Global review 2013
Chairman and CEO’s letter:
Mark A. Weinberger
EY has a proud history stretching back well over a century. Our success is built on our relationships with our clients and stakeholders — relationships that are based on trust and integrity. While we take pride in our past, we are always looking forward, preparing our clients and ourselves for the challenges and opportunities that lie ahead.
Today’s business world is complex and fast-paced. Globalization, technological advances and demographic shifts have brought opportunity to many — empowering and connecting people and creating a vibrant and diverse world. But these trends have also created complexity for our clients. Local events can quickly take on global importance; innovation easily passes across borders; demographic shifts mean that, despite a growing global population, the availability of skilled workers is expected to decline in many countries, creating a rush for talent. These changes are forcing businesses to adapt quickly or risk becoming obsolete.
Adding to this complexity, businesses are reacting to these far-reaching trends in a changing regulatory environment. Since 2009, business and economic outcomes have been influenced by changing government policies, from stimulus to austerity to monetary easing. Governments and regulators inevitably continue to be nationally focused while business, investors and markets increasingly operate across borders. Therefore, complying with the changing regulations on national, regional and international levels is becoming an ever more complex undertaking.
We have seen the impact as regulators debate and propose reforms covering a range of issues affecting listed companies, the investing public and the audit profession. These include important changes to standards that, for the first time in decades, could change the auditor’s report. This is an opportunity for the profession as a whole to reaffirm the relevance of our work. We remain in discussions with our stakeholders worldwide to better understand their points of view on the many issues under debate. We support those policy reforms that contribute to increased confidence in financial reporting and the long-term role and relevance of audit.
While global economic prospects have improved, the road to economic recovery has been slow. Growth prospects remain uneven at best. This combination of slow growth and fast-paced change is proving challenging for many. Looking forward, the pace of change will continue. But the best organizations will challenge themselves to look at their role in the world and to re-affirm their sense of purpose.
We have developed a plan — Vision 2020 — that considers the changing world today, how it will be tomorrow and how we will adapt to the challenges and opportunities we will face. Amid the changes we see, EY also sees great opportunity and relevance in the role we play in building a better working world. The quality services and insights we deliver help build trust and confidence in capital markets in economies the world over. In so doing, we help build a better working world for our people, for our clients and for our communities. This is our purpose.
Having purpose gives us energy. Being clear about our ambition helps us turn that energy into results. By 2020 we aspire to have the best brand and be the most favored employer by building on positive and strong relationships with our stakeholders. Assurance will remain the cornerstone of our services and will be our largest business in 2020. At the same time, the markets for our other services, Advisory, Tax and Transaction Advisory Services, are growing significantly faster than the Assurance market. Growing all of our service lines will be crucial to our success.
To reach our ambition, we are making significant changes to how we operate our business so that we have the highest-performing teams, delivering exceptional client service, worldwide. We have made some highly visible changes already. From 1 July 2013, we became known as EY. Shortening our name provides consistency and ease of use for EY practices and clients around the world. And we redesigned our logo, reflecting our new brand name clearly in the design. Most importantly, we adopted our purpose — Building a better working world — as our tagline, clearly demonstrating how important it is to us.
In the pages that follow, you can read about other changes we are making to better serve our clients, develop our people and leverage our highly integrated global structure.
Mark A. Weinberger
Global Chairman and CEO, EY