Organizational Structure of Deloitte Touche Tohmatsu

Introduction

This week as we continue to focus on organizational cultures, we look at the specific structures that allow work to be accomplished. We have learned that organizational differentiation speaks to function, location, product offerings and hierarchical levels within organizations. We also discussed how silos can create division within organizations because the structure design doesn’t align with the social systems and the organizational culture.

Our goal this week was to examine organizational structures and their impact on the organizational culture. Additionally, our goal was to gain an in-depth understanding of a leader’s role in managing the subcultures that occur within various departments, functions, and organizational social structures. In this paper I will demonstrate what I have learned by discussing the aspects of the Deloitte organizational structure. I will specifically discuss how their activities are grouped within the organization. I will relate to the degree of horizontal and vertical differentiation within the Deloitte organization. I will further discuss if the organizational activities are decentralized, centralized, formalized, or specialized.

I will share with readers the impact that the Deloitte structure has on their communication, finances, and productivity within your organization. Lastly, I will conclude by summarizing how Deloitte’s internal structure impacts their culture.

Deloitte Touche Tohmatsu Limited-Organizational Structure

Division Based Consulting- For this assignment, I will be discussing a well-known organization that has been ranked the 4th largest privately owned company in the United States. William Welch Deloitte founded Deloitte in the UK, and now Deloitte is a worldwide multinational professional service network that has become one of the big four accounting organizations in the world (Deloitte Development LLC.

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, 2018). Schein relates that divisional organizational structures group activities based on the geographic need, target market or groups with specific products or services (Schein & Schein, 2017). Deloitte’s operations is based on divisional structure that consists of firms which target six specific services related to their overall consulting strategy. The subunits work under the Deloitte Touche Tohmatsu Limited legal entity and tailor their services in alignment with the DTTL six service lines. The basis of the Deloitte strategy is to work with executives all across the world to help solve complex industry problems with an approach that uses their research of industry trends, well compiled analysis and professional insights that produce effective action plans for their customers. Deloitte provides six service lines that include, auditing, tax services, legal, consulting, financial guidance and risk management to professionals all across the world (Deloitte Development LLC., 2018).

Vertical and Horizontal Differentiation Approach- Vertical differentiation incorporates a chain of command, top down management structure that consists of many levels. Horizontal differentiation separates work efforts by specific services or groups (Sampson, 2019). Deloitte’s organizational view is twofold, the internal organizational structure and the individual member firms that operate under the DTTL umbrella. Deloitte’s global structure speaks to a vertical differentiation. The Deloitte governing process ensures the member firms align their efforts with the DTTL established policies (Deloitte Development LLC., 2018). Deloitte’s governance and leadership structure provides guidance to the member firms so they maintain the DTTL standards. The individual member firm structures are regional based owned firms that operate within the legal and regulatory framework of DTTL. These firms work under the same practices, brand, methodologies, service standards, and DTTL guidelines. These firms account for the six service lines that represent the DTTL consulting framework (Deloitte Development LLC., 2018).

Centralized Organization Structure- Centralized organizations speaks to the process in which decisions are established and determined by the business owners. The business owners establish the organizational mission, vision, and organizational practices (Kokemuller, 2019). Deloitte has ensured their leadership team is the face for their organization. The leadership presence is evident, Deloitte executives work directly with the member firms to establish business models across the globe that produce effective outcomes and solutions for their clients. Deloitte promotes an engaged leadership team who presents the company offerings, ensuring commitment to solving and implementing solutions. Deloitte currently has an executive team that is responsible for establishing the DTTL vision and strategy. Deloitte also has a governing board, the governing body addresses global strategies, major transactions, and the election of their business leaders (Deloitte Development LLC., 2018).

Deloitte’s Structure-Impact on Communication-Finance-Productivity

The CEO of Deloitte, Cathy Engelbert is considered Fortune’s Most Powerful Women for three consecutive years. She leads the organization’s mission by speaking to member firms about marketplace and global trends that shape their future (Deloitte Development LLC., 2018). Deloitte is global and has proven to be a leading competitor in the professional services industry. Their success is driven by their ability to remain within accordance with the laws and professional regulations related to the geographic areas they service. Deloitte’s responsibility is to ensure they deliver lasting results for their clients and provide guidance to businesses that lead to a stronger economy and healthy society (Deloitte Development LLC., 2018). Deloitte has transformed business in a number of industries. To date they have transformed companies in the consumer industry, energy, government, health care, financial and technology. Deloitte offers insights on up to date real world analytics that drives their solution-based services (Deloitte Development LLC., 2018).

Deloitte’s Internal Structure- Impact on the Culture

Deloitte’s vision, values and strategy fosters collaboration with leadership and partners all around the world, with focus on working together to deliver excellent services. The Deloitte Culture strive to accomplish 4 central aspects. Integrity, the Deloitte reputation comes first, demonstrating the highest levels of integrity is fundamental to who they are. Outstanding Value to Markets and Clients, helping the capital markets and clients is a critical role. This role is a privilege, and requires constant commitment. Commitment to Each other, this means going above and beyond to support one another. Cultural Diversity, Deloitte believes a diverse working environment helps their people grow into better professionals and leaders (Deloitte Development LLC., 2018). Deloitte is a business that thrives off their ability to consistently progress forward as it relates to improving business quality. Continuous change is their doctrine and remains to be the fundamental force of their success. Deloitte has demonstrated their strength by showcasing a consistent ability to stay competitive and hold a leading position in the industry. The leaders of Deloitte work to continuously develop the organization to improve their skills and abilities.

Conclusion

This week we have learned that organizational differentiation speaks to function, location, product offerings and hierarchical levels within organizations. We also discussed how silos can create division within organizations because the structure design doesn’t align with the social systems and the organizational culture. Our goal this week was to examine organizational structures and their impact on the organizational culture and gain an in-depth understanding of a leader’s role in managing the subcultures. In this paper I have demonstrated what I have learned by discussing the aspects of the Deloitte organizational structure. I specifically discuss how their activities are grouped within the organization. I have outlined the degree of horizontal and vertical differentiation within the Deloitte organization. I shared with readers the organizational structure related to decentralization, centralization, formalization, and specialization. I have discussed the impact that the Deloitte structure has on their communication, finances, and productivity within your organization. Lastly, I concluded by summarizing how Deloitte’s internal structure impacts their culture.

Works Cited

1. Deloitte Development LLC. (2018, June 28). About Deloitte. Retrieved from Deloitte: https://www2.deloitte.com/global/en/pages/about-deloitte/articles/about-deloitte.html
2. Deloitte Development LLC. (2018, June 28). Overview of Emerging Technologies. Retrieved from Deloitte: https://www2.deloitte.com/content/dam/Deloitte/us/Documents/center-for-corporate-governance/us-ccg-overview-of-emerging-technologies.pdf
3. Kokemuller, N. (2019, February 13). The Advantages of Centralized Organizational Structure. Retrieved from Chron.com: https://smallbusiness.chron.com/advantages-centralized-organizational-structure-21410.html
4. Sampson, Q. (2019, February 19). The Definitions of Horizontal and Vertical Organizations. Retrieved from Chron.com: https://smallbusiness.chron.com/definitions-horizontal-vertical-organizations-23483.html
5. Schein, E. H., & Schein, P. (2017). Organizational Culture and Leadership (5th Edition ed.). Hoboken, NJ: John Wiley & Sons, Inc.