KPMG Advisory Reorganizes From 9 Lines To 3 Groups

We see from KPMG’s website this morning that there is an internal reorganization of its KPMG Advisory Service Line with a new operating model and reducing its currently nine different service lines:

1. Accounting Advisory Services
2. Business Performance Services
3. Corporate Finance
4. Financial Risk Management
5. Forensic
6. Internal Audit, Risk & Compliance Services
7. IT Advisory Services
8. Restructuring
9. Transaction Services

into three larger service groups effective October 1, 2009:

1. Performance & Technology
2. Transactions & Restructuring
3. Risk & Compliance.

According to Global Head of Advisory Alan Buckle, “Our Advisory practice needs to evolve with the market. Our firms’ clients need rapid assistance in three broad areas: how to improve performance — especially by harnessing technology; how to execute transactions and restructure; and how to handle risk and compliance. Our business will now directly align to these needs.”

Changes and reorganizations are not new to the Big4 firms, which have constantly evolving internal structures, groupings and alignments as new leaders bring fresh ideas, ossified structures get revamped and market forces demand appropriate response. The primary reason for this particular one appears to be a combination of external demands and perhaps multiplicity of organizing internal units. This follows a key reorganization at Capgemini with the recent formation of its Global Consulting Unit.

If you look at the other Big4 firms and their internal organization of their Advisory unit, this makes KPMG having the smallest number of divisions. We see the leadership is generally remaining the same with some reshuffling of responsibilities, and we’ll have to see truly in the marketplace if this is a truly different business model with a radical change in its go-to-market or consulting strategy or just a periodic reorganization. Nonetheless, this is still a big change since it affects a multi-billion dollar business unit and around 30,000 employees.

KPMG Advisory is the second largest (32%) of the three groups with $7.3 billion revenues in 2008 and an impressive growth of 13% from previous year. Audit, the largest has 2008 revenues of $10.7 billion and grew 14%, while Tax, the smallest had 2008 revenues of $4.7 billion, but grew a creditable 18%.


In terms of other Big4 firms and their structure of their Advisory units:

PricewaterhouseCoopers - Advisory
1. Strategy
2. Operations Management
3. Human Resources
4. Business Advisory Services consulting.

Ernst and Young - Advisory
1. Actuarial Advisory Services
2. Business Advisory Services
3. Business Risk Services
4. Financial Services Risk Management
5. Fraud Investigation and Dispute Services
6. Technology and Security Risk Services

Capgemini - Consulting
1. Marketing, Sales and Service
2. Finance and Employee Transformation
3. Supply Chain Management
4. Transformation Consulting

Accenture - Consulting
1. Finance & Performance Management
2. Process & Innovation Performance
3. Talent & Organization Performance
4. Strategy
5. Customer Relationship Management
6. Supply Chain Management

Deloitte – Consulting
1. Financial Advisory Services Home
2. Analytic & Forensic Technology
3. Anti-Fraud Consulting
4. Anti-Money Laundering Consulting
5. Business Intelligence Services
6. Business Valuation
7. Capital Projects Consulting
8. Corporate Finance Advisory
9. Corporate Investigations
10. Deloitte Discovery
11. Document Review Services
12. Foreign Corrupt Practices Act Consulting
13. Forensic Center
14. Litigation & Dispute Consulting
15. Real Estate Consulting
16. Reorganization Services
17. Tangible Asset Valuation