Deloitte and KPMG: The War for Talent SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Organizational Development
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Deloitte and KPMG: The War for Talent
In 2016, India witnessed an intense war for talent acquisition in consulting when Deloitte Touche Tohmatsu India LLP (Deloitte) poached 20 partners and their teams-around 300 people in total-from KPMG India (KPMG). Deloitte offered a higher compensation to attract KPMG executives and lured partners with a salary jump in proportion to the number of team members they could bring from KPMG. The rivalry between the firms was fuelled by their desire to challenge Ernst & Young Global Limited, the market leader, which had 125 partners in its advisory vertical. This was the biggest poaching attempt in the industry since 2011 and the third time in the span of a year that KPMG partners had quit to join rival companies. For KPMG, it was a big blow, as the company lost many partners from the vertical that was leading its growth globally. KPMG management was now confronted with the challenge of defending against any such future poaching attempts by its competitors and retaining existing employees. The firm needed to engage its existing employees and boost their motivation to avoid further damage. The authors Sanjeev Prashar and Mukesh Kuma affiliated with Indian Institute of Management Raipur. Amitabh Deo Kodwani is affiliated with Indian Institute of Management Indore.
Authors :: Sanjeev Prashar, Amitabh Deo Kodwani, Mukesh Kumar
Swot Analysis of "Deloitte and KPMG: The War for Talent" written by Sanjeev Prashar, Amitabh Deo Kodwani, Mukesh Kumar includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Kpmg Deloitte facing as an external strategic factors. Some of the topics covered in Deloitte and KPMG: The War for Talent case study are - Strategic Management Strategies, Motivating people, Talent management and Organizational Development.
Some of the macro environment factors that can be used to understand the Deloitte and KPMG: The War for Talent casestudy better are - – digital marketing is dominated by two big players Facebook and Google, challanges to central banks by blockchain based private currencies, increasing inequality as vast percentage of new income is going to the top 1%, banking and financial system is disrupted by Bitcoin and other crypto currencies, cloud computing is disrupting traditional business models, central banks are concerned over increasing inflation, talent flight as more people leaving formal jobs,
competitive advantages are harder to sustain because of technology dispersion, there is increasing trade war between United States & China, etc
Introduction to SWOT Analysis of Deloitte and KPMG: The War for Talent
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Deloitte and KPMG: The War for Talent case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Kpmg Deloitte, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Kpmg Deloitte operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Deloitte and KPMG: The War for Talent can be done for the following purposes –
1. Strategic planning using facts provided in Deloitte and KPMG: The War for Talent case study
2. Improving business portfolio management of Kpmg Deloitte
3. Assessing feasibility of the new initiative in Organizational Development field.
4. Making a Organizational Development topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Kpmg Deloitte
Strengths Deloitte and KPMG: The War for Talent | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Kpmg Deloitte in Deloitte and KPMG: The War for Talent Harvard Business Review case study are -
Ability to recruit top talent
– Kpmg Deloitte is one of the leading recruiters in the industry. Managers in the Deloitte and KPMG: The War for Talent are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Low bargaining power of suppliers
– Suppliers of Kpmg Deloitte in the sector have low bargaining power. Deloitte and KPMG: The War for Talent has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Kpmg Deloitte to manage not only supply disruptions but also source products at highly competitive prices.
Superior customer experience
– The customer experience strategy of Kpmg Deloitte in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Analytics focus
– Kpmg Deloitte is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Sanjeev Prashar, Amitabh Deo Kodwani, Mukesh Kumar can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Highly skilled collaborators
– Kpmg Deloitte has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Deloitte and KPMG: The War for Talent HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Ability to lead change in Organizational Development field
– Kpmg Deloitte is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Kpmg Deloitte in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Cross disciplinary teams
– Horizontal connected teams at the Kpmg Deloitte are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Diverse revenue streams
– Kpmg Deloitte is present in almost all the verticals within the industry. This has provided firm in Deloitte and KPMG: The War for Talent case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Digital Transformation in Organizational Development segment
- digital transformation varies from industry to industry. For Kpmg Deloitte digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Kpmg Deloitte has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Organizational Resilience of Kpmg Deloitte
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Kpmg Deloitte does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
High switching costs
– The high switching costs that Kpmg Deloitte has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Operational resilience
– The operational resilience strategy in the Deloitte and KPMG: The War for Talent Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Weaknesses Deloitte and KPMG: The War for Talent | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Deloitte and KPMG: The War for Talent are -
High bargaining power of channel partners
– Because of the regulatory requirements, Sanjeev Prashar, Amitabh Deo Kodwani, Mukesh Kumar suggests that, Kpmg Deloitte is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Skills based hiring
– The stress on hiring functional specialists at Kpmg Deloitte has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
High operating costs
– Compare to the competitors, firm in the HBR case study Deloitte and KPMG: The War for Talent has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Kpmg Deloitte 's lucrative customers.
