RSM is the seventh-largest global network of independent audit, tax and consulting providers. On October 26 2015, RSM rebranded globally. The successful unification of the global brand resulted from RSM putting significant thought into how its international reputation already stood, and how a rebrand could best convey its core strengths and differentiators. Brand research confirmed that clients recognise RSM internationally for its focus on collaboration, having a deep understanding of what matters most to clients, and insight sharing by senior partners. RSM’s new brand positioning, The Power of Being Understood, captures this. European CEO spoke to global CEO Jean Stephens about how RSM’s new, unified global brand reflects its international ethos.
Heavy emphasis is placed on having a global outlook. “We host several international training programmes, as well as other people initiatives, such as our annual and regional conferences and RSM World Day, which are designed to bring together people from across the globe and unite them with the common purpose of providing outstanding client services under the RSM brand”, said Stephens.
This international outlook has allowed RSM to become a unified global brand, enabling the network to better promote its resources and expertise, and provide an enhanced, seamless service to clients all over the world. Last year RSM’s international referral work grew by 18 percent.
Following the financial crisis, and during the ongoing economic volatility, the need for rigorous accounting and reporting is crucial
Thinking globally
RSM’s single, unified global brand is of primary importance to the development of the network and each of the member firms. It allows them to better communicate their service proposition to clients and prospective audiences, and differentiate their offerings while competing more effectively against alternative providers. However, many of RSM’s member firms had, until now, been trading under recognised local, distinct or legacy names, some of which had been held for 50 years or more. While firms could see the business benefits, they also needed to be sure that a global solution could work for their clients and their market needs.
To address this, RSM began by focusing on the business reasons for a common brand. The group’s journey towards brand unification began by conducting extensive global research to ensure decisions were primarily based on facts and not emotions. This was achieved through commissioning a leading independent international business-to-business research specialist to conduct extensive qualitative and quantitative surveys of clients and prospects worldwide, over both 2013 and 2014. The feedback from these endeavours not only helped to shape all aspects of the new brand, but also enabled RSM to take into consideration cultural differences, specific country needs and requirements, and any concerns from member firms.
Although member firms now trade as RSM, each firm is an independent member of the network and a separate legal entity. However, there is a common strategy for growth, values and methodologies, and the focus on quality and best practice is shared. “We all believe in differentiation through collaboration, establishing a deep understanding of what matters most to clients”, Stephens said. “It is these attributes that really form the foundation of our united brand.”
A changing world
Following the financial crisis, and during the ongoing economic volatility, the need for rigorous accounting and reporting is crucial. Regulators and stakeholders require greater, more detailed information, both financial and non-financial, about companies. The International Audit and Assurance Standards Board has new auditor reporting standards, which underline the rising importance of high-quality accounting and transparent reporting. RSM anticipates that tax and risk departments will also increase in importance, with a global focus on transparency. Auditors are very conscious of their role in serving public interest, and public interest will continue to propel the numerous global movements towards financial transparency.
For instance, in the aftermath of the Enron scandal, it became evident that transparency in the profession is not only crucial, but a matter of public interest. Following the dissolution of Arthur Andersen, taking the Big Five down to the Big Four, many fear that another catastrophe resulting in a Big Three would send shockwaves through the financial markets. The total revenues of the Big Four were over $120bn in 2014.
According to Stephens, the landscape of the global accounting marketplace can be unpredictable. This provides frequent opportunities for growth, alongside increased risk. At RSM, the need to understand the economic trends of the marketplace and the changes in the profession is well understood. This understanding helps to ensure RSM’s member firms are in the best possible position to anticipate client needs and to then advise and serve accordingly.
Furthermore, the growing importance of the internet and digital technology provides other areas for growth. As Stephens noted: “We see opportunities to support our clients in their risk management processes; this is crucial for our middle-market clients, particularly with the developments in business technology.” With cybercrime and online fraud on the rise, and cloud-based data systems growing, the needs of clients are continually changing. RSM is, therefore, growing its ability to assist clients in these specialist areas, as well as expanding the transaction services it offers, providing trusted advice during the defining stages of client business development.
Nothing left unaccounted for
RSM currently operates in many emerging and developing economies, where the network is seeing evidence of growth. In volatile markets, transparency is crucial; companies need accurate information and key figures at a time when things are fraught. RSM is well established in countries such as China, but African markets are often difficult places in which to expand. Africa is, however, one of RSM’s areas of growth, due to a rise in client demand stemming from investment in infrastructure and telecommunications.
Ongoing social, political and economic developments in the Middle East and North Africa have, similarly, presented unique market conditions. “At RSM, we see great investment opportunities across the world as governments aim to position their countries for future growth across a number of sectors, including tourism and leisure, food, pharmaceuticals, and oil and gas. We ensure that our clients are ready to take advantage of these opportunities when the time is right”, Stephens said.
RSM also focuses heavily on the middle market in advanced economies, specialising in supporting clients’ business needs and requirements. International business can be complex; companies need to be aware of the risks involved and how to mitigate them. Some companies tend to underestimate the costs of doing business, the complexity of repatriating profits, and the difficulty of navigating local regulations and tax regimes. Complying with the varying requirements of multiple tax jurisdictions is complicated, time-consuming and fraught with danger. Transfer pricing strategies have, therefore, become one of the most important tax issues facing international companies, whatever their size. This is where RSM comes in.
By offering services which can improve operational capabilities and productivity, RSM helps clients navigate their cross-border operations or international expansion plans. Yet the global network provides more than just compliance-based services. “Our clients”, Stephens concluded, “don’t just want an accountant or auditor; they want a trusted business adviser, to help them move their business forward.”