Episode Transcript
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M and T Bank present CEOs.You should know Poward by Iheartgadia in celebration
of International Women's Month. Let's meetDerek Castle. She is the market leader
of the Mid Atlantic Area Offices andis the national leader of rsm's Government Contracting
Practices, which is a multi nationalnetwork of accounting firms forming the sixth largest
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accounties the professional services network in theworld by revenue. Now, before we
talk more about Dearra's roles in thecompany and what they do, I first
asked her to talk a little bitabout herself, where she's from and her
origin story. So I am arare breed. I am a second generation
native Washingtonian. Not a lot ofus out there. My parents grew up
on the Prince George's County side ofthe city, and I grew up on
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the Maryland side of the Montgomery Countyside of the city and born and raised
Montgomery County girl, a product ofthe Montgomery County public school system, and
then went to college in North Carolina. Go wolf Peck. I'm in NC
State alone. I used to livein Raley, so I know NC State
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very well. So a great school, great football program, great men's and
women's basketball program and a fine school, and a lot of friends that have
their kids have gone there too.So my junior year in high school,
my brother was the ball boy forUniversity of Maryland's basketball and that was back
during really great SEC basketball ACC basketball, and so I was a big basketball
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fan. So NC State won theNCAA tournament my senior year and I thought,
Okay, that's where I want togo to school. And Darre also
knows about this. There's an incrediblerivalry, especially when it comes to basketball.
Well now it's been football too.When it comes to the research triangle
with NC State, Carolina and Duke, they all can't stand each other and
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it's fantastic. It makes for greatjown Gate. It sure does what you
guys do very well at NC State. Well, lots to talk about when
it comes to rs Sam. Idid want to ask you a little bit
about what you did out of schoolbecause I know this is important to get
people a little context as they starttheir journey. And I know that you've
been at RSM, which is acompany that kind of took over a company
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that you'd already been a part of. So you've been, you know,
a quarter of a century with thiscompany for a long time, which is
amazing. And I want to talkabout your ascension too, because I think
that's really important. But what didyou do coming out of school? I
am the daughter of a CPA whoI really really thought of my father more
as an entrepreneur than a CPA,because growing up, dinner table conversation was
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about making payroll and finding new clients. And so I did work for my
dad in his firm as I wasgrowing up, in high school and in
summers during college. So after college, I got a job with what was
then one of the Big eight accountingfirms. They are now the Big Four,
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and so I started the first coupleof years of my career really serving
large businesses through one of the largestCPA firms in the country. And I
knew I loved the work, butI also knew that some of that entrepreneurialism
that my father had had rubbed offon me, and I really wanted to
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explore the possibility of maybe taking overmy father's business one day. So I
left that Big four firm and wentto work for what was at that time
a three partner CPA firm here inthe Washington Expulitonarium. My thinking was,
I'll go to work for them,I'll build my skills in the small business
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arena, and then when I joinedmy father in his business, I'll have
something to contribute. And it wasmaybe one of the best decisions I have
ever made, because I learned thatsmall business wasn't really my niche. And
so I kind of call it theGoldilucks story. I had gone real,
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real big, and then I wentreal real small, and then I found
out what what was just right forme was middle market businesses. And so
I then joined what was a verylarge regional firm here in the in the
Washington area, and we served middlemarket businesses and at that time very specialized
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in middle market government contractors and andalso the nonprofit side of having the US
federal government as as your customers.So that firm was ultimately acquired by RSM
in the year two thousand and toestablish rsm's presence here in the greater Washington
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metropolitan area. You know, duringthis series, we have talked to a
lot of people whose parents started abusiness and then sometimes they joined and some
times they didn't. You know,I'd love to hear your perspective, because
I think you and I are bothparents, and we want the best for
our children and we want them todo what they want to do. But
there's some parents that want to takeover their legacy and continue that buil business.
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How did your dad react when youwent off and did your own thing.
