D-G4-L4-050 Target Operating

Model (TOM) Design

Deloitte LLP Service for
G-Cloud IV

September 2013

Contents

Service Overview

Detailed Service Description

Commercials

Our G-Cloud Services

Error! Bookmark not defined.

About Deloitte

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1 Service Overview

1.1

Service Summary

In a nutshell, what is it that Deloitte will do for you?

This service can help you build a comprehensive blueprint (a Target Operating Model or TOM) that makes it clear
how a government organisations G-cloud strategy/vision will work in practice. The focus of the service is on
designing the customer interactions, products and services, business processes, information technology and
organisation structure and staffing levels required to operate effectively and efficiently within a technology
enabled/cloud based environment. Key business questions that our TOM service can help to answer include:

1.2

What does my cloud service operation look like?

How does my organisation need to change / adapt to derive benefits from digital technologies?
How can cloud based services support my organisations functions and/or how do my functions need to change
so that my organisation as a whole makes the most of cloud services?
What new business capabilities does my organisation need to use cloud services effectively and how will these
work?
How can cloud services support the services we provide and how should we work with key industry partners?

Business Context

What situations is this service designed to be used in?

The service is suitable for all areas of the Public Sector, including organisations in sectors such as Education,
Defence, National Security, Policing, Health, Transport, and Central, Local and Regional Government.
This service is designed for Public Sector organisations that are facing one or more of the following challenges:

Meeting increased customer expectations and competition for services The public increasingly expect
access to services and information to be available 24/7 and public bodies are ever more frequently expected to
compete. For example higher education institutions are now under pressure to operate in a way that enhances
the student experience through focussing on customer needs, services and delivery channels including digital
delivery of services.

New external developments changing global, national and local environments influence organisations and
require the development of new digital strategies that then need to be operationalised. Key examples include
advancements in technology, changes in the economic and market landscape, global warming, security
concerns, aging population, immigration or a major change in political administration.

Needing to change in response to government changes significant regulatory changes and the merger of
existing organisations (or the establishment of new organisations) often require the design of Target Operating
Models. This can be at the operating framework level (for example the redesign of the funding and regulatory
framework in education) or within and across organisations managing and delivering services. An example of
this is within the NHS, where the changes to increase clinical involvement in commissioning activity provides
an opportunity to support the design of new technology-enabled operating models for world-class
commissioning organisations.
D-G4-L4-050 Target Operating Model (TOM) Design Deloitte LLP Service for G-Cloud IV 1

Reducing operating costs with continued budget challenges, a more systematic review of operations is
required in order to fundamentally change the cost (and sometimes income) basis of an organisation. This
might be through centralising transactional services, outsourcing, greater collaboration with partner
organisations, changing models of service delivery, modernising technology to deliver services at lower cost or
exiting some services altogether.

Response to not fit for purpose if there is a failure to deliver, organisations sometimes need to change
quickly. This often coincides with the arrival of new leadership team or management group, where a
requirement exists for the clear articulation of the organisations composition and baseline position. In this
context the service can help quickly articulate the size, shape and performance of the current operation to
inform effective decision making a provide a firm baseline against which a new strategy can be designed and
executed.

D-G4-L4-050 Target Operating Model (TOM) Design Deloitte LLP Service for G-Cloud IV 2

2 Detailed Service Description

2.1

Our Approach

The Deloitte Target Operating Model Design service provides a framework that Public Sector organisations can
use to articulate their current and future technology enabled operations along a number of key dimensions. This
multi-dimensional / layered view helps ensure a clear and common understanding of the changes required across
front line services, IT, procurement, finance, and other back office areas in executing digital, cloud and related
business and ICT strategies.

Executive
clarity
Customer segments
Channels

Business model
optimisation

Products
Processes

Strategic
planner

Information
Technology
Organisation
People
Locations/ Physical Sites

Transformation
enabler
Consensus
builder
Communication
tool

Layering the proposed change in such a way helps enable:

The gaps between current and target state to be clearly understood;

A more visual communication of changes that can help achieve executive and wider stakeholder clarity;

The design of new ways of working to be aligned across all areas of the technology operation, minimising the
risks of change

Opportunities to improve performance to be more easily identified.

