KPMG Case Study
1. What are Professional Services Networks?
* Professional services networks are networks of independent firms who come together to cost-effectively provide services to clients through an organized framework.
* They are principally found in law and accounting. They may also be found in investment banking, insurance, real estate and architectural services.
* Any profession that operates locally, but has clients in multiple locations, are potential members of a network.
* They include the well-known accounting networks like PwC, KPMG, Deloitte, and Ernst & Young (also known as the Big 4 Audit Firms) as well as more than 30 other accounting networks ...view middle of the document...
* Little management control.
3. Detail out the inherent deficiencies of the old structure?
* Everyone thought of as a leader.
* No specialisation based on work or department.
* Lack of well defined chain of command and span of control
* According to clients, the skill sets of traditional partners were outdated
* Lack of cooperation and involvement of new partners due to fear of losing client as well as income.
* Different skills required for each job in a matrix structure was almost hidden.
* Problem solving is tedious, time-taking, unpopular and inefficient.
* Mismanagement of control as well as information.
* Unsatisfied employees from working culture.
4. Did the old structure impact culture of KPMG? How?
Of course, the old structure had an impact on culture of KPMG. KPMG being a largest professional service firm in the world needs a very well defined yet flexible and informal culture which could make every employee highly efficient and involved in the functioning of the company. KPMG’s culture was affected in following ways:
* Improper control
* Decentralisation of power
* Effortless contribution by employees and their disinterest.
* Continuous complains about long working hours to reinforce the air of crisis
* Unhealthy culture of reluctance and hostility among partners.