Barry Salzberg demonstrates the art of the dodge: Are the Big Four audit firms too […]
As we’ve mentioned, it’s the first week of the new (fiscal) year at Deloitte which means people are getting antsy and your new leaders are starting to get acclimated to their new titles, repsonsibilities and whatnot. One of the most important decisions that new global CEO Barry Salzberg will have to make is whether or not he jumps into the Twittersphere. His predecessor, Jim Quigley, has quit Twitter without getting all dramatic about it, saying, “My CEO tenure concludes today. Enjoyed trying Twitter. Thanks for following my updates. Stay connected w/ Deloitte @deloitte. Regards, Jim.”
So now that @DeloitteCEO is no longer in use, it seems to be a shame that the ol’ Salz decided to not to use it as a Twitty pulpit but we realize it’s not for everyone. However, being the charismatic mustachioed man that he is, I think he’d probably be able to get the hang of it pretty quickly. And if he needs some pointers, he can always consult Adrienne’s Twitter case studies.
My only advice is, don’t get too sensitive on us.
Barry Salzberg will be the next global CEO of Deloitte, according to a statement released by the firm today. Of course, if you’ve been following our coverage of the controversy around the election process at Deloitte, then you already knew that this was coming. As you know, this election was an all or nothing deal and with Salzberg taking the reigns from Jim Quigley on June 1, Joe Echeverria will be the new U.S. CEO and Punit Renjen will assume the Chairman’s role vacated by Sharon Allen.
The always quote-worthy (at least in the context of a Deloitte press release) Dr. Phil said he was “humbled by the confidence that the network has placed in my leadership during this historic time.” He also had some kind words for predecessor, “Over the years, I have worked closely with Jim Quigley and admired his commitment to our strong global culture and shared values, which have brought us to our preeminent position in the marketplace today.”
So congrats to Mr. Salzberg on the promotion (and surviving the coup d’etat). Feel free to leave your well-wishes or other thoughts on the matter in the comments below.
Deloitte CEO Barry Salzberg did a little sit down with the Journal and made it perfectly clear that he’s shopping for another acquisition. The BearingPoint transition seems to have gone as well as Dr. Phil could have asked for and now he’s ready to move on to the next one.
Mr. Salzberg declined to name specific future targets, but said he sees opportunities to build scale in areas including environmental and technology consulting.
“I would be very willing to make another and very willing to position ourselves properly for the right kind of acquisition or a combination in the market.”
The Journal article mentions the recent rumors around Booz & Co. merging with A.T. Kearney but BS wasn’t that hot on the idea (even though D could take
both either of them no prob) saying that they aren’t, “‘as high a priority for me’ as other opportunities.”
Plus, Salz is hoping that he can offering something tangible for a change rather than just billing all your hours out, “He cited a newsletter, or ‘information services,’ as an example of something that isn’t as labor-intensive as consulting but provides a complementary service to clients. Such a business ‘isn’t as dependent on the hourly production of people,’ he said.”
No target is too big or too small, according to Salzberg but like we mentioned, he’s not naming names. So let’s try and read his mind a little bit, throwing caution to the wind – McKinsey? DiversityInc Magazine? The Hair Club for Men?
Suggestions, sincere wishes and wild-ass guesses are welcome.
What a relief. We were really concerned that we would get half way through March without hearing about a list of companies being good at something that included the Big 4. Fortunately, DiversityInc comes to our rescue today with their list of Top 50 Companies for Diversity for 2010.
Aaaand as you might ex all present and accounted for, although some firms may wish to be higher(?). How does one determine success on these lists? Just being on it? Making the top ten? Is it an honor just to participate in the survey?
