35 Burst results for "Mckinsey"
Sen. Marsha Blackburn's Impression of Congressional Hearing With Military Generals
"Well listen I watched this hearing today most of it and you were really quite brilliant the way that you insisted on short answers so they wouldn't filibuster And he wanted some of the very very important topics Tell me what your takeaway is from this hearing My takeaway from death is that you had general McKinsey listening to general Miller who was there on the ground in Afghanistan General McKinsey is it sent Tom They passed the information up to Austin and mellie that you could not do a speedy withdrawal If you did it to Taliban was going to move in and take control that you had to take keep control of the embassy Bagram airfield and put some additional people at HKS airport in order to facilitate the exit Joe Biden didn't want to hear any of that And what is of is really frustrating I think to a lot of the men and women in uniform and a lot of our veterans is that you didn't have million Austin really forcing the issue of but mister president you can't do what you want to do and get people out of Afghanistan And keep the government system in the country And Joe Biden was focused on a date certain so that he could go out there and have his victory dance on September 11th and say hey look at me I'm the guy I ended this war And Mark it is like he missed the entire point of this We were Uh oh Did we lose the senator I guess we did the war on terror for a reason
"mckinsey" Discussed on Scientific Sense
"Puggle experiments go. These are all three inexpensive vic sense to have a range of different kinds of experiments different kinds of particles. Many of these experiments table scale. I'm not requiring a lot of people building awkward so it's a small businesses. Many of the law compete for new particle physics artery experience. The zeon experimentally getting big enough that this a couple of hundred cousy still operation which is larger than much larger than but larger be looking experiments. Suppose built pretty small very innovative techniques also connected to univation quantum computing log on lucrative need out as technical that also to talk about a new gifts to talk about the connection can quantum computing sensing interesting area of. That's not opportunities. I would imagine Physics students getting into the. He's wide open rate Lot of ideas Norfolk expedition. Anti bogo it could make a fundamental difference so excellent yeah This great thanks so much for me truly. This is a scientific sense. Podcast providing unscripted conversations bit leading academics and researchers off a variety of topics. If you like to sponsor this podcast please reach out to in full. At scientific sense dot com..
"mckinsey" Discussed on Scientific Sense
"Welcome to the site of accents. Podcast where we explore emerging ideas from signs policy economics and technology..
Nevada announces $45M settlement with McKinsey over opioids
"Hi Mike Rossi a reporting the vada reaches a settlement with the firm tied to the opioid crisis after electing not to be party to a multi state settlement the vada has struck a deal with global consulting firm McKinsey and company for its role in helping Purdue pharma increased sales of prescription pain killers during the national opioid crisis McKinsey and company has agreed to pay the VAT up forty five million dollars in February the New York based company settled for five hundred seventy three million dollars with forty seven states the district of Columbia and five U. S. territories according to state Attorney General Aaron Ford had Nevada been party to the multi state deal it would have received seven million dollars hi Mike Rossi
Nevada announces $45M settlement with McKinsey over opioids
"Hard bargaining has paid off in Nevada. The state of struck of $45 million settlement deal with a global consulting firm that advised opioid makers how to sell more prescription painkillers as the nation grappled with an overdose crisis. Last month, McKinsey and company reached a nearly $600 million settlement with 47
Hollywood loses out on $10B annually by undervaluing Black projects: study
"Hollywood is losing a bundle by snubbing black stories when it comes to diversity and Holly Would we'll go down a new report Find studios are on Lee looking for the next Black Panther, and it's costing them. The study from management consulting firm McKinsey finds the industry is losing $10 billion a year by undervaluing black films, filmmakers and executives, researchers say. Movies with a black leader co lead are budgeted at 24% less than movies with White leads. The Kinsey recommends the industry create a well funded third party organization to come up with a comprehensive approach to raise Chili quality. Deborah Rodriguez,
Hollywood could bring in $10 billion more annually by addressing racial disparities, new study finds
"And there may be an issue. CBS is Debra Rodriguez with details. When it comes to diversity and Hollywood, we'll go to a new report find studios are only looking for the next Black Panther, and it's costing them Study from management consulting firm McKinsey finds the industry is losing $10 billion a year by undervaluing black films, filmmakers and executives, researchers say. Movies with a black leader co lead are budgeted at 24% less than movies with White leads. The Kinsey recommends the industry create a well funded third party organization to come up with a comprehensive approach to racial equality. Deborah Rodriguez CBS
Why Diverse Teams are Smarter, but Don't Feel That Way
"I have admission to make guilty confession. Is that quite often. I use these fridays as an opportunity to actually talk to people. I really wanna talk to being dined to catch up with the evaluation so finally get to have an hour with you. You're one of the brightest smartest people in this whole space and just doing such interesting web. So i'm excited to be here. Get to catch up with you. And i know if i'm excited. People are to maiava. Confession is that. I often schedule these topics as things. I really want to understand better. And i really want to understand the mechanics of why teams smart but don't feel that way Really curious to go a few clicks deeper than we already have got into it. So i'm excited about position. Basically got a heads around this question. Why is it that diverse teams a smarter in what way and we publish this first piece. It's become kind of a big piece in not just our work but widely shared across the end. What we wanted to do today was kinda. Go a few clicks into this question. Revisit this question because it's really topical and really understand this so anyway let's dig in bowery. Let's hit from you. I will. I mean what are the ways that diverse teams are smarter. Maybe you kickoff. Employees can add some in what ways the diverse teams actually smarter. So first of all thank you. There's been so much work that has happened in the past ten years. I love being part of the community. Because you're the best in the world taking mr geeky signs that are laboratories then actually making it usable also. Thank you for continuing. Does about your lead. Because i'm just assuming everyone knows you. And i'm going to tell bias already. Well i am a a psychologist by training and another way to think about. It also comes under the rubric of a behavioral scientists and my laboratory which is literally in the basement without windows takes people from all over the united states. all of the world that are unsuspecting. Just wanna be part of research and we try to understand to. My specialty is diversity equity inclusion anti racism so i have conducted studies on the impact of diversity on performance. What does performance mean. What does diversity actually wilk lake. We've done research on some of the white logical underpinnings of bias. Johnson mark on collective intelligence both in the world of education and also organizations but a lot of it really comes from starting off the company's zang. What are the problems that organizations trying to solve going to the laboratory look at tight causality and trying to understand the mechanisms and then trying to go back into the world and share so it's busy times incredible times this past year but also really important. Great that's really helpful. I've got an image of you in the basement with no light and judd breaking unsuspecting executives into telling you what they really think that's great. Keep up the good cook Going to end something that from my perspective is a little bit different. Having done diversity research way back when including the first study that showed a connection between gender diversity and financial performance. But my confession is. I've used so much of this work long. Before came to the organization. It headed diversity at few organizations like mckinsey and micron technology and it might trump particularly these articles that were talking about today. Were what really swayed a leadership team who had no experience with a diversity effort before that this was incredibly important thing to do of course teaser filled with engineers but they were really compelled by putting a lot of energy into the dna efforts in part because of what they learned from this research. So thank you didn't break the yeah. Remissed interviewed introducing both before me about such an experience by us of assuming you been around for awhile but yet pull. It comes to us as chief diversity officer many esteemed organizations before working with us and applying the work until late in the whistle. Grateful to have you with Yes let's question with all that background. In what ways diverse teams smart maybe battery. Do you wanna start on that. Yeah well i think there's a couple of ways the first way. Is that diverse team. People talk about this idea. That diverse teams breed innovative thinking. And the reason why that happens is because of cognitive elaboration. What that means is that people are thinking with a greater depth of thoughts. They are thinking about counterfactual. We should be thinking about this in a different way. They are slowing down. So they're sort of able to sort of absorb information from others. They're engaged in greater perspective taking where they have to sort of sink about a problem for multiple people's perspectives. So there's a lot of benefits. I think at this sort of cognitive level when you think about what makes innovation happen but the catalyst is diversity and then there's also these other benefits where people feel included in the sense that all of us have something about ourselves. That's a little bit different. Quirky potentially marginalized historically discriminated against. And then when you see a group of individuals around you that's a little bit different. It's an fosters. The sense of inclusion like my perspective on my identity has something to so there. Are those kind of emotional affective and then there's also the cognitive benefits into this is really kind of at the small what we call the micro level when you're looking at teams and
Philadelphia mom among women quitting their jobs due to COVID-19
"Suter, one in four women are considering scaling back or leaving their careers entirely, according to a new report from McKinsey and company. Moms like Jessica Jackson from Northeast Philadelphia force to make tough choices. I wasn't performing the way I wanted to perform in my job. I wasn't being the mother. What if I wanted to be? It's like what's got a gift right now. She says she left her career to help her three kids with justice, distance learning in the
