Editors’ Note

The recipient of numerous awards for professional achievement, Kathy Hannan was appointed Managing Partner of Tax Services for KPMG LLP’s Midwest area in February 2004. She also serves as the Chairwoman of KPMG’s Women’s Advisory Board, as well as the Cochair of the firm’s Diversity Advisory Board. Hannan began her career at KPMG in 1985 and was admitted to the partnership in 1994. She was promoted to Midwest Partner-in-Charge of International Services in 1996. In 1998, she was named Partner-in-Charge of KPMG’s Chicago Metro-Tax practice. Hannan was subsequently appointed to Vice Chair, Human Resources in December of 2000, and she also served as a member of the firm’s management committee and Global HR Steering Group and the Board of Trustees of The KPMG Foundation. Among other notable distinctions, in April 2004, Hannan was appointed to President Bush’s National Advisory Council on Indian Education. Hannan earned a bachelor’s degree in accounting and political science from Loras College in Dubuque, Iowa, and is a graduate of the Institute of Comparative Political and Economic Systems at Georgetown University.

Company Brief

KPMG LLP, the audit, tax, and advisory firm (www.us.kpmg.com), is the U.S. member firm of KPMG International. KPMG International’s member firms have 123,000 professionals, including more than 7,100 partners, in 145 countries.

Do you anticipate strong growth for KPMG’s tax services in the Midwest region?

Absolutely. I look at the Midwest as the eye of the world. We have a significant percentage of global businesses in the Midwest operating both inbound and outbound, and there is much diversity in the consumer and industrial markets. Such companies have complex business models, and they have a high demand for tax services, because of the ever-evolving regulatory environments around the world. So I’m very supportive of the opportunities for KPMG’s services. We have a full array of tax services, from an advisory and compliance standpoint, to deal with the issues global companies are facing in both their direct and their indirect taxes, including customs and duties, as they navigate through very complex legislative and regulatory matters. We are one of the leaders in tax risk management, which resonates with these companies.

Do KPMG’s business units work closely together from region to region?

We leverage our global footprint for the good of our clients. Our comprehensive strategy has four pillars, if you will, and one of them is global strength and consistency. So that’s a priority and a platform from which we operate. There’s a great level of connectivity among the member firms around the world, and we try to deliver a high-quality, consistent experience to our clients worldwide. We truly operate in a global vein.

How do you differentiate KPMG’s services from those of its competitors?

Because we can leverage the firm’s audit and advisory services, our goal is that our clients, as well as the capital markets, view us as the best of the Big Four accounting firms. We are recognized for our focus on professionalism and integrity. Our risk architecture is aligned with the approach of the most forward-thinking companies and is something that other enterprises may look to as a model. Within our tax practice, we have elevated standards.

In your career with the firm and in your outside involvements, diversity has been an issue close to your heart. Why is workplace diversity so important to a firm like KPMG?

Diversity, in my vocabulary, is not about being different; it’s about being dynamic. The most dynamic organizations are the most successful because they’re open to a variety of opinions and perspectives. The world is getting smaller, and we deal with people around the world as if they were just down the street. So in order to be successful, you have to be diverse. For every leadership role that comes up, we verify that women and other diverse candidates are considered. Our grassroots efforts are married to a top-of-the-house commitment to diversity, and that fosters our success. It’s not an HR initiative or simply “a nice thing to have.” Diversity is based on a compelling and sound business value proposition. We have to be diverse to face the global market. We talk about diversity at every opportunity, and we put out goals and challenge our leaders. We are committed to continuous improvement in this area.

As a Native American woman, I’m glad to say that this commitment to diversity isn’t something that KPMG has begun to embrace only recently. Sixteen years ago, right before I was made partner, I relocated from New York to Chicago, and I became pregnant within the first two weeks I was here. I never felt there were any barriers to my success because I was a woman. I always felt I had the same opportunities. I sat down with the managing partner for the tax practice in Chicago, and I told him how committed I was to being a partner. Instead of talking about my career, he asked me a few questions about my pregnancy, noting I was going to have my first child. I was getting frustrated thinking, “He doesn’t get how much I want to be a partner.” Finally, he picked up on it and said, “Kathy, I hear you. You want to be a partner. What difference does it make if you’re pregnant or not? Last time I checked, only women can have children.” That really stuck with me. So throughout my career, I have wanted to make sure that people are able to have that same kind of open, accepting experience. There’s no question that diversity is something KPMG stands for, and it’s an imperative for a number of reasons.

With so much responsibility riding on your shoulders, are you ever able to relax?

I don’t sleep! Actually, I find it absolutely necessary to establish priorities. It is imperative that I am very involved with my 15- and 12-year-old daughters’ activities. I am even a cheerleading coach for them. Also, I am involved in a variety of organizations in the community. I absolutely cannot get involved in something I’m not fully committed to, and I do have to say no to many things. Traditionally, women have a more difficult time saying no to commitments. But you have to understand where your limits are, because the worst thing you can do is be ineffective.