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Growing the business One of the Big Five professional services firms, KPMG has been adding business steadily in recent years, and plans to increase U.S. revenues to $6 billion in 2000. The firm's consulting arm revenues have also risen dramatically, totalling $1.85 billion in the U.S. in fiscal 1999, a 41 percent increase over the previous year. KPMG's U.S. consulting arm boasts more than 8,000 professionals. The firm as a whole currently employs 7,000 partners and 100,000 professionals in 160 countries. In August 1999, KPMG announced a major partnership with computer networking giant Cisco Systems. Under the agreement, Cisco will invest more than $1 billion in KPMG Consulting's Internet services business. Expecting booming business, KPMG is gearing up for a drive to recruit more than 4,000 consultants who will be trained in Cisco technologies. KPMG is targeting growth in the Americas, the U.K., and the rest of Europe, as well as the Middle East and Africa. Public spectacle The Cisco deal was merely a prelude for bigger things to come for KPMG Consulting. In January 2000, the firm announced that long-rumored plans to spin off the unit as a separate company were finally coming to fruition, in large part as a result of Cisco's $1 billion investment. The new company, KPMG Consulting LLC, is 19.9 percent owned by Cisco and 80.1 percent owned by KPMG Consulting's partners. In May 2000, the company became the first consulting firm to file for an IPO, which will be worth some $1 billion. The cash raised from the offering will be used to pay debts and for working capital; but just as importantly, going public will increase KPMG's name recognition tremendously. For one thing, it will spur significant investor interest. And with the tight competition for top talent, the firm could lure new employees with the promise of lucrative stock options. If all is successful, it is rumored that other Big Five consultancies may follow suit with their own IPOs. We're (gonna be) Number 1! KPMG has a new philosophy, proclaimed from the mount (i.e., by chairman Stephen Butler). Known as "The Power of One," this transcendent "guiding vision" has three major components: becoming No. 1 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 No. 1 in all of the businesses in which we choose to compete." All the right moves After scratching a planned merger with rival Ernst & Young (due to regulatory concerns in Europe), KPMG has been making many other major moves to improve its business. It is undertaking a massive international restructuring, linking different offices to create global operating regions. For example, the U.S. branch will join with member firms in Latin America, Australia, and New Zealand, forming an "Americas" unit. KPMG has taken steps to increase its technological capabilities as well. In May 1999, it acquired Softline Systems & Integrators, Inc., bringing in about 450 new consultants and gaining control of Softline's software. The following month, the firm launched KWORLD, a brand-new Windows-based online knowledge management system. And in February 2000, KPMG Consulting formed two major strategic alliances to help boost its e-business capabilities. The first, with Microsoft's eBusiness Solutions division, calls for KPMG to hire 500 professionals over the next 18 months who will be exclusively dedicated to the Microsoft Dot.com Practice, helping develop and deploy dot com businesses based on the Windows 2000 operating system. In addition, KPMG forged an alliance with Internet software provider Inktomi to deliver e-business and content delivery solutions, including strategy consulting, network design, and product installation. The company also has technology alliances with partners such as HP, Qwest, SAP, Oracle, and PeopleSoft. Too much, too soon? KPMG's rapid expansion plans were derailed somewhat in February 2000, when the company announced layoffs of 350 consultants due to revised revenue expectations. Consulting unit co-chief executives Rand Blazer and Rod McGeary had been hoping for a growth rate of 38 percent for fiscal 2000 - but with growth only running at a 20 percent clip, the pair decided to hand out pink slips. In an e-mail to the company, the two wrote that the unit's "lackluster performance" meant that consultants had to be "more forceful in not only selling more business but also charging all of our time worked on a client project, to that project." The cuts also came as part of an effort to recruit "professionals with e-commerce skill sets," according to company spokesman George Ledwith.
Be confident, job seekers! The consulting industry is champing at the bit to hire qualified new candidates. To meet its aggressive recruiting goals, the firm has a large number of hiring professionals on staff - 90 in consulting alone. Many of the highest ranking members of the organization dedicate a large portion of their time to recruiting. Despite the recent layoffs, KPMG is still actively recruiting for consultants, especially those with an e-business background. The firm is also expanding its recruitment of consultants. "A few years ago, the firm only hired MBAs. But now a lot of that has changed. We have a lot of work and are widening the net," reports one savvy consultant. Because the firm's consultants are marketed for specific industries, KPMG Consulting places an emphasis on hiring experienced professionals with industry experience. KPMG puts a premium on interactive, non-stressful interviews, so prepare to answer several questions with a somewhat lighter tone than you might expect. Because KPMG tends to hire consultants with significant industry or technical experience, the firm rarely 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."
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 praises the "open-door" atmosphere, where "managers are able to answer questions and provide guidance." Another employee has a slightly different take. "It's nurturing for newbies," says that contact. "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, it should be noted that high turnover is endemic to the consulting industry. The firm is implementing plans to combat the high turnover rate seen in the consulting field. One program already in effect is Career Pathways, which was developed to help employees find growth opportunities within their chosen area of focus, or a new area. The program informs employees in audit, tax, and consulting about career development options, while also offering open informational/recruiting events and posting boards of positions in all offices. The firm's Center for Leadership Development gives employees access via an intranet to agendas, schedules, and registration for training offered by the firm. And in August 1999, the firm announced that all KPMG Consulting employees will participate in an Internet training "boot camp" to help them understand how the Internet impacts clients in different industries. Specific by office? Insiders report that "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 20- to 30-year-old range." (While some of the firm's consultants may seem young, the firm reports that they average 13.5 years of experience.) 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 consultant reports 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 "five 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 the perks may vary, benefits at KPMG are standard in all 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."
Andersen Consulting;Arthur Andersen Business Consulting;Cambridge Technology Partners;Deloitte Consulting;Ernst & Young Consulting Services;IBM;PricewaterhouseCoopers Consulting More Company Profiles For more career information, go to Vault.com ©2000, Vault.com Inc
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