thriving in the “now normal” - public sector network

Thriving in the “Now Normal”

Dave WolfManaging DirectorKPMG LLP

September 9, 2020

1© 2020 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. NDP097768-1A

The “Now Normal” is our ability to Adapt Fluidly, remain Resilient and increase Drive Across our Service model

A Gartner survey of 1000+ global CIO’s indicated that adaptability is the most important quality in developing crisis-fit organization

A survey by Fortune of the top 500 CEOs indicated that 75% believe acceleration of company’s technological transformations will result from the pandemic.

Research from Gartner shows that companies that took strategic cost-optimized approach after the 2008 financial crisis have seen significant gains, even through the Covid-19 pandemic

According to a new research conducted by BCG in partnership with Harvard Business School’s Managing the Future of work initiative, 40 percent of corporate executives globally expect freelance workers to account for an increased share of their workforce by 2024.

The Now Normal

2© 2020 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. NDP092460-1A

Incremental

Exponential


We have witnessed a mixed bag of responses as organizations react and recover

While organizations are sustaining there are gaps in the response to virtual delivery

2 in 5 professionals are not satisfied with the current virtual work environment

KPMG polled more than 1,000 American workers to assess where they are struggling and what companies

should do next:

Percentage of respondents saying work environment has worsened

Relationship with coworkers41%

We’ve learned through our own experiences that sustaining productivity and employee engagement is challenging in a pure virtual delivery environment

Employees crave flexibility in their day-to-day

Our Experiences

Employees experiencing cognitive overload

Working alone is easier than working together

Connected doesn’t always equal connection

Level of Productivity46%

Engagement with Supervisor/Team41%

Planning for permanent WFH“Providing up to $500 for every employee to purchase laptop and monitor for future work scenarios.”

Productivity of employees intact“Wi-Fi allowances being paid to employees every month. Recently onboarded 50 people via Zoom. No issues in service levels.” Source: Covid-19 and the American Worker, KPMG LLP, April 2020

Our Now

Adjusting to the new reality“Never worked from home in the past serving banking clients ─ had to sign-off individual NDAs with those clients.”

Acted in time to manage the disruption“Transferred 40,000+ desktops from office to employee homes before the beginning of the lockdown. Minimal impact on client delivery.”


The “now normal” isn’t necessarily a world without working in an office; it’s just a world where we focus on the work instead of the office.

“Crowded corporate offices with thousands of employees may be a thing of the past. We’ve proven we can operate with effectively no footprint”

─ CEO, Morgan Stanley

“…we can work in different ways, and as a result, the company does not need all its global offices.”

─ CEO, Mondelez International

“A lot of people have learned that they can work at home.”

─ Warren Buffet

“75% of TCS employees will permanently work from home by 2025.”

─ CEO, Tata Consulting.75

The Now Normal


Working remotely is straining IT and challenges the work-from-home culture

Physical offices are empty –reconfiguration, barriers, and ‘6 foot offices’ are expected

The workforce is creating their own virtual offices based on their delivery needs

Organizations are finding their current service delivery model too rigid or severely lacking

Today’s reality

$7+ trillion to be invested in making work more digital by 2023*

Lower real estate costs by up to $10,000 per employee per year**

Higher productivity and lower turnover from reductions in commute time and better work/life effectiveness

More resilient service delivery models that can quickly react and flex as business realities change

Tomorrow’s opportunity

**Advantages of Agile Work Strategies For Companies, 2020, Global Workplace Analytics

*Worldwide Semiannual Digital Transformation Spending Guide, 2019, IDC

The Case for Change


Rethink the value delivery model to optimize virtual delivery, access new talent pools and reshape real estate portfolio to unlock massive cost efficiencies

Focus on evaluating your organization’s ability to sustain virtual performance and the business case of getting there.

Rethink service,

talent and real estate

models

Scale Work Anywhere

Design robust systems and processes, and ways of working to sustain virtual delivery.

