Building and Sustaining a Strong Organization Amid Challenge And Change KPMG LLP

Building and Sustaining a Strong Organization Amid Challenge And Change KPMG LLP

The Issue Today s market realities offer businesses little choice but to embrace change. Companies in almost every industry are challenged to continually assess whether they have the management structure, leadership skills, and overall workforce productivity to capitalize on rapidly shifting business conditions and opportunities. Often companies find they need new organizational models to foster a climate of innovation, continuous improvement, and strong customer focus. At all levels, they need people who can lead and contribute within those models. They need guidance and support in making the transition to new ways of doing business. Building and Sustaining a Strong Organization 3

KPMG LLP (KPMG) can help your company embrace change and strengthen business performance through proactive, well-established approaches to improving the organization and its most valuable asset, its people. We support your efforts to: Prepare your organization and personnel for change and navigate the change process to sustain transformation investments. Design and deploy the organization and systems to align with the company s business strategy. Identify, recruit, develop, and retain accomplished and high-potential people across levels, functions, and geographies. Strengthen human resource (HR) operations to better leverage the talent of your people and support execution of the company s business strategy. KPMG combines its people and change services with complementary specialized skills in finance, operations, technology, transactions, risk management, and other functions of the business. We apply our industry experience to help improve your organization and assemble the talent needed to gain and sustain competitive advantage. 4 Building and Sustaining a Strong Organization

How We Help Is your company equipped to drive and sustain change? Do you have the organizational structure to execute on your business strategy and adapt to shifting priorities and market forces? Have you assembled the right team and is it performing to its potential? KPMG can assist you with discrete initiatives focused on change management, organizational design, talent management, and improvement of human resource operations. Change Management Whether focused on a specific function such as finance, sales, or the supply chain or with an organization-wide view, strategic transformation is intended to improve the way your organization operates. Changes in processes, systems, and technology require that jobs be structured and performed differently. People should accept and, optimally, embrace new roles and responsibilities. A major risk in such transitions is that changes, once implemented, cannot be sustained because the workforce is unable or unwilling to adapt. People can get overwhelmed. They may revert to old ways of doing things or, worse, work to undermine the change effort. Inefficiency, redundancy, and significant declines in morale can result. Building and Sustaining a Strong Organization 5

Changes in processes, systems, and technology require that jobs be structured and performed differently. Change management helps bring the organization through the transition from its current state how things are done today to the future state how they ll be done in the future. KPMG can assist you in the various stages of this transition. Our professionals can work with your leadership team to create the vision and business case for change. We can help you communicate priorities, plans, and progress to your people. We can assist in creating and delivering training programs that better equip people to contribute and thrive in the new environment. Many companies struggle with Organizational Design decision making and accountability. Have we clearly delineated positions and roles? Who has ultimate authority and responsibility? How do escalation processes work to resolve issues quickly? Lack of organizational clarity can debilitate a company. It can drain valuable time and energy. It can derail change efforts because key people aren t able to make critical decisions in an informed and timely manner. Some decisions rightly rest on the shoulders of an individual. Others require true consensus across a group or team. Well-defined responsibilities, properly empowered people, and a sound decisionmaking framework are key to establishing and sustaining an organization s productivity. KPMG can help you create an organizational model that clarifies roles and responsibilities, fosters good decisions, and strikes the appropriate balance of collaborative and independent action. 6 Building and Sustaining a Strong Organization

Talent Management Companies dedicate considerable resources to finding, deploying, and cultivating their people, with good reason. Fielding exceptional talent while instilling a culture that embraces and drives change can make the difference in outperforming the competition. Smart decisions on hiring, promotion, and retention, particularly in executive and management positions, can head off the potentially disastrous fallout of having the wrong person in a critical job. Even when economic conditions create a buyer s market for companies seeking qualified, high-potential executives and professionals, hiring and retaining top performers still isn t easy. Will you find the best-prepared person for the job and your organization from the mass of applicants? Will the people you select have long, healthy careers with the company, as well as help others reach their potential? Fielding exceptional talent while instilling a culture that embraces and drives change can make the difference in outperforming the competition. KPMG can assist you in achieving a high return on your talent investment. We will help you design and implement approaches and programs that help you choose the right people, tap their potential, and support and guide them through rewarding careers. Building and Sustaining a Strong Organization 7

HR Function Optimization HR plays a vital role in the management and development of a company s talent. An efficient, responsive HR organization is essential to building and sustaining strong company-wide performance. HR leaders are continually challenged to better support and coordinate with the broader company and its business strategy. Too often, HR finds itself behind the rest of the organization in actively identifying and implementing changes that increase productivity, improve service, and reduce costs. To catch up, HR leaders are mobilizing their people to aggressively make change happen. KPMG can assist HR executives and their leadership teams in taking a holistic view of the HR function including strategy, process, technology, structure, skills, and performance measures and making needed changes in those areas. 8 Building and Sustaining a Strong Organization

What We Offer KPMG offers a broad array of services to help your company manage change, improve your company s organizational structure, and realize the potential of your people, while deriving higher value from the HR function. Building and Sustaining a Strong Organization 9

