Deloitte Change Management Analysis

This report provides a comprehensive analysis of Deloitte's organizational structure and proposes several key changes to enhance its effectiveness. The report begins by introducing Deloitte, highlighting its global presence and diverse service offerings. It then examines Deloitte's current best practices, including its commitment to employee growth and development, its informal culture, and its merit-based promotion system. However, the report also identifies areas needing improvement, such as the need for greater flexibility in working arrangements, geographically based working hours, and a more nuanced compensation and benefits structure. Specific recommendations include allowing inter-departmental transfers, offering more flexible working hours, implementing a performance-based compensation system, and establishing an alumni connect program. The report concludes by emphasizing the importance of managing local talent and fostering a truly global organizational culture. The overall goal is to improve employee engagement, attract and retain top talent, and enhance Deloitte's competitiveness in the global marketplace.

Running head: Organization Change in Deloitte 1
Change Management Analysis of Deloitte – Organizational Perspective
Student’s Name
Student’s School

Running head: Organization Change in Deloitte 2
Contents
About Deloitte...........................................................................................................................3
What are the current best practices of Organization...........................................................3
Changes needed........................................................................................................................4
Flexibility in working............................................................................................................5
Geographical Based Working hours....................................................................................5
Compensation & Benefits.....................................................................................................6
Alumni Connect Program.....................................................................................................7
Recommendations and Go Forward Strategy.......................................................................8
References.................................................................................................................................9

Running head: Organization Change in Deloitte 3
About Deloitte:
Deloitte is a Multinational company with presence in more than 200 countries and
from the subsidiary perspective the company is present in almost every hook and corner of
the world. They are prevalent in every hook and corner of the industries when it comes to
services like Tax and Audit services, management consulting, technology consulting, human
resource consulting and many other such elite solutions for the clients. They are the premiere
leaders in majority of the fields that they functions in and are recognized to build a rapport of
client partners besides being quality service providers and that is what makes them different
from their counterparts. They are part of the elite Big 4 Audit firms consisting PWC, KPMG,
EY and Deloitte. They have been in the action for almost more than a 100 years now, it
started as a normal audit and tax consulting firm, but with time, experience and consulting
they have been able to manage great deal of good mergers and that is what has been the
backbone of the company’s position in the market overall. Today it operates in the most
disruptive Principle, Partner and Director model that has been one of the most influential
modes of operation for the company. They don’t have any sales team and the service
providers have to do their own sales and one can imagine the kind of aggression the company
puts in the working. Currently the company is led by Puneet Renjen and is poised to be linked
with the some of the most influential companies of the world and are designing their future
strategy and growth foundation.
What are the current best practices of Organization?
The company gives the employees and the consultants’ limitless opportunities to grow
in their respective area of expertise. They are poised to offer some of the best and latest
platforms to learn and work on some of the most challenging areas of the industries. They are
also capable of giving the cross – geographical exposure to the resources and the most

Running head: Organization Change in Deloitte 4
important aspect is that they make the employees their own sales man. Not many companies
offer such level of exposure and capabilities. Deloitte is one such company that care about
their employees well being and offer them enough work level flexibilities that makes them
more capable in front of the client. They are able to form some really superlative
relationships with the client that and this compels clients to always trust them endlessly and
they work like an internal part of the client ecosystem. Other aspects of Deloitte is that they
have an informal culture in the company and everyone is treated equal irrespective of their
designated position. The progressions and promotions in the space are also not tenure based
but are based on the expertise and the capability match of the employee (Chen, 2010). They
have the amazing policy of promotions in which they promote the candidate only if the
person is already performing at the next level. This is an important aspect of the work system
in which they are able to give real people their real worth and that is why it has the tag line
“where the best wish to be”.
Changes needed:
Like every organization these days, Deloitte is also undergoing the similar level of
transitioning. They now have a work force which is more of Gen Y and less of Millennial and
that is the reason they have to change some sections of their mode of working. The current
mode might have worked with the certain level of work force and for certain geographies.
But since the company is thinking to expand its tentacles big bang in some other lesser
developed economies as well, so it is imperative that it will have to induce certain change
management in their organizational working style. What might work in some areas, might not
work in some other areas and that is what the basic trigger for the organizational change is.
The high end globalization is asking for more decentralized mode of working and less of
centralized mode. Companies like P&G work completely different in India than in the rest of

Running head: Organization Change in Deloitte 5
the world (Hayes, 2011). This is one such instance that triggers more of superlative change
management than in other cases.
Other aspect is the expectation of the global citizen. The people have these days
gained exposure of working in variety of culture and some of these cultures do have a very
extreme impact on the working style and expectations of companies. The kind of work force
that Deloitte wants for their business to be successful must have the ability to adapt to this
culture and hence there are always some period level changes that are needed to sustain the
business properly in such dynamic environment.
Flexibility in working:
Even though Deloitte is giving working flexibility like Mass Career Customization
and Work from Home kind of facilities to their employees, still the work force these days
expects some better and more superlative level of changes at their career levels. The current
issue with most of the businesses in the Deloitte work structure is that they don’t allow inter
departmental transfers. They define departments as Service lines and if a person is in a certain
service line, then they have to be in the same service line always. There is almost no scope
for the service line shift and that is something that has to be changed in the Deloitte
Ecosystem. More transfer opportunities will lead to more aggressive working from the
employees so that it is made easier for them to change the service line. More importantly
leaders can look for internal work force in case some specialize opportunity is encountered
that is to be fulfilled by a specialized skill set and that is available internally. These changes
are there in most of the new organization and getting some very good results for them as well.
It is all about letting the work force to choose their own style of working and helping them in
developing the work style of workforce. If a person wishes to be a specialist then he has the