Interest costs
– Compare to the competition, Kpmg Deloitte has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Lack of clear differentiation of Kpmg Deloitte products
– To increase the profitability and margins on the products, Kpmg Deloitte needs to provide more differentiated products than what it is currently offering in the marketplace.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Deloitte and KPMG: The War for Talent, it seems that the employees of Kpmg Deloitte don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Deloitte and KPMG: The War for Talent HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Kpmg Deloitte has relatively successful track record of launching new products.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Kpmg Deloitte is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Deloitte and KPMG: The War for Talent can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Deloitte and KPMG: The War for Talent, is just above the industry average. Kpmg Deloitte needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Kpmg Deloitte supply chain. Even after few cautionary changes mentioned in the HBR case study - Deloitte and KPMG: The War for Talent, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Kpmg Deloitte vulnerable to further global disruptions in South East Asia.
Slow decision making process
– As mentioned earlier in the report, Kpmg Deloitte has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Kpmg Deloitte even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Opportunities Deloitte and KPMG: The War for Talent | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Deloitte and KPMG: The War for Talent are -
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Organizational Development industry, but it has also influenced the consumer preferences. Kpmg Deloitte can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Kpmg Deloitte can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Using analytics as competitive advantage
– Kpmg Deloitte has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Deloitte and KPMG: The War for Talent - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Kpmg Deloitte to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Kpmg Deloitte in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Organizational Development segment, and it will provide faster access to the consumers.
Creating value in data economy
– The success of analytics program of Kpmg Deloitte has opened avenues for new revenue streams for the organization in the industry. This can help Kpmg Deloitte to build a more holistic ecosystem as suggested in the Deloitte and KPMG: The War for Talent case study. Kpmg Deloitte can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Kpmg Deloitte is facing challenges because of the dominance of functional experts in the organization. Deloitte and KPMG: The War for Talent case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Kpmg Deloitte to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Kpmg Deloitte to hire the very best people irrespective of their geographical location.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Kpmg Deloitte to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Developing new processes and practices
– Kpmg Deloitte can develop new processes and procedures in Organizational Development industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Manufacturing automation
– Kpmg Deloitte can use the latest technology developments to improve its manufacturing and designing process in Organizational Development segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Kpmg Deloitte in the consumer business. Now Kpmg Deloitte can target international markets with far fewer capital restrictions requirements than the existing system.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Kpmg Deloitte can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Deloitte and KPMG: The War for Talent, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Building a culture of innovation
– managers at Kpmg Deloitte can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Organizational Development segment.
Threats Deloitte and KPMG: The War for Talent External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Deloitte and KPMG: The War for Talent are -
Shortening product life cycle
– it is one of the major threat that Kpmg Deloitte is facing in Organizational Development sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Consumer confidence and its impact on Kpmg Deloitte demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Kpmg Deloitte business can come under increasing regulations regarding data privacy, data security, etc.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Kpmg Deloitte.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Stagnating economy with rate increase
– Kpmg Deloitte can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Environmental challenges
– Kpmg Deloitte needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Kpmg Deloitte can take advantage of this fund but it will also bring new competitors in the Organizational Development industry.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Kpmg Deloitte in the Organizational Development sector and impact the bottomline of the organization.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Deloitte and KPMG: The War for Talent, Kpmg Deloitte may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Organizational Development .
Easy access to finance
– Easy access to finance in Organizational Development field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Kpmg Deloitte can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Kpmg Deloitte can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study Deloitte and KPMG: The War for Talent .
Technology acceleration in Forth Industrial Revolution
– Kpmg Deloitte has witnessed rapid integration of technology during Covid-19 in the Organizational Development industry. As one of the leading players in the industry, Kpmg Deloitte needs to keep up with the evolution of technology in the Organizational Development sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Kpmg Deloitte with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Weighted SWOT Analysis of Deloitte and KPMG: The War for Talent Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Deloitte and KPMG: The War for Talent needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Deloitte and KPMG: The War for Talent is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Deloitte and KPMG: The War for Talent is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Deloitte and KPMG: The War for Talent is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Kpmg Deloitte needs to make to build a sustainable competitive advantage.