Women have been disproportionately impacted by covid-19
"Been disproportionately impacted by the job losses during the pandemic to the point that some are referring to today's recession as a she session. Many of the pressures women already face in the work force, such as the gender pay gap barriers to advance. Men and lack of flexibility have been exacerbated. The crisis could, however, usher and new policy standards and support systems for women across industries and income levels. Here with me to talk about all this is Alexis Crib. Covic, senior partner with McKinsey and co author of Women in the Workplace. 2020 report. Welcome to the program. Alexis Crisco, Vic Chris. Covic. I'm sorry. I'm getting that right. Thank you for having me and we also have in helicopters. Litwin, clinical psychologist and founder of Latinos Think Big a network of professional women and Lumina. Modern psychotherapy practice. Welcome in helicopters. Littwin. Thank you. And Serena Khan, chief executive officer of Women's Foundation of California. Welcome to the program. Serena Con. Thanks so much, and Alexis Krukov itch. I'd like to start with you and some of what the McKinsey Workforce study told us. Why are women facing greater job loss than men? And where are we seeing the biggest impacts? Salute Lee. So the headline here is that we're facing a crossroads in corporate America today, and the reason for that is on one side this pandemic while a humanitarian crisis at its heart has created An opening for flexible work, and that's a good thing because that's the number one thing. Women have said. In the past, they need to advance more in the workplace environment. On the flip side, one in four women today is saying because of the pandemic and the context it's creating in their workplace environment and their home environment. They may need to step back or step out of the workforce. And one and four equates to two million women that would unwind years of progress of women's advancement in the workplace. And it's just something we can't afford to lose. And we're really seeing the gendered nature of work here to right Serena Khan, not only where Caretaking responsibilities end up falling when push comes to shove, but also who falls into this essential worker category and the disproportionate impact on black and brown women's who We're looking at a really layered intersectional issue here. That's exactly right. All of us are being impacted by the pandemic, but we're not all being impacted in the same way. Oh, the gendered impact of the pandemic are particularly profound for especially women of color working moms, gender non conforming folks this pandemic. Highlighting problems that we've needed to work on together to solve three the pandemic, So we know, for example in California. Freak O bed, two thirds of tipped workers, part time workers, minimum wage earners where women and primarily women of color even though California Is the wealthy of state in the nation. It's also has the highest rate of poverty and the people who are living in poverty in California are women of color and their kids. And so when we think about this pandemic, whether It's women who are the essential workers who are making up 80% of our healthcare workforce, or the retail and grocery workers. The essential workers that Are still working or on the flip side. They're the ones that have lost their jobs because the majority of us are working in the restaurant industry. Oh, our other retail industry that have lost significant Numbers of jobs, so it's a very gendered epidemic and Serena Con you've spoken about how there's no going back to normal that that normal wasn't that good to begin with, when it came to gender equity in the workforce. That's right. You know, this pandemic is shining a light on all that was wrong with Our country, our world, our state, and so you know, as hundreds of thousands of women leave the workforce to manage what is really an unmanageable amounts of caretaking remote schooling. You know, our child care costs were making up. Ah, upwards of, you know, 60 70% of the single moms income that's not sustainable and So you know, we have an opportunity here to think about what is the future that we want on. DWI can change some of those systems that we have an opportunity to really Think about care, work into value care and compensate that work fairly as we figure out howto move forward, But the pandemic has really forced us to reckon with how much care we all need, whether we're caring for our Children. For each other for ourselves for our elders on DH so we can build some new solutions for us that the women Foundation California we have believed Since our founding in 1979 that people who are closest to the problems in their communities are also closest to the solutions. And so we have innovative ideas coming out of community. Based leaders about what we can do post pandemics. I think it's important for us now, Tio You know, make sure that people are getting their basic needs met. So you know, one of the other things that we saw very early on in the pandemic is that not everybody was safer at home. That rates of domestic violence were spiking upwards of 40 to 80% and all of California 58 counties. So we and yet so as the need went up the Situation for the shelters was that they had to that They had actually left physical space because of the need to do physical distance event. Soon, though, there's a lot that Yeah, so there's just a lot that we're seeing and that we can think about solving. Yes,
Three charged with Bloomingdale armed robbery in Chicago
"With a leg injury to adults are in serious condition Three men from the south side or charged in an armed robbery of a T mobile store in Bloomingdale, prosecutors say Jaran Brewer dealing on Fisher and Felton McKinsey targeted this store Thursday morning. Armed with a handgun and an AR 15. He allegedly demanded phones and tablets from the two employees before driving off in a Porsche SUV. Suspects were arrested when their getaway car was involved in a crash in Chicago. Fisher is a
How 3 Simple Phone Alarms Changed My Health, Wealth, and Relationships with Eric Partaker
"Eric say what's up to fire nation and sure something interesting about yourself that most people don't know aright. Well, yeah. What's up fire nation how excited to be here? This is this is an easy one about ten years ago. I was boarding a return flight to London, and shortly after the cabin doors closed I sent something wasn't right and as the plane descended I had a lot of pressure building in my chest. It soon became pain. Went through the my left arm my whole left arm went completely ice cold by colleague. Next to me he touched my my arm and I remember he said Jesus feels like it's been hanging in a meat locker. Let's Yeah I said too. I said to my I said Lewis. Like something's up man this. This is I'm scared Can You? Can you get some help? And? Louis jumps over runs to a flight attendant. And flight attendant comes overseas on I'm sweating at this point you know feeling really nauseous and she she asks us there's a doctor on board and. at I'm just you know feeling worse and worse doctor comes running over luckily I. Hopefully, there's always a doctor aboard flight nominee knocking lucky. There was one for me he came over. Took my vital signs and he just said immediately he is he said we got to land the plane like a sap i. think he's having a heart attack and when I when I heard those words, you had a heart attack. When you're when you're thirty, five, thousand feet up in the air these are not the words you want to hear. No. You're about as far away from help as you can get and I remember when that plane. On the movies when they talk about something like feeling in an eternity like life is going in slow motion I mean that was exactly what it felt like. Because at the sense, it probably didn't take that long but it felt like forever and I was just terrified on the way down that. My heart was gonNA stop completely I kept having to stop my head like James I'm going to get so close to say the in it's going to be lights out and obviously. I mean, you'd be an absolute magician if you had invited someone to your show who had actually died, right so That wasn't the case we a pain emergency lands. By the way out of a quick side note here I was just too curious to not Google this so. Apparently, it costs about one hundred and fifty thousand dollars to emergency land applying for the airline and I think my ticket costs like one, hundred, fifty bucks. So they did it. They did really poorly with me on that flight man, but you know what I will say to make you feel better if you need it, they likely have insurance for that. So the people who got screwed are the people who should get screwed, which are the insurance companies. Are True. So so plane touches down -mergency response team Russia's on board takes me into a waiting ambulance administered nitrates right away to open up the arteries. And then the ambulance sped off to a local hospital. Did you even know where you are like? Did you even know like what city you're in? No, I had no idea. Yeah. I knew when I got into the ambulance because everyone was speaking trench. Man Because that's the thing about flying over Europe. You're like I I literally have no idea where we're going to descend so that Eric is super interesting my friend I'm gonNA share something else that people don't know about you actually as you might be moving to Puerto Rico at some point in the future the I'll day unconscious. So that'd be super cool as well. So man what a way to kick off this interview of three simple phone alarms that changed Eric's health wealth and relationships, and we already can see that he needed a little change in his health. So talk to us about these three phone alarms that are going to elevate our health work in home fronts. So this is dead simple. And it was driven by that story. I just shared 'cause I have been obsessed with achievement prior to that point for ten years while at Skype Bill we we sold skype to Ebay I two thousand five for about four billion dollars at McKinsey and company. And then a few of my own businesses, but it was like achievement at all costs, right? So including the cost of my health and relationships and And after that, I need any something had to change a new. I needed some some balance and I literally I took my phone one day and I said, okay I'm GONNA put in some alarms and I'm going to label each alarm to reflect what like the best version of me would look like to power the relevant segment of the day and so let me give an example and when you're setting alarm on your phone, for example, if you have, I found, you go into the alarm. And you'll see a section called label and you can actually name the alarm whatever you want, and if you have android, you can go in it's called name you can label it whatever you want so. So for years. Now at six thirty, am the first alarm goes off and it says world fitness champion and I'm not a will fit as champion I never will be but like that's not the point, the point is that for me, that's the phrase that expresses my best on the health front, which is one of the key three areas you get your health, your wealth, or if you want to refer to it as work and your relationships.
