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Ernst & Young, like any of the Big Four or large professional services firm, is composed of a series of “practices” or unique groups of resources, ranging from a handful of people to several hundred, which tout similar subject matter experience.These practices are then lumped into larger organizational categories that support the firm’s overarching strategic vision. Here’s an example which should clarify things for you a bit: I’m part of the “Program Advisory Services” practice, or PAS for short.This section is specific to Ernst & Young, but more than likely holds true for other firms in the Big Four.The content intentionally touches on only two of the four divisions, since its purpose is to help further distinguish the concept of organizational groupings used in major professional services firms and to provide some practical perspective on their differences.Now that you understand the demand from the client side, let’s take a look at the delivery or firm side.Firms as you might expect are structured in such a way as to meet client demand.Now, imagine twenty (random number) other practices such as PAS which falls under the RAS umbrella. Now once again try to imagine ten or so other service lines like RAS with once again a bunch of sub-service lines such as PAS. New practices form and old practices consolidate just about every year. Here’s an example: Imagine for a moment that a new regulation to govern “Wall Street” firms is passed and will be enforced in one year’s time.These groupings also vary from country to country and region to region depending on client demand in that particular geography. This is a possible scenario, I might add, given today’s market conditions.
I must confess, however, that this outlook reflects how I feel today, which wasn’t always the case.As advisors to industry, we provide a valuable benefit, since large businesses are regularly confronted with a bevy of challenges that range from the commonplace, such as not having the internal subject matter experience needed in order to execute upon critical initiatives, to the less mundane, such as perhaps a regulatory mandate to leverage independent third-party consultation.