Operating principles document
30/60/90 day implementation roadmap

All in PowerPoint, Visio, or your house style.

Who this is for

• Investment Banks - Trading operations, risk management, finance
• Commercial Banks - Retail, corporate banking, treasury
• Asset Managers - Fund ops, middle office, client services
• Broker-Dealers - Execution, settlement, clearing
• FinTechs - Building scalable operations from day 1

Typical engagement

Week 1-2: Current State Analysis

• Stakeholder interviews (all lines of business)
• Process review
• Organization analysis
• Pain point identification

Week 3-5: Future State Design

• TOM design workshops
• RACI development
• Control framework design
• Operating principles definition

Week 6-8: Validation & Roadmap

• Stakeholder validation
• Implementation roadmap
• Change impact assessment
• Final TOM pack

Engagement models

Every Target Operating Model engagement is scoped to the breadth of the function, the regulatory environment, the maturity of the current model, and the depth of implementation support required. We commit to pricing transparently once we understand your situation.

• TOM Design (6–10 weeks) — Complete future-state TOM for a business line or function: capability mapping, RACI, governance, control framework, and sequenced implementation roadmap.
• TOM Implementation Support (monthly) — Embedded support through the rollout phase, including workshops, change management, and governance stand-up.

For a detailed breakdown of our engagement shapes and a scope-and-budget conversation form, see our engagements page.

Real results

Global Investment Bank (Fixed Income MO/BO)

Challenge: Unclear ownership, overlapping teams, high error rates
Delivered: Complete TOM redesign, RACI for 15 processes, new org structure
Result: Headcount reduced 25%, error rates down 60%, clear accountability

European Bank (Payments Transformation)

Challenge: ECB mandated OpCo model, needed clear governance
Delivered: OpCo/SteerCo governance model, RACI, control framework
Result: ECB requirement met, governance frameworks implemented

Start here

Complimentary: TOM Health Check

Share your current organization charts and key processes. Our team will provide an executive assessment covering:

• Critical gaps in your current model
• Operational pain points and inefficiencies
• Priority improvement opportunities

How we typically structure an engagement

• Discovery and current-state assessment — stakeholder interviews, capability inventory, governance and control baseline, and an honest view of what is working and what is not
• Future-state design — target operating model across people, process, technology, data, and governance, with RACI matrices and control framework
• Implementation roadmap — sequenced 12–24 month arc with phase gates, dependencies, and change impact assessment
• Embedded delivery support — where requested, senior practitioners embedded alongside the client team through the rollout phase

Engagements are scoped per client. For the engagement shapes we use and a comprehensive FAQ on how we scope, see our engagements page.

Why partner with us

Tier-1 institutional experience — Designed operating models for major financial institutions globally
Regulatory fluency — Deep understanding of ECB, PRA, and FCA governance requirements
Disciplined, evidence-based approach — Rigorous methodology grounded in operational reality, not theoretical frameworks
Audit-defensible quality — Operating model artefacts that satisfy supervisory review
Implementation-focused — Actionable roadmaps that support durable transformation, not PowerPoint that never ships

What makes a great TOM

Bad TOM:

• Beautiful PowerPoint nobody implements
• Theoretical model disconnected from reality
• Missing implementation roadmap
• No clear accountability
• Designed by consultants who don't understand operations

Great TOM:

• Practical and implementable
• Clear roles and accountabilities
• Aligned with regulatory requirements
• Includes implementation roadmap
• Designed with operational input
• Addresses real pain points

Next steps

1. Complimentary Health Check - Share your current operating model
2. Discovery Session - 45-minute discussion with our leadership team
3. Proposal - Tailored TOM engagement with clear deliverables and success criteria
4. Mobilisation - Structured programme startup with design workshops in week 1