Many executives hop from top company to top company, but PricewaterhouseCoopers (PwC) Managing Partner in the Czech Republic Michael Hackworth is an exception. After serving with the U.S. Marines, Hackworth moved to Price Waterhouse (now PwC), where he has worked for more than 25 years, eight of which he spent as the company's managing partner in this country. Hackworth talks with The Prague Post about how the military developed his sense of loyalty and how the impending European Commission (EC) rules requiring mandatory rotations of auditors could affect consultancy companies.

You've been working with PwC (formerly Price Waterhouse) for 25 years now. Have you ever considered moving to another company?

I have never seriously considered another company. I have had a challenging and rewarding career with Price Waterhouse and PwC after our merger. What attracts me the most is the opportunity to serve a wide variety of clients from many cultures and to work with a young staff as they develop into professionals.

How did being a U.S. Marine help develop your sense of loyalty?

Exactly how does a man get from the Marines to a major auditing company?

Following five years of military service, I obtained a business degree from the University of Maryland under the G.I. Bill, a U.S. government program that paid for tuition and other expenses. I was fortunate to have role models and the means to pursue higher education.

You've worked as PwC's managing partner in the Czech Republic for a decade. Did you see it as a step back when you moved to Prague, or was it a needed change after 15 years with PwC?

My wife, Amy, and I have never regretted moving to Prague in 1996. We have had the good fortune to be part of something special and historic as the Czech Republic has rejoined Europe. I believe PwC has been an integral part of the development of the Czech economy. Our children, raised in the Czech Republic, call Prague "home" and visit from university at every opportunity.

What most surprised you after starting business here?

The most surprising thing has been the dramatic change of pace and development in Central and Eastern Europe over the past 15 years. The Czech Republic in particular has made tremendous strides. On the other hand, I'm sometimes disappointed that Czechs aren't more proud of what they have accomplished.

Under you, PwC has risen to be the market leader in auditing and consultancy services. What are key factors in convincing potential clients that you should be assigned to carry out services for them?

I believe clients in the Czech Republic are looking for the same things as clients all over the world: quality, value for money and reliability. We invest a significant amount of time and effort into continuously developing our staff, improving our services and identifying opportunities to add value for our clients. We also demonstrate high standards of business conduct and communicate our standards to clients. So far, this has proven a successful formula.

Beginning in 2007, the EC wants to see mandatory rotations of auditors every seven years. Do you think this is justifiable? Are you afraid this could jeopardize your leading position on the market because customers will be forced to move to competitors?

While I understand the EC's desire to have some rotation of auditors, I don't think mandatory audit rotation is necessarily the best way to accomplish this. From the standpoint of our market share, I'm not worried. While we would lose some audit clients, we would gain others in turn. At the same time, there are some services that we are prohibited from providing to our audit clients due to independence regulations. If we were no longer a company's auditor, we would be free to offer them a wide range of consulting, tax and business advisory services.

How differently do people perceive auditing here than in the United States?

In general, I don't think there's a big difference. However, due to the recent accounting scandals in the United States, I believe that the American business sector may have a higher awareness of the importance of a good audit as a means of protecting shareholders.

You also serve as the Advisory Risk Management Leader for Central and Eastern Europe. Would you agree that this is a field with a large potential for growth here, since many companies still tend to underestimate the importance of risk management?

I agree that risk management is an area with good growth potential in the Czech Republic. We operate in a complex business and regulatory environment and face risks in every aspect of operations. Let's face it. The cost of getting it wrong can be catastrophic: financial losses, lawsuits, damage to reputation. So planning ahead is essential. While most Czech firms are already managing risk in some way, they often take a reactive, as opposed to a proactive, stance. Many companies need help integrating risk management into their overall business strategy and implementing effective control systems.

You've been quoted saying, 'Don't do business at any price.' Does this mean you're risk-averse?