KPMG Consulting Developing a Knowledge - Creating Organization A Case Study in Process KM World Santa Clara, CA September 14, 2000 Melinda J. Bickerstaff Director, eWorkforce Solutions Group Renee A. Massoud Director, Research Strategies

KPMG Consulting Delivering the best products and services ---offerings that push performance boundaries Delivering solid products and services at the best price and with the least inconvenience Cultivating relationships to gain customer knowledge Delivering what specific stakeholders want Employee Capability Operational Excellence Product/Service Leadership Customer Intimacy Leveraging human intellectual capital in service design and delivery How Does Knowledge Management Create Value?

KPMG Consulting The Four Value Propositions are Built Around Entirely Different Operating Models Product Leadership Concept invention, product development, market exploitation Ad hoc, organic, loosely knit, and ever-changing High skills abound in loose-knit structures Rewarding individuals' innovative capacity and new product success Managing risk Concept push Experimentation and "out- of-the-box" mindset Emphasize breakthroughs Customer Intimacy Solution development, results management, relationship management Empowerment close to customer contact High skills at boundary of the organization Customer equity measures like life time value and share-of client Managing outcomes Relationship push Flexibility and "have it your way" mindset Emphasize complete solutions Organization and structure Organization and structure Management systems Management systems Culture: mindsets and behavior Culture: mindsets and behavior Operational Excellence Product supply, basic service, demand management Central authority, finite level of empowerment High skills at the core of the organization “Command and control”, standard operating procedures Managing total quality Process push Conformance, "one size fits all" mindset Emphasize efficiency and dependability Core business processes Core business processes Employee Capability People development, expertise enhancement, performance management Empowerment on work teams High skills at all levels Rewarding demonstrated applications of individual and team expertise Managing learning and development Learning push Resilience and growth mindset Emphasize development

KPMG Consulting Scope 100,000+ staff Global knowledge sharing 100+ countries 23 industry groups 20 products Benefits Supporting KPMG strategy More enabled & quicker decision making Increasing revenues & margins Higher client value added through greater innovation & synergy Quality of life - staff more effective Leveraging of corporate expertise Sponsorship & leadership Multidisciplinary, global team Stretch targets Rapid realization in phases Technical platform built & rolled out in 18 weeks KPMG’s Global Knowledge Management Program - 4 -

KPMG Consulting KWorld Collaboration External broadcast KPMG.COM Quality assessment Value assessment Security Taxonomy assignment Channel assignment Content screen Research Rules, heuristics, guideline, process flow Aggregate, focus, direct, prioritize Internal and external commentary Insights, interpretation and analysis Filter, aggre- gate, sort Data center Industry, research, technical Work products Practice specific KWorld Architecture & Process Global Knowledge Exchange news feeds External Content KPMG Content Knowledge Manager - 5 -