EY Global have decided that they're no longer continuing with the demerger.
👉 Background: Ernst and Young or EY is a global professional services firm with over 365,000 employees. For the past few years, they’ve been working on a massive project to split up their audit and consulting busineses.
👉 What happened: The aim of the split was to get around conflict of interest issues. But now, EY Global have decided that they’re no longer continuing with the demerger. It turns out EY’s US executive team weren’t ready to get onboard this plan.
👉 What else: After talking a big game about this demerger and the future of professional services, this isn’t going to look good for EY’s leadership team.
💡When a merger or demerger of this size fails, fingers get pointed and heads start to roll because of the financial and non-financial knock on effects.
💡In EY's case, this proposed demerger cost more than $150 million and involved 1000 staff members. On top of that, the leadership team went on a full blown PR blitz - both internally and externally.
💡And when that leadership team can’t get their strategy over the line… it raises questions about whether they are still fit to lead the organisation.
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