The leadership of a new, marquee pharma manufacturer company approached KPMG with a paradox: It was certainly marquee, but not new. As the highly publicized spin-off of a global health services conglomerate, the company began life with $18 billion in annual revenues, an established product pipeline and instant membership in the S&P 100. Reliant on the back-office functions of its former parent, it needed to quickly acquire the operational sinews of a truly standalone company.
During an intensive three-year engagement, KPMG designed and put into place new core processes for finance, operations, and human resources, all of which was enabled by new ERP and HCM systems. The multidisciplinary assignment eventually touched the lives of every one of the company’s 21,000 employees, in 170 countries. And as KPMG delivered tangible results, something intangible emerged—a new company culture, independent in name, spirit and operational fact.
KPMG worked with client leadership to forge, from scratch, an operational “spine” precisely tailored for a new single-purpose business mission. The work synergized KPMG expertise in process, technology, people and change management. Benefits include:
Working together with client leadership, KPMG developed a foundation target operating model—based upon standardized processes, automation, globally integrated reporting, and shared services delivery—to continuously inform 80 specific assignments within the master engagement. KPMG:
While M&A spinoffs are typically singular events for leadership in newly-independent entity, they typically unfold in foreseeable stages. KPMG insight gleaned from similar assignments can help clients anticipate and navigate developments as they move towards their goals.
As the strategic pendulum swings towards corporate dis-aggregation, clients set upon divestiture need partners that can combine global scale, breadth of specialty offerings, and ability to execute at speed.