INTERVIEW

VIEW Interview

INTER EY’s Purpose

An Interview with Mark Weinberger, Global Chairman and Chief Executive Offi cer, EY

things that we believe set us apart: our purpose, insightful. Being insightful means looking be- our global integration, and our culture of excep- yond the obvious to understand what the prob- tional client service. lem really is. Being connected means knowing Our purpose – “Building a Better Working how to ask the right person the right question World” – is also our tagline, and we’re the only to reach the right perspective on the problem. one of our peers that’s explicit about purpose. Being responsive means being deeply commit- Mark Weinberger A couple of years ago, when we were drawing ted to using that understanding to achieve a rel- up Vision 2020, which is our plan to be the evant, practical, and precise solution. It’s simple EDITORS’ NOTE Mark Weinberger began leading professional services organization by but powerful. his career with EY in 1987 and has served 2020, we knew ‘purpose’ was the most impor- EY is known for its entrepreneurial cul- in a variety of Americas and Global lead- tant thing to get right. We knew that our clients ture. How are you able to keep an entrepre- ership positions including his most re- and our colleagues wanted to understand our neurial spirit in the fi rm and stay innovative cent role as EY’s Global Tax Leader from role in the world, and get beyond what we do to in such a large, global organization? 2008 to 2012. He was appointed Global why we do it. It became clear, when we spoke We have a long history of innovation that’s Chairman & CEO-elect in January 2012 and with people around the world, that EY’s sense kept alive by our spirit of partnership – every became Global Chairman & CEO in July of of purpose, although up until then unwritten, generation of partners wants to leave EY stron- 2013. Weinberger serves as Chair of the Global was certainly present. When you look at ev- ger than when they joined, and that means Executive; the Global Practice Group; and the erything we do – every audit, every tax return, change – and our inclusive culture that encour- Global Public Policy Committee. He has previ- every valuation, every interaction with a client ages everyone to bring their ideas to the table, ously served as the Assistant Secretary of the or colleague – each contributes to building a no matter how different or bold they might United States Department of the Treasury (Tax better working world. seem. You can’t be innovative in a culture that Policy) in the George W. Bush Administration. Furthermore, building a better working inhibits. He was also appointed by President Clinton to world acknowledges our part in building trust Let me use the examples of our San Jose serve on the U.S. Social Security Administration and confi dence in capital markets and econo- and Moscow offi ces to give an idea of the type Advisory Board. Weinberger has also held other mies, and the important public policy and con- of pioneering spirit that’s at work at EY. Long U.S. government positions including Chief of vening role we play. So it’s really our higher before anyone had heard of ‘Silicon Valley,’ a Staff of President Clinton’s 1994 Bipartisan calling – why we exist as an organization. It’s couple of our partners saw the potential for the Commission on Entitlement and Tax Reform; the meaning behind the daily activities of our technology industry that was just starting Chief Tax and Budget Counsel to U.S. Senator 190,000 people in more than 150 countries. around San Jose. So the two of them set up a (R-); Advisor to the The second thing that sets us apart is how little offi ce above a drugstore – I guess it’s our National Commission on Economic Growth and globally integrated we are. Most professional ser- equivalent of two guys in a garage – and set Tax Reform; and Commissioner on the National vices fi rms are a collection of national practices, about serving these tiny start-ups. Today, we Commission on Retirement Policy. He holds a where each locally controlled fi rm has its own are market leaders in serving tech clients and B.A. from in , Georgia, management and decision-making processes, our offi ce in San Jose has more than 700 people an M.B.A. and J.D. from Case Western Reserve and its own board and governance oversight. serving companies such as Apple, Google, Intel, University in , Ohio, and a Master of But today, that’s outdated and not in keeping and Facebook. We opened our Moscow offi ce Laws in Taxation from Georgetown University with what clients need. The world’s become too in 1989 – the fi rst of the Big Four to go there, Law Center in Washington, D.C. fast and too complex. At EY we understand that, two years before the Soviet Union collapsed – and over the years, we’ve realigned our previ- because we saw how things were changing FIRM BRIEF EY (ey.com) is