Why mid-tier firms must lift their commercial game to compete with the big 4

Having worked within EY, KPMG, PwC, Deloitte, and numerous mid-tier firms across Australia and the UK, I have observed a consistent capability gap: mid-tier firms frequently lack the commercial discipline, commercial courage, and decision-making capability required to win top-tier work.

The commercial conversation deficit

A recurring issue across mid-tier firms is the tendency to avoid commercially challenging conversations. Practitioners often rely on generic, low-value questions such as:

“What keeps you awake at night?”

This approach is ineffective, and it has been cringe-worthy when I have suddenly heard a partner come out with this, and believe me, it has happened! Senior executives recognise it immediately as a superficial attempt at rapport building. It does not uncover decision criteria, internal dynamics, risk tolerance or the strategic drivers required to scope and qualify major engagements.

By contrast, commercially effective conversations require practitioners to ask targeted, outcome-oriented questions. Questions that demonstrate commercial competence and build trust by clarifying the client’s decision process.

The big four's vulnerability – and their remaining strength

While the big four are experiencing reputational challenges, their commercial capability remains strong. They continue to demonstrate:

• Disciplined qualification of client needs.
• Commercially courageous questioning.
• Effective management of decision bias.
• Strong internal coordination across bids and proposals.

Mid-tier firms have an opportunity to compete, but only if they elevate their commercial capability to match or exceed these standards.

Soft skills as commercial competencies

Soft skills – including emotional intelligence, negotiation, conflict management and advanced questioning – have become core commercial competencies. EQ is not synonymous with friendliness; it is the ability to influence, challenge constructively, and create comfort with change.

Mid-tier firms frequently underinvest in these skills, resulting in practitioners who are technically capable but commercially hesitant.

The scoping and qualification imbalance

Most firms allocate:

• 15 per cent of effort to scoping.
• 70 per cent to proposal development.
• 15 per cent to presentation.

However, successful engagements require:

• 55 per cent scoping.
• 20 per cent proposal development.
• 25 per cent presentation.

This imbalance is a primary reason both large and mid-tier firms lose competitive bids. Without rigorous scoping and qualification, proposals fail to align with the client’s decision process, risk profile and internal dynamics.

The path forward for mid-tier firms

To compete effectively with the big four, mid-tier firms must:

• Abandon generic, low-value questioning.
• Adopt commercially courageous conversations.
• Invest significantly in scoping and qualification.
• Develop EQ-driven rapport and negotiation capability.
• Address heuristic bias in client decision-making.
• Replace traditional sales training with evidence-based BD coaching.
• Conduct regular insight reviews to gauge current satisfaction, defection signals and new business opportunities.

Additionally, appoint BD coaches or BD advisers who have “walked the floors” and have actually worked in either the big four or mid-tier firms directly with clients, specifically with CFOs. These are the areas in which I have supported firms for more than two decades – through practical, evidence-based business development coaching that strengthens commercial capability, enhances client relationships and improves revenue outcomes. Partners in particular need fine-tuned, one-on-one coaching sessions, not fancy show-and-tell training workshops or theory-based lectures, which are less effective.

Conclusion

Australia’s top companies are reassessing their advisory relationships. Trust in the big four has been disrupted, creating a rare opportunity for mid-tier firms. However, technical excellence alone is insufficient. Firms must demonstrate commercial clarity, commercial courage and disciplined qualification to win major engagements.

Those willing to elevate their commercial capability will compete successfully. Those who do not will continue to lose work they should win.

Hans Morse is a professional services business development coach and trainer who has worked with EY, KPMG, PwC, Deloitte, and a number of law firms in full-time and contract consulting roles across Australia and the United Kingdom.