KPMG’s Global Strategy Group (GSG) supports clients in identifying, quantifying, prioritising 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 organisations are optimised to deliver their business strategy and maximise 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 prioritising efficiency opportunities, to drive cost reduction and or free up funds for investment
- Streamlining and aligning processes, organisational 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.