Speaking of the survey, the website describes the methodology so you can get an idea of how this particular jumble falls together. The survey is broken down into four areas:
• CEO Commitment
• Human Capital
• Corporate and Organizational Communications
• Supplier Diversity
Digging further, we found more details:
The survey consists of more than 200 empirical questions (no subjective or qualitative information), which have predetermined weightings. Ratios between key factors, such as demographics of managers compared with managers who received promotions, play a significant factor in determining point scores. Companies must score above average in all four areas to earn a spot on the list. CEO Commitment is the most heavily weighted area because if a company lacks visible leadership, its diversity-management efforts will fail to be a priority.
SO! While this explains some things, it certainly brings up more questions. Since we spend the majority of our day perusing the web for every instance of Big 4 CEOs simply breaking wind, we’d like to think that any “CEO Commitment” as it relates to diversity would be noticed by us or our team of monkeys that work around the clock.
That being said, we’d be hard pressed to find a bigger diversity go-getter than Deloitte’s CEO Barry Salzberg. The man is tirelessly pursuing diversity at every waking moment. Even after Deloitte announced its freshly minted Chief Diversity Officer, Bar gave a speech earlier this week on as part of the DiversityInc festivities demonstrating that he’s still on this.
So then, our question is, how does Ernst & Young rank 5th, PwC 6th, KPMG 15th and Deloitte bring up the rear at 25th?
Perhaps the other firms display diversity fliers with their CEOs mugs on them to serve as constant reminder to all employees of the diversity in their firm but if CEO commitment is measured by MSM talking points, how does anyone beat Barry Salzberg? The only thing we can think of is there is some sort of secret anti-male pattern baldness bias at DiversityInc that quietly knocks Deloitte down the list. Sure Dennis Nally is slowly going Costanza there but Moritz in the tighty-whities probably made up for it.
So the efforts of Deloitte’s diversity commitment are rewarded but did they get the recognition they deserved?
But this time it is called, “Diversifying Business Standards” and he’ll be touching on a number of issues that don’t have anything to do with with the “218 reprimands for failure to meet mandatory training requirements” (which may or may not include mandatory diversity training).
And we’re guessing he won’t make reference to the Chief Diversity Officer because if you don’t happen to have one, it’s simply impossible to be a diverse company.
Oh, and never mind the whole H-1B controversy at Deloitte Consulting. That will blow over.
This particular chat will be going on at the DiversityInc’s “How Global Diversity Impacts the Domestic Diversity” event that is going on Washington, DC next week. The agenda indicates that the speech will address the following issues:
What are global values? What are emerging global standards for accountancy? What standards should companies meet in every country? How can you get your top leadership to understand that diversity efforts must be global?
Now if you are able to understand these questions, please inform us of their meaning because we’re a little lost.
Will the speech be about global values for accounting firms? Are global diversity standards the next thing that will be converged? If so, we’ll remind you that the whole accounting convergence thing hasn’t gone so well. How do you think global diversity rules will work out?
Will the top leaders in companies need to attend training about global diversity first before they understand that world is diverse? Apparently some men at Deloitte don’t understand women yet, how the hell are they going understand someone in another country that might be across an ocean?
Deloitte CEO to Speak at DiversityInc Event [DiversityInc]
We kid, we kid. Deloitte would never want to ruin spring break but they are giving a few students an alternative to drinking themselves blind for a week and possibly getting a bad case of crabs.
The firm is teaming up with the United Way and Teach for America for the third consecutive year to offer “Maximum Impact: Deloitte Alternative Spring Break”.
We’ve got no idea if all the slots are filled up but since one of them starts this Saturday you best get on this if your Cancun plans have fallen through:
• March 6 – 12 — Deloitte and United Way will co-host 50 students from approximately 30 colleges and universities along with 20 Deloitte professionals during a week of hands-on and skills-based volunteerism in Atlanta, Georgia. Students will work to enhance childcare centers, refurbish playgrounds for low-income youth, guide students in college exploration and promote literacy in children.
• March 14 – 18 — Deloitte and Teach For America will co-host 25 students from six colleges and universities along with 20 professionals from Deloitte and Teach For America for a week of education-centered volunteerism in Baton Rouge, Louisiana. Volunteers will spend time working with schools and local students who face the challenges of educational inequity through projects that include improving campuses, developing classroom lessons and helping with class preparation work.
