Strategy Services Strategy Services Strategy Services

Transformation Management  |  Strategy Propositions  |  Enterprise-wide TOM Design | Integration & Separation

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, ena​bling 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.

Financial outcomes structuring, investment and capital allocation.

• Markets
  
• Propositions and brands
• Customers and channels

• Core business processes
  
• Technology and operations infrastructure
• Organizational structure, governance and risk controls
• People and culture
• Measures and incentives

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.

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.

Helping you to design and implement growth strategies through a structured and collaborative approach by addressing their most complex and critical growth issues.

Helping you to identify, prioritize and implement changes to your operating model and refinements of your strategy and targets, to deliver rapid improvement.

Helping you with strategic investment decisions, divestments and partnerships, through a step-by-step approach.

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.

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.

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.