Running head: Organization Change in Deloitte 6
choice to stick with a service line and in case the person is trying to find passion elsewhere,
then he can vouch for other departments.
Geographical Based Working hours:
Usually in the world of consulting the consultants have to serve clients in other
locations and there is a huge difference that comes up due to that. The introduction of work
from home is not enough as the consultant still has to take calls and give some updates at odd
hours and that is really frustrating at times (Cummings, 2011). What can be done here is that
liberty is given to the consultants to choose their suitable working hours and there should be
arrangements made around that so that it is easy for the consultants to work as per the client’s
requirements. In case this is not done then not everyone can actually work from home all the
time due to various reasons and in case the person has to work from office then he cannot
work at odd hours due to operational constraints. Hence it is to be understood here that if the
operational set up is in fine place then there are lesser chances for the employee to be
frustrated and hence can work in a more relaxed manner. Basic things like meals and
transportation must be ensured to be in best place so that employee can concentrate best on
the work. The other aspect is that the employee travel must be on requirement basis and on
the choice of the employee and that will ensure that the people and the consultants are
motivated to concentrate best on the work and generate better results for the clients and make
a stronger relationship.
Compensation & Benefits:
Currently the best part of Deloitte is that they promise the variable pay completely.
They give full payment of variable salary even to the mediocre performers, which are not
something sunk in well with the superlative performers. The high performers are not just
motivated with their own rewards but also with the sanity and non partial behaviour of the

Running head: Organization Change in Deloitte 7
rewards. If mediocre performers are not at loss which is equivalent to the difference of the
efforts then it is of no use (TRIPON, 2012). There has to be a separate treatment with the
performers, definitely not to the level that it becomes deterring for the under achievers, but it
should be in a way that it motivates them to perform even better and ensure better results next
time. If that is not there then it is highly unlikely that that performer’s chunk will like to stay
with the company for a longer duration of time. The bigger aspect of this is the motivation
which only happens when the action are rewarded and recognised properly and hence the
management will be able to hold the best in the ecosystem more effectively. This change
management will again be ensuring better results for the company, for the clients and most
importantly for the employee’s self level upgrades.
Alumni Connect Program:
This is a new kid in the town that is actually creating a lot of difference when it comes
to better resource management and also keeping it at pace with the market. There are tons of
people who quit the job at many consulting companies every year and when it comes to
Deloitte they have their man force deployed to almost every hook and corner of the
geography. The connect program will ensure that they are in touch with all the people that
were associated with Deloitte at some point of the time and also they will be quite verse with
the latest skill sets of the people. This is their way to be connected to the latest skills and
bring back the people whenever there is something worthy to be offered by the company. It is
indeed better a person who is known to the company comes back and joins the company
(Hopper, 2010). This way the alumni connect program which is not there in Deloitte right
now can be really very handy and can bring up very good results for them. All the good
institutes are successful because of the praises by their alums and that is what the core basis
here is. The people must realise that the connection with the old company is fruitful as they
will be aware of the better practices introduced by the company and due to that they will be

Running head: Organization Change in Deloitte 8
able to find more opportunities of coming back and in that manner the results will always be
superlative for the company in any scenario. This is kind of a win-win situation for both
company and the employees. For the current employees it is beneficial since it will be able to
foresee what their seniors have done differently for their career and for the current situation
they will be able to achieve some front end advice with the experts in the field. The
networking environment that is the core of the Deloitte’s ecosystem will be able to perspire
with ease in such situations and hence it is something that is there to stay always. The
investment is better and superlative.
Recommendations and Go Forward Strategy:
The recommendation for Deloitte is mainly to focus on managing the local level talent
more and groom them to become global citizens. This would then help establish the nature of
the true global organization. Currently they are lacking in the basics of organization change
management that involves more of human and less of organization which is the centric
approach that has to be adopted by the company today (Quinn, 2010). It will ensure
sustainability and stability of the company and people would like to be associated with the
company for a more comfortably long term and that will ensure better services to the clients
overall.

Running head: Organization Change in Deloitte 9
References:
1. Chen, J.-M. (2010). Organizational Change and Development . Beijing: T&D
Publications NACS.
2. Cummings, T. G. (2011). Organization Development & Change. California:
University of Southern California.
3. Hayes, M. (2011). Organizational Change: Formulating, Implementing, and
Sustaining a Fundamental Organizational Change in South American Central Banks
Pilot Study Colombia . Columbia: Universität St.Gallen.
4. Hopper, P. Q. (2010). What does organizational change mean? Speculations on a
taken for granted category. Paris: Management Accounting Journal.
5. Quinn, K. E. (2010). ORGANIZATIONAL CHANGE AND DEVELOPMENT.
Michighan: University of Michigan Business School, University of Michigan.
6. TRIPON, C. (2012). CHANGE MANAGEMENT AND ORGANIZATION
DEVELOPMENT. London: APUBB Publications.