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The biggest of the Big Five Those of you who thought the Big Six professional services firms were due to become the Giant Four are half-right. While the planned merger of KPMG and Ernst & Young fell by the wayside, Price Waterhouse ? the smallest and perhaps most prestigious of the Big Six ? and Coopers & Lybrand managed to put one and one together. On July 1, 1998, the awkwardly named PricewaterhouseCoopers was born. To celebrate, employees in Los Angeles sipped "Merger Beer," brewed especially for the occasion. PricewaterhouseCoopers is now the biggest professional services firm in the world. Its size is daunting - PwC has 155,000 employees and 9,000 partners around the globe, with 1999 revenues of over $17 billion and management consulting revenues alone totaling nearly $5 billion. The firm has stated that it plans to become a $30 billion firm by the year 2005, which does not seem like such a far-fetched goal. The friendly monolith The company plans to use its new size to truly bring about a globally integrated firm. Roughly 90 percent of revenues will be generated within the integrated organization, though some practices, such as those in Japan and Korea, will not be integrated for some time (owing to regulatory and cultural concerns). The leaders of PwC believe that the bigger a firm is, the faster it grows, and that the new bulk of PwC will create an inexorable "breakaway firm." The S.E.C. clamps down In January 2000, though, the honeymoon came to an inauspicious end. The Securities and Exchange Commission announced that a majority of PwC partners had violated rules requiring that they not have investments in companies audited by their firm. Five partners were dismissed immediately, and the S.E.C. claimed that 31 of 43 partners in the firm's top management had committed at least one violation. In all, the S.E.C. found over 8,000 violations by partners and employees of the firm. While neither admitting nor denying guilt, co-heads Schiro and Moore wrote in a letter to the firm's partners that the report was "embarrassing to our firm and to all of us as partners" and that "Equally important, it may also raise questions and concerns among our clients." As a result of audit restrictions, PwC plans to break up the company into two seperate entities, one dealing with audits, the other with consulting. PwC explains that two seperate companies gives PwC "opportunities to be a bit more agile, particularly in the areas of outsourcing and consulting". It also helps keep the SEC of its back, which may or not help with two multi-million dollar lawsuits filed on behalf of investors who say that faulty PwC led them to invest in shaky companies. These lawsuits are still pending. Creating an identity Despite the SEC scandal, insiders are generally impressed with how smoothly the merger between Price Waterhouse and Coopers & Lybrand has gone, and the "upside seems unlimited," say PricewaterhouseCoopers insiders of the merger. "There have been some changes since the merger - for example, changes in compensation and the way we go to market, and how we calculate our travel," says one consultant. "But the thing is that things change every year in dynamic companies like consulting firms anyway. I was already used to having a new business model every year." A senior-level consultant opines: "I would say that on the consulting side, the merger has been very transparent. We have been aware of all the changes made and why they are being made. It's been handled extremely well." Amazing success Though it's technically only two years old, PricewaterhouseCoopers Management Consulting Services has made a very strong impression in the management consulting field. PwC's MCS practice grew 27 percent in 1999, to qualify as one of the fastest-growing consultancies worldwide (though the growth slowed from 1998's astronomical 40 percent rate). More remarkably, PricewaterhouseCoopers's strategy consulting practice now qualifies as the third largest strategic practice in the world. "The merger has had other benefits as well," points out a consultant. "We definitely have a stronger consulting and audit/tax presence and we cover every major company in America to some extent - either through audit/tax or through consulting. Before the merger, we had complementary strengths. Price Waterhouse was strong in consulting in the United States and in audit/tax in Europe, and Coopers & Lybrand was the reverse. Now we're strong everywhere." They are even strong in cyberspace. PwC has created a B2B portal which help companies exchange intellectual property. Early in 2000 is unveiled e.conomy, a B2B procurement site for everything from office supplies to security services. Women-friendly culture Early indications suggest that PricewaterhouseCoopers' corporate culture is at least as successful as its business operations. The firm was one of Working Mother magazine's "100 Best Companies for Working Mothers" for 1999. Continuing in that woman-friendly tradition, PwC has implemented a number of new programs since the merger. Among these are a new parental leave policy, expansion of the sick time policy, and appointing two partners who are dedicated full time to increasing "worklife effectiveness" and diversity recruiting and retention. In 1998, 18 percent of all PricewaterhouseCoopers partners elected to membership were women, as were 14 percent of the partners elected in the United States - a higher percentage than in any other Big Five firm. Actually... In October 1999 PWC announced that it would eliminate 1000 administrative and support jobs. All but 250 of the job cuts are expected to come from layoffs across the country. The remaining cuts are to be achieved through a hiring free that is already in place. The cuts come as PWC makes a push to boost its e-commerce consulting business. The firm has plans to invest $3 billion over the next three years in this initiative and the job cuts come as a result. After the July 1998 merger of Price Waterhouse and Coopers & Lybrand, company officials indicated that no layoffs would follow.
