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The unfolding of events following the Enron scandal, the world's biggest bankruptcy, has been as gripping as any soap opera. Not least because many of the stars - or, it's alleged, villains - of the show were accountants. Stereotypically a straight-laced and meticulous breed, allegations that Arthur Andersen accountants shredded important Enron documents as part of a cover-up, shocked the nation.

The ensuing backlash has shaken the industry as the importance of reputation has hit home. Losing trust and respect may ultimately cost Andersen its brand, which looks set to disappear into KPMG as part of a merger.

Andersen's consulting business, which tried to hang on to the Andersen name when it separated from its parent in 2000, has narrowly escaped being tainted by the scandal. With fortunate timing, Andersen Consulting rebranded as Accenture, through Landor Associates, costing $100m (£70m) to market and register.

Other consultancy arms may not get off so lightly in the future and face some challenging issues as the consumer begins to form stronger opinions on the activities of 'the Big Five'.

"A sea change has taken place in public perception which demands some immediate action,

urged The Association of Chartered Certified Accountants in a special statement posted on its web site.

And Deloitte Consulting and PwC Consulting have wasted no time in seeking advice from branding agencies (Marketing, March 21).

Accountancy firms have traditionally invested relatively little in their brands. In the year ending March 2000, of the Big Five, only Andersen and KPMG spent above ACNielsen MMS' threshold of £75,000 on ads.

This looks set to change following the Enron crisis. But consulting arms must decide how to separate their brands from their parent firms.

We sought opinions from Deborah Cutler, head of brand marketing at Abbey National's offshoot Cahoot, and Alec Rattray, marketing director at Landor Associates.

DIAGNOSIS

Deborah Cutler

The branding issues here are challenging, but also hugely exciting. There are risks involved, but also extensive opportunities to encourage innovation and diversify with new products or services.

The key questions to consider are: who or what is your target market? Where does the new brand sit vis-a-vis the parent company and how can multiple brands co-exist? How are you differentiated in the marketplace? But, first and foremost, why is the company launching the brand?

Cahoot had to break into a new market, using new technology and targeting a new customer base.

Using the heritage and resources of Abbey National, Cahoot was set up to quickly gain a new market for the wider group.

It is important to differentiate the new brand as one that defies convention through its products, accessibility, pricing and attitude toward customers.

Customers still need the reassurance of an established and respected parent, but we could not have met our objectives within the parameters of the existing brands. You must be prepared to take risks and have a real point of difference from the competition.

Alec Rattray

Suddenly the big accountancy firms are rushing to create autonomy for their consulting arms. Why? Because they're obliged to. Their biggest mistake would be to view this enforced separation as a problem, and fret about 'mother brand' equities. It's a golden opportunity.

Autonomy provides the chance to move from a precious, but baroque, partnership structure to a more manageable company; to acknowledge the differences in competencies - methodological and even philosophical - which polarise auditing and venturing; and to determine a freshly minted competitive positioning.

Cutting apron strings creates genuine anxieties about reputation and culture. How can you transfer the integrity built up over generations, while carving out a new and distinctive reputation? How can you perpetuate the culture that cements loyalty, while developing a new sense of self?

Service firms need to determine what they offer their clients and to recognise 'how things work around here'. Modus vivendi is the foundation for differentiation.

TREATMENT

Cutler's cure

- Choose a strategy that allows the brand to develop independently, but in a way that is compatible with other brands within the group.

- Get senior management behind you and encourage staff to live the brand.

- Use the parent brand for reassurance, but don't let it overpower the new brand.

Rattray's remedy

- Ask staff and customers what's special and different about you and invent the future firm: vision, values and brand promise.

- Consider the strategic imperatives, then develop an implementation and a communications plan - the internal audience is the key.

- Decide how values will be enshrined and think about your name and brand look and feel.