Medical tech is the new gold rush for investors during the pandemic
"More people are seeing their doctors added distance during the pandemic in this long awaited to telehealth has investors intrigued there was already a boom in biotech investing before covid nineteen hit. But now investors are rushing to put money into all kinds of ways to modernize medicine from Boston W.. G. B. H. Radios Aaron Schachter has more personal. Medical Technology isn't especially new push your fitness further with fitbit charge to a heart rate and fitness wristband that helps you make the most of all day workouts and beyond. And the wearables are just one facet of health tech. The pandemic has shown that much of health care can be delivered at a distance and there's been a boon in telehealth platforms, online fitness classes, and Internet connected devices that are vital signs. Harry LARRIKIN IS CO author of moneyball medicine thriving in the new data driven healthcare market before Cova. Did you really have to look at these things and figure out where the world was GONNA go how fast it was going to go there all of a sudden now you're giving people i. don't WanNa say no choice but now they. Need these things and tech investors want in venture capital entities have invested nearly five and a half billion dollars in medical tech from January through June that's according to rock health a company that helps digital health startups. But there are those urging caution about the direction. These investments take all too. Often the technology has attempted to reengineer the process of care rather than leverage. The most efficient process of Care Jed constance is a healthcare consultant. For example, he says, it took years for the developers of medical records technology to get it right because early versions made it difficult for doctors to Talk to patients and fill in the required computerized forms. Constant says there's a history of companies creating what's flashy instead of what's practical and so the venture capital investor backed efforts have found them to be largely ignorant. There are also concerns that new health technology could exacerbate disparities in healthcare between rich and poor communities doctor. My mom is the former chief innovation officer. At Medicare's innovation center she says that smartwatch are fun but the kinds of devices that help most people stay healthy are often more mundane. Can you develop a tool that will help them track their medications with things? That automatically dispense medication for them and or something that will give their physicians more real time data on which medications they're actually taking according to rock health much of the venture money handed out this year went to companies developing online platforms for more telemedicine, digital pharmacies, fitness classes, and more efficient ways to deliver mental health counseling at a distance that's w. g. b. h. Aaron, chapter, and Boston consulting firm McKinsey says the speed of telehealth adoption everything from video visits to digital records means up to two hundred and fifty billion dollars in healthcare spending could soon be going towards virtual care.
Has Globalization Undermined the American Working Class?
"America's working class has been cheated is an assertion that has been getting a lot of currency lately are last presidential election went deep on that claim in both parties by the way and the culprit most often blamed for that. It's that monstrous five syllable word globalization, the philosophy and the practice of free trade which has been great for companies and for shareholders but has had a devastating impact. It is argued on the American working woman and. Man Well Economist do agree that in the past four decades the American working class, which we're defining tonight as people who lack a four year college degree. They have seen flat wages and a steady disappearance of good jobs. But is globalization a main reason that that's happening to those workers and for those workers is globalization entirely bad. Well, we think this has the makings of a debate. So let's have it. Yes or no to this statement globalization. has undermined. America's working. Class I'm John Donavan, and I stand between two teams of experts in this topic who argue for and against this resolution globalization has undermined America's working class as always. Our debate will go in three rounds and then our live audience here at the Saint Regis Hotel and Aspen Colorado where we are appearing in partnership with the Aspen Ideas Festival will choose the winner and as always if all goes well civil discourse, we'll. Also win a resolution once again, globalization has undermined America's Working Class Jared Bernstein you have debated with us before. So welcome back you're a senior fellow at the center on Budget and policy priorities. You were Vice President Joe. Biden's chief economist. The last time you debated with US interestingly Jason Furman who is your opponent at the other table tonight was your debate partner as a team you were formidable formidable I, almost want to use the French pronunciation. Formula, so are you planning to use your insiders knowledge of Jason's debate battles against him to very much am the way to do that with Jason is to make a lot of sports analogies because they repealing confusing. All right. Thank you and I see you detail to Aspen. You were a to aspen well I. Think the guy with the tie is the guy you want to listen to, but I'll let you decide. All right. Thanks very much. Jared Bernstein and can tell us who your partner is. This someone I've known for twenty five years she's a dear friend of mine and I consider her my mentor in this topic feely gentlemen feeling. Theo welcome to intelligence squared your president of the Economic Policy Institute. You've spent two decades as an economist for the AFL CIO, which is America's largest federation of unions. It represents some twelve point, five, million working women and men. You've spent twenty five years working on trade policy. So what got you interested in trade? Well, when I came to Washington in the early nineties I got drawn. INTO THE NAFTA debate the North American Free Trade. Agreement. And I realized pretty early on that. This was not some kind of a dry text book discussion about tariffs but it was a transnational battle over democracy good jobs, workers, rights, and regulation. So I was hooked because a lots at stake a lot is at stake. Okay. Thanks very much thelia once again, team arguing for the motion. And motion again, globalization has undermined America's working class. We have to debaters arguing against it, I Jason Firm. Welcome back to intelligence squared Jason you're a professor of the practice of economic policy at the Harvard Kennedy School you're a senior fellow at the Peterson Institute for International Economics, you were Chairman of the Council of Economic Advisers under President Obama tonight. As we said, you're going to be debating your former colleague Jared Bernstein on the impact of globalization. So is this the first time you to have debated the globalization issue with each other jared and I agree on I'd say about ninety five percent of economic issues and my goal tonight is to bring to one hundred percent. Thanks very much Jason and can you tell us who your partner is someone I've only known for a few years and every single thing. He's ever told me I have believed James Manica Legitimate James Manyika. Welcome the first time telling squared you're a senior partner at McKinsey, and company you're the chairman of their economics research arm, the McKinsey Global Institute, your first time debating with us. But not your first debate you debated at Oxford I did you studied robotics and computers earlier in your career you were visiting scientist at NASA. So how do you go from very eclectic from robotics and space to thinking about trade policy? In American. Workers I've always been fascinated by the kinds of technologies that drive innovation and growth, but also affects what will people in the real world actually do. So when you put that together with the economy, these issues around trade and workforce become very, very important. Those are the issues that motive a great perspective to bring here and then once again, thank you. Thank you again to the team arguing against them.
Starting Zocdoc with Oliver Kharraz
"Oliver Karaz was born and raised in Germany mostly in rural parts of the country his mother was German and his father was from Iran in came from a long line of doctors. For me, it really starts in some ways with my dad and. The timing rapidly had every reason to become a social activist and and so he came to Germany from the Middle East when he was very young around twenty with no money in his pocket no language skills. And you personally then worked on of odd jobs, but he eventually became a psychiatrist but what has really shaped me much more than being born in Berlin is. Social. Active. Isn't that I that I saw him live and that he really made our family mattress we always talked about talent responsibility and the need to use. Whatever telling behind to help those. Around us that we can make a difference. Given that your father was Iranian and your mother was was sort of. German. An Uber even though you were born in Germany, did you feel did you feel as Germany everybody else? So I didn't have a second identity. We only used spoke German at home and yet. As you say I was also a not always fully accepted. So if I give you an example, my school twelve hundred students and you could pick out to the didn't look like everyone else and I was one of them right and even an enlightened country like Germany. That is notable. So I had what I call a visual accent would people would see me on the street and they would ask me how to speak German. So well and But they also school the skipped my name when reading out scores because they weren't sure how to pronounce my last name and opportunities taken away and even at was physically threatened so i. I think that really shaping in many ways because I realized. Very early that in order to be as successful as everyone around me I would have to be dramatically better in really work much much harder than anyone else and so that used to be strong work ethic in me. For the record Oliver is somewhat down playing his work ethic. Because just out of high school, he actually started his first successful company. It was the early clunky days of the Internet, and he designed a way to help people send emails more easily and he wound up selling that business not for a ton of money, but enough to get him through medical school. But. After practicing medicine for a couple years Oliver realized he couldn't stop thinking about that first business he'd started and how he wanted to start another. So he quit his job in medicine and consulting job with Mackenzie and eventually moved to New York. That was my goal was actually to start another company that that's A. Healthcare, but I I'd also realized at the time that I sold my first company and far too cheaply in that I should learn more about business I and at McKinsey God exposure to balance sheets and panels and hit a lot of very practical experience and what it means to manage business. And I think they fondly of my time at McKinsey was one of my better decisions. McKinsey GonNa Mackenzie is a little bit like going to business school. A lot of people at McKinsey have come from business, schools. In that. Many people go to business school thinking they will find a co-founder. Did you were you actively looking around at your colleagues to think maybe I can do something with him or her you know maybe that person. Absolutely and were you just thinking about different business ideas all the time? Well, it is actually very hard to find good ideas and my definition of a good idea was that it needed to have a great mission I. wanted to make sure that we actually do something good in that. We stayed true to sort of talent breaks responsibility, but also wanted to be a large market and to have a great motor rounded and also I wanted to be based on contrarian inside. Because I thought that all of the best companies have that at its core. While she wanted mission, you wanted a company that could kind of dominate its field by building a motor around it, but was also contrary and that's that's that's those are some interesting. Criteria. And that's why I screen for several years rejected pretty much every idea that that I came across And meanwhile. While you're going through all that I guess you meet this guy Cyrus Masumi. WHO's another McKenzie consultant and and just you just. Become friends like he's like somebody like in and you guys start hanging out. While we got put on study together that required us to travel globally and you've ever done that it meant frost were sixteen eighteen hour days together for three four, five months on end and