TOM (Target Operating Model)
A high-level description of how a service or organisation will be structured and operated post-transition; common in outsourcing bids.
Definition
TOM stands for Target Operating Model (not to be confused with TOMs for social value -- different concept, similar acronym). A TOM is a high-level description of how a service or organisation will be structured and operated post-transition. It describes the operating processes, organisational structure, roles and responsibilities, technology platforms, governance, and performance regime that will be in place once the transition completes. TOMs are common in outsourcing bids where the supplier needs to evidence how the service will be delivered against the bid commitments.
How it works in practice
A typical TOM covers six dimensions: process (what the operational processes look like, how work flows through the service), organisation (the team structure, roles, reporting lines, key positions), technology (the systems and tooling supporting the service), governance (how decisions are made, escalations are handled, change is controlled), performance (the KPIs and SLAs that will be tracked, the reporting cadence), and commercial (the cost model, charging mechanisms, and commercial governance). The TOM is usually a section of the method statement and is scored alongside other bid components. Strong TOMs are specific to the buyer context (not a generic operating model pasted into the bid), evidence-backed by prior delivery, and proportionate to the contract scale. Common failures: TOMs that look impressive on paper but are not credibly resourced; TOMs that describe an idealised future state without a credible transition path from current state; and TOMs that duplicate generic process documentation without engaging with the specific buyer context. Bidders should treat the TOM as the operating commitment they will be held to during delivery rather than as a rhetorical bid section.
Common questions
Is TOM the same as TOMs for social value?
No, different concept with similar acronym. TOM (Target Operating Model) is the high-level operating description. TOMs (Themes, Outcomes, and Measures) is the social value evaluation framework. Always check context to determine which TOM/TOMs is intended.
How detailed should a TOM be in a bid?
Proportional to contract scale and complexity. A major outsourcing bid (£10M+ annual value) needs detailed TOM covering all six dimensions; a smaller service contract needs a higher-level TOM covering the essential operating model. The bid response template will typically specify the expected detail level.
Can I reuse TOMs across bids?
The structural template yes; the substantive content should be tailored to each buyer. Buyers can usually tell when a TOM has been pasted from a generic template versus genuinely tailored to their context. Tailoring substantially improves bid evaluation scores.