Professional Documents
Culture Documents
Deloitte & Touche: Addressing The Needs of A Changing Work Force
Deloitte & Touche: Addressing The Needs of A Changing Work Force
Deloitte & Touche: Addressing The Needs of A Changing Work Force
Company Introduction
As one of the Big Six accounting firms, Deloitte & Touche LLP is among the nation’s leading professional
services firms. D&T provides services in three main areas throughout the U.S.: accounting and auditing,
tax, and management consulting. In addition, D&T distributes a large range of informative publications
including regular newsletters and annual studies. Employing nearly 16,300 people in more than 100 U.S.
cities, D&T strives to deliver superior service and quality to their clients. Clients include companies such
as AT&T, Daimler Benz, Microsoft Corporation, Citicorp, the Boeing Company, and Columbia University.
D&T’s mission “to exceed the expectations of our clients and our people” supports company values such
as dedication to client service, recognition of the importance of people, pursuit of financial success, and
maintaining a sense of partnership and teamwork. D&T LLP is part of Deloitte Touche Tohmatsu
International, a worldwide leader in professional services with more than 59,000 employees in 125
countries. Although organized geographically and by practice, D&T operates across these divisions to
provide service to its multinational customers.
A Dream Come True
Sylvia Wagner slowly hung up the phone and closed her eyes. She paused for a moment, let out a yelp,
and ran to tell Paul, her new husband, the news—after three grueling interviews, she had an offer for
her dream job: managing auditor with Deloitte & Touche at the firm’s Seattle office. Sylvia had been
through a lot to get to this point, and her hard work and ambition were finally paying off. After
graduating as the valedictorian at her high school, Sylvia worked her way through her undergraduate
degree, choosing accounting as her major freshman year. Any free time she had during her last year of
college was devoted to studying for the CPA exam, which she passed with flying colors a few days after
graduating summa cum laude. She took a job as a staff accountant with a reputable accounting firm in
her home city, and it quickly became apparent to the company’s senior management that they had a
rising star on their hands—after two years of working 50–60 hour weeks, Sylvia left the firm with her
boss’s blessing (and financial backing) to pursue her MBA at one of the top schools in the United States.
And now, in May of 1986, Sylvia was starting “the next chapter.” She knew she could have everything
she wanted—her dream career, a great marriage, and maybe even start a family one day. Several weeks
later, after making the move to Seattle, Sylvia started her job. She worked on a team with five other
managers, under the supervision of Robert Mickel, whom Sylvia greatly admired. At age 35, Robert was
one of the youngest partners in the firm nationwide, impressing senior management and clients alike
with his direct, jovial manner and sharp accounting savvy. Robert never left the office before seven
o’clock, and he expected the mid‐level managers to be there with him—that meant Sylvia. She was more
than happy to stay later and work hard because she knew this was the way to show her competence
and willingness to pay the dues necessary to land the best assignments and get a chance to shine. Within
ten years, Sylvia wanted to make partner, just like Robert Mickel. Sylvia’s peers and fellow team
members included three women and two men, all about Sylvia’s age, and all very bright. Sylvia had
worked on countless teams back in B‐school, and she hadn’t had too many problems. In fact, she always
made it a point to get along well with everyone, listening carefully to what each person had to say during
meetings, and trying to smooth over conflict wherever she could. In her mind, she had had a successful
team experience if she had helped everyone to come to a consensus, and to communicate at the same
level. Working with the team at D&T was no different, except that now her team members were also
competitors in a sense—Robert Mickel had said at her orientation meeting that he would recognize the
top performers by letting them have a go at higher profile client projects. This did not worry Sylvia, as
she knew her team abilities and topnotch work quality would set her apart and was confident in her
abilities. She had already received commendations from Robert on a project proposal she had prepared.
Success within Reach
After two years at D&T, Sylvia was truly beginning to feel at home. Besides getting to know the city
better, she had established friendships with some coworkers and her team was nearing the completion
of a client profile to which she had contributed greatly. She had taken to going to lunch with Gail, a
fellow team member, and their half‐hour at the restaurant down the street helped to ease some of the
tension that came along with work. One Friday, they began to talk about their future plans. Gail wasn’t
overly concerned. She was a mother of two and was a whiz with numbers, although her taciturn social
tendencies kept her from being a “star” on the job.
