Driving Transformation: Strategy Defines the Journey

CUST

OMER DEMAND

DISRUPTIVE TECHNOLOGIES

GO

VERNM

ENT PO

LICY

IN D U S T R Y CO N SOLIDATIO

N

CH

AN

GIN

G G

LOBAL ENVIRON M ENT

28 %

32%

32%

32%

28 %

24%

23 %

23%

98%

38 %

29%

VALUE METRICS

U.S. COMPANIES IN SOME PHASE OF TRANSFORMATION

FAIL TO REALIZEOPTIMUM VALUE

PROFITABLEGROWTH

REVENUEGROWTH

COSTREDUCTION

36%

33%

28%

25%

Percentage of survey respondents who answered yes.

DESI

GN C

APAB

ILIT

IES

CORPORATE CULTURE

UNDERESTIMATE OPERATING MODEL

38%

Driving Transformation:Strategy Defines the Journey

INADEQUATE TECHNOLOGY

RESOURCE CON

STRA

INTS

APPLYIN

G RIGHT METRICS

TRANSFORMATION TRIGGERS TRANSFORMATION BARRIERS

The vast majority of U.S. companies are transforming their businesses, yet nearly one-quarter fail to realize the business benefits targeted at the onset of their initiatives. One of the chief obstacles to successful transformation is underestimating the significance of the operating model.

Customer demand was cited by respondents as the top trigger for transformation over the next three years (32 percent). Additional triggers driving transformation included changing/expanding global environment (28 percent), industry consolidation (24 percent), government policy (23 percent) and disruptive technologies (23 percent).

When asked which metrics they use to prove value, survey respondents cited profitable growth (36 percent), revenue growth (33 percent), and overall cost reduction (28 percent).

Underestimating the significance of the operating model was identified as the greatest barrier to successful transformation (38 percent) among survey respondents.

Additional barriers the survey identified are all components of an effective operating model: existing corporate culture (38 percent), inadequate or legacy technology (32 percent), resource constraints (32 percent) and applying appropriate metrics (28 percent).

Based on a survey of 963 executives from U.S.-based multinationals in all major industries. Sixty-seven percent of survey respon-dents were C-level executives, including 28% who were CEOs. Company revenues ranged from $1 billion to more than $100 billion.

FOCUS ON KEY INFORMATION TO REALIZE OPTIMUM TRANSFORMATION VALUE

Learn how KPMG can help you transform with focus and agility. Visit www.kpmg.com/transformation

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