a leading global ously country-focused organization into a more and the opportunities that were just open- professional services organization that pro- integrated global one – with a global leadership ing up. We’re still the leading fi rm across the vides assurance, tax, transaction, and advisory team and a global strategy. This means our cli- Commonwealth of Independent States today. services. With 190,000 people in more than 150 ents get faster response, more tailored services, This is the kind of boldness and far-sightedness countries, EY is one of the largest professional broader, more experienced teams, and deeper that typifi es EY. services organizations in the world. industry knowledge. That said, it can be hard for a big organiza- The third thing is our culture of exceptional tion to innovate. But the world is moving too How challenging is it to differentiate among client service. We know that, in a competitive fast to stand still – those who don’t innovate the Big Four and how do you defi ne what environment, methodologies and services can won’t survive. Encouraging “intrapreneurship” makes EY unique? be replicated – but how you deliver them and can be as simple as encouraging people to ex- They share the label, but the Big Four are your culture can’t be. Clients can really see the plore and share new ideas. We’re in the process very different in terms of approach, organiza- difference in how they’re served. So we focus of setting up a global award for innovation, for tion and strategy, and also face increasing com- on the highest-performing teams delivering ex- example. We’re also investing in where we see petition from others, such as consultancies and ceptional client service. Exceptional client ser- future growth. One example is our $500-million law fi rms. At EY, we’re really focused on three vice is about being connected, responsive, and investment in data analytics – something our 12 LEADERS POSTED WITH PERMISSION. COPYRIGHT © 2014 LEADERS MAGAZINE, INC. VOLUME 37, NUMBER 4 clients are increasingly using to drive their own kids into math in Australia. We particularly focus still as important – if not more so – than it’s innovations. This kind of investment is funda- on entrepreneurs because they drive innovation ever been. I’m Global Senior Advisory Partner mental to meeting our target to double in size and economic growth, and create jobs. We also for a number of clients. It’s important for any by 2020. focus on the future workforce, from employees business leader to foster those relationships and Finally, our commitment to entrepreneur- to young entrepreneurs, because we know that remain plugged into business trends around the ship also extends to our support for others. the next generation is critical to global progress. world – and my client relationships are a vital Our Entrepreneur Of The Year™ awards, for This enables us to put our skills to good use part of that. As CEO of a global company, I example, are held in more than 60 countries in addressing global challenges such as youth can’t limit my knowledge to what’s happening worldwide and have been run- in my backyard, or to any one re- ning for nearly three decades. gion of the world. I need to have We’re really proud to have rec- an up-to-date understanding of ognized the achievements of tens geopolitical and macroeconomic of thousands entrepreneurs dur- forces, which can at any mo- ing that time. ment affect our clients and our How critical is it to businesses. have a diverse and inclusive What are your key priori- organization worldwide and Our purpose ties for EY in order to ensure would you highlight EY’s lead- that you maintain your indus- ership in this regard? – “Building a Better Working World” – try leadership in the future? It’s vital. Today, about 18 The world is changing fast, percent of our revenue comes driven by globalization, technol- from emerging markets. Fast for- is also our tagline, and we’re ogy, demographic shifts, and the ward to 2020: we’re predicting rise of the emerging markets – is- about 25 to 30 percent of our sues that affect not only us but revenue is going to come from the only one of our peers that’s our clients too, and so are fac- emerging markets. So we need to tored into our plans under Vision understand how people who are explicit about purpose. 