“I don’t mind if I don’t make partner, or even senior manager. If you watch Robert, it’s amazing how he
takes charge and speaks so directly—everyone listens! I can’t imagine being so gutsy. I like my job now,
and besides, I can’t imagine working all the time like Robert does and having a family. My job is
important, but if I never saw my kids, it wouldn’t be worth it.” Sylvia answered immediately—she’d
heard this one before. “I don’t see why that has to be a problem! The HR department just sent out a
memo on the new flex‐time plan. You can work fewer hours and still advance in the company—Paul and
I plan on having a baby one day, and that’s what I’ll do. I really want that partnership—why else would
I put in so many hours?” Gail was unimpressed. She brought up something they both knew well. “You
know, only about 4% of all the partners at D&T are women— and judging from the literature we received
last week, the numbers aren’t changing much. And that’s even with the new college recruitment
program, the one we were a part of, where they’re recruiting equal numbers of men and women out of
top college and graduate programs.” Sylvia was sure things would be different for her—she had been
part of the largest group of women ever to be recruited by D&T, and Robert and the other team
members were often telling her what a great job she was doing. She would be a sort of “pioneer” for
women in the company.
On the way back from lunch Gail and Sylvia ran into Robert, walking breathlessly beside one of their
D&T auditing colleagues, Mike Schriver, who was an extremely talented accountant and had a very
outgoing personality. They were on the way back to the office after a lunchtime workout at the Seattle
Athletic Club, a very exclusive men’s club where some of the most important business deals in the city
were cut. Robert had extended membership to the club as a sort of reward for a presentation Mike gave
that was instrumental in landing an important client—it was Deloitte & Touche’s policy to hand out such
“perks” on the recommendation of the managing partner. Sylvia also had received a membership at
another club as a reward for her exceptional performance. As Gail and Sylvia walked to catch Mike and
Robert, they noticed how well the two men got along, laughing and telling jokes. Mike often “talked
shop” with Robert back at the office. The two seemed to have developed a special rapport. When the
women caught up, the two groups exchanged initial greetings. Even though he had been laughing
heartily, Robert’s highly personable tone changed to one that was pleasant yet detached. “Hello, you
two. Now this is what I call a perfect Seattle day—no rain, perfect temperature. You just can’t beat it.”
“When you can’t think of anything to say, talk about the weather,” was what Sylvia’s mother used to
say. Just for a moment, she was worried. She thought she had developed a good working relationship
with Robert, but somehow Mike really seemed to have “clicked” with him—surely this wouldn’t hurt
her chances at landing one of the new client profiles coming up. Robert had already mentioned that she
was a top contender.
A Setback
Later that day, Robert Mickel leaned back in his office chair and sighed. He had a difficult decision
to make. There was a major project coming up and he needed to choose a team leader who would
be responsible for structuring and delegating tasks for project completion and maintaining
constant and positive contact with the client. The person would be ultimately responsible for the
project’s success. Further, success on this project meant a strong consideration for promotion at
the three‐year evaluation due for all team members. He had narrowed his list to two names—
Sylvia Wagner and Mike Schriver. Sylvia had outstanding skills—she never let any detail slip by,
and her foresight had saved them a lot of headaches. She was articulate and dealt with clients
well, craftily handling any concerns, and pleasantly establishing working relationships with people
at all levels at Deloitte & Touche. He had noticed, however, that at departmental meetings
Sylvia rarely spoke up, even when contentious issues concerning her projects came to the floor.
This task was usually handled by Mike, who spoke his mind, albeit quite diplomatically, and argued
his position convincingly. Sylvia usually chose to speak to individuals one‐on‐one, and it was
imperative to her that she “smooth things over.” Like Sylvia, Mike also had superb technical skills.