we really. Got To become great partners in that and and what we realized that we had some. Very complementary skills. Cyrus is one of the most charismatic and gregarious individuals. You'd ever meet his very passionate. He could be more forceful, which sometimes was needed to be effective with clients. And you've talked to me now for a little bit as you can probably tell. More dispassionate and logical and more measuring. German? More, German in many ways, right. also was effective with clients by by. and Cyrus is American right? He's American this but that That close listened and how we work together that really started friendship and we stayed close for the study and be caught up over lunch pretty regularly denounce different business ideas off one another and. I think we connected because we had similar interests because. On. Some levels We were equally passionate about what we're doing higher says, passion was more visible to others than mine but we. Were close enough together that we both accepted. The other as. individual that that we could learn a lot from. Was it was it clear pretty soon after you start hanging out, Sarah's that this was the guy because you were. You're on the lookout for a partner. They I think it was was absolutely an option I know reality is that. With. Both founded companies before Mckinsey and we both knew that we wanna do it again and as I. was always great about being. Very honest. Rather than just nice and and I value that a lot. Yeah. All, right. So So this guy, Cyrus Super Charismatic, really smart clearly, the two of you start to to work together. And what what kind of business ideas are are you coming up with? While we kind of fell in love with a new idea that came about a one of these launches were Cyrus. Told me about how he recently ruptured his eardrum by flying with a cold and then found it very difficult to actually find a doctor and he had asked for recommendations and called down his insurance directory listing started with the as. Doctors weren't accepting new patients some no longer accepted two centurions one provider Pasta Way and so he said, well, why does it take four days to the doctor when I'm in pain right? And why can't this much easier? And we. Both very quickly. realized the potential of this idea from. Working at project be new helps us the for actually spending millions of dollars for marketing to grow their patient base because they had wasted inventory, right they had something that I like to call hidden supply, which is these last minute cancellations no-shows reschedules. That the that go to waste, and then on the other, there are the patients who had a hard time accessing this. You thought it immediately clicked with these my God. Yes. Doctor's appointments connect patients to doctors. Yeah. Well, look if you go through the forfeiture that I had read, it's a great mission right? We're making one of the most personal needs more accessible for for patients we can help patients to get in fast we can help the doctors become more efficient. We can make the entire health care system more cost effective people out of the emergency room things like that, and it's a marketplace. So there is a strong mode and clearly anything in healthcare is a large market and I think the contrary and inside that we had. was. The fact that. Most people thought it's normal that people have to wait twenty four days to a doctor because there's a doctor shortage in read our inside was really no doctors have asthma debate ability because of these last minute cancellations, no-shows reschedules and so I felt very about this idea. So. So you member like how long between the time that the you had that first conversation To the time were both you said, let's start this business was like monster or weeks or days. was was weeks. We what we what we started doing is actually. Mocking up the side in how imagine back then in powerpoint pointing just the wire. Website. Yeah. Wire frame. Exactly. We would. We'd go into starbucks and we'll chat up strangers and say, Hey, here's a five dollar gift card. Give me your thoughts. Sorry I'm GonNa. Go back. You just go to people in starbucks Gift Card and say, can you give me your thoughts? Random Person? The absolutely that's that was sort of our market testing. They wouldn't. They would be like excuse me this is a little weird. You're my space. Might also happen from time to time but you know there's lots of people on starbucks is very in German of you. That's debris because usually he would be to report tentative about doing that. Well, you know I think there was a lot less rejection than you think people actually quite open I. Suggest you try this out but if you If you're unthreatening in Luke harmless as we probably dead and then they'll be pretty open. You went up to and starbucks and you'd say, Hey, we're thinking about a company here. Can you just look at his powerpoint give you five dollars Gift Card and what was in the powerpoint, the popcorn and was just what we thought. This website would look like and we would ask them is the set service that resonates with you would you use it and and we got an incredibly valuable feedback here and really set us in many ways on the on the right track right? So and what pointed to the two of you decide let's quit McKinsey. Let's. Let's pursue this. Probably a month or two after we initially discussed idea did anybody say you were crazy for quitting? Everyone. Everyone told us. Crazy and got a lot of negative feedback on the idea to write people would say this is Bloomberg out I would never pick my doctor on the internet or I already have a doctor or you know doctors wouldn't accept patients that that are looking on the Internet of all kinds of protections that people had when they were thinking about their own situation by. When when you talk to people and starbucks, they actually thought about it much more positively. So we were encouraged enough to say, well, this is going to work as long as we get out of our circle and don't ask McKinsey consultants doctors. The responsible be better. All right. So you are in your thirties at this point. And presumably were making pretty good cash at McKinsey because you were probably you'd know expenses you're on the road all the time so. When you quit, I'm assuming you had some money to launch the business and probably live off for a while. Yeah. So I very deliberately had never raised my living standard to the money that the paying McKinsey and I had saved every dime so that I could. No be in a position where can fund this embraced can afford not to take a salary for a couple of years. Wow. So so a couple of hundred thousand and you saved. You know. Maybe. I'm to Germany to discuss personal finances but. I had. Built this. Radio, you can tell the. Story Yeah I I had I had enough money to live off for for several years but I also Saturday night both finance the company early out of our own savings so that clearly diminish We had leftover after that. So now, you both decided to quit. and. You have some technical expertise because you had. You had done some coding but this is next level stuff. Were you able to be that technology founder and Cyrus was going to be the the sort of the business founder? Absolutely not as I add coated but at that point, I had not touched a computer for a long time We knew we need to have a technical co founder and so Sarah's knew a guy named Nick Guanzhou from the time together, trophy software, and this is another company that they would both worked at the that's the company that they're both previously worked together and Nick just brought a totally different perspective and really educated Addison me on a lot of things and and he was really the one who understood a building a seamless experience for the consumer and ends May. Zach Docs. Early Genius, did you did you have the name dock from the beginning? Not, not initially we we went to several phases on on what the right name could be for for while we wanted to have a descriptive name. So we looked at physicians, dot Com Doctors Dot Com, and we actually tracked down the owners of one of these domains and they wanted several million dollars for the domain name. And and we were finding the company ourselves. So that was out of the question. So then we just sat in a room and we brainstorm a list of fifty or one hundred names, and then started eliminating names until we arrived at Dr. What does it mean? or it doesn't mean anything which was the WTO bit we could. There were zero search results. Okay. There's no meaning behind his ACH. There's no meaning behind and and in hindsight it was precisely the right thing to do because it really was a blank slate for us to fill with with meaning and really build a brand around. Zero such as October we started. It address nate the right lake once you know that it takes more than three weeks from picking up the phone and dialing for doctors till you actually see someone you realize Oh, this really not much else that we have to wait so long for to get. And this is more important than most of these other things you already have. Fantastic access View Magin. If air travel way that healthcare workers that wouldn't be an expedia that wouldn't even be Delta Dot Com that would be individual phone numbers for every plane. Imagine. If that happened, you know a half the planes would fly empty it would be a massive pain and that was actually the state of health care before sock. Is Amazing that that the nothing like this was out there in two thousand seven. I look at I. Think. In many ways you couldn't build it a much earlier. In the early days. When we went out there, we were the ones installing Internet of the doctor's offices. We. They they were a many times just migrating from a paper books to scheduling systems. We were at the cusp of digitisation for healthcare. We were just lucky in our timing to get this right in and start offering the service when that also happened. All right. So you decide to pursue Zach dock and it's the three of you. I'm assuming really just at the beginning and were you working out of out of one of your apartments? Did you guys rent space? No, we worked out of respect for. Many. Times we came to make yet the nicest apartment and and we could bring breakfast Burrito and bake him up and you know the the reality is that we originally had a pretty ambitious launch plan right so we got together around July. We wanted to launch by December of two, thousand seven. Something interesting happened were nick send an email suggesting to look at what was then called techcrunch forty. Take is is now a household name but the draw for us back then was there was a fifty thousand dollar prize now it's called tech crunch disrupt think. So it's a major a startup competition. It's a startup competition and we were the first class of this was much less known be budgeted two hours to fill in the application in really which will send it off. He didn't think about it anymore that there was an early July and early August we've heard that we had been accepted, but there was a complication we'd have to be ready by September eighteenth or. That was three months sooner than we had originally planned to launch. So you'd have a live website by September that is right that is right with doctors with doctors, right So we actually debated for a few hours whether we should even tried to go for that but we ultimately said, yes, we can get the website working and we wanted to have enough doctors just a bars wouldn't look pathetic. Brayden. Coded Night Neither Day and nick really busted his but he did the patient facing side of the website and that was the programs. What was potentially even harder because we're tried to launch a marketplace was to actually get the initial supply on there and remember the website wasn't there yet so. Tires ended up going door to door for doctors offices. Excuse telling them a powerpoint page, and this is really a testament to cyrus sheer willing determination if you think about what it means to really start a company early on, there's nothing to show right you may be a powerpoint but there's no website there's no patience. There's no other doctors no social proof and it has to run on passion and very clear that that is Cyrus superpower. He just went to random doctors offices or he had like a list of doctors offices and he started kind of walking block by block. Well, there's a lot of walking involved a we launched in Manhattan so you can literally go down the street and you see. The signs and you walk in. And he was basically saying look, it's a way to connect you to patients. How was how many by the way? What was your objective? How many doctors do you need to sign up to have this website look okay by September Between six and ten was our goal. Okay. So just doable it is a was extremely hard really. Is telling doctors is one of the hardest things to do why were they saying? Well, first of all, it is baby