Hywel Ball's decision to step down as the UK head of EY came as a surprise to many. The 61-year-old, who has led the UK firm since 2020, announced in an email to partners that it was time to "hand on the baton." Under his watch, EY UK experienced significant growth, even amidst upheavals like the collapse of Project Everest. However, Ball's departure sets the stage for a high-stakes internal race to fill one of the most prestigious jobs in British professional services.

Ball's tenure was marked by both remarkable achievements and controversial initiatives. One of his most ambitious projects, Project Everest, aimed to split EY's audit and consulting arms to address conflicts of interest and improve transparency. Despite its failure, the project highlighted Ball's willingness to tackle deep-seated issues head-on, even at substantial cost.

Under Ball's leadership, EY UK demonstrated resilience and growth. Revenue skyrocketed by 36%, rising from £2.75bn in 2021 to £3.76bn in 2023, and the headcount surged from 17,000 to 21,000 employees. These figures reflect strategic expansions and a commitment to enhancing the firm's capabilities.

Ball's push for Project Everest epitomized his forward-thinking approach. The plan would have divided EY's global network into separate audit and consulting businesses, reducing conflicts of interest and enhancing client trust. However, execution challenges proved insurmountable, and the firm had to face the reality of integrating deeply intertwined business units.

The fallout from Project Everest left EY at a critical juncture. The new leader must not only rekindle confidence within EY but also guide the firm through a landscape punctuated by rapid technological advancements, evolving client needs, and stringent regulations. Ball's legacy reflects the high stakes of transformative leadership and the pursuit of strategic reform amidst a challenging commercial landscape.

Ball's departure triggers a series of intricate challenges for EY UK. The new leader must manage the transition while ensuring minimal disruption to operations and client relationships. Maintaining continuity amid leadership changes is crucial for preserving the firm's culture and stability.

Above all, the firm must grapple with the aftermath of Project Everest, an initiative that consumed extensive resources but ended without fruition. The new leadership will need to analyze these outcomes critically and lay a blueprint for future structural reforms.

Key Challenges Ahead:

• Integrating cutting-edge technologies into service offerings
• Bolstering transparency and reinforcing ethical standards
• Deepening client relationships and expanding service offerings

Meanwhile, regulatory scrutiny continues to heighten. The new UK Chair and Managing Partner must work in concert to bolster transparency and reinforce ethical standards across the firm's operations, aligning with oversight bodies' expectations.

Another critical area is the firm's response to evolving client expectations. The incoming leader must prioritize deepening client relationships and expanding service offerings to address sophisticated needs, ensuring EY remains a trusted advisor.

The future trajectory of EY UK hinges on a seamless leadership transition, a redefined strategy post-Project Everest, and a solidified approach to tech and regulatory challenges. The baton now passes to a leader who must steer EY with foresight, resilience, and innovation, shaping the firm's next chapter.

• Prager KJ, Vachon B. Brave New Work: Leading Ethically in Whatever Comes Next. Berrett-Koehler Publishers; 2022.
• Suddath C. The Big Four's Broken Promises. Bloomberg Businessweek. https://www.bloomberg.com/news/features/2022-02-24/the-big-four-accounting-firms-how-eyu2019s-failed-audit-reform-shook-the-industry. Published February 24, 2022.
• Tsako G. Big Four audit splits flounder as EY abandons Everest project. Financial Times. https://www.ft.com/content/e4f97470-e8b8-4f7e-855f-e0b1c712fc09. Published July 25, 2022.