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With the EY drama now squarely in the denouement phase, any hopes of leveraging the consulting arm from a sales perspective are dashed. The Wall Street Journal reports https://www.wsj.com/articles/ey-confronts-slowing-growth-after-breakup-deal-fails-9442c85d that the general morale at EY is, well, not good. Impending layoffs in the US (around 5% of staff), declining revenues, and the mother-ship taking on $300M of debt to finance the lost-cause of splitting the consulting arm from the audit arm are measurable issues. Others are not:
“Right now, what’s really important is stability,” U.S. Chair Julie Boland told her staff. “Remember that we are an amazing place to work,” she said, adding that she recognized there was a “lot of emotion in the system.”
When the CEO has to remind employees that they work in an “amazing place”, you know there is a problem.
When the news was first leaked that EY was planning to split themselves up, there was hope that EY consulting could become a better sales partner for Enterprise Software vendors. The fundamental problem with firms like EY is that they are an auditing firm and a technical consulting firm. Due to real and perceived conflicts of interest, firms like EY will not resell product, and are reticent to recommend products to their customers. A whole book (or, at least a Blog Post) could be written on this dynamic!
Given the current state of affairs, dedicating sales resources to EY as a Partner is almost impossible to support.
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