To deliver this service we use examples of leading practice across the public and private sector to inform the
design of your future operating model, assessing the maturity of your operation and taking into consideration the art
of the possible and what is required to achieve high performance levels. We are able to draw upon a range of
benchmark information to inform and accelerate the design activities:

Benchmark performance metrics and SLAs

D-G4-L4-050 Target Operating Model (TOM) Design Deloitte LLP Service for G-Cloud IV 3

Benchmark productivity indices

Technology benchmarks, product information and vendor assessments

Example organisation models and ratios

Leading capability and process models (including general and sector specific value maps that provide an
end to end view of functions)

Example governance frameworks

How our Target Operating Model (TOM) approach is implemented

Typically our approach to developing a Target Operating Model encompasses four stages. Each stage is
described below with an indication of the time required to complete the activity within each stage. The timings for
each stage may vary from those indicated below based on your specific requirements and the complexity of your
current operations and technology landscape, the amount of internal resource you can make available to work
alongside us, the completeness and accuracy of the data and information available to support the assessment of
the current operating model and level of engagement with stakeholders that is appropriate.
Stage

Description of activity

Indicative timescales

1 Visioning
and baseline

Review of strategy, current operating model and challenges,

and agreement on the vision and design principles

1 to 2 weeks

In our experience a number of workshops (typically three) are

required, each of them attended by key stakeholders. The
objective of the first workshop is to agree the vision, values and
challenges for organisation. The second workshop focuses on
establishing design principles and the objective of the third is to
establish an outline of the target operating model and options to
be considered.
In parallel we would look to build up an understanding of the
current operating model through desktop reviews of information
you provide and discussions with an agreed set of stakeholders.
2 High level
design

Option analysis and design of a high level target operating

model

3 to 4 weeks

This stage takes the outputs of stage 1 and involves designated

leadership/staff and key stakeholders in designing the target
operating model at a high level. This will include customers and
services, key processes, organisation design, people, technology
infrastructure, and premises.
Design work is undertaken via a series of design workshops with
a final workshop to validate to-be designs prior to commencing
detailed design. If required, an outline business case can be
completed in parallel to estimate the financial impact of the
operating model.
3 Detailed
design

Detailed design for specific areas

3 to 4 weeks

Detail design builds on the validated high level designs to further

articulate the target operating model to the level of detail required
to support impact assessment and project planning. Several
detailed design workshops and smaller design sessions are
How our Target Operating Model (TOM) approach is implemented 4

typically required. The workshops usually involve Senior

Managers and representatives from impacted areas of the
organisation. External stakeholder representation may also be
required.
4-

Implementation plan and mobilisation

Implementati
on planning
and
mobilisation

1 to 2 weeks

Completion of detailed design enables the planning of the

programme of work required to transform the IT function and
impact parts of the organisation. Each supporting project may
require the completion of a full business case.
Mobilisation would focus on putting in place the governance and
support arrangements required to deliver change successfully.
The transformation must be supported by robust programme,
business change and communications management with coordination of linked and dependent corporate activity and projects.
Frequent progress review sessions are essential to keep progress
on track and assess the performance of the programme. Equally
this would include a regular risk and issue review.

In addition to the above, we can tailor the approach to include the development of outline and full business cases if
required. The outline business case would be developed in stage 2 and the full business case(s) in stage 4.