very hard to even speak to a doctor they are being shielded. Their time is very valuable. Office managers are trained not to let anyone talk to them to protect the doctor from people walking in selling them stuff shirt them. Secondly, they many didn't want to give up control over their calendar which has to write. We ask them to post times that a patient could book into it and it was just a far fetched idea for many of them the patients would actually do this. So he got a lot of knows he got a lot of knows. He'd go there and he just simply not leave until he got a chance to speak to the doctor and a few times. It was even escorted out by security. I really think one in a million could have put this off. I mean was he going to particular kinds of doctors or was he generally focused on an Internet general? Practitioners Ob sobe began with dentists Okay. Because our thinking was that. People go to dentists most often, and we wanted to make sure that we have an offering that is relevant for patients as often as possible. I. Got you so so eventually unassuming, you do get what six to ten or how many did you get by September of two thousand seven Eight. In the meantime, you inequity doing the back end stuff you were doing the coding and building the website does right and as you were building it. How did it look? So. The bit that Nick Build looked awesome for the time I think. It was impressive. We were. Very. Satisfied that we had a scroll bar that we had a map that we had back then already the insurance selector and a lot of feature that. Weren't to be found really anywhere else. All right. So September two, thousand, seven, you are ready to reveal. This service at. Tech. Crunch. And Doth Review present or did did Cyrus kind of wishy the spokesperson? Cyrus. I presented Nick stayed behind in New York to make sure that the less the website was actually up and running This is in San Francisco that you went to the we flew out to San Francisco and So we lost sock talk in front of Eight, nine, hundred people. A lot of them were journalists when the judges opened up with feedback guy covers ocoee who we newnan in valued. As embezzles forever apple he came out to said he he didn't get it. He would never use this in front of everyone right and. His direct load something like honestly Oh, it just never occurred to me to go to any doctor that's really burned in in my brain and what was worse is that he seemed to be right we didn't get a single booking. We were hoping that this PR would get us out of our initial batch of users, right because your other. So many tech journalists there. So you know the publicity may be would would would lead to bookings and that was the hope but. It actually took three days before regard our first legitimate a patient, and and in the entire first month, we only got five bookings. You come back from San Francisco and. You know you had Guy Kawasaki. Say I don't I would never use this service? I'm sure he feels differently today but man maybe then Ezio said that but did did you come back feeling like like dejected like losers or or were you excited like how did you feel coming back? While you know I think we obviously hoping we would eventually get more bookings and In the beginning you probably refreshed. The Bookings Report Hundred Times a day by as we were thinking through what we realized. It was really a typical two sided marketplace challenge It's just a classic chicken and egg problem. You need the supply to get the demand and you need the demand to entice them supply and for dark was even trickier. Right when you think about it, healthcare is hyper local. Very complicated. So you have to match. Supply and demand on a Zip code specialty level, and then we have thousands of insurances take. Until we realized that our odds of actually finding a patient that wanted. An offer there. Quite low, and so the best path forward was to methodically build up supply, and so we just kept going put up a huge map of Manhattan on the wall, and then a sleep put little flags on of where the doctor's brother we're on the website in which insurance is accepted and we just we knew the perseverance. Is the name of the game. Back in just a moment how oliver and Cyrus Begin to drum up interest in stock and how they even start to raise some money at figure out how to dress differently, stay with us guy rows and you're listening to how I built this from NPR. Hey everyone. Just a quick thanks to our sponsors who helped make this podcast possible I to epic provision maker of epic bar beef was nature's idea the epic bar was. The new Vif Sea salt and pepper bars have three grams total carbs why it's in their nature after all, they're made with one hundred percent grass fed beef, and nature's Metro's three grams, total carbs, eleven, grams of protein find them in the bar borrow or at epic Bar Dot Com. Thanks also to stand for Small and American Express. If you're a small business owner head to stand for small dot com slash partner for resources, offers and tools from a growing group of companies that want to help your business get back to business visit stand for small dot com slash partner to get started. Thanks also to Microsoft, the world has changed and Microsoft teams is there to help us stay connected teams is the safe and secure way to chat, meet, call and collaborate to learn more visit Microsoft dot com slash teams. Here, at life, we know that getting your financial house in order can feel painful. Now, there's this whole corona virus pandemic. The deal with our personal finance tuneup series will help you feel more confident and get you on the right track listen and subscribe to NPR's Life Kit. And just a reminder, you can preorder the how I built this book right now, and if you do I'll send you a free signed book plate to go inside the book. The book is a collection of insights and wisdom from some of the most incredible and inspiring makers, inventors, builders, and dreamers on earth to preorder and to get your free signed book plate while supplies. Last, please go to Guira DOT COM or how I built this dot. com. Hey welcome back to how I built this from NPR Cairo's. So it's two, thousand, seven and Oliver. Cyrus. Nick are basically powering through with Zach dock going door to door trying to convince doctors. It's a valuable service and the thing about doctors even though they're really smart and capable and we depend on them. A lot of their offices especially back in two, thousand, seven or sort of technologically in the Stone Age. There was incredibly complicated to sink the doctors calendars with ours. Because none of the software was actually made to sink. Were even in the places where we had syncs up and running, we would frequently get. Feedback while the punishment didn't happen because the doctor wasn't available and we really couldn't figure out why this was the case because when we did screen chairs with the office to their calendar and and our calendar, it was identical right and couldn't figure out why that's happening. So I decided to sit next to the office manager I went there and got to know him and his family photos of his dog. I fixed the printer taught a better strategies to play minesweeper still couldn't figure it out. Until one day, the doctor would come out and she'd say, Hey David I'm out next Friday. And then what does David do does he go into the calendar and block out next Friday or does he take a post? It note On a doctor out next Friday and sticks this too is monitor. In the real world. These post it notes, of course happen and but once you know that Matthew Friend, you can start filtering this out and that's one example they were literally a thousand point, one percent solutions that we had to figure out to make this work. Wow. That sounds I'm getting exhausted. Just hearing about that because this is like even like Google calendars, right? Yeah. Yeah. That was that was early days and what we were extremely focused around were making show the experience was fantastic. If something went wrong, we fix it. Right. So I was our customer service I personally would call the doctor and and confirmed the appointment was all said if it wasn't I, personally contact the patient to let them know and then I would offer them. Amazon Gift Card alongside with an apology those actually one case where it didn't catch a patient in time. and. The were in the subway to the doctor, and so I raised them to the doctor's office and picked up a bouquet of flowers on the way there and met them in person to apologize. And that was really a turning point burs. The service has to work and we need to be have this patients I attitude in in terms of how it works completely ingrained in the company. All right. So you clearly need to kind of grow this Were you offering this service doctors for free at the time? Initially. We for free by we eventually started charging fifty dollars per month. But Sam doctor you come into my office and you say, Hey, if you pay me I can bring you more customers. I would be skeptical I would've said to you you who whose, who even knows about you. You'RE GONNA you're asking me to pay you money for Phantom bookings for maybe no customers I mean did some of the doctors say Many. The US summarize our sales challenge. Right? It was very hard because even if you wanted to, we couldn't easily share how many patients their competitors are down the road God like that was something that was confidential. All right. So you are you got this chicken and egg problem. Not, enough people signing up and he gets skeptical doctors but you know that the service could really benefit the doctors, but you also need them to pay for because otherwise you know but business. Meantime at a certain point I'm assuming you guys start to think we'd better go out and look for money if we're going to really make this thing work. Yeah. Yeah. That that happened in the spring of two, thousand, eight we decided we raise series. And we we make the rounds we get in front of a number of the big name, BC New York the also go to Sandhill road in impel. Toho Santo Road we leads and road initially were very successful at all we got Polite knows. and. Ray No feedback control someone took us as I told us you know what the idea seems. Good. But you're consultants I'd and the perspective of its consultants can't get anything done and what realized is that even though we had both founded companies before our Mackenzie Pedigree in our keys and button down shirts, they were really hurting us, and so we wait rank Khakis and button down shirts. It sounds crazy. Were they pleaded pants or were they at least nine pleaded please. Yeah Yeah. Yeah we after hearing that feedback We very quickly just went to the next gap and bought jeans and t-shirts and from that on the combos with VC's when but a lot better. So you went from McKinsey consultant look to this are the tech casual uniform of jeans and t-shirts that that's exactly right and we introduced ourselves not as NBA's and McKinsey Consultants but we introduce ourselves previous entrepreneurs that are starting their next company. was was anyone biting? Were there people who were like? Yeah there's a great idea I'm in. So interesting enough we had raised some money from. Friends and colleagues, and many of those they invested in US business plan unseen just based on the fact that we. Were giving up our careers at McKinsey to pursue talks. So that felt really a great. and. As we started changing how we appeared in how we introduced ourselves to venture capitalists L., we started to get offers and so in August of two thousand eight, we ended up raising five million from KHOSLA ventures expeditions mark. Wow Mark Banya Jeff bezos, and Venus is. All their. Funds are in which sounds like a lot before you WanNa do it's actually. Kinda limited because you still it seems to me in two thousand eight even though you have five million dollars a lot of money you still have this problem which is you've gotta get. Customers, and then to get customers, you need lots of doctors had lots of options but to get doctors, you need lots of customers booking through the site to you do that precisely D- These five million dollars per lily earmarked for making New, York, work, right, Miguel, I market work but. immediately after raising the money the financial crisis hit. And You may remember there was rest in peace a memo that went around about startups, right? Yes. About start ups, never being able to raise money arrested in peace good times. So we got this job is to make the money stretch in. We probably learn not during this time This was really our first go round making hard choices and what I want to be frugal and not to do things we can't afford and We learned to not let money replace critical, thinking and creativity. But now we continued to grind away at New York and at some point felt while if you want to get. To the next level we have to prove. Dr Isn't just a New York City