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KPMG’s Global Strategy Group (GSG) supports clients in identifying, quantifying, prioritizing and delivering the changes required to align their operating model to their financial targets and strategic objectives. This approach, underpinned by the 9 Levers of Value, helps deliver timely improvement in performance and visibility and control for long term operating impact.
With ever-increasing customer expectations, rapid market and technological change, disruptions from new entrants, increasing levels of regulation and reputational risk and growing shareholder scrutiny on performance, business leaders are being forced to continually re-evaluate their operational strategy, balancing short term cost improvements with long term change. The key question is whether organizations are optimized to deliver their business strategy and maximize shareholder value.
There are a number of triggers which can often cause businesses to re-assess their operating model including:
- Significant changes in market, competitive dynamics, and / or business strategy
- Performance and funding gaps
- Complex and inefficient operating model structures
- Technologically or regulatory driven change
The GSG helps clients to generate value by successfully aligning their operating model to their business strategy and financial targets by:
- Identifying the changes required to align the operating model to the business strategy and financial targets, including challenging strategic decisions that are potentially value diluting
- Developing and testing a range of alternative operating model options to identify the optimal solution for their business, balancing opportunity and risk identifying, quantifying and prioritizing efficiency opportunities, to drive cost reduction and or free up funds for investment
- Streamlining and aligning processes, organizational structures, management information, decision rights and incentives
- Designing and sequencing a change program to successfully deliver the required changes
The following case examples demonstrate how GSG’s operating strategy & cost approach has been successfully applied to real client issues.
US$200 million in margin improvement over three years
Set against the backdrop of a European slowdown, low growth in market volumes and a legacy of acquired country brand organizations, the European region of a global beverage company was struggling to meet the group’s margin growth targets.
A team of GSG professionals was engaged to run a rapid value diagnostic, identifying significant margin improvement opportunities and operating model changes, providing the client with a three-year transformation program delivering US$200 million per annum in improved margins.
Optimising an operating model, leading to US$500 million value improvement
A global precious metal mining company faced challenging macro-economic conditions, an oversupplied market, cost inflation and a deteriorating competitive position. A team of GSG professionals was engaged to design an operating model to drive efficiency and alignment to market demand and strategic goals. The result was identification of US$500 million per annum in value improvement opportunities.
Get in touch
To find out more about how our Operating Strategy & Cost team can help you with what’s next for your business, please get in touch. We’d be delighted to hear from you.
Contact the team
Mark Collins
Head of Deal Advisory
Michele Connolly
Head of Infrastructure & Government,
& Corporate Finance
Alan Boyne
Head of Transaction Services
Christopher Brown
Head of Strategy
