The PwC Culture and Values: Anecdotes from past Leaders

The culture and values of an organization pass on from one generation to another. Neither brick and mortar endure nor people remain forever. But institutions which are built on solid values with a sustainable purpose, last a long time. The culture and value fabric of an organization are woven by anecdotes, stories, important events, inflexion points and episodes of the past.
The Firm which became PwC was established in 1880 in Calcutta. By1880, Calcutta had become the most important centre of economic and administrative activity east of the Suez. Lord Ripon was the Viceroy ruling India from the imposing Government House built in 1802 by Lord Wellesley. Queen Victoria had already proclaimed herself the Empress of India on 1st January 1877. Calcutta was the capital of British India and in the words of Lord Curzon “the second city to London in the entire British Empire.”
When I joined PW, the office was in Gillander House close to the Writers’ Building the seat of power of the state government. I was recruited by Prasanta Kumar Mallik (known as PKM). He was arguably the most colourful and maverick accountant in his days. He had many feathers in his cap. He became the President of the Institute of Chartered Accountants of India. He was the Sheriff of Calcutta. Most interestingly, he acted in a Satyajit Ray movie. He played the role of Runu Sanyal, the rival who loses to the hero in Seemabaddha (Company Limited). It was a film in which Sharmila Tagore was the heroine. The film dealt with a rising rat race culture of greed and cut throat competition to rise to the top of the corporate ladder by any means. Part of the movie was filmed in Gillander House.
When he was in the company of his disciples, PKM swore like a sailor and had the choicest stock of expletives, some which he claimed, he had inherited from his father, who was a judge of the Calcutta High Court. He had a rare ability to motivate young people and spur them on.
I vividly remember the day I was told that I would be admitted to partnership. Our senior partner then was Kamesh Prasad Bhargava (called KPB). He was one of the most brilliant people I have met. He had stood first in the examinations of the Institute of Chartered Accountants in England and Wales. He never raised his voice but he did not suffer fools easily. I have never quite figured out why most managers and partners were mortally afraid of going into his room. When he crossed the corridor to go to the rest room, a pin-drop silence would descend in the hall.
On the day KPB called me into his room and told me I would be admitted to partnership, I had asked him what his expectations of me were and he simply said, “I want you to take the pledge that you will leave a firm that is much stronger than the one you joined”. Not for a day during my association with PwC, I let myself forget this pledge.
On the same day after lunch PKM summoned me to his room and asked me in Bengali, “What has happened to you, have grown a tail (this is a literal translation-it means have you become too full of yourself)?” I did not know where he was coming from.
He said, “You committed two cardinal sins. First you have asked KPB that you want to read the partnership deed. This is never done. You have to have complete trust in your partners. KPB told me at the lunch table today “Prasanta the times have changed. This young man wants to read the deed before he signs.”
I told him, “No one in my family is an accountant. My father has told me never to sign any paper without reading it. So I cannot sign without reading. And what is the second sin?”
PKM said, “You told him that you will not go to meet Mr. RN. Sen (RNS) before you become a partner. He is the patriarch of this family -a father figure to all of us and it is customary for all new partners to go to him to seek his blessings”
I told him, “I have the highest regards for RNS and what he has done for this firm. But he has never met me or worked with me. Why is it a condition that I have to meet him before becoming a partner? I will go and meet him the day I become a partner.” I was told by RNS himself that he had told KPB ,“This young man has guts, let him come after he becomes partner and I look forward to meeting him.” I met him the very day I became a partner. Mr. Sen had no children of his own and he loved KPB like his own son. When KPB passed away at the prime of his career in 1989, I had the tragic duty of taking RNS to KPB’s house to meet his wife.
RNS told me many stories of how he fought the politics and arrogance of a few of the British partners in pre-independence India. He also, through anecdotes, acquainted me with the firm’s history and culture.
Three anecdotes are worth mentioning:
The first one: a partner from London had come down to Calcutta and wanted to check the India firm’s books of account. He told him, “Yes, I will let you do so if you let me check yours.” The British partner back-tracked.
The second one was his first meeting with Sachindra Chaudhuri, a famous barrister and later the Finance Minister of India. RNS had taken a particular view of an accounting treatment regarding the depreciation of an asset. The client wanted the opinion to be diluted and brought a signed legal opinion from Sachindra Chaudhuri. RNS did not change his view. The client reported this back to the barrister who was livid with rage. He asked for a joint conference in his chamber. RNS refused to go to his chamber and asked for a meeting in his office which Chaudhuri declined. The stalemate was broken by arranging the meeting just across the road from our office at Orr Dignam & Co, solicitors.
Mr. Chaudhri said, “I hear you have refused to accept my opinion? Do you know that I am an expert on company law and even legislators and judges consult me?” RNS replied, “Firstly, this is an accounting matter and in accounting I am an expert and you are not. Secondly, do you mean to say that you win every case that you argue? In this case, the law requires my opinion as an auditor, not yours. In this case I am the judge.” And then he explained in detail his point of view. RNS told me that Chaudhuri and RNS became great friends after that day and did not bear any ill will towards each other.
The last anecdote is a culture-defining one. When RNS decided to retire ahead of his time, his successor was Polly Choksey (PKC). PKC told RNS, “Sir you are a father figure to all of us. Your shoes are too big to fill. Even if you retire as the Senior Partner please keep a room in the office, come and go as you wish so that we are not denied of the benefit of your advice.”
RNS famously told Polly Choksey, “Polly never make this blunder. If I sit in this office you will never become a burra saab (CEO). By sheer habit people will come to me, including you, and you will not be able run the firm with a free hand. If you need advice please come to my home, my doors are always open to you.”
Fortunately, until this date, every retired Senior partner has continued with this fine tradition. On completing his term, no one has continued either as a client partner or as an “adviser”. They have either gone away to enjoy a quiet retirement or started a successful second career. This, I believe, is an integral part of the firm’s culture: do not overstay your welcome and let the next leader manage without the shadows and fetters of the previous leader.