By Rob Starr, Big4.com Content Manager.
Lynne Doughtie, KPMG LLP vice chair, Advisory, discusses the takeaways with us about the new approach that uses data and analytics to develop and execute new strategies.
- How did KPMG Strategy come about? What’s the brief history?
When we think broadly about transformation and the emerging needs of our clients, it’s become more and more critical that we are fully engaged and prepared to work with our clients early on when key, strategic decisions are made. While we’ve had the capability to help our clients determine their strategic direction for some time, client issues are becoming
more complex, and we’re seeing increased demand to solve very complicated problems from strategy through execution.
One of KPMG’s core strengths and differentiators is the firm’s ability to bring a true integrated approach to our clients that focuses on addressing their business issues holistically, rather than in silos. By bringing the best of KPMG together as a combined force, we formed KPMG Strategy to enhance our ability to deliver integrated, end to end solutions. This meant shifting assets internally to create a new integrated capability focused on strategy which not only can develop an effective strategic plan, but include other KPMG firm leaders and teams to see it through to execution.
As we developed our approach to Strategy, we knew that we needed to ensure that we maintained a fully integrated model, while at the same time, focus clearly on strengthening our strategy offering to compete and win in what we know is a very competitive space. That’s why we’ve also enhanced our existing capabilities by aggressively investing in new partners and managing directors within industry verticals who have held leading strategy roles within other global organizations.
- What need does it serve?
Our clients are facing unprecedented marketplace complexity, with the majority at some stage of transforming the way they approach and operate their business, or at least contemplating making such changes. Marketplace forces and industry disruptors such as technology innovation, regulatory change, and globalization are forcing organizations to change how they interact with their customers and employees, develop new products and solutions in an increasingly shorter interval, while complying with ever changing policies and regulations.
Clients are seeking assistance with end-to-end transformation as well as with building agility to enable them to transform quickly; KPMG Strategy allows the firm to deliver the next generation consulting services from strategy through execution, and helps companies both build agility and meet transformational imperatives.
KPMG Strategy also helps our clients address specific strategy issues such as how to grow, reshape their assets or business portfolio, and shape new customer value propositions and business models.
- What place does data and analytics have?
KPMG Strategy’s approach encompasses a fundamental data and analytics approach. We are employing sophisticated analytics to provide insight and knowledge at the on-set to help determine a client’s strategic direction, and then follow-through on implementing and executing that strategy.
The ability to use data – both internal and external to an organization – is very powerful to better understand customer preferences and optimize the performance of key assets and business functions. Using data and analytics to support dynamic, highly responsive performance management and strategy evolution leads to a sustainable competitive advantage.
- What are the challenges and opportunities for implementation?
KPMG’s priority is to ensure clients fully capture the value from setting out in a new strategic direction or embarking on the transformation process. This requires effective integration of the execution capabilities that support the strategy.
Traditional strategy consulting services focus primarily on setting direction and designing a new business model, but often without a deep connection to the operating model and implementation linkages. As a result, the high promise of strategy is often truncated.
KPMG Strategy has proprietary methodology and tools that address the full range of strategy to execution challenges, which can be tailored to each industry and individual clients. Our deep industry sector expertise, which is a critical component of the strategy capability we have built, is an essential enabler of our ability to customize the strategy to execution journey for each client.
- What are the biggest takeaways/differentiators?
We think that the fundamental value for clients comes from linking client ambition to the business model, through to operating model design and implementation. This strategy to implementation proposition requires teaming across our firm to bring differentiated insight and value to clients. KPMG delivers this integrated strategy to execution approach, unburdened by legacy businesses or processes, and not bound to particular technology solutions. We are already a leader in understanding our clients’ operating models and processes from an insider and pragmatic perspective.
By underpinning KPMG Strategy with industry insight in key sectors such as Energy, Financial Services, Industrial Manufacturing, Healthcare, and Technology, KPMG is able to provide a view point and vision into the future of our clients’ respective industries, offering insight and a level of assurance with what lies ahead.
Additionally, as a recognized leader in Risk Consulting, KPMG differentiates its approach to strategy by applying a risk lens. A key differentiator for our firm is our depth of experience around how to respond to regulatory change, and KPMG’s ability to build risk management into an organization’s transformation requirements at the outset. Many strategy houses don’t have the depth of risk capabilities that KPMG has, particularly in industries where regulation is a critical transformation driver, such as Financial Services and Healthcare.
- What are the future plans?
KPMG Strategy will continue to grow significantly over the next few years, with a continued investment in new talent at all levels to enhance our strategy capabilities in key industries, as well as to continue to deepen our cross-industry strategy to execution insight. Additionally, we will continue to build on our methodology and analytics strengths to help clients transform with focus and agility. We’re already serving one-third of Fortune 100 companies globally, and we’ll seek to grow our client base. This growth and investment will be built at a global level to ensure the strongest possible solutions for our clients globally.