phenomenon. Right? We had to prove that it would work in a second city But at that point, we didn't have the money to do this anymore, and by the way you're still your approach was still the same. It was door to door. That's right door to door and how how you building awareness about the about the fact Zach existed with customers with potential customers. So we it was day very difficult to get someone. To the website. Yeah but when they did. They loved it because it was such a step change from how healthcare used to work for him. Right they used to have to pick up the phone and wait on hold and then plays scheduling. tetris. With the office manager, can you do Wednesday morning about Thursday noon? Friday afternoon, and now they could do the same thing in a minute and have complete overview about the ability patients loved it and they told their friends. So we we started to get word of mouth. Going, and so we saw New York really taking up and we felt like, okay, this does this go into work in New York. At a minimum rate, but we also realized that it took us a fair bit of time. And money to get it going. In New, York and do we couldn't with the money we had left from the five million easily expanded into a new city at the same time. Raising money was going to be difficult because the next generation of investors wanted to see that it works and other cities as Walter. So we were a little bit in this catch twenty, two we ended up. Applying to. Force boost Your Business Competition Four. Forbes has his competition as sell to where they give away money right to they were promising a hundred thousand dollar prize. And at this time. We won. And Yeah what did is they gave us one of these large publishers. Clearinghouse is sex and very useful actually used to cover a hole in one in our only conference room. There was a hole in the wall and we covered it with that. At, this point you are, you are working out of an office, not not an apartment at this point we were working out of A. Shared Office space we work. Yeah. So they had given us publisher clearing house is is check but they fail to give us the small check for three months and we were getting really nervous, but it would still get it but. But ultimately, we got that one hundred thousand dollars and that's what we used to launch and our second market in DC in Washington DC and would did it require you guys to move down there or were you did you hire because I'm assuming you had to? A lot of your early capital was going into sales. Business Development hiring sales reps, is that right? Right, we had a couple of sales reps at the time. A. Very first employee ever was a sales rep is still with the company today and He was great. He figured out how to. Really charm his way. To the doctor. So there were no more security guards escorting anyone out. When did you? I'm assuming that even in two, thousand, nine, two, thousand, ten, and beyond we're not yet profitable. Far From It? Yeah. Far from it right because it's a capital intensive business. Yes. We obviously invested heavily in customer service wanted patients to have a great experience. And we had a quite sizable engineering team because that was actually a major engineering effort. So what started to happen when did you start to kind of see? A real turning point. Yeah. So we we we had launched New, York successfully with. Years. Of hardwork, we've gotten it off the ground is transported that to DC at work well, in DC, and now he said, well, why are we not in more cities and so we actually we raised serious be with fouled respond and We used to expand off the East Coast Francisco then Chicago and we just got better better at it. So we then ended up raising serious and two thousand eleven from Goldman NTSC, and we primarily use this to grow our sales team and sign up more more doctors in from two thousand eleven till two thousand, thirteen, we launched roughly thirty new cities I read that by by two thousand, fourteen would covered. Like forty percent of markets in the US, which is huge I mean that's right I mean that's a huge number of cities. And in that year evaluation. Of tzakda. Past Billion Dollars I mean that's That's pretty remarkable i. mean you were kind of on this like really rapid trajectory and you a pretty straightforward model right and you were charging doctors a flat fee every year and then. They could take all the bookings they wanted and I think that by that point like by two thousand, fourteen knew it was not cheap. It was expensive viewed really raised the price it was like three thousand dollars a year, right? Something like that. Yes recharged Dr Three thousand dollars a year and and there was a flat fee. No matter. How many bookings Actually facilitated for them and and the reality was for some doctors that got a lot of bookings that was a great deal. Yeah. But but there were also doctors that God a lot fewer bookings and for them that fixed cost was actually too expensive and some of them were starting to leave the service, and so we got into a situation that required us to invest a lot to stay where we are and then invest even more to continually grow our overall provider base, which means we had to build out a massive sales team to always sign up more doctors right and. Some point during this time L. Nick actually ran an analysis showed that it would take several years if ever fries to make our money back on on many of the doctors we signed up because you would have to sign up. X number of hundreds of thousands of doctors paying that amount every year. To make your money back to to make sort of our the cost of the sales team back. Wow and L. it. This was pure that would make us dependent on external capital for our very long time, and now it's a clearly there are many companies that have taken. Grow fast at all costs approach. And They Held onto this forty extended period of time by L., it clearly puts talking to a dependency to. Investors in their mind says, yeah. So. Meantime. You know I I from what I understand. There's disagreements I mean there there are you know the leadership team including Cyrus he he's I. Think he's he's sort of his position as the flat fee model is actually the best way to go is that a fair assessment of of his position? Yeah. I think that's right. I. Mean there were two fundamentally divergent ways held the business could go forward right. One way was to continue to work on optimizing the unit economics of our subscription model and the other way was to think about how to make it more transformative leap and then find a new more profitable. And more sustainable model and. Their. Look I can certainly understand The reluctance and taking this leap if companies rechange their underlying business model once they have a certain scale and then live to tell about it, right. We know the names of the companies that have done this net flicks, but from DVD's to streaming adobe. From box software to the cloud, but there's not a lot of companies that do that. and. Needed to make a choice which which direction I wanted to go. And and I should say over that. Became intensely personal for you because hugh and Cyrus really disagreed on on on the direction of the company should take. Steps down he he left the company and you moved into the role of CEO. Those right and what ask you about this neo. Beauty's in the flies of this show is its simplicity and we talked to one person or sometimes too. It's a single narrative, and so we don't have cyrus with us to tell us what happened but I wanna ask you about this time because. This was your co founder. This was your partner This is your friend and he was leaving the company. How did you feel at that time? I all I can say was a very hard and very emotional period for everyone involved and It was certainly a departure But how was through that given these two divergent choices you you couldn't. note, both of us could be useful to talk and. I have to imagine that for for period. China. was sort of the friendship. Look been we were very close we. Were not only friends we had worked for eight years believe together fourteen hours a day, and we probably talked more to each other than to anyone else in our lives but you know. Still touch from time to time and. I think he's joining us on from sideline. He still at prison million owner of the company Yeah, he's still. Here's the thing I mean we've we've told stories about breakups we've had we've had episodes were there were married couples who split divorced but continued the business e O products. Susan Griffin Black and an her husband Brad They continued the business stacy's pita chips continue the business after the divorce sold it for a quarter billion dollars. You guys were worth value to one point eight billion dollars at this point. was was ever party that just thought you know, God look at what we're doing on the core we're going and. I mean did you in service it down and say you know this thing is just growing and? Let's just figure this out. I think the challenge is that it's not as if there was an article way to decide what the right path forward is. As long as investors wanted to give us money growing all costs was yeah. Fine Strategy. The question was just how dependent you wanted to be on the continued goodwill of investors. It sounds like you were tired of going out raising money. You didn't want to do that anymore. Oh, not at all but I think you want to raise money from a position where you know what your turn to is and and. It wasn't clear that the business model would work in in a way that that we could just flip a switch and be profitable. Yeah. So. That was a tough year for you. Two, thousand fifteen. There was an article in business I think business insider, and it was about the sales team. It's October that year and it was. It was some allegations that you know Pete member sales team using adderall even cocaine they were under immense pressure. They were working all the time when you saw that article. And I'm not saying you even aware of any of this. You may not even aware of it but I. have to think that that article really alarmed you and and maybe even embarrassed you. Look A. There were a number of articles in two thousand fourteen fifteen. Didn't absolutely get everything, right but Budweiser I can say is that At. The time doctor had their sales team and we're. Getting very quickly and Your maybe maybe. Too focused on. L. Hitting targets and. Not. Focus enough on creating a strong culture the I hear these stories from six years ago from from time to time and from from now from candidates and and really every time. This happens like a Gut Punch. Because, this we know we're completely different company now. On on so many levels, but clearly, you saw that in new that you had to change something. While yes, I look I l there's a there's a couple of things about this. Right? We are a technology company, but we had said ourselves up too much about. Instead of writing wins and really too little about being adaptable and darning and and building the trust required to try things that now pet the risk of failure. and. So one of the first things I did is to change core values. You know to emphasize those behaviors each one of our values adaptable, not comfortable and other one is progress before perfection learners before masters right and. We only kept really one DIA CONSTANT DEL patients I. Personally that. That was more of the culture that I thought was right for Doc to succeed on many dimensions. So, you take over the company it's got high valuation, but you're still not making money and you know that you've gotta change the underlying business model you're never gonNA make money. And from what I understand this is the beginning of what you have internally described as the second founding of the company. That is right. That is right and that basically happens in in two thousand, eighteen you you launch this new business model where instead of the the dollar membership fee. Basically, you would charge doctors a lot less like two hundred or three hundred bucks, but then every booking you, you would take a cut from that booking. So like a travel agency. A little bit charge for new patient booking. So the existing patients to practice we made free but yes, there was the fundamental idea and. It sounds like such an obvious thing to do but but here's the problem with it and why why are we thought it was incredibly risky to try this. Our best customers that had been on for a long time. They got lots of pockets right and if we start charging them per bookings, their prices go up very significantly in some cases ten times more and that seemed. Competing, insane to us. In. Particular because when we talked to other companies that were at gone through similar changes and even pricing experts, they're number one advisor was make sure whatever you do never charged your best customers more and frost would be precisely. The opposite. In the thing that was counter-balancing