KPMG accounts for its China's success

Amid the unfolding economic crisis that forces most of finance related industries to scale back, KPMG, one of the largest global networks of professional service firms providing audit, tax and advisory services, will recruit up to 2,000 employees in the coming year in China. It offers hope and an opportunity for new graduates who are threatened by the rising unemployment rate.

As one of the Big Four auditors, KPMG was the first international accounting firm to gain a joint venture license in China in 1992 and it has had operations in Hong Kong operations for more than 60 years. Today, KPMG China has 8,500-plus professionals working in 12 offices on the Chinese mainland in Beijing, Qingdao, Shenyang, Shanghai, Nanjing, Chengdu, Hangzhou, Guangzhou, Fuzhou, Shenzhen, Hong Kong and Macao.

John B. Harrison, the newly appointed deputy chairman of KPMG International and chairman of KMPG's Asia Pacific region, recently shared his perspective with China Business Weekly reporter Wang Ying on KPMG's long-term prospects in the China market.

Q: To join a Big Four accounting firm such as KPMG, is a dream job for many Chinese graduates. What do you think makes KPMG so alluring to the job seekers?

A: They are joining an international firm, one of the largest accountancy, tax, and advisory firms in the world. KPMG has 137,000 people in 144 countries that gives them a huge base of opportunities to work with global clients, to travel worldwide, and to get fantastic training. For new graduates to join KPMG in China, it's a fantastic place to build a career to get well-trained, complete the professional exams, gain experience with both major Chinese companies and global companies, and there are plenty of opportunities for advancement. Moreover, as the firm in China expands we are looking to promote senior managers and partners every year creating fantastic opportunities for our people.

Q: As many multinationals are axing employees or cutting jobs worldwide, what's KPMG's new recruitment plan in 2009 for China?

A: When I am talking about China, I include Hong Kong and Macao. In total, I'm looking at the best part of 2,000 graduates next year, which is similar to last year. Of course the competition between the applicants will be very fierce. Last year we had nearly 40,000 applicants for 2,000 places. The difficult thing for me is to work out who are the right ones.

Q: In which degree has KPMG felt the squeeze of the current economic slowdown? What's your strategy to cope with these difficulties?

A: I've got to look in long term; I can't just look short term. Normally we will be work on many IPO transactions, and clearly the IPO market is quiet at the moment. But other areas of our businesses are very busy, areas like business performance, cost optimization, restructuring, receivership etc. So there are areas of businesses that do well in times like this, but there are areas that don't do so well.

Our strategy for the financial crisis is to be out in the market, understanding and identifying new opportunities, supporting our clients through these difficult times and providing them with advice to assist their businesses. Clearly, we also need to focus on our own costs, making sure we manage our costs and cash flow effectively. We are making sure we are mobilizing resources in the areas where we see opportunities away from the areas, which are expected to be going to be quiet for another year or two years.

I don't know when this crisis will be over, it certainly won't be over quickly, possibly for another year or two years, but I'm looking at our five to 10 years' growth agenda for business in China, and for that growth agenda, I need great people, great resources, and the best people we get are the people we have trained, who have grown up with KPMG, understand and display our values and have loyalty to the firm.

Q: What suggestions will you present to your clients as the global economy slows down?

A: For many clients we are working with them on how they can improve their business processes to reduce costs, on general cost optimization projects, on how they can possibly restructure to be more effective and efficient, some clients we are helping with their downsizing plans. But equally there are other clients who are looking to invest, so we are still very much involved in our corporate finance and M&A divisions in helping clients identify opportunities, and help them do the dual-diligence and tax structuring as well. As I say, sometimes in times of adversity opportunities are created for some others, so these are the areas we are working in.

(China Daily 02/09/2009 page7)