A flexible approach which can be adapted to meet specific challenges

Our approach can be readily tailored to fit your specific needs, including:

Focusing efforts on a particular subset of the layers in either the Current or Target Operating Model

Emphasising analysis of the Current Operating Model (as a diagnostic tool) or restrict the analysis to provide
an effective measure of the gap & necessary change programme

Considering your entire organisation or focusing in on a specific Department, Agency, Business Unit or
Function

2.2

Inputs

We would typically request the following as inputs to the development of a Target Operating Model. The
availability and completeness of these may impact the timescales for the work, depending on the specific
scope required:

Your strategic objectives

Details of current services, customers and channels

Information to support assessment of the quality of services provided (e.g. customer surveys, SLA reports)

Details of your current organisations structure, staffing, partners and suppliers

Financial information, including capital and operating/revenue costs and income

Any current process maps and documentation that you can make available
How our Target Operating Model (TOM) approach is implemented 5

IT and systems landscape and information about the current application architecture within the organisation

Contract information, including exit payments and expiry dates

A list of any relevant in-flight initiatives

2.3

Your Contribution

Our services are designed to be delivered with you rather than to you. We have assumed that you will be
able to make the following contribution to the work. If you are not in a position to take on these
responsibilities then please get in touch to discuss options, as it is likely we can reach agreement to alter
our approach to accommodate your situation.

Making available the time of senior stakeholders and decision-makers to attend workshops and meetings for
this project - we will endeavour to be flexible around diaries, but in order to achieve a successful outcome, with
strong and timely buy-in future designs, stakeholders need to make it a priority to support this work

Providing access to the best available information about the existing situation, performance, plans and
strategies

Providing dedicated part-time resource to work alongside our practitioners as part of a joint working team

Providing administrative to support to help schedule key meetings and workshops.

If possible, providing effective working space for our joint team in a co-located space, ideally a large meeting
room, which we can have exclusive use of for the duration of the project, and in which we can create wall
charts and leave working papers without disruption.

2.4

Outputs

What will you get in terms of deliverables, outputs and outcomes from this service?
Depending on the specific requirements and agreed scope of the TOM service delivered; outcomes fall into three
main categories, aligned to the four phases of the TOM approach:

Current state assessment: A more advanced understanding and clearer picture of your organisations
strategy, objectives and targets. Supported by agreed design principles and a clearly defined current operating
model. This is supported by details of key issues and opportunities.

High level target operating model: an overview of the future operating model, articulating the new way of
working across the different operating layers. As part of this stage we can help you develop an outline
business case.

Detailed designs: Creation of detailed designs for specific areas that require further design work either
because they are new or subject to significant changes.

Validation and Mobilisation: Creation of implementation roadmaps and detailed implementation plans and an
outline of what is required to support implementation of changes. As part of this stage we can help you develop
detailed business cases for agreed areas.

How our Target Operating Model (TOM) approach is implemented 6

2.5

Scale and Complexity

The effort involved in delivering our service is driven partly by what we will do (which we have described in
section 2.1 above) and what you will do before we arrive and alongside us whilst we work (which we have
described in sections Error! Reference source not found. and above respectively). It is also driven by the
scale and complexity of your business situation.
Target Operating Model work is sensitive to the scale and complexity of your organisation and we have suggested
12 weeks as an indicative timescale only to complete all four stages as set out above. The length of engagement
and level of resource required would depend on the size of your business, the areas in scope, the complexity of
your technology, services and processes, the amount of complete and accurate information about your operation
that is already available and the level of capability assessment and support you require. As a result this service is
offered on a rate card basis and we are happy to discuss the options for adjusting the scope and fee to suit your
individual needs.
As indicated in the approach section, our staged approach is flexible and we are able to tailor the service in a
number of ways to meet your specific requirements.

How our Target Operating Model (TOM) approach is implemented 7

3 Commercials

3.1

Cost

This service is offered based on the unit of Resource-Day based upon our published SFIA rate card available to
download separately.
We will work with you to estimate the effort for your requirement and calculate the number of Resource-Day units
and overall price.

3.2

Location

This service will be delivered predominantly in the customer's own premises. We will endeavour to resource
projects with locally based resource where possible, but where the clients premise is not commutable for our
people then additional charges for travel and accommodation may be charged. These will be agreed in the Service
Order.

3.3

Ordering and Invoicing Process

There are two ordering routes available:

1. Visit our G-Cloud service homepage at www.deloitte.co.uk/g-cloud, which contains information about the
service and also has an online form for ordering.
2. Send an email to g-cloud@deloitte.co.uk with the following information:
a. Your organisations name
b. The name of this service, which is D-G4-L4-050 Target Operating Model (TOM) Design
c.

