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Governmentexecutive
responsetoCOVID-19An approach to sustained recovery and
resilience beyond the crisis
A roadmap for executive action
COVID-19 is impacting our society at every level and state, county, and city governments are at the front lines of keeping
the public safe. While government executives are in the business of managing crisis, from natural to man-made including
biological, the speed and impact of COVID-19 places even greater strain between responding to crisis while sustaining
essential services to communities.
We see executive leaders putting people first in this crisis, both their workforce and the constituents they serve. While states
and localities manage public health, public safety, and public infrastructure during this period of crisis, we offer a roadmap to
guide executive thought and action beyond the immediate crisis as further fiscal and operational challenges accelerate.
In a time of crisis, government executives at all levels must portray a calm yet forthright style of leadership – acting
decisively at speed, staying rational about the near term, and thinking ahead to those challenges that lay on the horizon
and into a period of ‘new normal’ – Ian McPherson, Performance & Operations Leader for Government & Infrastructure
3. Cash
Develop a 30/60/90-day crisis cash flow plan,
accounting for existing reserves, working capital
facilities, timing of federal or state infusions,
and sensitivity stress-tests by revenue source.
Identify quick ways to pause purchases and
delay cash outflows to third-parties where
contractually feasible and appropriate.
4. Cost
Develop a 6/12-month cost containment plan
around aligning hiring/staffing and capital/
operational spending to cash on a rolling-
forecast basis. Optimize services/assets to
rapidly generate tangible savings and revenues,
operating efficiencies, and exploit automation 	
to increase the impact of your workforce on
your Community.
2. Capacity
Balance available/remaining resource capacity
and service level expectations over 6/12-month
and 12/18-month horizons, maximizing
alternative models of response. Virtual/online
service and triaging/grading of requests will
be critical in all functions, as will flexing staff,
contracts, partners, and resources across
functions to meet shifting community needs.
1. Community
Engage communities virtually to convey the
challenge of the crisis, the rebalancing of
operational capacity, and the necessary trade-
offs in level of service they will experience.
Disseminate clear indicators of success or
challenge, and ask well-informed/engaged
constituencies to be part of the recovery.
© 2020 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.
Our guide to navigating the crisis in both near and medium term consists of four dimensions, all centered around your People –
your constituents, your consumers, and your workforce. While the “tunnel-vision” effect of a crisis can be all-consuming, we know
government executives must challenge their senior teams to think beyond tactical responses to plan for recovery, rebalancing, and
restoration of both essential and discretionary services that make a state, region, or locality a great place to live, work, play and grow.
People
The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to
provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the
future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation.
The KPMG name and logo are registered trademarks or trademarks of KPMG International.
© 2020 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. DASD-2020-1378
Some or all of the services described herein may not be permissible for KPMG
audit clients and their affiliates or related entities.
kpmg.com/socialmedia
The journey from crisis to stabilization to strength in a “new normal”
As uncertain Cash and increased Cost put further strain on Capacity to serve your Community, a journey through the unfolding crisis
to community stabilization and recovery is needed – along with recognition that we may return to a different environment than we left.
Critical on this journey is recognition of the actions to mitigate the timing of decline and recovery on more variable revenue sources (i.e.
consumption, occupancy, sales, usage) versus more stable sources of revenue (i.e. ad-valorem property tax).
Pre-crisis challenges Response Stabilization Recovery New normal
Action Areas Months 1-3 Months 4-12 Months 12-18+
EOC & crisis comms. activation
Workforce safety&
mitigation measures
30/60/90-day
cash plan
Fiscal stress
testing &
spending/hiring
freeze Essential services
triage/continuity
mode
6/12-month cash/
revenue rolling-
forecasts
6/12-month plan to optimize
cost, efficiency & revenue
opportunities
Flexing of staff/
resources
dynamically 	
to demands
Community indicators
show signs of strength
Leveraging of
community to
accelerate recovery
Stabilization
reserves replenished
to foster resilience
Investment
in enhanced
automation/
optimization
More flexible &
resilient organization
emerges, ready for
the next shock
—— Scaling efficiently to meet
resident growth
—— Costs and mandates
outpacing revenues
—— Increasing frequency of
disaster events
—— Workforce turnover,
attraction, development
—— Outdated technology
causing inefficiency
—— Suboptimal use of
available resources
—— Public demand for online
service options
The crisis emerges,
well-exercised structures
respond, fiscal stress-
testing occurs, and “triage/
continuity mode” for
essential services begins
as Cash tightens and the
Community requires 	
acute support.
