Dimensions of TOM projectszeb project experience suggests that successful TOM projects in general address six dimensions (see Figure 1):(Internal) products and servicesProducts and Services that are provided by a bank to its customers but also within a bank (e.g. from back-office to front-office). Typical questions include:
Are there services /products that could be canceled or reduced, as they present little or no value to the customer? Which service shapes the customers’ experience?Functions and processesFunctions and processes define how a bank’s value chain is organized. Typical questions include:
How can processes be harmonized /streamlined across locations and/or business units? How can process complexities or excessive controls be reduced? How can idle time be minimized and the use of resources be optimized? How can customer value be increased?Organization / governanceOrganization and governance comprise the legal structure, a company’s superstructure (primary business units and P&L responsibilities), the decision-making structure and reporting lines as well as the organizational setup and collaboration rules across business units and locations. Typical questions include:
What decisions are to be taken locally, i.e. close to the customer, which ones are to be taken centrally? How can economies of scale and scope be achieved without losing the customer and organizational flexibility out of sight?HRTalent requirements to make the Target Operating Model a success. Typical questions include:
What skills are required to achieve strategic targets? How can we attract the necessary talents? How can labor cost be minimized without compromising service quality?Performance managementMetrics and indicators that measure the effectiveness of the operating model. Typical questions include:
What are the most relevant metrics for measuring the effectiveness of my operating model? How can they be measured? Which tools are to be used? How are reporting processes designed?ITTechnology in use in order to achieve a high degree of automation, robust processes and the fulfillment of client expectations towards obtaining information and executing transactions online. Typical questions include:
How can the STP rate be maximized? How can IT complexity be reduced? How can IT costs be cut without compromising quality and reliability?
Figure 1: Objects, key dimensions and influencing factors of a TOMTOM projects are highly complex and thus require vast resources due to their broad scope and their impact on the entire organization and usually last several years from initialization to stabilization. In order to maintain the risk of failure of such a comprehensive assignment at a manageable level, a robust project governance needs to be established and an effective project roadmap is to be developed (see Figure 2). Governance and roadmap must, for instance, address the strong interdependencies between the various TOM dimensions and enable efficient decision-making. Equally, due to the long duration of TOM projects, governance and roadmap must be somewhat flexible in their scope in order to be able to absorb external as well as internal changes, which have an impact on the operating model.