Your name and contact details

d. A brief description of your business situation

e. Your preferred timescales for starting the work
We will invoice monthly, or in line with completion of key deliverables. Our invoices will be payable within 30 days.

3.4

Exclusions

Any specific exclusions would be agree with you and set out clearly in the Service Order.

How our Target Operating Model (TOM) approach is implemented 8

4 Our G-Cloud Services

4.1

Our G-Cloud Strategy

Deloitte offers a range of services on the G-Cloud Store. Our strategy is to provide commoditised services for the
public sector, which are suitable for public bodies addressing the changes required of them in a digital world. Our
services cover the breadth of Specialist Cloud Services from business analysis to design and development;
transition management to project specification and selection. We also offer some software-as-a-service options on
the store, and intend to expand our service provision in response to customer demand in the future.

4.2

Further Information

For more information about our G-Cloud strategy and services, please visit www.deloitte.co.uk/g-cloud.

How our Target Operating Model (TOM) approach is implemented 9

5 About Deloitte

5.1

Our Business

Deloitte LLP (Deloitte) is a leading professional services firm, employing over 13,000 staff across 20 locations in
the UK. Our Public Sector practice includes over 1,000 experienced specialists in central civil government, health,
transport, defence and local and regional government, some of whom have previously worked at senior level. In
addition, we have over 1,000 staff who can work in both the public and private sectors, enabling transfer of
experience and methods.
As a Big Four professional services firm, we are well positioned to draw upon skills across a wide range of service
offerings to deliver Cloud-based services. We work across the public sector as a trusted advisor and as a supplier
of leading edge technology services. This includes an extensive portfolio of Specialist Cloud Services available as
commoditised services in the G-Cloud catalogue.
Our public sector team plays an active role in the development of methodologies, value propositions and points of
view to assist our public sector clients. We conduct research in areas that are of current and emerging interest to
our clients, identifying best practice and new developments in the UK and internationally.
In this section we outline some of the elements which differentiate us in the marketplace.

5.2

Professional Standards

As a leading supplier, Deloitte operates to high standards of professionalism:

We recruit highly capable staff and maintain effectiveness through training, performance management and
continuous professional development

Quality on every engagement is managed through a Quality Management Plan and partner sign off of
deliverables on all engagements. Technology Consulting services are accredited to ISO9001, the international
quality standard, which includes acting on customer feedback and continuous improvement plans

As members of the Chartered Institute for IT (BCS), our Technology practice and individual members are
bound to its Code of Practice and Code of Conduct which defines good practice for ICT and technology
consultancy. We are also registered with the TickIT scheme

We are a Green classified CESG approved company and have a number of CHECK Team Leaders

Our project management methodology, which is aligned with PRINCE 2, provides mechanisms for managing
all aspects of engagements, including project risks and issues. We have over 300 staff with PRINCE2 or similar
PIM qualifications

Our Focus on delivery includes regular contact with client management and frequent progress updates when
issues can be identified at an early stage to enable easier risk mitigation and help avoid escalation

Deloitte is reliable to work with and sets out to deliver the services needed. Our high reputation in the market
is based on our commitment to deliver even in difficult circumstances, while building trusted relationships with
our clients

How our Target Operating Model (TOM) approach is implemented 10

We actively promote sustainability within our supply chain and have a strong commitment to equality,
diversity and corporate responsibility. Our firm is accredited to ISO14001, the international environmental
management standard, and CAESAR (Corporate Assessment of Environmental, Social and Economic
Responsibility).

