To help a food service leader cut half a billion dollars in costs, KPMG designed and implemented strategic global business services.
Challenged by investors, this fast food leader had committed to cutting half a billion dollars in general and administrative (G&A) costs through refranchising, corporate restructuring and a greater deployment of shared services across ten major business functions.
The client knew that the first step was to make a detailed assessment of all corporate functions and structures. Next, management identified a set of savings opportunities available by streamlining the organization structure, reducing non-labor spend, eliminating work and moving activities to shared service centers and centers of excellence.
Only one key challenge remained: how to take all these insights and turn them into business realities.
KPMG was asked to plan, design and implement a strategic Global Business Services (GBS) model to span multiple functions, geographies, and delivery channels. Leveraging proven methodologies and deep experience in GBS, the KPMG team reviewed a broad set of functions including Finance, HR, IT, Procurement, and Administrative Support.
Team members determined what process activities could be delivered through a GBS model, where to locate those services, who should deliver the services and, and how best to improve and automate them. They also accommodated ongoing changes in personnel, leadership and strategic direction.
KPMG assisted at every stage of the initiative, guided by a target operating model that incorporated service delivery, data governance, technology, business processes, governance and organizational structures. In addition, KPMG provided support through an integrated change management and program management approach that addressed the objectives of the initiative with a minimum of disruption to operations.
The KPMG team also provided resources and support for the client’s transformation team on a global basis in 13 major markets, including target delivery locations in Eastern Europe and India. Based on KPMG’s efforts, the client is now realizing significant cost savings and other benefits.
Intense competitive pressures ... investor demands to cut costs ... new leadership ... and a fragmented, inefficient approach to administrative services across multiple functions around the world. These were only some of the issues faced by this global giant in the food services industry.
The company turned to KPMG for help, basing their decision on our deep understanding of its industry, our proven methodologies, a seasoned engagement team, a solid background in global business services (GBS), and our ability to support a global, integrated team for the engagement. The company also cited work that KPMG had done for their tax and internal audit functions.
KPMG provided the strategy, design and implementation of a GBS model based on service centralization, outsourcing, and automation. Through this transformation, the client is seeking to become a stronger, more cost-efficient, and far more agile player in a highly competitive marketplace.
Sometimes it’s better to move from a single approach to problem solving to a much more flexible methodology, redefining what is possible in a rapidly evolving business environment.
Lots of ideas look great on paper, but adopt an approach informed by what has been proven to work in business. Consider similar projects undertaken by other organizations and look at the lessons learned that are relevant to your own initiatives.
As the saying goes, plan your work and work your plan, but recognize that even the most detailed plans usually have to be adjusted to accommodate changes in business conditions, resources, time constraints, and budgets.
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