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Number madness KPMG sure has a lot of dizzying numbers attached to its name. The humongous firm has 85,291 employees (of which 59,663 are professionals) in 155 countries worldwide. In North America, the firm has 25,167 employees scattered about hundreds of offices (KPMG is the only Big Five firm that has larger operations in Europe than in North America). KPMG's worldwide prominence is reflected in that the firm services 44 percent of top 500 banks and 46 percent of the largest 100 insurance firms. Despite all these big numbers, KPMG's new philosophy, proclaimed from the mount (that is, by CEO Stephen Butler) rests on a very small number - the campaign is called "The Power of One." This transcendent "guiding vision" has three major components: becoming number one in the marketplace, functioning as a unified firm, and involving all KPMG employees in the firm's success. "The only acceptable position for this firm," proclaims KPMG, "is to be number one in all of the businesses in which we choose to compete." Impressive ambition That's a rather ambitious aim, for KPMG has its fingers in several pies. The firm offers assurance services, tax services and consulting in five different business areas: Financial Services, including money management; Health Care & Life Sciences; Information, Communications and Entertainment (ICE); Manufacturing, Retailing and Distribution; and Public Services. KPMG Consulting is a relatively young branch of the firm, but already totals more than 5,000 consulting professionals. For the first time, in 1998 the consulting division surpassed assurance in terms of U.S. revenue, grossing $1.511 billion of the firm's $3.801 billion total. The practice's revenues have more than tripled since 1994, and KPMG now seeks to retain 5 percent of the worldwide consulting market (which would be 400 percent more than the consultancy's current market share). Meanwhile, the tax service has been cited by International Tax Review as the number one international tax practice in the Big Five, with the highest revenues and numbers of tax partners and professionals. KPMG's ambitious moves have continued into 2000. In April, the firm announced the creation of KLegal International brand, an international legal network that the firm hopes will become the largest of its kind in the world. Self-promotion abounds KPMG refuses to stand pat, however. It has launched an ambitious $60 million promotional campaign aimed at bolstering its already considerable name recognition. And a proposed plan to go public with part of the consulting business could spell even more big bucks for the firm and its employees. In August 1999, Cisco Systems Inc. announced plans to invest more than $1 billion for a 19.9 stake in KPMG's consulting division. As part of the new agreement, KPMG would hire 4,000 Internet engineers to help develop and deliver Internet-based data, voice and video services to Cisco clients. Some legal problems Recent legal actions against KPMG, however, have exposed imperfections in the international juggernaut. In February 2000, the Common Fund charged KPMG with negligent misrepresentation, breach of contract, and malpractice, in the firm's dealings with First Capital Strategists. Two months later, CyberGuard Corp. charged KPMG with malpractice in its auditing of CyberGuard's books. Also in March, the firm settled a suit with 8,000 investors that charged KPMG with misidentifying derivatives in the Piper Institutional Government Fund. Courts sided with KPMG, however, in January over a suit brought against the firm by the Securities and Exchange Commission.
Be confident, job seekers! The consulting industry is champing at the bit to hire qualified new candidates. In fact, KPMG intends to boost its North American employee base from 20,000 to 30,000 in the coming years. To accomplish this, the firm has 70 full time hiring professionals on staff, and many of the highest ranking members of the organization dedicate a large portion of their time to recruiting. Firms seem to begin the recruiting season earlier each year, and now attempt to attract people who otherwise would not consider consulting jobs. "A few years ago, the firm only hired MBAs or CPAs. But now a lot of that has changed. We have a lot of work and are widening the net," says one consultant. KPMG puts a premium on interactive, non-stressful interviews, so prepare to answer several questions with a somewhat lighter tone than you might expect. But this doesn't mean that KPMG isn't serious. Because KPMG tends to hire consultants with significant industry or technical experience, the firm hardly ever uses case interviews to evaluate its consulting applicants, instead directing questions about work experience and computer expertise. Recalls one veteran of the interview process, "[they asked] what I had done in my internships and what I was interested in." Audit and tax interviewees, similarly, should be prepared to fully discuss their work experience and background, and why they feel they would be a good fit with KPMG. Entry-level applicants have reported being posed the occasional guesstimate, though even this is not a sure thing.
A multifaceted culture It's unsurprising that at a firm as large as KPMG, employees have many different takes on the corporate culture. One employee praised the "open door" atmosphere, where "managers are able to answer questions and provide guidance." Another employee had a slightly different take. "It's nurturing for newbies. This means you find a manager you are compatible with and become a sponge." We're told that KPMGers should "prepare your psyche for high turnover. Since I came to the firm six months ago, four people I worked with closely have left. Two defected to another Big Five firm, one went over to industry, and one transferred to another KPMG office." Of course, high turnover is endemic to the Big Five. Specific by office? Culture varies somewhat between offices. In DC, for example, there's a Gay/Lesbian support group, but Raleigh is very stuffy and "old-boy." In general, the smaller offices tend to be more rigid and controlling. Now's the time to sign up for your frequent flyer card. "Consultants travel, on average, about 70 percent of the time. We try to stay regional in our business, but when the client has offices all over the country, sometimes it is necessary to work at all those offices." As for the employees themselves, they are "fairly young, with most large projects staffed by people in the 25- to 35-year-old range." Flexing time At KPMG, "community involvement is encouraged and you are paid for four workday hours per month to perform volunteer work, provided that you match these hours with volunteer hours on your own time." One tax consultant reported that "Some offices have flex time. For example, I work 10 to 7 to avoid rush hour traffic." Additionally, "continuing education opportunities abound and usually involve travel, with KPMG picking up the tab." Employees say that "when you start with the firm, KPMG gives you a new laptop, supplies and briefcase with the firm logo," and that the firm offers "5 weeks of vacation." Well, not exactly; one insider comments that "KPMG is a bit unusual in that it combines vacation time with sick leave, so it's great if you're young and healthy, maybe not so great if you're sickly." Be forewarned that some perks vary from office to office, or partner to partner, or even manager to manager. While perks may vary, benefits are consistent across KPMG offices. Does anyone actually work those hours? "In consulting, the hours are officially 8:30 to 5:30, expecting that you'll take an hour for lunch. Sometimes I do leave at 5:30, other days [I stay] until 7:30." Another consultant concurs that "10 or 11 hours a day is typical." At times, "hours can be very long [for consultants], with late nights spent compiling and analyzing data, or preparing a presentation for a project meeting or board meeting."
Human Resources
Accounting and Auditing;Management Consulting;Tax services;Corporate Finance
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