Technology power play

Using the latest IT to support a Medicaid transformation through ServiceNow


State government

Primary goal

Technology infrastructure transformation

Enabling technology

  • ServiceNow
  • Artificial intelligence (embedded within ServiceNow)
  • Machine learning (embedded within ServiceNow)

Whether you believe that information technology (IT) is the engine that drives large organizations or the essential linchpin coordinating activities among systems, there’s no doubt that IT enables real-time sharing of information across departments, automates routine activities, and tailors online experience to the needs of the user.

So, when a midsized state in the South wanted to modernize its Medicaid services, it realized it first had to modernize its technology infrastructure. Only a digitally transformed IT platform would have the capability to gather, process, analyze and distribute the much larger volume of data a modern Medicaid program required. The state selected KPMG, noted for its experience in transformation, to assist.

Key outcomes

Improved visibility 

in IT service management 

Greater levels 

of transparency and governance

Faster access 

to IT services via service catalog


employee connection to information


Client transformation journey

Click on each part of the journey to learn more about our client’s transformation.

  • Where they were
  • Where they are
  • Where they’re headed

Where they were

Looking for the “one way” forward after acquisition-fueled growth.

Albertsons is committed to “one way.” Meaning that, as large as the company becomes, it aims to remain unified in its vision and in the systems and tools that support it. 

Acquisition-fueled growth naturally opens the door to “many ways.” By 2019, different divisions and subsidiaries had their own back-office solutions. People, processes, and data were becoming more siloed.

A different kind of company might have assumed that decentralized processes are an acceptable consequence of multiple acquisitions. Or that you can’t be one of the biggest industry players and move with startling speed and agility when it comes to acquisitions. But accepting trade-offs like those is not the Albertsons way.

Company-wide opportunities

  • Replace nearly XX aging applications that differed across divisions and subsidiaries
  • Reduce manual, disparate processes freeing up more resources for advanced analytics
  • Enable enhanced reporting and make it more widely available across the enterprise
  • Act with greater speed and agility to capture value in acquisitions

Finance Opportunities

  • Process XXX,XXX transactions per month with greater efficiency
  • Reduce 10,000+ manual journal entries per period
  • Decrease >3-week close
  • Shorten the >3-month annual budgeting cycle
  • Provide better support for a growing e-commerce busines
  • Control rising finance function costs and derive greater value 

HR Opportunities

  • Decrease hiring and onboarding times to keep pace with staffing needs
  • Be more efficient in complying with more than 800 collective bargaining agreements and dozens of government contracts
  • Introduce enterprise-wide training programs
  • Unify and automate workforce administration processes across the enterprise

Where they are

290,000+ Albertsons employees come together every day in the cloud.

Today, cashiers at 2,200 stores all log their hours via the same mobile app. That data flows seamlessly to payroll, and across the enterprise-- where it’s available for everyone from store managers making data-driven staffing projections to CFOs reviewing budgets.

Back-office staff spend less time on manual processes and more on analyzing data in ways that help lower costs and improve performance every day, and inform due diligence during acquisitions.

HR executives and business managers find it easy to access candidate information, share observations and schedule interviews, quickly and easily moving the right candidates through the hiring process.

And candidates who become new hires, continue through the same efficient, cloud-based environment as they complete onboarding and get to work—already a part of Albertsons’ “one way.” 

Company-wide success

  • Installed a single, modernized digital platform serving the entire enterprise
  • Accelerated the project schedule by XX-months due to a dual-installation of Finance and HR
  • Migrated 290,000 employees from legacy systems to Oracle Cloud
  • Increased insight-driven decision making across functions, driving performance and growth gains

Finance Successes

  • Decreased balance sheet reconciliations by 85%
  • Achieved a consolidated retail and corporate close within a shortened period
  • Reduced the types of P&L statements from 100+ to 4
  • Reduced operations costs across the board
  • Enhanced availability of data-driven insights that help to capture maximum value during acquisitions

HR Successes

  • Installed an automated, central solution to efficiently administer 800+ complex union agreements for all employee populations
  • Deployed a custom application for union rule processing enabling a single HCM platform to administer benefits to all employee populations
  • Created a digital-first, digital anywhere experience resulting in higher employee engagement
  • Reduced new hire onboarding time
  • Reduced the time it takes to fill staffing vacancies
  • Streamlined and improved the process integration of new employees post-acquisition
  • Integrate processes and technology across the employee lifecycle from recruiting through compensation and performance

Where they’re headed

Making sure the “one way” continues to be the best way.

Long before the go-live date, Albertsons was collaborating with Oracle and KPMG about future initiatives. They wanted to know what to expect from upcoming product releases and how they should be planning to leverage new functionality.