Well, my dad has always beenmy biggest champion, and so he
was proud of me, and heunderstood my reasoning and very much wanted me
to follow my own passion. Anduntil the day he died. My father
is no longer with us, buthe was the first person I called with
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every new client. I won everypromotion, I got, every raise,
I got, every bonus I got, and that's why my father was my
mentor and my champion. Love tohear that. I have a daughter too,
so I know what that's like tohave that relationship, and I'm sure
he's very proud of you. Andthat's the wonderful story. Thanks for sharing
that. So I want to talkabout RSM, and I know that you've
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been doing this for a long time, but I think there's going to be
some people that are new to whatRSM is. So if you were to
give a thirty thousand view until allof our listeners that are enjoying our interview
right now about what you do?What would that be? So RSM is
the fifth largest public counting and businessconsulting firm in the US. We are
the sixth largest in the world,and we are strategically focused on the middle
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market. And so that very reasonthat I joined the firm all those years
ago is still where our focus lives. We are very deeply specialized by industry,
and we serve those middle market businessesthat have many of the same complexities
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as large public company blue chip companies, but just less zeros on the ends
of their numbers. And so weenjoy serving those sometimes entrepreneurially owned, oftentimes
private equity or venture capital owned,and sometimes public companies, but that tend
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to be in the middle market.And what might be thought as unique,
You actually have two roles with acompany. Can you go into and share
that with us? So one ofmy two roles I am the market leader
for the mid Atlantic region for thefirm. We define the mid Atlantic as
Baltimore to Richmond, and in thatrole, I have five offices and several
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hundred employees, and my major responsibilitiesare around culture and growth in this market.
And so while Organizationally, we haveone culture. My role is to
lead and encourage others to really embracethe firm culture at RSM, which I
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believe is our greatest differentiator in themarket. And then in my second role,
I lead the firm's government contracting practice. And so what that means is
I lead the auditors, the taxaccountants, and the consultants that serve companies
that have the US federal government asone of their customers. Because it is
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a regulated industry, there's a certainamount of expertise that is necessary to serve
those types of businesses, and somy focus is on developing that expertise to
know the government contracting ecosystem and todesign RSM functional services, take a service
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we would deliver to any other typeof business, and then tailor it so
that it uniquely addresses those concerns thatbusinesses who work with the federal government have.
And so some of it is lookingout in the distance and thinking about
how global conflict changes, in presidentialadministrations, executive orders, how all of
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these things impact what the government willneed from our commercial sector in the future,
and what that in turn means they'llneed from firms like mine, or
practice like mine to be successful,to seize opportunities and overcome obstacles. So
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that's a lot. So I'm verycurious that I'm sure our listeners are too.
What job takes up more time,So the government contracting practice leadership takes
up a little more time. Weare, thank goodness, growing quickly and
hiring people. And so what weattempt to do differently than I think a
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lot of other competitors is we reallytry to blend this functional expertise and industry
expertise with the unique government contracting knowledgethat is necessary to truly assist a government
contractor with achieving their success. Soreally try to make sure that we deliver
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that all over the country. It'skind of normal that most public accounting firms
have this government contracting expertise here inthe Washington area where there's a high high
number of government contracting clients. Butwe really try to make sure that we
deliver that consistent service, that consistentexpertise all over the US. So you're
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talking a little bit already, butit leads me to my next question.
And I know you know that you'rein a very competitive space. Differentiating especially
in your type of business is ultraimportant. I know you talked about culture
for your employees, but as yousell yourself or a GOV con wants to
work with RSM, what do yousay we're good at and what we differentiate
ourself from all the competition? Youmentioned culture, and I do think that
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that is a big part of it. What we hear from our clients is
that we're good people to work with. We are collaborative, and we really
seek to understand our clients and theirneeds. We're not really there to sell
them something. We're there to partnerwith them to achieve their goals. And
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by I think being easy to workwith that heightens the collaboration and our opportunity
to better understand our clients' needs.And then I think when you marry that
up with this approach that I spokeof a moment ago where we really embed
a government contracting subject matter expert inany team and any service that we're delivering
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to those types of clients. Andso whether you have a need for internal
audit assistance or whether you have aneed to address cybersecurity issues in your organization,
are not going to send a generalistto either of those projects. We're
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going to send one that understands thatif you're a defense department contractor, you
have this whole set of of cybersecurityregulations, and we embed that into our
team and our approach. Similarly tothe internal audit, your business processes are
likely different because of your relationship withthe federal government than a commercial business that
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does exactly the same thing, andso taking that understanding to the client I
think helps them to feel like we'rereally tackling their issues and they're not teaching
us how their business runs. Thatmakes a lot of sense in Darrea.
I know that every client's different,but in twenty twenty four, is there
a program capabilities that you're really proudof, but also the clients are really
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saying this is what we need inthe new world when it comes to everything.