He was undaunted when speaking to business leaders and clients at their lunches at the Seattle
Athletic Club. Robert knew he had the confidence to deal with high profile clients. The job would
require numerous days of travel to the East Coast, and Robert had often heard Sylvia speak of
wanting to have a family soon. She and her husband barely spent time together because she was
at the office all the time. So, he decided Mike was the man for the job. Robert truly liked Sylvia—
he was very satisfied that his decision would be a relief to her— a favor for her and her husband.
It was seven o’clock the next day, and Sylvia was exhausted from the 45‐minute commute home
through heavy city traffic, not to mention the truly awful day at work. Sylvia slammed the door to
their apartment, and then quickly collapsed on the sofa. She couldn’t remember ever being this
angry and confused. Robert had announced with great fanfare that Mike Schriver would lead the
new high profile client’s project. To add insult to injury, Robert had smiled at her, shook her hand,
and had knowingly said, “I thought you’d appreciate this one, Sylvia. I know how hard you’ve been
working lately.” Sylvia thought that surely Robert was being sarcastic—but there wasn’t even the
slightest tinge of irony in his voice. He actually thought she’d appreciate this? Because she’d been
working hard? It didn’t make sense to her at all. Paul walked in and knew immediately that
something was wrong. “How was work today? Any news on the project?” “Robert gave it to Mike—
which was really disappointing, but I guess he’s pretty qualified. What was weird was how Robert
acted towards me. Like I’d be happy about the decision! After all the hours I put in, and the quality
of the work I’ve been producing—he must have known I wanted that job. I don’t get it!” “Did you
ever tell him you wanted it?” “Well, no. You know how hard I’ve been working—that should be
enough. It would be for me if I were in Robert’s position. I always notice the staff accountants who
work hardest—and I let them know how I feel. They don’t have to “butter me up.” Their work
speaks for itself, and of course that translates into the assumption that they want promotions.”
Paul felt sympathy for his disappointed wife, but couldn’t completely see things her way. In his
experience at work, when you wanted something, you needed to be direct and open. She
shouldn’t have assumed that Robert would pick up on her “signals” (even he had trouble with that
sometimes, and he was her husband). He also knew Mike Schriver and his wife, whom they had
hosted for dinner a few weeks ago. Paul had a sneaking suspicion that Mike had in no uncertain
terms let Robert know of his interest in the project leadership position. Paul knew he would have
done the same, given a similar situation.
Miscommunication
Sylvia arrived extra early to work the next day. She hadn’t been able to sleep, trying to think of
why Robert had made the decision he had, and why he had thought she’d be happy with being
passed over. She had decided in the wee hours that she would approach Robert and try as tactfully
as possible to understand what had happened. Not surprisingly, Robert was in his office, and Sylvia
walked to the open door and knocked on the outside wall. “Robert, do you have a minute? I’d like
to discuss something with you.” “Come in. What’s on your mind, Sylvia?” After taking a seat, Sylvia
said very calmly, “I was wondering if you could give me some pointers. I’d like to know what I could
do in the future to be seriously considered for client project leadership. I really respect your
judgment, but I must admit I was a bit disappointed I didn’t get the job this time.” “Sylvia, you’ve
done very well here, and I appreciate your work very much, as do our clients. You’ve received so
many bonuses and accolades, and you’re working all the time, that I just thought I’d give you a
much‐deserved break—you’ve mentioned that you and your husband don’t see each other much.
I’m sure you heard Mike mention his interest in the position, and some of our top clients have
commented on how much they like him, especially the way he attacks problems and conflicts.”
“Well, I’m certainly willing to try to work on my communication skills, if that’s what you’d like,
Robert. Thank you for explaining—I appreciate your frankness.” Sylvia left, wondering why Robert
had not been concerned about Mike’s spending so much time away from his wife while leading
the project. As she left the room, it was obvious that she was upset. Robert closed the door behind
her, baffled. Had he really misjudged Sylvia’s needs so badly?
