The pandemic has highlighted the need to drive organisational transformation at pace.
So, where to start when planning to tackle these challenges? To deliver value, corporate services need to look at how they respond to six major trends.
1. Corporate Services: a new role working together
KPMG research shows that organisations that investment in capabilities that integrate people, technology, supply chain and partner ecosystems into customer facing products and experiences are 2.1x times as likely to deliver customer experiences that exceeds expectations, successfully execute on customer-centric objectives, and deliver return on investment. (Forrester KPMG COVID-19 Digital Transformation Study)
Each of the following trends impacts on every part of corporate services. To successfully address these trends requires corporate services to act together as a single cohesive team, taking a dynamic and adaptable leadership role on behalf of the whole organisation.
2. Digitising customer and employee expectations
Customer expectations are evolving rapidly, with growing pressure for everything-now, everything-digital services. Customers are used to next day or even same day deliveries. According to the KPMG UK CEO Outlook 2020 Pulse Survey, 80 percent of UK CEOs say the pandemic has accelerated the creation of a seamless digital customer experience (KPMG UK CEO Outlook 2020, COVID-19 pulse survey (Based on responses from 50 CEOs). At the same time, organisations that invest in employee experience aligned to their external customer experience are doing better at attracting and retaining employees.
During 2020, the public and customers, including those who had fought against the digital tide, have become comfortable with online tools. Things won’t go back to how they were. Customers and employees increasingly expect a seamless experience across digital and physical channels. And these expectations aren’t just of the companies they buy from – they also expect it from their employers.
3. Increasing Automation
Technology is fundamental to both customer experience and delivering effective operations. It drives efficiency, improves services, empowers customers and enables data-driven decision-making.
Our KPMG UK survey found that 78 percent of UK CEOs think that the pandemic has paved the way for digitisation of operations and the creation of a next-generation operating model (KPMG UK CEO Outlook 2020, COVID-19 pulse survey (Based on responses from 50 CEOs). While there are huge benefits from data, technology and automation, there are also challenges and risks.
Greater automation has implications that need active management now for future skills (including the capabilities to build and manage automation), the shape and size of workforces and delivering on customer expectations of service and organizational values.
4. Upskilling and reskilling are the new normal
Organisations are now rethinking their responses to long term skill shortages in the UK and globally.
Almost two-thirds (64 percent) of global HR professionals believe 21 percent or more of their workforce will need to be upskilled or reskilled (KPMG HR New Reality Pulse Survey 2020 (Public sector and government figures based on 42 responses). In a post-COVID world, we believe many roles will disappear, and new ones will take their place, demanding different skill sets. It’s going to be vital to build a workforce that can work digitally and remotely, that can adapt quickly to ever changing demands and that continually grows in productivity. The leadership demands of global challenges such as economic recovery and zero carbon require new responses from individuals and organisations. These trends demand a renewed focus on workforce planning, upskilling, learning and culture.