Is there a common theme that somethingthat you offer that they also say,
I'm glad you do this. Well, there are a couple of different
ones, and I think it isour ability to marry together different types of
services that actually provide a solution ratherthan a service to the client. So
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one of the areas I can thinkof would be, you know, government
contracting has had a frothy m anda environment for as long as I can
remember, and so one of thethings that I think resonates really well with
our government contracting clients is taking thatM and A consulting, so helping them
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with the due diligence to look ata company they plan to acquire, and
then carrying that knowledge into the postacquisition experience where they're trying to integrate the
business into their own and looking attechnical things like their indirect rate structure,
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how they build a government and howembedding this new business in the existing business
changes that landscape. So really sortof the cradle to grave experience together of
acquiring a company and getting it properlyintegrated into your business so that you can
go be successful delivering to your clientand returning value to your stakeholders. We
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try and be real in this series, and we always tell our listeners that
it's not always unicorns and rainbows allthe time, even though things are going
well for you. With that said, are there any top challenges that you're
facing right now? Well, Ithink, like most professional services firms,
you know, finding and keeping toptalent is always a challenge. I will
say that I think we do havea very good retention experience because of the
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culture that I spoke of before.But I think, like a lot of
people, the pandemic change our professionalservices work environment, and finding the people
who want to engage with us inour culture and with our clients will always
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be a top priority. So I'vetalked to some people that are in your
type of business, and I knowthey're getting a grassroots effort at the high
schools, at the colleges to say, listen, what you might think of
what we do isn't really what wedo anymore, and it's really exciting.
It pays well. So with allthat said, I imagine it's a re
education because there aren't a lot ofyoung people that are getting into your type
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of business or at least that interestin that excitement of it. Is the
company doing anything right now to getyoung people excited about maybe joining you someday.
Sure. As a matter of fact, the call I was on right
before I started my conversation with youwas about our recruiting, and we certainly
engage in the community at the earliestlevels. We do have programs that go
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into high schools, and we havefor a very long time had a robust
internship program that you know, uh, gets kids in college. Like you
said, excited about what we do. Public accounting firms aren't just CPAs anymore.
We we hire from a lot ofdifferent majors, out of out of
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university and even having more roles nowthat sometimes really just technology certifications are what's
what's key, because you know,data and artificial intelligence and the use of
technology are the keys to continuing togrow and successfully serve our clients, and
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so we have a huge focus onthat and therein lies you know, the
need for people with those kinds ofspecialties outstanding. Well, listen, as
we wrap up our conversation here,I do want to ask you about maybe
some final thoughts, and I'd liketo kind of leave the floor to you.
I know that you're hiring the bestof the best and always looking for
a new careers to be started withyou at RSM, But some final thoughts
from you on RSM for our listenerstoday, So thank you. You know,
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I have spent almost my entire careerwith the firm and it's been fun
to watch us us grow and succeedin the market. I think that one
of the things that I am mostproud of is is my colleagues, and
so when I have the good fortuneof interviewing a lot of the people who
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join our firm in the Mid Atlantic, and I do hear consistently that our
culture is different and it is acaring and inclusive environment at the same time
with high standards and opportunities to reallylearn, increase expertise, take different twists
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and turns in your career. Youcan have any number of different types of
career opportunities and always be carrying anRSM business card because we have so many
different diferent things that we do.And I do think that the younger professionals
these days do want choices, andso I think at RSM you can enter
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the organization doing one thing and andfind an interest or a passion or a
skill you didn't even know you had. And you can you can switch lanes
and and and do something entirely differentin your career than you maybe thought you
were going to. And I'm andand I'm a living example of that.
I've had the great fortune to doa number of different things for the firm.
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I've launched consulting practices, I've beena financial statement audit partner, and
you know, today, as Isaid, I lead to different businesses for
the firm and so tons of opportunityin a great culture with great people.
Well. Deren also says something aboutRSM when they acquired your original company in
two thousand, that the culture wasin you that you've stayed around as long
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as you have, because I thinkin today's climate, people move from business
to business to business, depending onsalary, where they want to live.
All sorts of different factors go in. So I think it's a testament to
how you've been treated by the companyand what you've given back. It sounds
like a great partnership. Let's givethe website. If there's anybody that would
like to do business with you,take a look at a career. Just
check out more of RSM. What'sthe website, sure at www dot rsmus
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dot com. Well there, it'sbeen a pleasure to talk to you when
congratulations on everything. It's a wonderfulcareer so far. I know there's a
lot of work ahead for you,but it sounds exciting the culture, the
business and what you're doing at RSM. We're very excited for you and all
your team members really appreciate you joiningus on CEOs you should know and continued
success Thank you, Dennis. Pleasuretalking to you today. Our community partner,
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M and T Bank supports CEOs.You should know is part of their
ongoing commitment to building strong communities,and that starts by backing the businesses within
them. As a Bank for communities, M and T believes in dedicated time,
talent and resources to help local businessesthrive because when businesses succeed, our
communities succeed.