A New Beginning
Sylvia was beaming on the inside. She had known for a few weeks’ now that she was pregnant, but
after losing that promotion to Mike Schriver a year ago, she was hesitant to break the news until
she was sure she could get flex‐time once the baby was born. She had collected the literature from
Deloitte & Touche’s human resources office, and the policy it outlined seemed to be exactly what
she needed—she could maintain her position with a reduced client load, but work only three days
a week. She could even do some of her work from home. For the past year, Sylvia’s career had
been advancing at high speed. Robert had chosen her to lead two major profiles, and although
there seemed still to be a sense of uneasiness between her and Robert after their conversation
twelve months ago, overall she was happy with how things were progressing. Now, although
overjoyed at the prospect of starting a family, Sylvia was wary that she might have been too
idealistic in thinking she could have a baby and not interrupt her career’s momentum. But the HR
department had assured her that because offering flex‐time was company policy, her colleagues
and superiors could not penalize her for taking advantage of it. A year later, Sylvia was thinking
how naive she had been. She had given birth just three months ago, and had come back to work
one month ago for three days a week. Robert and the other team members were very happy for
her and supported her decision to take flex‐time. She had noticed, however, that even though
they didn’t mind that she wasn’t there, they found it difficult to keep her in the loop when they
were busy and as new things kept coming up. On Fridays and Mondays when Sylvia wasn’t in the
office, Mike had the duty of taking any calls from clients for whose projects Sylvia was in charge.
Sylvia had noticed when she spoke with clients that they would often refer her to Mike for
information they’d already given him. He was always more than happy to give her the information,
often apologetic that he hadn’t informed her before she had to ask. Yet as time progressed, one
client in particular wanted more and more to deal with Mike, even when she was available at the
office. Sylvia felt herself in a quandary. She was glad to continue to work up to her old standards,
and even to do so with the additional challenge of motherhood to a newborn, but she could give
up neither if she wanted to reach her goal of a partnership at Deloitte & Touche. For all her
strength and conviction, Sylvia was beginning to feel a little helpless. If she continued to work
reduced hours, she might lose the confidence of some of her major clients. That would mean that
Robert would be obligated to give future assignments to other people— eventually, it would mean
forgoing the partnership she so dearly wanted. After putting the baby down to sleep one night,
Sylvia came out to the living room to find Paul asleep on the sofa. She sighed as she sat down next
to him, and gently shook him awake. “Paul, I need to talk to you.” Her husband sleepily got up.
“What is it, Sylvia?” “I don’t know what to do about work. I’ve told you how working flex‐time just
isn’t working as I’d like. I just don’t see an end to this— why continue to work so hard and not get
anywhere in the company? There are no partners working part‐time. I know you can’t quit your
job—but, Paul, I’m considering leaving Deloitte & Touche to start my own consulting business. It
wouldn’t pay as much, but at least I’d have more chances for advancement than I would with the
hierarchy at D&T. What do you think?” Paul wasn’t surprised. But he didn’t know what they should
do. “I just don’t know, Sylvia.”
Diagnosing the Problem
Michael Cook, chairman and chief executive officer of Deloitte & Touche, leaned back in his chair
and stared thoughtfully out the window of his Connecticut office. Watching people below
scurrying in and out of the building, he rubbed his temples. Running through his mind were the
many years he had spent at Deloitte & Touche and how much he enjoyed working there. He had
always stressed the importance of the firm’s most valuable asset, its people. His job as CEO meant
preserving and enhancing the value of these assets. He turned slowly in his chair to face his desk.
A picture of his family caught his eye. Thinking back, he was reminded of the first job one of his
own daughters had held in the business world. Frustrated by an environment that did not foster
personal growth and advancement, she decided to pursue other avenues after spending just a
short time on the job. He wondered if this was what was happening at his firm. Being a father to
two career women, Cook understood firsthand the importance of opportunity and advancement.
As head of a large organization, he realized that anything less than full commitment to providing
full opportunity across the firm would be unacceptable. Chuckling, he remembered his old
philosophy of “work for us, work for someone else, or don’t work.” It was not until his wife
reminded him of her own career choices that he realized the problem with this philosophy. Was
the environment at Deloitte & Touche actually turning women away instead of welcoming them?
Did the corporate culture support the changing roles and attitudes of women in the work force?
