Given PwC’s scale, leading it through the next few years will be no minor task. Poynter, has kept the firm at the top and maintaining its position as the dominant accounting force for the FTSE 100 can’t be easy.
But like the rest of the market, PwC’s growth rate has been eroded over the last three years. From 12% in 2005, it stood at 6% in June 2007. Despite that, PwC can boast that it is the only firm with a turnover of more than £2bn.
The challenge will be to keep it in that position as Deloitte, the UK’s second largest firm, continues to build revenue aggressively. Despite denials losing the ‘biggest firm’ tag would be a major blow to the brand.
The current economic environment is unlikely to help (though Deloitte will be in the same position). A more dangerous water to chart will be the credit crunch and ensuring PwC’s name does not become attached to a significant corporate failure.
The risks here are significant and the firm will no doubt already have tough safeguards in place. A successor will need to ensure he or she is happy they are tough enough.
Then there is the audit choice debate. If the mid tier were to make significant inroads into Big Four business, PwC potentially has the most to lose because it dominates the audit of the largest publicly listed companies.
Though nominations have not yet opened, the leadership race is expected to involve at least six candidates. It will be a big field for the biggest firm. But they will be vying to tackle the biggest challenges.
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