As a stalwart of the firm, Eagland has worked at BDO since the late 1980s. He joined the firm, then Stoy Hayward, when he qualified as a chartered accountant in 1987, after a training contract at Helmore & Co. Although he will not take up the new role until the autumn, Eagland is keen to set out his key growth objectives for the firm, which is ranked number six in the UK with annual fee income of £400m in the Accountancy Top 75 Firms Survey.

Setting out his long-term objectives, Eagland says: 'The four key pillars of our future will be market focus, the people proposition, engaging with and implementing digital services, and international.’

‘International for us is really key – the international network has $7bn revenue and 5,000 people in 150 countries. We are definitely big and have a great global footprint. We want to capitalise on international business over the next four years. When you talk to clients, they don’t always realise how big our international network is.’

Digital innovation

In a changing market, digital is increasingly important whether it is data processing and analytics, to the increasing commoditisation of much of the fundamental tax, audit and accounting work.

‘On digital adoption, it is all about coping with change; in a way the science is quite straightforward in terms of capturing and analysing the data, but the challenge is how you encourage a large organisation to embrace digital so you spend energy on helping growing businesses to interpret and use the data they have more effectively.

‘When I joined the firm, so much more time was spent writing up the books; now the whole work process is totally different.

‘The impact of digital will have to change the way everyone in the firm works. It is about how we engage with clients. For the me the challenge for the profession in the future is about how you embrace technology, what services we offer, for example in an advisory role and how do we use data to influence the decision making process.’

This raises the question about whether there is a conflict between different generations at the firm, particularly long-entrenched staff and partners who are comfortable with more conventional, traditional ways of working.

Change is much more difficult for the people who have been with the business for 20 years or more; that’s where you see the challenge

Eagland says: ‘The profile of people joining the firm has changed over the last decade; people learn very different skills now. People leaving school now are much more fluent in IT. They expect IT to do the heavy lifting. There is some storming talent coming through the universities.

‘Change is much more difficult for the people who have been with the business for 20 years or more; that’s where you see the challenge. But I don’t see a guillotine approach, not cutting out the old, bringing in the new. We need to work with the partners across the country and really engage with our clients.’

Market focus

In terms of growth potential, BDO is firmly positioned in the mid market.

‘Our focus is very much on the mid market – that area is very dynamic. When we look at the market, it is split into four areas for us: public capitalised market including public interest entities (PIEs), private equity, the large and sophisticated private companies, and the public sector,’ says Eagland.

Audit market

Big changes in the UK audit market from tougher tender requirements to restrictions on non-audit services (NAS) with the introduction of a so-called blacklist as a result of the upcoming EU Audit Regulations and Directive (ARD) due to  come into force this June have created opportunities for mid-tier firms like BDO. Already BDO is the largest AIM auditor in the UK.

‘We are coping with all the eventualities of audit rotation. Companies may have made a firm decision to appoint another firm as an auditor, but because of the rules on non-audit services this means that they will be reviewing the other services provided by the audit firm.’

While the reforms were designed to increase competition among firms, the immediate impact has seen a shake-up of assignation of non-audit services at the FTSE listed companies, rather than major wins for the likes of BDO outside the competitive Big Four carousel.

‘The original intention has been achieved – that is to have rotation. Whoever the rotation has ended up resting with, there has been due process. On non-audit services, when you see the disturbance that will cause in the market, that will make a real difference.

‘In our experience, when rules are released, firstly they are considered from a scientific and prescriptive way, from the market point of view and the professional service firms’ point of view. The ultimate outcome will be that the rules will be accommodated into market policy. If you are a PIE, you will buy services from an auditor, then you will have to go to the default obligation – they will need to review their non-audit services.’

Talent and recruitment

When he talks about the future shape of the firm and the people proposition, Eagland talks of his own experiences at the mid-tier firm and how he will build on this during his tenure at the top of BDO.

When he first qualified, he said that he interviewed at four firms over two days and was tempted by the philosophy at the firm. 'They told me if you join Stoy Hayward, you will be supported and encouraged to be yourself. That made a big impact. For me that statement made me feel that I would be encouraged to be yourself at the firm.' 

This early introduction shaped Eagland's view of working at a professional services firm and one of his aims is to create a diverse and highly attractive firm to work for.

'We are working to attract people from schools and universities - if you look at some of the things we do, all the way back to how we attract people, we are trying to send a message to a wide range of people about how you will be encouraged and supported at BDO.'

In terms of diversity progress may be slow with 14% of partners women and only 2% of partners from a BAME  background, both below the average at the top ten UK accounting firms. But Eagland says the firm is very proactively working to change attitudes. It is a member of the 30% Club, for example, which lobbies for greater female representation across business and professional services.

'The target over the medium term is to get the number of women partners up to 20% but independent of the target, it is about the philosophy of the organisation. It is about career conversations and supporting individuals - that is the big push.

'I don't think you can just put in central targets. You have to encourage partners around the country so that when they are looking at their people they develop opportunities and build the talent pipeline.

'I am a big advocate of diversity. Culturally the firm has come a really long way. It is a complex subject, whether it is an educational issue or an access issue. It is a complex world.'

Eagland takes up his new role as managing partner from 1 October 2016.