The company’s agile mindset combined with its investment in Oracle Cloud and KPMG Powered Enterprise will keep it in a position to continue evolving, always finding the best way forward as one, strong enterprise.

Company-wide vision
  • Continue to enhance analytics-driven planning and forecasting
  • Optimize the supply chain

Finance Vision

  • Achieve a continuous, virtual accounting close
  • Increase data monetization 

HR Vision

  • Migrate payroll, benefits, and absence mangement to Oracle cloud for 2023
  • Insource benefits administration

"Low-code and no-code programming platforms prioritize simplicity and ease of use, bringing opportunities for incremental value across all areas of government and citizen experiences which haven’t existed previously. As governments move to modernize for the stakeholders they serve, low-code and no-code platforms help accelerate modernizations with agility and efficiency.” 

- Mark Maitland, Principal, Advisory

How KPMG helped modernize a statewide Medicaid system in three, efficient phases.

Click on a phase to scroll down to its description.


1. Standard functionality phase

Implementing the core ServiceNow applications

Before helping the client create an improved IT function, KPMG first had to build the infrastructure that would power it. KPMG built it on the ServiceNow platform. As a ServiceNow alliance partner, KPMG has significant experience in exploiting that platform’s capabilities to connect and power the operations of large businesses and governments alike.

KPMG kick-started the engagement with implementation of the core ServiceNow IT Service Management (ITSM) applications: service catalog, incident reporting, and problem and change management, among others. They automated activities, digitized existing functions, and documented procedures around both system processes and business processes. They gave the client the ability to remain fully functional in the event of a staff change.

By being deeply familiar with the requirements and expectations of specific occupational roles, and by understanding how specific tasks are completed, KPMG was able to tailor the ServiceNow digital enablement program to assist in those tasks at even the most granular levels.  With a foundation of functionality established, KPMG then worked to expand the coverage areas.

2. Enhancement phase

Bringing automation to more operational areas

Once the standard ServiceNow functions were implemented, KPMG began a digital modernization by deploying the ServiceNow human resources delivery, demand management, portfolio management, and integrated security and risk controls application suites. This “next tier of capability” helped bring IT, human resources, and risk into the modern age.

As KPMG deepens its professional relationship with the state, the project evolves as needs do. With each area addressed, eyes turn to the next opportunity to utilize the platform for further improvement in IT and business operations.  

3. Run phase

Keeping the engine humming

Today, KPMG continues its work with the state government, helping it make full use of the transformed system’s powerful tools. The state’s information technology resources and the Department of Human Services are already using their enhanced capabilities to help drive other projects. Working collaboratively, KPMG and the client are jointly determining how best to use the state’s limited financial resources to meet immediate citizen needs while readying the ground for future projects.

The improvements benefit every taxpayer and citizen in the state, either as a consumer of services, funder of services, or both. They allow the state to be an even better steward of the limited public funds it receives each year. The impact of the effort is felt far and wide. It brings better service to the people and gives them better value for their dollar. 


"Our KPMG team is integrated across almost all aspects of our engagement, from experience design for external partners, to our internal team PMO, our client-facing strategic PMO, and our change management for large, enterprise-wide transformation efforts as well as for discrete support projects. The ability of our practitioners to anticipate the client’s transformation needs and drive the right collaboration points across the engagement has not only been key to our long-term success delivering transformation advisory services, but also key to becoming the client’s trusted advisor.  Our ‘Better Together’ familial environment has helped mitigate the pressure often associated with multiyear, complex modernization efforts like this.  Having KPMG involved in our efforts across the portfolio of projects we are helping our client with has driven consistency in our approach and put the client’s people at the center of everything we do.”  

- Felix Verdigets, Principal, Advisory 

Turning insights into opportunity

KPMG and ServiceNow: An alliance of strength

KPMG is a trusted ServiceNow alliance partner, regularly harnessing the power of this industry-leading workflow platform to serve the needs of governments and businesses alike. While ServiceNow is the engine, KPMG, in essence, tells it what to do. By understanding client challenges, and with deep experience in digital transformations and process management, KPMG designs and implements solutions that bring organizations new levels of transparency, security, and efficiency.

Transform the way you manage and deliver customer services

Would you like to know more about the ways digital transformation can improve and increase your organization? Talk to us. 

Mark Maitland

Mark Maitland

Principal, Advisory, C&O Health & Government, KPMG US

+1 615-744-2184
Felix Verdigets

Felix Verdigets

Managing Director, Transformation Delivery, KPMG US

+1 615-248-5557
P. Michael Lutz

P. Michael Lutz

Managing Director, KPMG US

+1 202-306-0722