What the report into PwC found about its ‘shadow culture’

afr.com:

The report by former Telstra chief Ziggy Switkowski into the PwC leaks scandal identified a “shadow culture”, which was one consequence of its drive to be the biggest of the big four with the best-paid partners. Here are some key quotes from the report released on Wednesday.

In recent years, PwC’s strategic focus has shifted to a highly targeted growth strategy, adding over 370 new partners since July 2020, including 107 outside the usual intake cycle.

The mindset was said to have been “growth at all costs” with a spotlight on “revenue, revenue, revenue”.

Interviewees and focus groups consistently reported that at PwC “revenue is king” and partners that exceed financial targets are celebrated as “heroes”.

Referred to as “rainmakers”, individuals who exceed targets have been rewarded by promotion into key leadership positions.

Some rainmakers were described as the “untouchables” or individuals to whom “the rules don’t always apply”. The high-performance, results-focused culture has been used as an excuse to justify poor behaviour.

Behaviour between service lines was described as “sharp elbowed” with a “silo” mentality.

There is also a high level of transparency on partner remuneration. In combination, the pressure on partners to meet financial targets is reported by many to be “anxiety-inducing”.

To thrive as a partner in such a large and complex system, a strong internal network is critical, and significant energy is invested in cultivating this. Tenure is highly valued at PwC Australia and important to progression.

For those that commenced as graduates (colloquially known as “lifers”), there is an intrinsic advantage derived from an understanding of how the system works and having seeded key relationships.

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