this in our mind was well, maybe we'd be able to bring on a lot more doctors because the barrier to entry is now much lower that was there was the back and forth in the team to figure out whether that's the path we want to want to go. So, this is still a risky strategy because you're depending really on new bookings because the two hundred dollar annual fees dramatically lower and I have to imagine in year one, you actually saw drop in your revenue in the year one of of this curve. Second founding. Right. Well, it's from a risk profile worth at that. Right the warriors that you lose all your best customers in with it, all the bookings day used to be getting. and. So we needed to be ready for a very significant drop in bookings and revenue and the second Challenge was here that. The beauty of this approach modest and we got all this money upfront right and Sharon. Now to bond, we're getting paid after the booking with with a thirty day payment periods, we had a huge working capital requirement to make that happen. So did you see a drop and revenue in two thousand eighteen when you rolled this out? No we didn't because we actually didn't see the doctors leave the way that we hit on -ticipant did in fact, you know while we had very much worried that they would be upset and some of them certainly were upset. We were providing so much value to them that. You know what? What took you. So long I knew as getting a great deal all along. So that worked really well, and we had piloted in Georgia initially in April. Two thousand eighteen and then that had worked. So we we then all allowed in Colorado a few weeks later that work to, and from there we went to Washington state and again, very positive results and after these three days. Okay Great. We know this works does it out in our largest most important market? Let's go to New York and that and terribly horribly wrong. They the doctors in New York. Not only were so pissed off they actually I read. mounted a change dot org. Petition I. Don't know what to to to end this practice or something. They were really mad. They were really really mad and I guess you guys responded you said, are we won't we won't roll this out in New York for a while. Yeah look in New York. We. Facilitate Roughly, one in five new patient doctor relationship in the entire city on dock and so. The economic impact for the providers in. was much greater than for the providers in Georgia Colorado Washington. So yes, to give you one example, there's a dermatologist and so and he paid under the ultimate model ten doctor say paid thirty thousand dollars and under the new pricing model, his cost was going to go up from thirty thousand dollars to roughly three hundred, forty, thousand dollars. Wow. So what was your response to that? I? Mean it seems like a pretty reasonable. Concern. Yeah. So look after the conversation with the Dermatologists I. Actually. Put down the phone and I thought you know what? He's right. And so I pause and we regrouped and. We did a couple. Of things during this time, like the first one is we just went on a listening tour. You know we talked to provide their feedback and we just adjusted our this plan to give providers a much longer grace period to decide whether the wants to addition to the new model or not, and then. So then we read on New York six months later and and when dramatically better. So the strategy works and you see results from the strategy pretty quickly like within a year. Within a year, we had we finally at some incredible momentum was really going better than we had expected in our wildest dreams. Our existing client went down to essentially zero. I mean people still retire and and move jobs by no one really left the service and we were adding more and more providers because the barrier to entry was low and So in two thousand, nineteen we began growing profitably. It sounds like two thousand and nineteen was really the banner year. Two thousand nine hundred was a was a fantastic year and honestly we had so much momentum coming into twenty twenty and feel like, Hey, we worked really hard for three years and profitable and now the sky was the limit until. Tells Sam until March of two thousand twenty. Two Marjo twenty twenty and that's. That's really maybe the third founding DOC right? Well, I want to ask you about March twenty twenty because. Your Business is based on people booking with doctors and going to the doctor I have to imagine your revenues must have plummeted like every other industry like I mean doctors offices are still in most of the country. Slow or are trickle of patients coming in. With the lockdown started happening we saw impersonal bookings declining anywhere between fifty to ninety percent by the end of March I'm not surprised and lot of that buys I was getting was to. Lay off people and make sure that we hunker down to weather the storm but I saw an opportunity to build windmills, right so I thought well, we need to be there for our patients. We should be expanding into telehealth and I need every team member to help me do that and so we. Really went all important and supporting video visits and I'll probably June eighteen began redesigning the tire marketplace support virtual care, and so we actually released. Doctor Video Service and we made this available to. Any. Physician whether they are on soccer. for free. And by the way head, you plan to do this. How long would would I mean I'm imagining if you said in in February district I really want to focus on telehealth Would you have expected that by May would have been ready to go. Absolutely. Not I think what has been really fantastic to see is how? We really finished two years of roadmap in two months. Wow, and it's great because it's just gives us a window on what the next phase of doctor will be and really looking forward to that in my mind were the point were Amazon started from going. Books to also adding CDs. We have just gone from doing only in person to also A. Doing telehealth and I can't wait to see how this unfolds. It sounds like you. Might be reading between the lines but. You. Really, admire and respect your co-founders particularly. Cyrus and the work that he did to to build this company but I wonder if do you think that you will a I dunno, rekindle your friendship i. Is it something that is in the cards because a break is? Is Emotionally, it's hard Mesa really hard. Yeah, look I Do I think we'll work fourteen hours together again maybe not but you know I I've gotten through tougher breakups and reconciled in my past, and so I think we are we're in good shape and honestly know we are meeting were talking from time to time Yeah. We both have things to do and places to be so we're. Not, hanging out all the time. But it's now also five years ago So We are we're merch focused on making our join the baby successful. When you think about your journey and All Its happen to you how much do you think this has to do with? with luck and how much do you think it has to do with with the hard work you put in your your skills. Well I'm going look I I believe that there's really three ingredients to success. In order importance there are lock the talent, then hard work and. The only one. That's comedian. You control his how hard you work right and Now working hard to gives you more shots on goal It helps his day on the top of what you your talent allows and absolutely restarted at the right time the right place. So What what I'm proud of an all that journey has only that yet when we were wrong and when be had to revise and. When we needed the grit to actually make it work. I L we lived up to that and and that's really The all that anyone can ask themselves to. Oliver Karaz co-founder of Zach Braff by the way, remember how they originally wanted to call it physicians dot com or doctors dot. com. COULDN'T AFFORD THE MILLION DOLLAR PRICE TAG to buy the domain name. DOC DOT COM wasn't only available the price they paid for that domain name. Six Bucks. and. Thanks so much for listening to this show this week, you can subscribe wherever you get your podcasts. You could also write to us at H. I. T. at NPR DOT Org. If you want to send a tweet, it's at how I felt this or at Cairo's can also follow me on instagram that's at Guy Dot Roz. Our show was produced this week by Jet Anderson with music composed by Tina. Bluey. Thanks also to Julia Carney Candice Limb Neva grant and Jeff Rodgers I'm guy. Roz even listening to how I built this. This is NPR. Black voters play a crucial role for any Democrat who seeks to win the White House but some big devise amongst that block and some serious influence
Understanding How And Why Your Market Makes Decisions
"We all know that knowledge is power of course, data about Customer Habits and Consumer Habits is power as well more than ever. When we shift in business, it's key to understand how and why your market makes decisions. So Jonathan Silver he is the founder and CEO of affinity solutions. Now, affinity is the authoritative source for truth for news outlets not for profits research firms and businesses in the US and the only source for purchase insights that can be analyzed by demographic geographic lifestyle segment and political affiliation affinities mission is to. Transform data insights into experiences that improve people's lives. Jonathan I'm excited to have you here and talk to our Nice Guy. Community. Welcome to the show Ed. Great to meet you doug thanks for having me on I. AM happy that I'm happy to have you here and you know a guy that wrote a book called Nice Guys Finish First. I was completely attracted to the the data for good. So tell me a little bit about what data for good is and how that might affect those that might be listening to our show today. Sure so It's great to be on and I wanted to Start by saying a little bit more about sort of the vision of affinity solutions which for me, we've been running the business now for about Fifteen years, but we've had much more clarity of vision crystallize over the last year, which is. To. Use data to improve people's lives and You alluded to kind of what our business is about. But we have detail purchase behavior on about one hundred, million consumers ninety million in the US A- ten million in other countries. we have that data by the way because we run a kind of loyalty program, we dented that we provide to over three thousand banks the reward customers when shop at. We tell depot wallgreens. So data for good is an extension of the vision of. Using data to improve people's lives that we launched during the coronavirus. During this crisis and we we started by giving away some of our data to scientists to academics researchers. Some. Not for profits to help government agencies with policy making and it was Kinda shocking to me that government entities how much they fly blind. They don't have the information on how their towns cities. Counties are doing. Early and I was like well, their sales tax I mean why? Why wouldn't they get that quickly but apparently, even sales tax information takes a couple of months for a for them to get information. So data data for good was first about helping government policymakers by giving them the information they need to navigate their own decisions, but then it quickly expanded on to provide businesses visibility they need themselves to navigate this crisis and so. you know insights on. What customers are doing outside of businesses own four walls. That's been our mantra for for a long time that's always been important. But it's become absolutely critical during Cova. This sort of outside in view of consumer behavior has become essential especially now because you know during particularly in the march, April. But even even now, you know where there's been a hole punched in their own data that the businesses were looking at you know the purchases in their own stores. On. Their own websites because people just stop coming in coming in a lot less. So businesses have been flying completely blind kind of like A. analogy is like a fighter pilot flying between two Kanye walls that instrumentation So right now, we're delivering through partnerships with companies like Deloitte, accenture and bane and McKinsey weekly updates to businesses to help them navigate. We're also providing the press in our website affinity solutions, dot COM and weekly updates on what's happening in the economy to call it a business recovery scorecard. which looks at bellwether categories like. Grocery and and home delivery and. You know as people come out of their homes So it'll be interesting. You know that data, which is for the good of not for profit scientists. It's for the good of businesses for the good of consumers We're going to be looking very closely at how consumer behavior will change permanently. As a result of this crisis, we're seeing a lot more purchases on the web. So data for good is really about providing that level of insight to a broader community.
