Change is a constant.
Recent events have been unique in living memory.
Upheaval has been significant and exacerbated by our shrinking world.
Countries, cities, organisations, communities and people have changed the way they live, work, connect and communicate. While from our perspective this era appears unique, moments of profound change have been with civilisation for as long as we can remember.
When it comes, upheaval has happened at dizzying speed and the scope of it has seemed unimaginable to those experiencing it. History is written by the winners, and it shows example after example of success born from finding clarity is the quagmire of upheaval and delivering effective innovation.
For businesses and their decision-makers, the lesson seems clear. The time is ripe to reassess performance and take bold action. KPMG Strategy is here to help your organisation bring data-driven, evidence-based innovative thinking to life to secure sustainable competitive advantage to outperform industry, optimise performance and transform at speed and scale.
The order is rapidly changing
We know business strategy is as complex as it’s ever been.
But if change remains constant, surely the broad rules and approach underlying successful strategy remain the same?
Well, yes and no. The answer is unique for every business challenge. The trick is being able to make informed strategic choices by knowing the truth about today, understanding the emerging value pools of tomorrow, where you should be playing and how you will win.
Strategy development and delivery has historically been a top-down affair for many organisations. Given the challenge of aligning corporate history and organisational realities with sector trends and societal evolutions, how could it not be?
But no matter where it’s come from, great strategy has always been implementable and effective in driving value. It’s able to be grounded in the day-to-day operation of a business. And for many years, the trick was bringing the high-level thinking and operation excellence together.
And here is the first place that strategic delivery has evolved.
Data rich environments, alongside an incredible uplift in the capability of the tools we use to mine them, has brought strategic thinking and operational implementation closer than ever before. Understanding consumer behaviours and market dynamics, alongside cost and value derived from your businesses existing processes and ways of working, helps identify how transformation will work for you.
A decade of KPMG research into performance improvement shows only 25 percent of transformations succeed. And the overwhelming majority saw a crucial driver of this success was being able to bridge the gap between strategy to transformation – to have the insights to make informed strategic choices and design the business architecture that they were transforming to.
Rigorous use of data and insights is no longer the realm of BAU efficiency improvements, but the fulcrum of building successful strategy.
Our approach to strategy development reaches beyond traditional ideas, leveraging advanced data and analytics for deeper insights, accelerated results and executing with intensity, purpose and speed.
Complexity is a given
Complexity is a constant by-product of scale and success.
The way businesses deal with complexity is changing. Where previously business strategy had grasped for a simple, elegant strategic solution to a complex problem, data-driven insight deepens our understanding of and reaction to complexities.
And here is the second place where strategic delivery has evolved.
Successful contemporary strategic frameworks and approaches embrace complexity. They embrace the clarity provided by new ways to quantify challenges and opportunities with a clear investment return in mind. They embrace unveiling of previously obscure interdependencies across businesses and ecosystems. And they are scale free in their adoption and implementation.
KPMG’s propriety 9 Levers of Value framework helps you to unlock and realise value and move seamlessly from strategy through to transformation. It can be used to deconstruct, analyse and reorient your organisation for performance transformation that delivers sustainable EBITDA uplift, tackling your key strategic questions:
- What is the truth about today? (where you play today, voice of the client and employee, financial / portfolio performance, competitive position, future of your industry, new or emerging profit pools).
- What are your key strategic moves? (where should you play, the core competencies you need for sustainable competitive advantage and system out-performance, the opportunities for business model and technology innovation, the opportunity to optimise performance, your new measures of success).
- What is your target business architecture? (target operating model, key strategic imperatives and value drivers, key capabilities, sourcing options and choices, sequencing of priorities, funding the transformation, business readiness).
- How will you design your transformation program to move quickly into execution? (transformation roadmap and program governance, change management approach and engagement, team mobilisation, organisation transformation playbook).
Unlocking complexity gives leaders conviction over their North Star, how they will measure success, the no regrets moves, and what they need to believe in to successfully transform their organisation.
Unlocking new value is the prize
The third place where strategic delivery has grown is in the execution itself.
Using data to improve strategy development and implementing bespoke frameworks only gets you so far.
And it’s here that KPMG truly excels.
Our approach to developing and designing strategies that support enterprise-wide performance transformation is comprised of two phases: rapid quantification of opportunity and, importantly, seamless transition into value capture.
This approach focuses on quick identification of opportunities to unlock new value in business and operating models alongside ideation, experimentation and funding options analysis. Agile design methodology allows strategy and operationalisation to work and evolve hand in hand.
But this synergised delivery can only succeed with the right people, skills and capabilities. Our experienced senior strategy consultants, working alongside industry experts and design specialists, can help your organisation bring the whole together to be greater than the sum of the parts.
KPMG Strategy can help you deliver strategy development that is grounded in data, embraces complexity and focuses on operational effectiveness, helping your business make the most of the challenge and opportunity of a lifetime.
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