1.Women employees in the organization: in January 1991, out of 50 selected candidates for partnership only 4 were women employees of the organization. In 1992 and 1993 only 10 % women employees were in partnership with the firm. Cook wanted to ensure that the number of women employees hired must match the number of women graduates of accounting and business degrees (Brondoni, 2007). He encountered with a problem of “Gender gap” that means number of women employees leaving the organization was more than men. He considered this as a strategic issue. A graph sketched by Cook on his legal pad shows an upward trend in the hiring of employees and was showing a downward trend in the retention of women employees. This curve was known as the “stupid curve”.
2.In the period of 1980-1991, Compliance to value creation: the recurring of Deloitte was mainly from auditing i.e. 75% with increased responsibility towards clients. Its tax business also recurred up to 65% (Sullivan, 2002). The downsizing in early 1990’s led to the cutting of jobs by major corporations and it gave growth opportunity to Big6 by providing their services to the corporations.
3.Competition for talent: the market in 1980-1991 became highly competitive for talented people. The problem of Deloitte here was the retention and hiring of talented and experienced people to meet the needs of the market (Ruckman, 2008). Deloitte was having shortage of competent inventory.
4.Working for Deloitte and Touche was under two broad areas firstly it was audit, tax & related services and on the other hand it was consulting services provided by Deloitte. The cost incurred in the recruitment of employees in both lines was entirely different as in auditing highly experienced people were need whereas in consulting talented people were needed to satisfy the demands of the clients.