PricewaterhouseCoopers' second recruiting season is kicking off, and the company hopes to continue changes made in 1999. "They are trying to involve the professional staff a lot more," says one insider. "They have incentives every quarter for bringing in people who are hired as professional staff, from entry-level folks to very senior people." The incentives range from cash bonuses to "a trip to France." This means that experienced candidates, or anyone interested in the idea of working with PricewaterhouseCoopers, might do well to approach someone already working at the firm. Current students might take a slightly different approach. PricewaterhouseCoopers is going with a tactic that Coopers & Lybrand used to good effect last year. "First, we will do presentations on campus," confides one insider. "We will tell people who are interested to apply online. Then, we use the online applications to screen through the on-campus applicants and make up our recruitment schedules. So it's really not possible to sneak into the interviewing schedule." The online application will be tweaked this year, muses one contact: "I don't think we have a writing sample section like we did last year." Candidates will be notified by phone (and also online, if they're enterprising enough to check). Interviews are given on campus by a partner or senior manager. Those brought back to the office are interviewed by three or four partners and managers. Two associates or analysts will take the candidate out to lunch in the middle as a de-stresser. Still, sources say, "it's a long day."
A relaxed atmosphere PwC insiders enjoy their culture. "The people here are young ? between 24 and 35. It is a relaxed atmosphere, and people feel very comfortable about going out for a drink together after work. It is a very social place if that is what you choose, but you are never made to feel guilty for not participating in any activities or parties." Speaking of parties, "there are usually lots of them going on ? mostly going away parties. Big Five firms are notorious for high turnover. That's not a reflection on the company, just the nature of the beast." "The people here are friendly and fun. There is always lots of work to do, and you also have lots of freedom to do whatever you have to in your personal life outside of work, even during work hours." Dressing like consultants or accountants? On-site dress for consultants varies according to the client's specifications, "though we always try to dress a bit better than the client employees," while at the office, "it's professional Monday through Thursday, and business casual on Friday and all summer." Long hours on offer Like most consulting firms, PwC expects its employees to put in the hours. For most, "work hours are what you make them. If you become a workaholic, like many do, then you can work all the time. If you're disciplined enough, you can work 8 to 5, Monday to Friday. No one gets overtime ? you just work until the job gets done." A business consultant complains: "The hours suck. I won't lie. You will have to work an average of 50 to 60 hours a week." Much of this long workweek involves travel ? though consultants say that the "traveling policies are nice." When traveling, you "have a very nice laptop," and "stay at nice hotels and have enough money to eat well. Most people are on the road during the week, leaving on Monday and returning Thursday evening." Rising pay "It is no secret," says one insider, "that as recently as two years ago neither Coopers & Lybrand or Price Waterhouse were known for the lavishness of their pay." Still, now that the job market has tightened up, "pay is competitive to better-than-competitive. Insiders say that while Price Waterhouse didn't have overtime and Coopers did, "the studies have found the salaries were basically comparable." A principal consultant advises: "We have an interesting program that's been carried over from Price Waterhouse. We extend profit sharing to consultants. In a partnership like PWC, the partners do profit sharing and then settle up at the end of the year. Consultants also get shares that appreciate over three years. " Quality of life PricewaterhouseCoopers has put its official imprimatur behind quality of life issues. Management Consulting Services runs a "More Nights @ Home" program, meant to reduce consultant's time spent away from home. The program requires five days of client work, with four of those spent at the client site - meaning three full days at home. Other benefits for hard working consultants include the "For Your Convenience" service, currently running in 12 locations in the United States. FYC representatives will take care of personal needs: shopping for presents or groceries, waiting at home for repairs and deliveries, feeding pets, recommending restaurants for special occasions, and much more. "For Your Convenience is a fantastic boon," says one consultant who frequently uses the service. "Most of it is free and what isn't costs 5 dollars total - a flat fee. It seems most people use it for picking up dry cleaning and taking their cars in for repairs." Other special MCS initiatives include the Personal Survival Series, which helps consultants manage the many stresses in their lives and work schedule. The Series includes a "survival clinic" led by work/life counselors and seminars that touch on topics like handling jet lag and increasing alertness through exercise. The PricewaterhouseCoopers Career Management Center, a special MCS initiative, offers consultants the flexibility to talk about career opportunities both within and outside of PWC. Diverse coworkers Most insiders think "you can expect to be working for a diverse set of people with a diverse set of colleagues" at PricewaterhouseCoopers. In terms of numbers, says one insider, "gender-wise, it's commensurate with the local region. Not 50-50, but for every three men, there are at least two women. Culturally, it varies by region," but basically is reflective of the makeup of the local area. One insider observe "PwC would rather see their employees stay part-time than leave because of the firm's inflexibility." That contact notes: "While the truth is that there are fewer female partners [than male partners], that seems to be changing."
Human Resources 11 Madison Avenue1 New York NY 10010
Andersen Consulting;Arthur Andersen;Deloitte & Touche;Ernst & Young;KPMG More Company Profiles For more career information, go to Vault.com ©2000, Vault.com Inc
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