KPMG Target Operating Model

Looking for a better way to transform in the cloud?

A target operating model might sound like something for your business analysts to sink their teeth into, but it's something we believe that leaders within your business should embrace to secure a better and more strategic functional transformation to the cloud.

There are many challenges during a functional transformation programme (e.g. finance, HR) - none more so than envisioning what you can achieve and validating that it will work for your organisation. So, it is worthwhile understanding the fundamental role the KPMG Target Operating Model can play in achieving this.

The initial stages of your transformational journey can have the most profound impact on your ultimate outcome. It's during this stage that the big decisions are made and the place you are trying to end up is determined. The quality of the outcome is in direct relation to how clearly you understand where you are trying to go. Business leaders should be the driving force for the vision, but need a starting point to work from. That's where Our Target Operating Model can help empower you to move to a 'best in class' vision.

How it differs from other models

Part of the problem with 'traditional' target operating models is that they're often not comprehensive enough in scope. If they only cover the traditional process-people-technology relationship, they can miss where the work will get done, how it will be reported and measured and how it will be governed and controlled. To overcome this weakness, the KPMG Target Operating Model includes not three, but six 'layers' - Process, People, Service Delivery Model, Technology, Performance Insights and Governance.

Understanding how all six components of your Target Operating Model layers relate to each other is key to creating an integrated and highly functional solution. They provide clear visibility of each potential change and their corresponding consequence.

Breadth and depth

Each of the six layers contain a number of 'assets' which are predefined and are designed to help you get to where you need to be sooner. Each asset can be thought of as a collection of solution accelerators comprised of hundreds of predefined or prebuilt processes, workflows, definitions, integrations, reports, dashboards and even training programs. Using this combination of assets to suit your organisation goes a long way towards helping you to envision where you are heading and validate that it will work for you.

Turn a move to the cloud into a transformation

The goal of the KPMG Target Operating Model, is to turn a potentially standard cloud implementation project into a dynamic functional transformation. The KPMG Target Operating Model is based on a deep understanding of how transformation works within, and across, an enterprise.

It does this by building on the excellent work of the wider functional and specialist practices across the KPMG network of member firms to help you envision your model, on your chosen cloud platform (or a short-list of cloud platforms), for your particular business. This is why we - and you - can be so confident of the outcome and the value potential it brings.

KPMG Global has written a Target Operating Model guide for C-Suites (and other business leaders) which expands on this theme and can be shared in your organisation. Please do take the time to download it here:

Looking for a better way of working in the cloud?

Start with the model answer.How the KPMG Target Operating Model can help — A guide for the C-Suite.

Download the report (575 KB)

What’s in the box?

Powered Enterprise provides you with three integrated elements for transformational success. Using our tried and tested operating model, implementation suite of tools and ongoing evolution services you can choose your desired functional outcomes then make them a reality.

Shape how transformation plays through every layer of your organization.

Ensure you gain maximum benefit from your technology platform, simplify organizational challenges and choose the most efficient path to achieve your functional goals by using KPMG leading practice pre-configured on the platform of your choice.

Achieve transformation value faster with reduced program risk

Access an integrated platform of next generation tools and methods to help deliver functional transformation. Take the complexity out of implementation and unlock value faster with reduced risk.

Adopt a platform and approach that drives continuing evolution and innovation

Use specialized on demand services to drive continuing evolution and innovation. Keeping pace with the latest developments in technology and leading practice allows you to make transformation a way of business.

KPMG Powered Enterprise

KPMG firms' suite of services to help transform their back-office functions. Leveraging target operating models that are designed with the future in mind, alongside leading practices and processes and pre-configured SaaS (Software as a Service) platforms, with advanced technology enablers, we help to optimize processes, governance, people skills and the power of data