You better get on this ASAP if you’re interested since only 75 students and 40 professionals get to participate. The problem for current Deloittians is most of you are eyeballs deep in busy season anyway so this isn’t an option. So does this mean that non-busy season types like Jim Quigely, Barry Salberg, and Punit Renjen will be in attendance? And if so will they be sporting new board shorts for the pool time they are able to squeeze in?
How’s your Thursday morning going Sons and Daughters of Deloitte? Busy? Swamped, you say? Thought so. Well, whatever it is, it can wait.
YES. IT. CAN.
Barry Salzberg needs your full and undivided attention to an important matter today: compliance with internal policies, specifically independence and ethics. During the throes of busy season, you adherence to these important values must not waiver.
Are you trading in client stock in your Scottrade account? Ghost-ticking workpapers? Ramming meaningless numbers into that tax return? Stop it right now. Bar knows that sometimes you can’t just help yourselves, so he dropped a little reminder into your inbox this morning (we were told) with the subject “A must-read for everyone”.
Today, we have an important challenge that we simply cannot ignore. Our level of compliance with our internal policies – specifically our independence and time reporting policies – is not where we need it to be.
Please take a few minutes to read Beyond the Numbers: Our Independence, Ethics & Compliance Imperative from Mike Zychinski, our Chief Ethics and Compliance Officer. The report, which I consider to be a must-read for everyone, addresses concerns from our regulators, what we are doing as an organization to address them, and what you can do to meet your individual compliance requirements.
When it comes to issues of compliance, we must meet the expectations of our clients and regulators. What’s more, we must fulfill our own high expectations of ourselves. Thank you for taking a few minutes to read the report and for your focus on meeting your individual compliance requirements.
Bolding is ours. After this email, a 2,100 (give or take) word report follows from Chieftain of Ethics Mike Zychinski. Despite the high standard that Deloitte holds you to — higher than the SEC, PCAOB, and the AICPA, we might add — this happend, “Based on our own reviews and that of the PCAOB, we believe compliance with our independence policies is not what it should be, and the PCAOB has, in fact, questioned our commitment to adhere to our own policies. This is clearly not acceptable.”
Our contributor Francine McKenna reminded us that Deloitte didn’t think too much of the PCAOB’s report from last year, “They [are] the same firm that famously responded to the PCAOB’s latest inspection report, ‘How dare you second guess us?‘”
Based on the following list of reprimands, perhaps the PCAOB has a leg to stand on?
Four hundred seventy-five total reprimands were issued for noncompliance issues, including:
31 reprimands for independence-related violations of SEC or AICPA rules
174 reprimands for noncompliance with Deloitte independence policy
218 reprimands for failure to meet mandatory training requirements
45 reprimands for CPE noncompliance
7 reprimands for noncompliance with Deloitte CPA Licensing policy
Is 475 a lot or a little? An improvement from last year or is it worse? We’re not really sure. We haven’t received any comment from Deloitte and their Transparency Report doesn’t have more details. But since Barry Salzberg never seems to be satisified with anything, we’re guessing you can do better.
“[A]t Deloitte we began planning for the downturn and beyond in 2006. Not having a crystal ball, we didn’t anticipate such a violent contraction.”
~ Barry Salzberg, CEO of Deloitte.
Barry Salzberg didn’t waste any time addressing all the belly aching over the H-1B controversy. Yesterday, Deloitte announced the appointment of John Zamora as Chief Diversity Officer and we expect all the complaining to subside by the end of the week.
We like this move. Dr. Phil simply cannot be expected to be out there 24/7 developing training sessions that nobody attends, doing interviews, and keeping up the general free-wheeling on his own. And if someone isn’t out there doing all those things, no one — we mean NO ONE — is going to think that Deloitte is diverse. Constant bombardment of diversity initiatives and efforts is the only way. Solution? Chief Diveristy Officer John Zamora.