The crisis begins to stabilize, a well-structured plan to optimize
Cost and Capacity guides executive decision-making, virtual
services and working are leveraged from existing systems/
investments, and culture shifts to a more flexible/dynamic
workforce that maximizes Community impact virtually and 	
with markedly tighter Capacity. The Community begins to 		
show capacity to help engage in further recovery efforts,
moving overall indicators of community resilience to a more 	
positive result.
The period of “new normal” begins
with reserves replenished and further
investment in service automation
and resource optimization – driving
a stronger, more flexible and more
virtual organization that is more
resilient and ready to overcome the
inevitable next challenge.
Virtualized services &
workforce experience
Capacity to
serve your
Community
COVID-19 Public
Health Surveillance
We standby to accelerate your journey
KPMG is committed to state and local government through their most challenging times as they serve the needs of their
communicates. The KPMG difference lies in our people, our passion, our insights and tools, but most of all our tested track-record
of results – a 10:1 return on investment in the form of $100m+ in savings and measurably improved services across our recent
clients. We are a corporate sponsor of the National Governors’ Association (NGA) and National Association of Counties (NACo). We
bring decades of combined experience as former public servants and professional consultants to bring about tangible change through
a collaborative, results-oriented, data-driven approach. We help our clients improve their performance and operations in terms of
outcomes, quality, speed, service, efficiency and cost. We utilize world-class, advanced analytics, tested operational change methods,
and a collaborative and culturally-mindful approach to enhance results in a sustainable way in the government sector – from Public
Safety to Public Health to Public Works.
Contact us
Ian McPherson
Principal
M: 720-485-7276
E: iamcpherson@kpmg.com
Bill Zizic
Managing Director
M: 12-259-2869
E: wzizic@kpmg.com
People

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Kpmg government executive response to covid19

  • 1. Governmentexecutive responsetoCOVID-19An approach to sustained recovery and resilience beyond the crisis A roadmap for executive action COVID-19 is impacting our society at every level and state, county, and city governments are at the front lines of keeping the public safe. While government executives are in the business of managing crisis, from natural to man-made including biological, the speed and impact of COVID-19 places even greater strain between responding to crisis while sustaining essential services to communities. We see executive leaders putting people first in this crisis, both their workforce and the constituents they serve. While states and localities manage public health, public safety, and public infrastructure during this period of crisis, we offer a roadmap to guide executive thought and action beyond the immediate crisis as further fiscal and operational challenges accelerate. In a time of crisis, government executives at all levels must portray a calm yet forthright style of leadership – acting decisively at speed, staying rational about the near term, and thinking ahead to those challenges that lay on the horizon and into a period of ‘new normal’ – Ian McPherson, Performance & Operations Leader for Government & Infrastructure 3. Cash Develop a 30/60/90-day crisis cash flow plan, accounting for existing reserves, working capital facilities, timing of federal or state infusions, and sensitivity stress-tests by revenue source. Identify quick ways to pause purchases and delay cash outflows to third-parties where contractually feasible and appropriate. 4. Cost Develop a 6/12-month cost containment plan around aligning hiring/staffing and capital/ operational spending to cash on a rolling- forecast basis. Optimize services/assets to rapidly generate tangible savings and revenues, operating efficiencies, and exploit automation to increase the impact of your workforce on your Community. 2. Capacity Balance available/remaining resource capacity and service level expectations over 6/12-month and 12/18-month horizons, maximizing alternative models of response. Virtual/online service and triaging/grading of requests will be critical in all functions, as will flexing staff, contracts, partners, and resources across functions to meet shifting community needs. 1. Community Engage communities virtually to convey the challenge of the crisis, the rebalancing of operational capacity, and the necessary trade- offs in level of service they will experience. Disseminate clear indicators of success or challenge, and ask well-informed/engaged constituencies to be part of the recovery. © 2020 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. Our guide to navigating the crisis in both near and medium term consists of four dimensions, all centered around your People – your constituents, your consumers, and your workforce. While the “tunnel-vision” effect of a crisis can be all-consuming, we know government executives must challenge their senior teams to think beyond tactical responses to plan for recovery, rebalancing, and restoration of both essential and discretionary services that make a state, region, or locality a great place to live, work, play and grow. People
