Each service in our KPMG’s Strategy Practice is built upon KPMG’s 9 Levers of Value Framework, which can be used to decompose, analyze and re-orient your business. The Framework represents the 9 key elements of your organization's financial, business and operating model, and can be implemented to analyze and re-orient your business. It allows you to:
- Study your business in detail, enabling an exhaustive view of the entire enterprise;
- Enhance your CEO's vision by providing a comprehensive structure to organize multiple relevant topics at the same time and understand the trade-offs and interplay between them;
- Finally provide an integrated path to execution which increases your company’s ability to achieve the financial ambition.
What to aim for?
Financial model
1. Financial outcomes structuring, investment and capital allocation.
Where to play?
Business model
2. Markets
3. Propositions and brands
4. Customers and channels
How to execute and win?
Operating model
5. Core business processes
6. Technology and operations infrastructure
7. Organizational structure, governance and risk controls
8. People and culture
9. Measures and incentives
Transformation Management
KPMG’s Transformation Management approach helps you shape your company’s future by aligning firm-wide business and operating models. When your company needs a fundamental review to decide “where to play” and “how to win”, KPMG can help you address the following questions:
- How do I formulate/refresh my mission, vision and/or strategy given recent trends/changes in the market?
- How do I redefine my business and ensure we think strategically?
- How do I improve internal/external perception of the business alignment between the ambition, business and operation models?
The services within Transformation Management can be delivered either separately or sequentially.
Mission & Vision
Helps you to define a higher purpose that explains why the company exists beyond profits. The approach is designed to formulate a mission and vision in a structured way.
Enterprise-Wide Transformation
Aligns your financial ambition, business, and operating model to transform your organization and enhance business value. The approach is designed to assist you with the planning and implementation process.
The Enterprise-Wide Transformation approach sets an overarching Strategy from which Growth, operating & cost strategy or Deal Strategy for particular business units may follow, or for which enterprise-wide Implementation planning and KPMG Transformation follows.
Strategy Propositions
KPMG’s Strategy Practice wants to support you in creating a smarter vision and helping you translate that vision into practice, but also in tackling your key strategic issues and provide insights, ideas, methods and measurable outcomes to support your decision-making, answering three important questions on “what to aim for”, “where to play” and “how to win”.
Whether it is steering a course through industry-disrupting changes or finding ways to operate more efficiently, we help you craft clear, differentiated, winning strategies, including: Growth Strategy, Operating & Cost Strategy, Deal Strategy and Commercial Due Diligence propositions.
Growth Strategy
Helping you to design and implement growth strategies through a structured and collaborative approach by addressing their most complex and critical growth issues.
Operating & Cost Strategy
Helping you to identify, prioritize and implement changes to your operating model and refinements of your strategy and targets, to deliver rapid improvement.
Deal Strategy
Helping you with strategic investment decisions, divestments and partnerships, through a step-by-step approach.
Commercial Due Diligence
Helping you to evaluate and analyze market attractiveness, risks, growth potential, competitive positioning and impact on your business plan in order to buy the right assets.
Enterprise-wide Target Operating Model Design
In today’s business, organizations feel the burden of legacy technology, evolving workforces, changing regulatory requirements. Today’s leading organizations know that transforming the efficiency of front- and back-office functions - such as sales, finance and HR - can lead to competitive advantage. But getting the whole organization on board can be difficult and time-consuming.
Our Target Operating Model (TOM) Design Teams help you define your organization’s future state, resulting in a new Operating Model design that can achieve the desired business outcomes and strategic objectives. Our TOM design approach helps to create operational processes and systems that can deliver the strategic goals of your organization. The overview below shows the typical approach of a TOM Design assignment.
To start, your strategy translations consists of financial ambition, namely the aspirations of the business and customers and investment parameters that guide the strategy. From there, the business model strategy is formed, which eventually translates into an operating model strategy, the core strategy to generate economic value.
Once you have created your operating model strategy, you can translate it into the Target Operating Model Design, consisting of four layers.
The processes define the different systems/mechanisms (L1 to L3-level) within an organization, each having their associated activities, results, standards, policies and procedures.
The organization and governance layer defines the organizational structure, reporting lines, skills and competencies required for the implementation of the identified processes.
The data layer defines the requirements and analyses regarding information and reporting, necessary for the implementation of the identified processes and better decision-making.
The technology layer defines the technology and tools necessary to support the implementation of the identified processes, with associated activities and analytics.
What changes do I need to make in my operating model to successfully execute my strategy?
Integration & Separation
Being successful requires a balance between enhancing value while mitigating risks. Being able to quickly invest or divest while maintaining control of your processes and protecting business as usual is critical. But profit is no longer the only business goal. As companies become more purpose driven, they start rethinking their operations and investments. You can choose to sell non-core business aspects or activities that no longer fit your 'purpose'. This frees up room for investments in activities and other companies that match the new found focus.
KPMG’s Integration & Separation approach helps you throughout the whole integration and separation process, structured around key integration/separation modules, which allows you to pick and choose the relevant modules for your situation.
KPMG Integration Process
Integrating a new organization into your business is usually a complex process. However, investing in the right acquisition can help you build up your know-how, allows you to refocus on your purpose and ultimately will help you grow. In order to fully capture the value of an acquisition, we can help you align all integration aspects, including all strategic, legal and fiscal matters, data science and change management.
KPMG Separation Process
Your company may have many reasons to undertake divestitures. You can try to strengthen balance sheets by selling non-core businesses, simplify businesses by selling non-core brands, achieve a new strategic direction by spinning off a division or sell a business unit by regulatory mandate. These complex deals require a detailed approach with clear objectives, and that’s where we can help you.
Our strategy expertise can be combined with our knowledge of:
We also deliver a comprehensive solution tailored to your journey:
