2009 PwC xTREME Games

Interested? Learn more at the Launch meeting:
106 Business, Thursday, Sept. 24th, at 7PM

Be Open-minded, Agile with Change and Practical

The title of this post is an example of the fourth 'PwC Behavior,' 'We Enhance Value (through Quality). While we are no strangers to frequent change in the accounting/auditing industry, the importance of being agile with change and open-minded has become increasingly important in light of the recent economic times. Since the fourth quarter of 2008, the staff and partners at PwC have not only seen dramatic changes within our clients' businesses, we have also experienced such change within our own firm. These past few months have been some of the most difficult economic times that many of us have seen - even for those who have been in the workforce for 30 or more years. Rather than buckling under the pressure, we have worked together as a firm and truly embraced change agility so as to pull together and maintain our position in the marketplace.

PwC was recently named number 58 on Fortune Magazine's '100 Best Companies to Work For.' The reason? Dennis Nally, PwC U.S. Chairman stated "We have no plans to downsize, rightsize, or reduce our staffing levels." Keeping true to the Firm's people strategy, the top firm leaders realize the value that has been invested in each of the firm's 30,000 staff and partners. Rather than jumping to the easy solution of lay-offs, the Firm has implemented innovative cost-cutting methods in an attempt to keep all of our jobs safe. Through May 2009, the Firm announced that as a result of these efforts, a total of $213 million has been saved to date. While we may no longer be able to find our favorite pen in the office supply room, we can rest easy knowing that the Firm is doing all it can to be a key player in the marketplace and keep our jobs secure.

While 'accountant' might not typically come to mind when you hear the word 'creative,' we have all seen just how creative we must be in times like these. PwC continues to understand the importance of innovation in these tough times and has recently named a Chief Innovation Officer to oversee such initiatives, like understanding our firm's carbon footprint. In fact, you can follow PwC's progress on these initiatives at the newly created site www.pwc.com/innovate.

So, the next time you're faced with a challenge that seems insurmountable, rather than collapsing under the pressure, be agile! An open mind, teamwork and a little creativity goes a long way - PwC has proven that!

Making Your Mark at PwC

One of the things I have most enjoyed during my 6 year career at PwC is the opportunity I have had to make my mark on the Firm and on the Pittsburgh office. Anytime I have had an idea or wanted to try something new, I have been able to find a way to make it happen. The opportunities range from something as simple as planning a bowling event for your engagement team to career building activities such as planning, developing, and teaching a lunch and learn training in your local office. The team on one of my largest clients is particularly active in getting together as a team outside of work. Each week, someone on the team comes up with an idea for an activity to do together after work one night. Some of the activities we have already done are movie night, pizza and bowling, racquetball, going to a spa, playing touch football, or hanging out at someone's house. We are also in the process of planning other activities such as a golf outing, going to a driving range, and mini-golf (every seems into the golf theme right now as weather is getting nice).

One event that I am particularly proud of was when I was a co-chair for a committee that planned an office Coaching Day. The day consisted of events such as trainings on how to give and receive feedback, presentations on the Road to Manager and the Road to Senior Associate, a sundae bar, and a prize raffle. Everyone had a great time at the event and I felt a sense of satisfaction and pride after all of the hard work that our team had put into it.

The next great opportunity that I am going to be taking advantage of, is a two year secondment to Australia. I am really looking forward to the opportunity to be part of another culture and grow personally as well as professionally. I plan on blogging regularly about my experiences while in Sydney so look for those posts to start later this summer.

This blog itself is one example of how one of our interns (who is now an associate), Dustin Batholomeo-Damon, made his mark on PwC in a very short amount of time. He had an idea and took advantage of the resources available to make it happen. How have you or will you make your mark on PwC? I would love to hear other's experiences and ideas on how to stand out and be a part of the PwC Experience.

PwC Experience in Auckland, New Zealand

The Process
I decided back in 2005, after I had graduated from PSU and finished a trip around the world, that I wanted to move to New Zealand some day. It was my favorite destination of my travels as I loved the country and the people. Once I became a senior associate at PwC, I began seriously considering a move as it would be good for me both personally and professionally. From a personal standpoint, I would get to go to country I always wanted to spend some time in, immerse myself in a different culture (although not nearly as different as Keith's Russian experience), meet new people, and see a unique and beautiful part of the world. From a professional standpoint, I would gain exposure to IFRS, learn about working with a variety of different people (New Zealand is very multi-cultural), and learn how to establish myself in an unfamiliar environment. Now I just had to figure out how to get half way around the world.

After talking with HR in Pittsburgh, I learned about a new program that they were rolling out in early 2008 called the EPIC Program. The previous link should take you to an informative page about the program. In short, it was developed specifically for people like me who wanted to embark on an international assignment prior to making manager with the firm. I think it was around January 2008 that I had made up my mind that I would apply for an international position. The EPIC Program's application form was not yet ready so I had to wait until April 2008 to apply. In the meantime, I met with one of the partners, my coaching manager, and HR to tell them of my interests and intentions. I had support from them all. The EPIC Program requires a partner to "sponsor" you - basically, they will help you with the application process, sign off as being supportive, and remain in contact with you throughout the assignment overseas.

The first step was to prepare a business case. This was where I listed the reasons as to why I should go (basically I listed the personal and professional reasons that I mention above with a bit more detail). After submitting the business case to Global Mobility and gaining approval, I was able to fill out the actual application. This was where I actually was able to list three different offices that I would be interested in going to. I listed Auckland as my first choice. I don't know how easy it is to get your first choice, but I had already contacted HR in Auckland and checked the global mobility site so I knew they had some openings. Within a couple weeks, I was contacted by HR in Auckland, and they set up a phone interview for me with a partner and senior manager from the Auckland office. My interview happened in late June. I found out about a week later that I had been accepted and a contract was mailed to me to begin in late August / early September. I don't know if it always happens this quickly so if you are interested, make sure to begin the process early. Most other secondees that I work with here in NZ had offers 6 months or so in advance, it just so happened that I was ready to go and they were ready for me.

The EPIC Program helps you through the moving process so if anyone is really interested and wants more of the specifics, feel free to post a comment and I'll answer, or send me an email at nate.t.smith@nz.pwc.com.



The Work
That's my office building in Auckland in the picture above. It's right on the water downtown with beautiful views of the harbor, North Shore, and a big volcano called Rangitoto. So, that's where I work when I'm not out at clients. The work here is similar in many ways but also very different. I could write a lot about this, but I'll try to stick to a few main points and either follow up in a later post or answer specific questions if you want to leave a comment.

Some of the major similarities are that we still use the same auditing program (currently MyClient but switching to Aura soon along with the U.S.), the local New Zealanders (or "Kiwis") speak some form of English although it takes some getting used to, the basic audit methodology is the same, teams seem to work in basically the same manner as back in the U.S. although are often smaller, and the camaraderie of the people is still great.

Some of the major differences are that they use IFRS as opposed to US GAAP, I work on many more engagements here than I did back home (10 or so here compared to 2-3 back home) as the clients are generally smaller, hours are generally a bit less but are busier, and the office is full of other secondees (from England, Ireland, Scotland, Netherlands, Vietnam, South Africa, France, Spain, etc.). The diversity of the office makes it very interesting and fun, and the expats tend to all want to go explore the country, so we spend a lot of weekends together traveling around. This is a really great aspect of working here.

The Country
Now I could write a million posts about how beautiful this country is. We have really nice beaches all over the place, mountains and volcanoes, rain forests, islands, caves and on and on. There is so much to do that I don't think my two year contract will even give me enough time to see it all. I've spent as many weekends and holidays as possible traveling around the north and south islands. I've done a lot of hiking, kayaking, driving, and flying around to see everything that there is to offer. I've even been assigned a client that I've spent 3 weeks in Samoa for so that was another added bonus.

One thing I've really noticed about the Kiwis is that they love the outdoors. People here get involved in all sorts of physical activities. I've joined a touch rugby team, dragonboat racing (sort of like a canoe with 20 people in it), netball team, and even run a half marathon since I've been here (something I thought I would never do). I love going hiking on a long weekend or even a regular one as there are many day-hikes in the area. They have all these treks called the "Great-Walks" that are multi-day hikes with cabins set up along the way that are really nice.

Anyway, I've been thoroughly enjoying my time here so far. I can't believe it's already been 8 months. Let me know if there is anything else you are curious about the EPIC Program, work in Auckland or at PwC in general, or just about New Zealand.

Me (on the right sporting my PSU shorts) with some fellow PwC secondees (Dutch, American, Irish, and Scottish) on top of Mt. Ngauruhoe which was Mt. Doom in Lord of the Rings

Me on top of a mountain while hiking the Routeburn Track on the South Island near Queenstown

Getting Involved in the Community

Community* Help. Inspire. Change.

PwC is a great supporter when it comes to getting involved with the community whether it is through office-sponsored community service events or an individual endeavor to better your community.

One prominent demonstration of this commitment is the Month of Community Service each year where the entire firm participates in multiple community service projects throughout the US. Individual offices take a day off to give back to their respective communities. Some past projects in the Pittsburgh area have revolved around landscaping and interacting with kids, though the project scopes are not limited to those areas. In addition to the day of community service by each office, PwC supports individual projects by providing its staff 10 hours of community service each year.

During my first year at PwC, I have already been able to contribute to the community in my own personal ways. This past fall, I had the opportunity to be an assistant coach for a high school soccer team. It was a large time commitment, but it was rewarding to serve as a mentor on and off the field for the student-athletes. I have recently signed on for another year of coaching for this upcoming season.

Additionally, I presented to the high school marketing and accounting students on opportunities in accounting, the current economic situation, as well as personal finance tips. While at the school, I was able to get the students involved in thinking about opportunities the lie ahead of them.

Many of us understand how privileged we have been, and we understand the importance of giving back to the communities we serve. Colleagues frequently send around additional opportunities to get involved from bowling to marathons to bike races, all supporting different causes. There are many great ways to get involved in the community.

Mark to Market Accounting

The controversy around mark to market accounting has been all over the news lately and everyone seems to have a different opinion. Some say that banks are being forced to write assets down to artificially low levels when they are really worth far more while others believe that mark to market accounting reflects the most accurate picture of the value of a company's assets. Throughout the media frenzy, the FASB has stood by mark to market accounting and the guidance of FAS 157, but were willing to draft additional guidance in the form of FAS 157 (e) which was released in early April. FAS 157 (e) gives additional guidance on what constitutes an illiquid market and a distressed sale transaction and provides company's with some flexibility and judgement in determining the valuation for assets that are determined to be in illiquid markets in which only distressed transactions are occurring. As a manager at PwC, I am constantly discussing FAS 157 and its impact with my clients and I would like to open this topic up to comments and discussion. I am very interested in hearing what students at PSU think about mark to market accounting and the impact that it has. Please post a comment by clicking the comments button at the bottom of this post, I look forward to hearing your ideas.

Summer Internship - Partner Shadowing

As a summer 2008 PwC intern, I was given the opportunity to work on a variety of projects with multiple teams on different clients. Working with my engagement teams gave me valuable insight as to what I will be doing when I start full-time with the firm as a new associate. What was great about the internship was that not only was I exposed to real work very similar to what I will be doing, but also I was able to take part in all of the activities available to us as interns that allowed us to have a better understanding of the firm and our future profession. One of these activities included shadowing a partner. Having this opportunity was one of my most memorable experiences over the summer. I was able to spend an entire day with a partner at the firm, which gave me a completely different perspective on auditing. I was really able to see how the work I was doing as an intern and the work that the partners do come together to complete the audit. It really proved to me that the work I was doing was important and gave me a great sense of accomplishment.