  • 2. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. The KPMG name and logo are registered trademarks or trademarks of KPMG International. © 2020 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. DASD-2020-1378 Some or all of the services described herein may not be permissible for KPMG audit clients and their affiliates or related entities. kpmg.com/socialmedia The journey from crisis to stabilization to strength in a “new normal” As uncertain Cash and increased Cost put further strain on Capacity to serve your Community, a journey through the unfolding crisis to community stabilization and recovery is needed – along with recognition that we may return to a different environment than we left. Critical on this journey is recognition of the actions to mitigate the timing of decline and recovery on more variable revenue sources (i.e. consumption, occupancy, sales, usage) versus more stable sources of revenue (i.e. ad-valorem property tax). Pre-crisis challenges Response Stabilization Recovery New normal Action Areas Months 1-3 Months 4-12 Months 12-18+ EOC & crisis comms. activation Workforce safety& mitigation measures 30/60/90-day cash plan Fiscal stress testing & spending/hiring freeze Essential services triage/continuity mode 6/12-month cash/ revenue rolling- forecasts 6/12-month plan to optimize cost, efficiency & revenue opportunities Flexing of staff/ resources dynamically to demands Community indicators show signs of strength Leveraging of community to accelerate recovery Stabilization reserves replenished to foster resilience Investment in enhanced automation/ optimization More flexible & resilient organization emerges, ready for the next shock —— Scaling efficiently to meet resident growth —— Costs and mandates outpacing revenues —— Increasing frequency of disaster events —— Workforce turnover, attraction, development —— Outdated technology causing inefficiency —— Suboptimal use of available resources —— Public demand for online service options The crisis emerges, well-exercised structures respond, fiscal stress- testing occurs, and “triage/ continuity mode” for essential services begins as Cash tightens and the Community requires acute support. The crisis begins to stabilize, a well-structured plan to optimize Cost and Capacity guides executive decision-making, virtual services and working are leveraged from existing systems/ investments, and culture shifts to a more flexible/dynamic workforce that maximizes Community impact virtually and with markedly tighter Capacity. The Community begins to show capacity to help engage in further recovery efforts, moving overall indicators of community resilience to a more positive result. The period of “new normal” begins with reserves replenished and further investment in service automation and resource optimization – driving a stronger, more flexible and more virtual organization that is more resilient and ready to overcome the inevitable next challenge. Virtualized services & workforce experience Capacity to serve your Community COVID-19 Public Health Surveillance We standby to accelerate your journey KPMG is committed to state and local government through their most challenging times as they serve the needs of their communicates. The KPMG difference lies in our people, our passion, our insights and tools, but most of all our tested track-record of results – a 10:1 return on investment in the form of $100m+ in savings and measurably improved services across our recent clients. We are a corporate sponsor of the National Governors’ Association (NGA) and National Association of Counties (NACo). We bring decades of combined experience as former public servants and professional consultants to bring about tangible change through a collaborative, results-oriented, data-driven approach. We help our clients improve their performance and operations in terms of outcomes, quality, speed, service, efficiency and cost. We utilize world-class, advanced analytics, tested operational change methods, and a collaborative and culturally-mindful approach to enhance results in a sustainable way in the government sector – from Public Safety to Public Health to Public Works. Contact us Ian McPherson Principal M: 720-485-7276 E: iamcpherson@kpmg.com Bill Zizic Managing Director M: 12-259-2869 E: wzizic@kpmg.com People