Industries serves an important role at KPMG, as it pertains to client service and market development. KPMG's Industries organization comprises eight Lines of Business (LOBs), 19 Sectors, and 33 Segments. Our LOB structure was formed more than a decade ago in response to opportunities we saw in the marketplace to better serve our clients, and it has been a critical element of the firm since then.

The Industries organization is cross-functional in nature and helps to support our Audit, Tax, and Advisory businesses. Each professional in the firm is encouraged to develop an industry focus and continue to build their industry skills as they progress through their career. Moving forward, Industries activities will help ensure that all our professionals have the requisite industry knowledge and competence to deliver our core service offerings in the industry sectors or segments in which we have clients. This is critical to achieve our risk management objectives, provide exceptional client service, and enhance our ability to retain and attract top talent and quality clients.

Understanding a client's industry and other unique aspects pertaining to a company (such as specialized accounting or tax rules, operating model, key risks) is an important ingredient in the delivery of quality services.

For example, loan portfolio valuations might be a key audit issue in a banking organization, but not in an oil and gas organization, or there may be specific tax issues relating to the media industry that do not broadly apply to other industries, or certain industry business trends might impact the delivery of our advisory services differently in certain industries.

While functional skills are certainly valued, they may be assumed by our clients to a large degree. Industry skills, however, are a differentiator, and industry knowledge can help position KPMG as the firm that can offer unique knowledge, insights, and advice around key issues. Embedding industry knowledge firmwide is also central to maintaining our relevance and competitive position in the marketplace.

Indeed, one of the things that make KPMG a great place to build a career is our focus on industry depth, with the attendant mentoring, training, and skills development that help every partner and professional turn information into insights.

Currently, deep industry knowledge is being incorporated strategically into our functional and cross-functional training venues and other channels to share industry knowledge. This ultimately will help improve the delivery and quality of our Audit, Tax, and Advisory services.