2020. Another important consid- consumers and clients in those eration when we were drawing markets think. How do you do up Vision 2020 was to focus on that if you don’t have access to the growth industries, markets, different cultural backgrounds and and regions – no organization can experiences? Increasingly, we need lead in everything or everywhere. to have a workforce that mirrors Our ambition is to be the our client base. leading professional services In addition, we know that organization by 2020 – with the bringing together the different skills, experi- unemployment, for example, where we help best brand and number one or two market ences, and perspectives of our people helps young people gain work experience and work share in our chosen services. This requires an us to arrive at better answers for our clients readiness skills, and support young entrepre- unwavering focus on quality – vital in how we and – going back to your last question – helps neurs. Enabling our people to volunteer and build trust and confi dence in capital markets spark great ideas. Our clients come to us with providing funding is key, but increasingly im- around the world. incredibly complex challenges that no individ- portant is working out how we can use our Our strategy to reach our ambition has ual or team of similar people is going to be able intellectual capital to drive social change. three pillars. to solve. So diversity and inclusiveness, or D&I, You assumed the role as Chairman and The fi rst is ‘relentless focus on winning in isn’t just a nice-to-have – it’s business critical. CEO of EY a little more than a year ago. the market.’ Winning comes down to exceptional We encourage D&I across our workforce What made for such a smooth transition client service, which means being connected, re- through teaming and training, and by actively and has it been what you expected? sponsive, and insightful with our clients. It means supporting internal networks that help encour- I enjoyed a good hand-over period with always thinking ahead about the challenges our age and support different groups of employees. my predecessor, which enabled me to speak clients face or the opportunities they have to grow. We also promote D&I externally through the with thousands of people across the organiza- The second is ‘create the highest perform- teams we pull together on client work, through tion and start thinking about my senior lead- ing teams.’ This comes down to hiring the best our various networks like the Worldwide Women ership team and EY’s future strategy early, so people and putting them in the best teams, so Public Sector Leaders Network, and through I could be ready from day one. Second, hav- they perform better at EY than they would any- thought leadership. We just published a great pa- ing put in place a fantastic leadership team, where else – because a great team will always per called “Women on Boards: Global Approaches which is now much more diverse than it’s ever win over a collection of individuals. Our culture to Advancing Diversity,” for example. We’re really been, we’re certainly feeling the benefits of of world-class teaming is really resonating with proud to be regularly cited by external organiza- better representation of the emerging markets people. Just last month, Universum released tions – such as DiversityInc – as being a leader in and women leaders already. Third, the recep- the World’s Most Admired Companies student D&I. But we know that we have a lot more to do. tiveness and positivity of our 190,000 people survey results. We’ve retained our fi rst place EY places a major emphasis on cor- around the world is wonderful. The fact that among professional services fi rms – and were porate responsibility and community en- in just over a year, our people have rallied second overall, behind Google, which is a great gagement. Why is this so critical and how behind a new purpose and plan for the fu- result. do you decide which causes the fi rm should ture, Vision 2020, shows me what a flexible The third is ‘strengthen global, empower support? and determined organization EY is. This was local.’ We know that in today’s connected world, At the heart of “Building a Better Working the biggest surprise – just how much you can a strong global brand has enormous power, but World” is our belief in enlightened self-interest: achieve in a relatively short span of time if you we also know that you can’t underestimate the that we are successful because we contrib- all pull together. power of local. You need to deliver locally, you ute to society and share value. In our local You have always focused on the cli- need to respect cultural differences, and you communities, we concentrate on areas that are ent relationship. How critical is it for you need to know how to get things done on the most relevant to our services and our people’s to still have time with clients and has this ground. This is vital in a market where competi- expertise because it’s here that we make the remained a focus for you in your new role? tion and pricing pressure is immense, so getting greatest difference – this can be anything from As Global Chairman and CEO, I’d say the the balance right is key. Those that get it right building schools in India to helping get more nature of my client work has changed, but it’s will be tomorrow’s best companies.• VOLUME 37, NUMBER 4 POSTED WITH PERMISSION. COPYRIGHT © 2014 LEADERS MAGAZINE, INC. LEADERS 13