Why were men staying and women leaving? Where did he go wrong? Distraught over the current
situation, Cook shook his head and started, once again, to look over the grim statistics and
numbers telling a story of high turnover and employee dissatisfaction. While the overall number
of women entering the accounting profession was increasing, the reality was that the number of
women applicants for admission to the firm was significantly declining. Ten years earlier, the firm
consistently added increasing numbers of women, but now the number of women who actually
reached the partner level within the firm was notably decreasing. A particular figure caught Cook’s
eye. Each year his firm invested over $1 billion in its people in the United States alone. Not a small
investment. Five hundred million of that invested amount is in the women of Deloitte & Touche.
When confronted with unacceptable levels of turnover, the problem becomes a serious bottom‐
line business issue affecting productivity and service. Ultimately the clients lose as well. Not only
did the situation at hand hold personal meaning for Cook, but it also affected business operations.
Something had to be done. The complex issues at hand had to be addressed before they continued
to spiral out of control. Many of the firm’s most talented people were running to the door and
possibly to other organizations. Fidgeting in his chair, he took out a pen and began jotting down
his options. Deloitte & Touche appeared to have many terrific programs already in place. On paper,
that is. Existing programs were already addressing flex‐time schedules to provide balance between
work and personal commitments for employees. Cook wondered why these programs were not
effective. If indeed there was a problem with these programs, why didn’t anyone bring it to his
attention? Puzzled, Cook tapped his pen on his desk. He knew he had to dig deeper within the
organization to learn more about what was happening. Early the next morning, Cook boarded a
plane for Chicago to attend an important meeting with Sears, one of Deloitte & Touche’s larger
clients. During the flight, he mulled over the problem in his head. Seated next to him was Norma
Pace, a director at Sears. Cook and Pace started a casual conversation. “Recently, I reviewed the
list of candidates that were up for partnership in the firm. Only 4 out of 50 on the list were women.
I don’t understand. We have made a unified effort to recruit a high number of female MBAs. Half
of all the new recruits were in fact women. Typically, it takes 10 to 12 years to make partner at
Deloitte & Touche, and I am surprised that there are not more women represented at the
partnership level. With the large investment we make in recruiting and training our talent, we
seem to be throwing money out the window. I want to hold on to all of our high‐talent individuals,
men and women alike.” Pace listened attentively. Cook’s genuine concern and sincerity
surrounding the issue were obvious. Pace suggested Cook get in touch with a woman named Felice
Schwartz. Felice was the president of a nonprofit research firm called Catalyst. Catalyst advises
firms on how to advance women within their organization. Immediately upon his arrival home,
Cook phoned Richard Schafer, Deloitte’s national director of human resources, stressing the
urgency of the problem. Within two weeks, the two men met with Schwartz to discuss what was
happening at Deloitte & Touche. Cook stood firmly behind the notion that the firm was consciously
recruiting the best and the brightest of both sexes in equal numbers. The group focused on several
issues, including a recent merger. Because staff cuts were not made after the merger, this was
ruled out as one of the major causes of the problem. After a lengthy discussion, it became
apparent that the issue was very complex and that there were no easy answers. The group would
have to dig much deeper to sort out what the real issues were.
Questions
• What should Michael Cook do?
• What factors are contributing to the problem?
• Why might the turnover for women at Deloitte & Touche be higher than that for men?
• Why is it important for Michael Cook to address this problem?
• If you were a HR consultant to Michael Cook and his management team, what key point would
you suggest they address to formulate an effective plan?
Case Overview
The case focuses on Sylvia Wagner, a young, talented managing auditor with Deloitte & Touche.
During her employment at D&T, Sylvia is faced with various situations that directly hinder her
ability to advance within the organization. Communication differences, traditional business
practices, and flex‐time scheduling difficulties are but a few of the problems troubling Sylvia’s
career. Michael Cook, CEO of Deloitte & Touche LLP, is troubled by recent trends within the firm.
Not only is the company losing highly talented employees, but it is losing millions of dollars each
year as a result of its high turnover rate. While the firm has many impressive programs aimed at
retaining employees, these programs appear to be failing. Faced with a complex personal and
business issue, Cook must decide how to conquer the problem.