Case Study

Operating Model

September 2022

In this activity we want you to demonstrate essential skills such as analysing a concept,
understanding information, identifying the key issues, and being able to explain things in a simple,
understandable manner.
Case Study
Overview /
Candidate Brief

Part 1 – To be shared on Teams and/or emailed to candidate

Case Study Overview / Candidate Brief
From: [KPMG Partner]
Sent: Today
To: [You]
Subject: Exciting Opportunity – Your thoughts please!
Hi,

We have an exciting opportunity with one of our clients and I’d really like your help. We have a call with them in 30 minutes.

By way of background, this is a key client for us in the Aerospace and Defence sector. They are looking for assistance in the design of a target operating model for a new department/function within
their business.

I would be keen for you to lead the bid team to develop a response to the tender.

I’d like you to draft a response to the following questions (as I think the client may want to discuss these areas in the call) and email this to me. Of course, if you have any additional thoughts add
those too.

1. What approach would we propose to designing a new operating model (e.g. key activities / stages of work)? What are the critical constituent parts of an operating model?

2. What key skills would be required to progress this work?

3. What is the estimated cost of the work? (I’d use an average day rate of £2,000 per person (excluding VAT) - this average rate takes into account the different grade profile of the team. I think
there will be 30 FTE required to deliver the project over 20 months across 4 workstreams).

4. The first phase of work will require us to interview around 25 key stakeholders and report back key themes. What would you estimate to be the cost for this first phase and why? Please set
out the assumptions you have made in coming to this estimate (e.g. on the time taken to do various activities).

5. What else would we need to know before developing a response to the tender? This could be related to delivery, stakeholders and/or pricing.

Thank you so much for doing this, looking forward to seeing your notes shortly.

P.S. I’m sure you saw but Jill emailed the team a really nice article last week, in summary it noted that the way in which Defence operates is constantly evolving - informed and shaped by
government strategy and policy, advances in technology, climate change and global political events. This presents challenges for organisations operating in the Aerospace & Defence sector but
also opportunities for KPMG.

© 2022 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All
rights reserved.
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Document Classification: KPMG Confidential

Candidate
Response
Template

Part 1 – To be shared on Teams and/or emailed to candidate

Candidate Response Template
From: [You]
Sent: Today
To: [The KPMG Partner ]
Subject: Re: Exciting Opportunity – Your thoughts please!

Hi,

Thank you for the opportunity please see my notes below.

1. What approach would we propose to designing a new operating model (e.g. key activities / stages of work)? What are the critical constituent parts of an operating model? A collaborative
approach which focuses on the ambition of the new sector in the field and plays to the strength of the current business model.

a) Structure – That compliments and has proven success, a functional structure would work well which puts employees’ skills to work to maximize efficiency

b) Accountability – Inside the new department responsibility is allocated to individuals at different levels to encourage ownership

c) Governance – How employees held accountable to their stakeholders

d) Behaviours – An agile environment that encourages employees to work effectively

e) Processes – Use of proven work processes

f) Technology – capitalise on the adaptability technology now offers for growth

2. What key skills would be required to progress this work? – Previous experience creating new structures and implementing new processes. Communication, problem solving, planning, provn
delivery.

3. What is the estimated cost of the work? (I’d use an average day rate of £2,000 per person (excluding VAT) - this average rate takes into account the different grade profile of the team. I think
there will be 30 FTE required to deliver the project over 20 months across 4 workstreams). £28,800,000 (£2,400 (incl VAT x 30 = £72,000 per day x 400 days

4. The first phase of work will require us to interview around 25 key stakeholders and report back key themes. What would you estimate to be the cost for this first phase and why? Please set out
the assumptions you have made in coming to this estimate (e.g. on the time taken to do various activities). The cost for this first phase will be £24,000 – 25 stakeholder 2 hr interviews = 50 hrs of
work, between 2 interviewers working 5 hrs of interviews per day on £2400 (incl VAT) it will take 5 days. 5 x 4800 = £24,000

5. What else would we need to know before developing a response to the tender? This could be related to delivery, stakeholders and/or pricing. Whether there will be continued workstreams for
KPMG.

Kind Regards © 2022 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All
rights reserved.
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Sam Langford
Document Classification: KPMG Confidential
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Document Classification: KPMG Confidential