Deloitte is accredited to ISO27001, the international security management standard. We operate robust
processes for safeguarding customer data and for confidentiality of information. We are registered under the
Data Protection Act and have safeguards in place to protect the data of our own personnel or any personal
data with which we are entrusted by clients

We have processes in place to preserve the integrity and independence of the services we provide. For
example, bids are subject to conflict checks to avoid conflicts of interest, all Deloitte staff are required to
complete Anti-Bribery and Anti-Money Laundering training, partners and staff are subject to independence
checks and there are frequent internal audits and compliance checks

5.3

Security

The majority of our public sector team are vetted to Baseline Personnel Security Standard or cleared to National
Security Vetting SC level. In total, this is over 1,000 people with some form of security vetting.
Deloitte is a List X company. We employ a full time Security Controller and Security Team to manage security
clearances, advise on development of Security Management Plans and manage compliance with security
processes.
We have comprehensive Business Continuity Plans in place in all locations. Staff are equipped to work remotely if
client sites or Deloitte sites are inaccessible.

5.4

Responsible Business

At Deloitte Responsible Business is not just a strap line. We appreciate that our everyday business activities affect
wider society through our actions and through the actions of those with whom we do business.
Our approach to Corporate Responsibility is fully integrated with our business strategy; as such we are fully
committed to addressing requirements from the Social Value Act. In the last year we launched our inaugural Impact
Report (http://www.deloitte.co.uk/impact/), replacing our traditional annual report and providing the platform through
which we will measure our impact and contribution to society into the longer term.

5.5

Geographical Coverage

Deloitte has 20 office locations throughout the UK, plus offices in Guernsey, Jersey and the Isle of Man. We
also have a National Solutions Centre which is based in Belfast and provides software engineering capabilities for
our clients.

5.6

Innovation and Continuous Improvement

Deloitte understands the importance of innovation to public sector clients in their endeavours to reduce costs and
ensure better outcomes. Deloitte approaches public sector engagements from the standpoint of delivering tangible
or measureable outcomes and effective use of resources. Cloud provides a major opportunity to challenge existing
provision of IT in the organisation, and improve working practices, service levels and reduce operating costs.
We are willing to challenge current ways of working in the public sector and to harness technology and lean
thinking to produce satisfactory outcomes that deliver the clients objectives at lower cost.

How our Target Operating Model (TOM) approach is implemented 11

We seek to ensure that our people, methods, infrastructure and working practices deliver high quality services to
our clients and an environment where our staff can work effectively. We recognise that this is only possible if our
working procedures, methods and tools, staff skills and training continue to improve.
We undertake a number of activities to set objectives for key processes, measure performance against these
objectives and assess and adjust our operational and engagement procedures to sustain improvement.

5.7

Capability Transfer

Deloitte prefers to provide capability, knowledge or skills transfer on most projects. We can also work in such a
way that capability transfer is at the heart of the engagement. Examples include:

Training client staff for team roles at the outset of an engagement to reduce costs and provide for continuity of
skills after we exit from the client

Providing only those services which a client cannot provide for themselves and avoid practices such as staff
substitution as much as possible

Delivering comprehensive capability transfer so that client staff are able to take over fully the operation or
extension of a service or continue to manage a change programme from their own resources.

We also have a programme of secondments both to and from the public sector, which enhances our industry
insight while strengthening our relationship with public sector.

5.8

Our Business Structure

Deloitte LLP comprises a number of business units. Our G-Cloud services are provided from across our business,
bringing in the skills and experience we need. Because our business structure is set up as a group, some of our
business units are constituted as wholly owned subsidiaries of Deloitte LLP. For the purposes of our G-Cloud
services, the Deloitte MCS Limited (company registration number 03311052) is a sub-contractor that we may rely
upon to deliver service.

How our Target Operating Model (TOM) approach is implemented 12

Important notice
This document is not an offer and cannot be accepted. Should you wish to obtain our services, please contact us
using the Ordering Process described in section 3.3 above to discuss your requirements and how we may meet
them. Following these discussions and our internal acceptance procedures, we would then enter into a direct order
with you in accordance with these Framework terms to confirm our appointment.
The information contained in this document has been compiled by Deloitte LLP and includes material which may
have been obtained from information provided by various sources and discussions with management but has not
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the general context of evaluating our capabilities, no reliance may be placed for any purposes whatsoever on the
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