Our key services include: Change Management Organization Risk and Readiness Diagnostic People & Change practitioners conduct a holistic diagnostic that assesses an organization s risks in dealing with largescale change. The diagnostic incorporates key elements of a sound change management strategy including culture transformation, executive sponsorship, organization design factors, and workforce implications. Revamping an Organization to Reduce Costs and Boost Performance A major utility company needed to reduce labor costs while improving the performance of its corporate center comprised of finance, IT, and supply chain operations. KPMG helped the organization develop an HR strategy for the center and identify areas that could be combined based on skill sets, outputs, and interactions. The initiative resulted in a reduction in management layers and development of a leadership development strategy. Stakeholder Management and Strategic Communication People & Change practitioners support the full life cycle of the change process, employing key influencers and strategic communication as change levers. The effort involves the proactive identification and involvement of stakeholders and the design and execution of a systemic approach to communication that can help increase awareness, buy-in, and ownership of the desired change. Workforce Transition People & Change practitioners conduct business-focused job impact analyses and design targeted workforce transition programs. In doing so, we help you equip people significantly affected by change for new job roles, implement processes to support them, and coordinate integration of talent management and training to equip them for success in the new environment. Organizational Design Building the Talent Pool for Global Reorganization The new CEO of a consumer products company launched an initiative to link disparate regional and functional units into an integrated global operation, but the company lacked the talent needed to lead the reorganization effort. KPMG helped the company revise its leadership development process, identify key global positions and accompanying career paths, and develop new global career models with cross-functional and cross-regional opportunities. Strategy Articulation People & Change practitioners help in understanding, expressing, and detailing a client s business strategy. The resulting set of objectives and priorities will inform key design requirements of the future-state organizational model and help with alignment of strategy and structure. Conceptual Design People & Change practitioners facilitate the development of design principles based on crystallized strategy to drive analysis of design alternatives. The planned organizational model is reconciled with current operations to facilitate gap analysis of key structural elements including organizational capabilities and role descriptions. Organizational Governance People & Change practitioners construct an operational, detailed design of the organizational structure. Roles, responsibilities, and ownership of decision rights are established to strengthen operational efficiency. 10 Building and Sustaining a Strong Organization

Talent Management Workforce Assessment People & Change practitioners conduct an assessment typically triggered by specific factors (e.g., aging workforce, retention issues, ineffective recruiting processes, near-term productivity improvement needs). The assessment identifies the critical knowledge, skill, and ability gaps across the current collective workforce to help in developing targeted action plans. Talent Acquisition and Retention People & Change practitioners collaborate with HR and leverage a framework and toolkit to support retention of top talent and acquisition of new capabilities. The framework draws heavily on talent-related leading practices developed over years of project work. Performance Management People & Change practitioners help develop and/or refine a set of key metrics to drive new behaviors, roles, and capabilities. Key performance indicators (KPIs) are closely and explicitly connected to substantive change drivers and institutionalized in the company s performance management framework. Supporting Workforce Transition A health benefits company needed to refine its organizational structure to capitalize on shared services and business process outsourcing opportunities, while supporting affected employees through the transition. KPMG helped the company manage the change by assessing transformation capabilities and risks, helping design the future-state organization, and developing a governance framework. HR Function Optimization HR Strategy People & Change practitioners apply business transformation to the HR function. Key activities include assessment, gap analysis, and leading practice recommendations to guide the direction and future state of the HR organization. HR Service Delivery Model People & Change practitioners design the HR organization s future-state operating model. Focus areas include organization design, HR business process outsourcing, and technology assessment to improve HR effectiveness and efficiency. HR Process Redesign People & Change practitioners redesign core HR operating processes based on leading practices. The scope can include all HR functions and programs down to the policy and procedure level. Building and Sustaining a Strong Organization 11

How We Are Different We assist you in addressing people, organizational, and change management issues by first understanding your specific goals, requirements, risks, and culture. Next, we provide an objective assessment and view of your business issues. We then make recommendations that can be tactically executed and managed. And because we know that change is fundamental to business, and that effective change management is essential to business success, we team with your people, equipping them to handle the succeeding round of change initiatives. 12 Building and Sustaining a Strong Organization

From analysis to execution, we assist organizations across core drivers of change. Our competencies bridge the functional disciplines of your organization to offer a broad business perspective with deep functional and process skills in finance, operations, technology, HR, change management, risk management, and controls to understand and address your challenges. As a Big 4 firm, we can access as needed a broader set of competencies and experience in accounting, tax, regulatory issues, transaction services, forensics, compliance, and financial risk. We employ a collaborative and teamoriented work style, an approach that helps you maintain the appropriate leadership and involvement and promotes the transfer of knowledge back to the appropriate personnel in your organization. Harnessing the value of your people and organization is essential to driving change and sustaining business performance. Building and Sustaining a Strong Organization 13

And we re truly global. With KPMG member firms in 144 countries, we have local-market knowledge of business conditions and capabilities, a broad understanding of the issues that impact specific industries, and the legal and regulatory requirements affecting business processes and information technology. Harnessing the value of your people and organization is essential to driving change and sustaining business performance. Let KPMG work with you as you design and deploy the specific strategies and plans your company needs to capture the opportunities in change and the value in your people and organization to help you achieve market leadership. Let KPMG work with you as you to help you achieve market leadership. 14 Building and Sustaining a Strong Organization

us.kpmg.com For more information, please contact your local KPMG partner or Claudia Saran, service network leader, People and Change Advisory Services, at 312-665-3088 or at csaran@kpmg.com. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. 2010 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ( KPMG International ), a Swiss entity. All rights reserved. Printed in the U.S.A. KPMG and the KPMG logo are registered trademarks of KPMG International Cooperative ( KPMG International ), a Swiss entity. 22293ATL