Serving clients -- and their industries;

              To serve a client, know his industry—
and serve his industry as well.
Why does Haskins & Sells regard this
two-fold objective of industry
knowledge and industry service as so
important? How does the Firm mobilize
resources to give its objective practical
effect?
Serving Clients-
The answer to the first question is
fairly simple" according to Executive
Office partner Thomas B. Hogan,
whose responsibilities include
coordination of industry relations and
activities. He says, "It stems from the
fact that each industry tends to have
distinctive characteristics that set it
apart from other industries, some more
so than others. Unique problems result,
and these must be studied to be
understood. Moreover, despite the
fact that organizations within an
industry are basically competitive with
each other, their common problems
force them to band together, typically
in trade associations, for their mutual
protection and advancement!'
Accountants who are sensitive to their
clients' needs and their industries'
characteristics and problems are bound
to develop constructive contributions,
if they are persistent and innovative,
whether in the areas of accounting,
auditing, financial reporting, tax
matters or MAS techniques.These
contributions benefit their clients in
the first instance, and when the
accountants can so skillfully articulate
their contributions as to share them
with an entire industry they advance
the progress of that industry's total
membership. By so doing, they can
enhance the prospects of the client
whose livelihood comes from within
that industry.
The answer to the second question-
How does the Firm mobilize to meet
its objective?—"is more complex;' says
Tom Hogan, adding that "the challenge
is not easily met, since it calls for the
skillful coordination of a widespread
body of talent operating on what is
sometimes a virtually global basis. It
entails the wise allocation of time so as
to achieve maximum immediate
effectiveness in day-to-day tasks,
while preparing imaginatively for
future effectiveness in a world of
incessant change that causes
continuing shifts in industry patterns.
Moreover, a successful response to
the challenge depends heavily on
those subtle qualities of human
personality and character that can
never be programmed on computers:
true intellectual curiosity, persistence
in study, a disposition to immerse
oneself in new subject areas, and a
willingness to'go the extra mile' not
only in acquiring expertise but in
sharing it generously with others!'
While the years have seen many shifts
in the administrative techniques the
Firm has used to meet its industry
challenge, three basic concepts have
clearly shaped the selection of
techniques.
First, the partner in charge of an
engagement—the man on the firing
line who, in the eyes of his client, is
Haskins & Sells—must personify the
Firm's total expertise. He must commit
himself to his client's industry and
communicate this commitment. His
role is paramount, whatever the
industry—or industries—in which his
client operates.
Second, in fulfilling his commitment,
the engagement partner must be aided
by the resources of the entire Firm,
however they may be structured and
wherever they may be located. The
Firm has never supposed that any
magic wand could be waved by which
industry sophistication could be
concentrated at any single point. It has
held, instead, that industry expertise
must arise from the full interflow of
ideas and experience throughout
the entire Firm. Effective interflow
comes not only from a system of
communications but also from a spirit
of communications, an alertness to
phenomena that affect industries, the
enterprise to flag developments to
the attention of those with the need
to know, and the skill to do so clearly
and promptly.
At the Executive Office, for example,
there is hardly any unit that does not
contribute in one way or another to the
interflow of industry expertise. As the
Firm's nerve center, the EO tries to
monitor all developments that can
affect industries: the impact on these
industries of accounting principles and
procedures; the emergence of auditing
concepts and techniques that have
special value for particular industries;
the effect of taxation on industry
operations; and advances in
management science that can help an
entire industry progress. Moreover, it
uses a variety of communication
methods—including such vehicles as
the Subject File Binder—to channel
industry information throughout
the Firm.
Third, in backstopping the engagement
partner, the Firm must recognize that
within the total range of industries
there are clearly certain ones in which
characteristics and problems are so
unique and demanding—or the Firm's
activity so substantial—that they must
be given special attention in a
formal way.
It is this third concept that has given
rise to the building ofacorps of industry
experts for a group of twenty-four
selected industries. These experts,
who are located throughout the
country, are designated as "specialists,"
or as "coordinators!' They have been
assigned to industries in these
categories: agricultural cooperatives,
oil and gas, textile mills, paper and
paperboard, publication and printing,
primary metals, rail transportation,
truck transportation, water
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