Philip Davidson, Global COO of KPMG, discusses achieving alignment in a global organization. They explore the tension between autonomy and belonging, referral and quality issues, the role of a global COO in a federated partnership, and mechanisms for consistency and accountability.
Global organizations strike a balance between local autonomy and global collaboration, promoting growth while ensuring consistency.
The governance structures in federated partnerships like KPMG enable global consistency, accountability, and quality control.
Deep dives
The Global-Local Paradox and the Human Urge for Individuation and Validation
The podcast episode explores the timeless paradox of achieving alignment across local offices in a global organization. This paradox mirrors the individual struggle for identity and autonomy versus the need for validation and belonging. Professionals in global organizations seek autonomy and self-actualization while desiring to be part of a collective. The tension between these two desires is resolved through the governance structures, performance management systems, and cultural norms that promote collaboration and knit autonomous professionals into a collective whole.
Balancing Local Autonomy and Global Collaboration
In the podcast, Philip Davidson, the global COO of KPMG, discusses how global organizations strike a balance between local autonomy and global collaboration. The growth and entrepreneurial spirit of member firms at the local level drive overall growth for the organization. However, certain areas, such as quality and technology investment, require collaboration at the regional and global levels. While giving member firms freedom and latitude, KPMG ensures collaboration in key areas to deliver consistent quality and meet stakeholders' needs. The organization constantly evaluates and adjusts this balance, seeking a harmony between local entrepreneurialism and global alignment.
Enhancing Consistency and Accountability in a Federated Partnership
The episode delves into the governance structures that enable global consistency and accountability in a federated partnership like KPMG. The global board, represented by country senior partners, plays a crucial role in setting goals and assessing individual partners' performance. The global management team, led by the COO, ensures these goals are cascaded and implemented across the organization. Additional controls, such as reporting quality metrics, testing organizations, and layered defense mechanisms, prevent quality lapses and maintain accountability within the partnership. KPMG's governance evolution over the past years emphasizes the importance of balancing the strengths of a federated network with the need for consistent quality and governance.
In a global professional organisation, how do you achieve alignment across national offices? Empson outlines one powerful method – social control – and Morley explores his experience of leading partners through the process of global integration. They talk to Philip Davidson, currently Global COO of KPMG about exercising power while walking the global/local tightrope.