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94% of executives say complexity is their greatest challenge. KPMG and HfS hosted a Webcast on the principles of governance. Here are the highlights and opinions of those who attended.
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The Art of Services Governance 94% of executives say complexity is their greatest challenge.
From the headlines: Capital One settles for $210M in allegations that call centers
pressured clients for add-ons on their credit-cards.
Discover agrees to pay $200M to cardholders it led into buying costly and unneeded credit-card products.
American Express settles for $85M in allegations for using false customer statements to settle old debt, misleading promotions, and
discriminating credit doling based on age.
How much of this could have been avoided with effective Services Governance?
© 2013 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The Art of Services Governance 2
Underwhelming… beyond adequate… or game changing?
KPMG and HfS hosted a Webcast on the principles of governance.
Here are the highlights and opinions of those who attended.
© 2013 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The Art of Services Governance 3
4
Q: Change in importance of program objectives since initiated.
© 2013 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Over time, the importance of cost wanes as priorities shift to value
The Art of Services Governance
Source: HfS Research 2013, n = 399 Buy-side Enterprises; “2013 State of Outsourcing” Study Conducted with the support of KPMG LLP
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Q: How effective have your initiatives been for achieving business benefits to date?
© 2013 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Most outsourcing was established for tactical, not strategic reasons.
The Art of Services Governance
Source: HfS Research 2013, n = 399 Buy-side Enterprises; “2013 State of Outsourcing” Study Conducted with the support of KPMG LLP
6 © 2013 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Without strong governance, organizations tend to maintain the status quo…meh.
The Art of Services Governance
7 © 2013 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The Art of Services Governance
Regulatory environment remains uncertain and highly dynamic. Two thirds view compliance as a mission critical/ important business driver.
Q: How important is meeting compliance/regulatory requirements in your company’s IT outsourcing and BPO decision making?
Source: HfS Research 2013, n = 399 Buy-side Enterprises; “2013 State of Outsourcing” Study Conducted with the support of KPMG LLP
Mission Critical
Somewhat important
Not important at all
Important but not critical
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Q: Which best describes the use of Governance intelligence in your organization?
© 2013 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Only about a quarter view their governance as “intelligent”
Data and metrics provide intelligent information and improved decision making
Basic performance measurement in place, working to establish intelligence capabilities
Basic performance measures are in place data IS perceived to be credible
Other
Basic performance measures in place,
data IS NOT perceived to be
credible
The Art of Services Governance
9
Q: What is the top inhibitor to the business maturation of your shared services governance organization?
© 2013 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Top governance challenges come down to communication, talent, and change management…
Difficulty changing perceptions of or interactions with the business
Have a clear vision/ roadmap on how
to run an effective Governance Organization
Other
Lack of an integrated tool set to manage the
Governance business
Changing the people components—culture, skills, etc.
The Art of Services Governance
Today’s governance imperatives: Change from cost myopia to a value vision
Manage compliance to mitigate financial, operational, and reputational risk
Redefine talent management to provide meaningful careers for government professionals
Collaborate with providers to achieve innovative and realistic outcomes
Harness the data and analytics advantage to advance the business not just support it
© 2013 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The Art of Services Governance 10
http://www.seeuthere.com/kpmg/4025266/home For more information, please contact: Allison Norman [email protected]
We invite you to the KPMG 2013 Governance Roundtable event, Transcend the Transactional: A New Era for Outsourcing Governance for an informative, collaborative, and innovative discussion on the industry’s challenges and core governance issues.
Join us:
© 2013 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The Art of Services Governance 11
Eugene M. Kublanov Managing Director, KPMG Shared Services and Outsourcing Advisory
+1 (925) 918-2175
Contact us: Liz Evans Managing Director, KPMG Shared Services and Outsourcing Advisory
+1 (312) 953-4891
© 2013 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The Art of Services Governance 12