Full press release after the jump.
NEW YORK, Jan. 19 /PRNewswire/ — Deloitte today announced the appointment of John Zamora to the position of chief diversity officer. Zamora will be responsible for Deloitte’s diversity strategy and will lead its continuing efforts to attract, retain and develop the best talent in the marketplace.
“John brings 20 years of professional services experience to this position along with the passion, energy and commitment to lead our organization’s diversity and inclusion initiatives and inspire others in the industry,” said Barry Salzberg, chief executive officer, Deloitte LLP. “I am confident in John’s ability to sustain and advance Deloitte’s inclusive environment, where the brightest are valued for their ideas and contributions to each other, our clients and our culture.”
Zamora currently works with clients in the Real Estate and Tourism, Hospitality & Leisure industries and is the operations leader for the Southeast region. He will continue in this role in addition to serving as chief diversity officer.
“Diversity is the foundation of Deloitte’s competitive business advantage,” said Zamora. “In the global marketplace today, diversity of thought, backgrounds and experiences are at the core of an organization’s ability to build high performing teams that deliver outstanding results to our clients and our people. As chief diversity officer, I plan to further Deloitte’s longstanding commitment to diversity and fostering an environment where the industry’s highest caliber of diverse talent can achieve their personal and professional goals.”
Somehow we missed Barry Salzberg’s latest masterpiece on leadership from last week and since you’ve all checked out, we’re sure you won’t mind.
When asked “Who was the best business leader of 2009?”, Dr. Phil — using every fiber of his being not to nominate himself — chose “Do-right employees”. It’s not about the BSDs of the world. It’s those of you that manage to not sit bare-assed on the copy machine and resist the urge to watch porn on your work computer. You’re the leaders setting the example:
Rather than single out a best business leader, I’d recognize the many unsung ethical heroes in our organizations. I’m talking about people who, even when no one is watching, consistently do the right thing. And they’ve been doing it at a time when confidence in business urgently needs to be restored.
Not only are you restoring confidence (?) in business, you’re going to lead us the charge into this recovery:
As we prepare our organizations for the upturn, we also need to prepare our people for the uptick in wrong-doing that can accompany better times.
First of all, what is this “upturn” you speak of? Also, Costanza-stache: “uptick in wrong-doing accompany better times”? Just what the hell is all this accounting fraud talk? Or how about executives’ bad attitudes about its employees? Or everything else?
Apparently you need to get even more vigilant people! This ship is turning around and wrong-doing is really going to take off. We need you more than ever.
Do-right employees [Washington Post]
Barry Salzberg took time from talking up
his chief rival for the Global CEO spot the new Deloitte Consulting CEO to write a piece for the Washington Post about how corporate philanthropy is alive and well.
You’re probably aware that this isn’t Dr. Phil’s first foray into virtual print. Not only has Salz given imaginary advice to the POTUS but he also did a “freewheeling” piece for Fortune on volunteerism.
The latest WaPo piece rings the same charitable note (although it’s considerably less freewheeling) and reminds everyone that not only will Deloitte continue to cut checks, they will also provide “skilled volunteers.” This is clearly part of the ongoing effort to not be seen as a giant faceless, professional services firm but a giant professional services firm that has mustache that may have buried treasure in it and a clean scalp that you can barely resist rubbing for luck.
Now while these “skilled volunteers” could possibly include the best and brightest giving NPOs the lowdown on double-entry accounting, you’ll note that the piece is entitled “Getting our hands dirty”.
Since it’s probably been many moons since the big guy has looked at a spredsheet — and he doesn’t really strike us as the type of guy to speak in metaphors — we’ll assume that he’s literally getting his hands dirty. That being said, we definitely envision something with a tool belt and possibly coveralls with an expertise in drywall or indoor plumbing.
If you’ve got thoughts on Dr. Phil’s latest scribal effort or what kind other blue-collar skills he has, discuss in the comments.
Getting our hands dirty [Washington Post]