With the Covid-19 crisis, our clients have had to adapt to profound changes in the economy. Many sectors are restructuring; we have seen an increase in digitalisation, pressure on supply chains and more regulation. Companies are also taking more interest in environmental, social and governance (ESG) issues, driven partly by new EU reporting rules. At the same time, the Dutch economy has rebounded strongly following the pandemic.
These trends have created new opportunities for us. Over the past year, we have increased our work with the government and public sector. We are also seeing more demand from industries like financial services, healthcare, consumer & retail and energy & natural resources.
During 2020/2021, our Deals advisory practice grew significantly. Many deals were put on hold at the beginning of the pandemic; as economic growth returned, so did company appetite for new mergers and acquisitions.
In response, we have deepened our sector, ‘go-to-market’ approach, revamped our IT audit, launched digital marketing campaigns aimed at smaller private businesses, and focused more on our global suite of ‘Connected, Powered, Trusted’ services. We are also continuing to upgrade Sofy – a KPMG product that helps clients manage and analyse data in areas like governance, risk, compliance and tax management.
We are also taking a systematic and targeted approach to MFRs, or Mandatory Firm Rotation – the requirement for public companies to ‘rotate’ their audit firm at least once every ten years. Over the past year, we’ve seen companies change auditors more frequently. Legally, we cannot work with the same listed client on both audit and advisory – there are, however, plenty of opportunities for both our main business lines. In 2020/2021, we won all but one of the MFRs we took part in – companies cited the quality of our teams and our digital audit approach as reasons for choosing KPMG.
Connected is about rebuilding your business around your customers to create a borderless organization, where people, data and technology interact for new levels of productivity and value creation.
Powered is about harnessing the latest technologies, leading business practises and tested solutions for a smarter, faster path to nimble, scalable business functions and the right operating model.
Trusted is about embeding a balanced approach to risk and regulation into your transformation journey, securing the stakeholder confidence that enables responsible growth, bold innovationo and high performance.
Client satisfaction – the degree to which clients are satisfied with our services
Net Promoter Score (NPS) – a measure of customer loyalty, based on whether clients would recommend our services
In 2021, we saw a further increase in client satisfaction, driven mainly by an increase for our advisory business. NPS remained stable. We continue to develop initiatives to reach our strategic goal for our clients pillar: a unique service experience.
Over the past year, we supported NOW – the Dutch government’s financial bridging programme for companies affected by the Covid-19 crisis. We also helped develop protocols for the Netherlands’ vaccination roll-out and the creation of a Covid-19 dashboard to give policymakers better insight into how the pandemic was evolving. Our work is part of a KPMG healthcare practice that has been growing steadily over the past ten years in both Advisory and Assurance – worldwide, we now have more than 5,000 professionals working with the healthcare sector.
Over the past year, we have seen strong growth in ESG & Sustainability as more companies are integrating environmental and social issues into their processes and strategies – it is a trend that accelerated during the recent Covid-19 pandemic. Our Sustainability practice – the first to be created in the Netherlands – focuses on areas such as reporting, climate risk, circular economy, sustainable finance and supply chain transparency. We are also working with more companies on data management, target-setting and ESG-reporting – particularly with the introduction of the EU’s new Corporate Sustainability Reporting Directive (CSRD) from the beginning of 2023. In October, KPMG announced worldwide investments of USD 1.5 billion in ESG services; the investments include training for all KPMG employees, expanding services on climate risk and decarbonisation, developing new technologies and supporting poorer countries in line with the UN Sustainable Development Goals (SDGs). In all areas, our ESG & Sustainability teams work closely together with the KPMG network.
- 1 Based on the international definition for NPS: percentage of promoters minus percentage of detractors. Promoters are those clients ‘very likely’ to recommend KPMG. Clients who said it was ‘very unlikely’ or did not provide an answer are classified as detractors. Clients responding ‘likely’ or ‘neither /nor’ are identified as passives and are not included in the calculation. By measuring loyalty rather than satisfaction, NPS is believed to be a better measure of future sales.
- 2 The Temporary Emergency Bridging Measure for Sustained Employment (in Dutch, Tijdelijke Noodmaatregel Overbrugging voor Werkbehoud, or NOW).