Focus on maintaining productivity, solving for fatigue, ensuring compliance, and immediately re-tooling

Enable the nowStabilize to restart in the new reality

Design the futureAdapt to win in the new reality

Technology makes connections seamless

Change Management and Communications makes it stick

Adapting your delivery model to the new reality requiresEnabling the now while designing the future


Half of America is working from home, 93% don’t want to return to the workplace

InsightAdaptability is accepting optimization and innovation are equal.

Client perception is everythingQuality, speed, and outcome will drivereputation, and reputation is the newrelationship.

KPMG Insights


The disruptions of the last six months are indicators of how things will be going forward

You must build an adaptive and resilient business


A new way of seeing customer delivery

Outcome + Impacts become the new success measures

Infuse execution with Speed and Adaptability

Quality and Value are Scalable

Increased Customer Value yields operational income

Atomic-LevelDelivery Model – Shifting to a Product Mindset

OutcomeActionable, achievable, measurable end results that advance the customer’s perception of success.

Outcome

SpeedQuality

Customer/Firm Value GenerationWhen we align all three measures, we can. Clearly drive value for customers.

Product Mindset

SpeedThe cadence and velocity at which outcomes can be achieved without sacrificing perceived value.

QualityThe standard to which out work, processes and methodologies are evaluated and perceived by customers.

© 2020 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.

Work Anywhere is re-thinking your value delivery model to sustainably enable virtual delivery. Six building block capabilities form the foundation for work anywhere

People1

Ensure your workers are engaged, connected, and productive

Work Anywhere

Technology Capabilities3

Establish necessary infrastructure, technology resilience, operational support model, collaboration tools, and cyber security

Ways-of-Working2

Orchestrate day-to-day work, manage individuals/teams/workflows and effectively monitor performance

Workplace optimization5

Optimize the physical and virtual work environments, reassess location strategies, and evaluate your real estate portfolio

Workforce Strategy4

Increase operational resiliency, optimize location strategies around where work gets done and access emerging talent pools

Governance6

Update policies to contemplate virtual work environments, implement robust governance and oversight structures, optimize tax structures


Anchored in Design Thinking, a human-centered approach can accelerate delivery of the right products, and bring focus to ideation, design, prioritization and execution.

11

Human-Centered Design focuses and accelerates transformations

Empathize

Design

Test

Implement

Evolve

Contextualize

Prioritize

Expand


▸ Priority matrix▸ Feature grid ▸ Strategic roadmap▸ Functional requirements

▸ Technical architecture▸ Agile development▸ User acceptance

testing

▸ Design systems & style guides

▸ Design Ops▸ Information architecture▸ Change management

▸ Iterative releases▸ Analytics-based

refinement▸ Knowledge transfer

Expand Implement EvolvePrioritize

▸ Goals & value definition▸ Design Thinking

workshops▸ Analytics & research

review▸ Insight generation▸ Technical assessment▸ Competitive analysis

▸ Feature ideation▸ Sketches▸ User Flows▸ Wireframes▸ Conceptual designs▸ Interactive

prototyping

▸ User research▸ Behavioral analysis ▸ Persona creation▸ Journey mapping▸ SME & stakeholder

interviews▸ Behavioral design tactics

▸ Card sorting▸ Surveys▸ Concept testing▸ Usability testing▸ Feature validation▸ Focus groups

Contextualize Empathize Design Test

Each project is uniquebut our methods are tried and true

Empathize

Design

Test

Implement

Evolve

Contextualize

Prioritize

Expand


“I’m not sure how to get to the next step in my

certification”

13

A fully traceablepath to outcomes

Research Feature Design Release Outcome

F004: Next Steps

Personalized Next Step

For each feature, the target persona, hypothesis, and tactic is at the forefront, tied to outcomes, producing a measurable, repeatable, and fully traceable process.

Certified Expert


The KPMG name and logo are registered trademarks or trademarks of KPMG International.

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation.

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Contact Us

Dave WolfManaging DirectorKPMG LLPT: 443-852-4144E: [email protected]

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