Sixteen years after co-founding the Czech office of KPMG, František Dostálek received the assignment of his dreams. Starting Oct. 1, Dostálek will be chairman and CEO of KPMG in Central and Eastern Europe (CEE), making him one of the highest positioned Czechs in a multinational company. He talks with The Prague Post about his goals and what Czech executives need to do to earn international recognition.

1. You're set to become the first Czech to sit atop the European management of a global auditing company. Do you have any idea what to expect?

I have a good idea, as I have been a member of the KPMG board for CEE since 2001 and I have had several opportunities to attend meetings of the KPMG board for Europe, the Middle East and Africa [EMEA], of which I will become a member Oct. 1. I will be expected to actively contribute to forming KPMG's strategy for EMEA, and I will be personally responsible for implementing it in CEE.

2. Given the fact that you've been with KPMG since 1990, were you starting to feel like it was time to either move up or go to another company?

There have been so many challenges at KPMG since 1990 that I never seriously thought of moving somewhere else. I believe that I can still contribute to the development of KPMG, not only in the Czech Republic but also across the whole region.

3. According to some theories, top managers shouldn't stay at the helm of a major company for more than five years because they burn out. How would you respond to that?

There are many excellent examples of the complete opposite, such as Jack Welch or Jorma Ollila. Also, the leadership at professional service firms such as KPMG does not change as often as in other industries. They are usually led by people with long-term experience who are trusted as professionals in their area and not by managers who may change industries every five years.

4. How have you managed to stay in charge of KPMG Czech Republic for so long?

I have been managing partner of KPMG ČR since 2001. Before that I was the partner in charge of audit. From 1991 to 2001, Paul Lom and Charles Randolph were our managing partners. They arrived as experienced KPMG partners from Melbourne and Boston. I was ready and able to take over my current position after working closely with them and learning from their experience. People at KPMG know that I always put the interest of the firm before my own and that the only people I sometimes do not treat fairly are my family.

5. It's still rather rare to see Czech executives in top managerial positions at the international level. What is the key to earning international recognition?

To be successful in the local market and to think globally. It is necessary to take initiative beyond your own field of responsibilities, to be open and consistent and focused. It is important to have a vision and the passion to achieve it.

6. After being appointed CEO of KPMG CEE, you said you'd like to build 'centers of excellence' that have specialized teams of experts in particular fields. Does this mean that professional services companies are at the moment more about quantity than quality?

No, it certainly does not mean that. It reflects the response of accounting firms to the new regulatory environment, which has pushed them to change their business model. Previously, the main goal was to maximize revenue from sales of services to audit clients. Today, we have to focus much more on nonaudit clients if we want to grow our business in tax and advisory services. To achieve this goal, we must have experts or teams of experts with deep knowledge in individual industries.

7. The professional services market here is unique in at least one way. Despite tough competition, all of the major market players refuse to talk about each other. Why?

These firms have a long tradition of not talking about their competitors. One reason behind this is a desire to raise the profile of the profession and to protect its reputation. It is a proven fact that the problems of one firm can reflect negatively on all of the others.

8. In a competitive market, is this strategy sustainable?

Despite my answer to the previous question, there is very tough competition between accounting firms, although in some situations this may be limited to the big four. It is important to point out that none of the big four wanted the former big five to be reduced. On the other hand, there is strong competition between accounting firms in the areas of tax and advisory services, both locally and internationally.

9. You said recently that the thing you enjoy most about your work is the daily interaction with staff. Will your contact with staff change after you take over the position of regional CEO? You won't be able to meet with more than 3,000 people in 16 countries, will you?

We are in a people business. The people are smart, hard-working, enthusiastic and ambitious. It is really refreshing to talk to them, to share their views, hopes and ambitions. When I visited the CEE practices prior to being elected chairman, I enjoyed meeting not only with the partners but also with all the other KPMG employees. I just hope that I will have the opportunity to do the same in my new role.

10. You're now at the peak of your career. What challenges will you face?

Our business is growing very rapidly and will probably keep on growing over the coming years. Therefore, my major challenge will be developing partners and managers who will play a more important role in this growth and management of the business. More importantly, they are the people who will succeed me and some of my colleagues over the next few years. It is a real challenge for me and a great responsibility to hand over the future of KPMG to colleagues who will move it forward.