United Nations - Deloitte

COLLEGE OF BUSINESS ADMINISTRATION

Denuel Thomas Fonseca Patricia Hawthorne James Tesfay Zembaba

Theory and Behavior in Business Organizations – MGMT 650

August 3, 2010

Organizational Behavior Concepts

United Nations

Presentation Outline

I.  Introduction II.  History III. Team Work IV. Management Style & Leadership V.  Ethics VI. Recommendation

History

•  Deloitte was initially started in 1849, by William Deloitte.

•  William Deloitte started his auditing company after successfully auditing the Great Western Railway in London.

•  In 1893, Charles Haskins and Elijah Sells implemented an auditing system with the US government that saved thousands of dollars in wasteful spending.

•  After successfully assisting the US government, both Haskins and Sells offered their services to the general public in 1895.

•  Between Haskins and Sells founding in 1895 and 1970, the company had merged with 26 other accounting firms, including a merge with Deloitte in 1952, in which the company was renamed to Deloitte Haskins & Sells.

History

•  As the demand for public auditing increased in London, George A. Touche established an accounting firm, Touche Niven, with Ballantine Niven in 1898.

•  In 1900 Touche Niven established its first office in the US, located in New York City.

History

•  In 1929, the US stock market crashed and eventually led to the Great Depression.

•  As a result of the Great Depression, US Congress required mandatory independent audits for all corporations in 1933 .

History

•  As the economy rebounded and grew rapidly, George Bailey opened his own accounting firm in 1947.

•  Bailey’s company experienced remarkable success during its first year, which ultimately led the merger with Touche Niven, forming Touche Niven Bailey & Smart.

•  The company grew more rapidly and later became Touche Ross Bailey & Smart in 1960 and renamed Touche Ross in 1969.

History

•  During the 1980’s, Deloitte Haskins & Sells and Touche Ross requested their accountants to provide professional advice and technical support to give the companies a competitive advantage.

•  As clients of both Deloitte Haskins & Sells and Touche Ross rapidly grew, both companies agreed to merge Deloitte & Touche in 1989.

•  In 1995, Deloitte & Touche developed Deloitte Consulting to provide professional services to their international clients.

•  Today, Deloitte & Touche has 651 offices in 111 countries around the world, employing more than 169, 000 professionals.

History

Timeline

1849: William Deloitte

opened his own auditing company in

London

1893: Charles

Haskins and Elijah Sells

audited the US government,

ultimately saving the

government thousands of

dollars

1895: Charles

Haskins and Elijah Sells

opened their own auditing

company in the US

1898: George Touche and Ballantine

Niven open their own auditing

company in London

1900: George Touche and Ballantine

Niven open their first office in US, located in New York,

NY

1929: US Great

Depression

1933: Congress requires

independent auditing for all corporations The SEC is

created by US government

1947: George Bailey opens accounting firm due to rapid US economic growth

1947-1948: Bailey’s firm experiences

tremendous growth and merges with Touche Niven to become Touche Niven Bailey &

Smart

1952: Haskins & Sells

merger with Deloitte, becoming Deloitte Haskins &

Sells

1989: Deloitte Haskins & Sells merged with

Touche Ross, becoming Deloitte

& Touche

1995: Deloitte & Touche created Deloitte

Consulting to provide services to their international

clients

Today: Deloitte has 651

offices around the world in 111

different countries with 169,000 professionals

employed

Timeline

Team Work

•  Teamwork at Deloitte is a key part of the business.

•  Every member of the audit staff is assigned to teams that will serve Deloitte’s clients in a scheduled period of time.

Team Structure

•  Communication

•  Cross-functional teams

•  Conflict

•  Trust issues

Team Work Issues

Team Work Recommendations

•  Communication: Partners should let team members comfortable to speak out.

•  Cross-functional teams: increase frequency of interaction and develop a sense of mutual accountability

•  Conflict: encourage communication and feedback between team members

•  Trust issues: training where the coach is the senior or manager

Management Style and Leadership

•  Influence the effectiveness of alternative approaches to conferencing and reporting

•  Deloitte has a very rigid vertical hierarchical culture

•  Lot of pressure on each lower level of individuals

•  At Deloitte, a lower team spends most time at client site under a senior’s supervision

•  The manager normally works with senior only.

•  The contact of the manager with the staff is minimal, as well as the contact of partner with staff and senior.

•  The career advance potentials are very high

Recognition

•  Commitment to excellence is a priority But sometimes,

•  Career opportunities are not fairly spread amongst the staff,

•  It can create frustration and great disbelief in the meritocracy aspect

•  Solution: Senior management should use the employee commitment surveys to look at what needs improvement.

Recognition

•  The audit industry is very much concerned with the image

•  Audit companies are a very competitive work place

•  One’s progress in the company is strongly related to the image he conveys to others.

Image

•  Highly respected brand on the audit and consulting market

•  Highly efficient methodologies

•  Very motivating and exhilarating working environment

Work-Life Balance

Work-Life Balance BUT

•  Your attention can be monopolized and your time absorbed

•  The higher you go up the ladder, the greater the expectations

•  The family or the job

•  Solution: Rotation programs and adjusting expectations

Ethical Environment

•  The Big Picture –  The Code of Ethics

•  Simply having ethic code has no effect on employee behavior –  It must be communicated, provided training on what it means –  Put system’s in place

–  Ethical officers-post Enron scandals •  Sharon Allen- Deloitte Compliance officer •  Annual Ethic and Workplace Survey

2010 Ethics & Workplace Survey

Ethical Decision

•  Personnel goals vs. code of ethic

•  Underload-Overload Continuum •  Long work hours •  High level of stress •  Inflexible work schedule

•  Lack of leadership •  Lack of transparences •  PCAOB Audit Findings

The Outcome: Model Behavior

Thank you

Questions & Answers

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