1. The Future of
Governance
October 2013

2. Is your services governance function
prepared for the future or for the past?
Recently, KPMG polled participants at a roundtable
discussion about their services governance capabilities.
Here is what they said.
© 2013 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.
The Future of Governance
2

3. Q: Our services governance
organization effectively
addresses the overall needs
of our business
With only 4% certain
of their value to the
business, the vast
majority are seeking
ways to improve
their effectiveness.
Strongly agree
Lots of room for
improvement
Somewhat agree
Somewhat
disagree
Not sure
© 2013 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.
The Future of Governance
3

4. Q: Our services
governance group
effectively manages
risk on behalf of the
enterprise
In an increasingly regulated environment, risk
management needs to be a core capability of the
services governance function
Strongly agree
Lots of room for
improvement
52% of
respondents
indicated risk
management
was a gap in
their capabilities.
Somewhat
disagree
Somewhat agree
Not sure
© 2013 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.
The Future of Governance
4

5. Q: To what degree are you
currently using analytics in
the services governance
function?
A tale of two
cities…roughly half
of respondents are
leveraging the data
advantage while
the other half are
struggling to make
sense of it.
While everyone sees the value in analytics,
only 41% have taken steps to make it core
to the function
Core to our
function
Rarely
© 2013 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.
On a case by
case basis
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5

6. Q: The cloud will have a
significant impact on our
services governance
function
Is your organization prepared to govern cloudbased providers? Is your group leveraging the
cloud to improve the governance function?
Somewhat disagree
Not sure
Nearly two thirds
believe cloud will
have a significant
impact on services
governance.
Somewhat agree
© 2013 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.
Strongly agree
The Art of Services Governance
6

7. Q: Our Services
Governance function
currently leverages social
media effectively to
perform our role in the
enterprise
Yet more than two
thirds believe their
governance team
can improve greatly
in leveraging social
media.
Social media can be a powerful tool in identifying
and monitoring risk, engaging with business
stakeholders and vendors…
Somewhat agree
Not sure
Lots of room for
improvement
© 2013 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.
Somewhat
disagree
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7

8. Q: Our services
governance organization
has sufficient quantity
and quality of talent
required to effectively
execute on our value
proposition to the
business
Are you aligning your services governance
workforce to meet the business needs of tomorrow?
Strongly agree
Lots of room for
improvement
Somewhat agree
Only 29% are
confident they have
the “right” talent
on board.
Somewhat disagree
© 2013 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.
The Art of Services Governance
8

9. Disruptive forces that will likely impact services governance…
Data &
Analytics
Regulatory
Scrutiny
Social Media
Talent
Risk
Cloud
GBS 2.0
© 2013 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.
The Future of Governance
9

10. Value Drivers for the ‘Futurized’ Services Governance
Organization
© 2013 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.
The Art of Services Governance 10

11. To learn more about KPMG’s Governance Services Visit Us at:
http://www.kpmginstitutes.com/shared-services-outsourcinginstitute/insights/2013/governance-outsourcing-shared-services.aspx
© 2013 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.
The Art of Services Governance 11

12. Contact us:
Eugene M. Kublanov
Managing Director
KPMG Shared Services
and Outsourcing Advisory
Liz Evans
Managing Director
KPMG Shared Services
and Outsourcing Advisory
ekulanov@kpmg.com
erevans@kpmg.com
+1 (925) 918-2175
+1 (312) 953-4891
© 2013 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.
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