Helping clients redefine their portfolio, business and operating model: transforming where they play and how they win
Ensuring enterprise-wide alignment
In today’s dynamic market, organizations must be willing to transform or risk irrelevance. Enterprise-wide transformation is driven by:
- Disruptive external forces impacting both business and operating models
- Unrealized synergies or significant inefficiencies within and between business units in the portfolio
- Misalignment between stakeholder interests
- Absence of a clear financial ambition
Transformation is not about incremental change, it requires fundamental shifts in an organization’s value proposition, how they compete and their core operations. Transformation is rarely straightforward and can encounter significant organizational resistance. KPMG’s Global Strategy Group (GSG) helps organizations determine whether or not and to what extent transformation is genuinely required. The answer may be to innovate, refresh or accelerate along the company’s existing trajectory. However, it may instead require a step change or pivot in direction, which is where enterprise-wide transformation comes into its own.
Bringing strategic thinking and the hands-on skillsets to deliver on transformation, GSG is distinctive in its ability to enact, rather than merely design or plan for enterprise-wide change. GSG helps organizations address the following questions in designing, planning and implementing their enterprise-wide transformations.
- How to refresh or shift the company’s strategy, given recent changes in the market dynamics?
- How to improve internal/external perception of the business and alignment between the ambition, business and operating models?
- How to manage the portfolio and improve the role of the corporate center?
- What are the intended and unintended consequences to the wider whole of decisions in each unit or in one part of the business or operating model?
- How strong is the company’s readiness to execute transformation and what challenges likely await on that journey?
GSG’s approach to enterprise-wide transformation aligns organizations internally, mapping the journey from where clients need to be, back to where they are today, and outlining what needs to happen when, for that journey to be realized.
GSG’s approach provides the overarching framework for multi-year strategic planning, capital allocation, portfolio and synergy assessments, scenario planning, corporate center redesigns, and other modularized enterprise- wide services.
The case examples below demonstrate the transformative results GSG’s distinctive way of thinking can bring to a client’s organization, when addressing enterprise-wide transformation challenges.
Delivering a 300% increase in operating profit through a global transformation of an investment management company
A multinational investment company had a well-established geographic footprint and depth of investment manufacturing and distribution capabilities, but was failing to capture significant market share and achieve superior financial performance. GSG professionals provided an integration and transformation strategy that helped to reinvigorated performance, enhanced value and put the investment manager ahead of its peers.
From double-digit negative to double-digit positive profit margins within three years
Facing rapid industry disruption with an underperforming, complex portfolio of business units that reflected the oil industry of bygone decades, an Asian oil refinery business sought to develop a strategy to return to profitability within three years. GSG identified which parts of the portfolio to grow through investment, which to exit, and how to align business and operating models across the portfolio to realize greater synergy – resulting in a transformation of the business and its successful turnaround.
Unless the context otherwise requires, throughout this website “Global Strategy Group”, “GSG”, “KPMG”, and “KPMG network” (“we”, “our”, and “us”) generally refers to the member firms of the KPMG network of independent firms affiliated with KPMG International, a Swiss entity that services as a coordinating entity for the KPMG network. KPMG International provides no client services.
Ian R. Smith