Change Management Analysis of Deloitte – Organizational Perspective


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Change Management Analysis of Deloitte – Organizational Perspective

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 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 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 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 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 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.

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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.

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