"mckinsey" Discussed on MyTalk 107.1
"By McKinsey Scott trending on Twitter last night, it said Mackenzie Scott donates 1.7 billion and I thought, Well, who In the heck is this? Yeah, I thought maybe they should have cut the headline at Mackenzie Bezos and then in the store, But hey, now, we all know anyway, so good for her next. Put your money. Where about that? I'm wondering. Do they have Children follow up question on because you don't see divorced women very often dropping their name if they have Children because they want to have the same Last name is their kids. Into the Sunday No, I don't think he they have no more. Follow up questions. Just chill out a little bit tonight. I'm just going to end it here. You can find more stories like this. It might talk 1071 dot com or by downloading our app. There is some new information. They're my talk dirt alert at the top of every hour And at 8 2012 25 20 on my talk one of 71 I'm not. I'm not. I'm not. The room, $100 bills and kills and it thrills like homes, My Silverado double around the talent and everybody's getting down in this town. I ain't never gonna be the same morning, Everybody. Welcome to the Johnny and Steve Show on my top 1071 everything entertainment. I went down a rabbit hole. I started looking up Jeff Bezos and his ex wife. They're the parents of four Children. Really? Well, you don't hear about them all I know..
Women are perceived to become liabilities the moment they become mothers. And that's just not true
"You know I grew up in the Philippines. I had really strong female role models my mother my grandmothers. We had a female President Corazon Aquino when I was growing up and I grew up as an empowered girl you know part of the Ywca of Manila's one of their team leaders. When I was thirteen and a started organizing leadership conferences for girls when I was eighteen and then so when I left the Philippines to come to school I left Venus. This empowered girl and then I went to Mongolia College. Which is the first ever and oldest college for Women in America which has a strong tradition if educating female leaders that would change the world and right out of college and I was working at Goldman Sachs. I was sparked of launching the Investment Banking Women's Network for Goldman and so all of these experiences. Really you know allowed me to appreciate the importance of having strong female role models in women leaders all around. I think there's a surprising number of similarities. I also grew up with a very strong mother. Who set a wonderful example of how to work hard and achieve your dreams but also have a clear opinion and share that I also went to an all women's college so Wellesley and it was a really powerful example for me to see all the leadership roles filled by women because that was just the assumption. Why wouldn't the leadership refilled by a woman? I think couple of differences. I grew up in a lot of other countries. As well you came from the Philippines. I I grew up in China for three years in Japan in Ecuador and France and so seeing gender equality quite differently in all of those countries and comparing that to the United States was a real surprise for me it was it was so different from country to country in China for example. There's a saying that women hold up half the sky and that struck me as clearly women would would have half of the opportunities would be just as strong and through both school but then also work and now I have three young daughters six year old and almost four year old twin girls and so I care about gender equality even more But this has been with me from his as far as I can remember. We NEED TO ACCELERATE GENDER EQUALITY. So we can have it in your daughter's life exactly that quite a bit actually at the rate we're going. The whole world stands to benefit if women participate in the economy identically. Demand according to Quinlan's research at McKinsey it would boost the world's economy annually by twenty trillion dollars. That's the size of China and US economies combined. It's all countries align their gender equality efforts with the progress made by their most impressive neighbors. The world's economy could grow by eleven percent that's twelve trillion dollars. A remedy for inequality is a daunting task and it starts at home from the United States may seem like a developed nation but the United States for the last decade has been ranking in the twenties to thirties and the global gender gap report and so there is a lot of progress that needs to be achieved and one of these areas is an economic empowerment so the gender pay gap still persists here in the United States. The gap has narrowed since nineteen eighty. But it's been stable over the last fifteen years and as of last year on average women have earned only eighty five percent of what men earned and based on this estimate. This means it would take an extra thirty nine days of work for women to earn what men did. As of last year there is also the perception that this gender pay gap is imaginary. The latest survey shows that around half of the men believed that there is no gender pay gap so this is very much like half of the men are denying climate change. You know. It's the same principle of denying Ariel that exists which makes it even more problematic to solve when we think about the intersection of race and gender gap. It gets even worse with African American women getting paid the least on average a second area around economic empowerment for women as access to capital for women. Women receive less than ten percent of venture capital funding and ever ge US women are starting more and more companies access to capital is not as easy for women as it is for men. If you're a woman of color the probability that you'll get funding from a venture capitalist is less than one percent so there is a lot of work we need to do around economic empowerment women.
Analisa & Kweilin
"Has budged much over the last fifteen years. Globally women participate less in the workplace that men. They're more likely to work a low pay job and juggle their career with unpaid work as primary home caregivers. There are fewer women in politics and one in three women will experience domestic violence in her lifetime. Work needs to be done both internationally and at home and at least says and Queen Ellen groups are both trying to close the gap coiling is a senior partner at Mckinsey where she leads. Gender Equality Research. She advises Fortune Five. Hundred companies on how to improve WORKFORCE DIVERSITY. Annalisa is the CEO and founder of Women Spear a platform that boosts female leadership innovation and entrepreneurship. She serves as a commissioner of the women's Refugee Commission in this episode. The pair discussed why gender equality is not a zero sum game how we can encourage future. Generations of workers to champion women's empowerment and what companies can do to attract and maintain a diverse workplace. They are women. Dare you know I grew up in the Philippines. I had really strong female role models my mother my grandmothers. We had a female President Corazon Aquino when I was growing up and I grew up as an empowered girl you know part of the Ywca of Manila's one of their team leaders. When I was thirteen and a started organizing leadership conferences for girls when I was eighteen and then so when I left the Philippines to come to school I left Venus. This empowered girl and then I went to Mongolia College. Which is the first ever and oldest college for Women in America which has a strong tradition if educating female leaders that would change the world and right out of college and I was working at Goldman Sachs. I was sparked of launching the Investment Banking Women's Network for Goldman and so all of these experiences. Really you know allowed me to appreciate the importance of having strong female role models in women leaders all around. I think there's a surprising number of similarities. I also grew up with a very strong mother. Who set a wonderful example of how to work hard and achieve your dreams but also have a clear opinion and share that I also went to an all women's college so Wellesley and it was a really powerful example for me to see all the leadership roles filled by women because that was just the assumption. Why wouldn't the leadership refilled by a woman? I think couple of differences. I grew up in a lot of other countries. As well you came from the Philippines. I I grew up in China for three years in Japan in Ecuador and France and so seeing gender equality quite differently in all of those countries and comparing that to the United States was a real surprise for me it was it was so different from country to country in China for example. There's a saying that women hold up half the sky and that struck me as clearly women would would have half of the opportunities would be just as strong and through both school but then also work and now I have three young daughters six year old and almost four year old twin girls and so I care about gender equality even more But this has been with me from his as far as I can remember. We NEED TO ACCELERATE GENDER EQUALITY. So we can have it in your daughter's life exactly that quite a bit actually at the rate we're going.
Ian Freed - Bamboo Learning
"I am Co founder and CEO of bamboo learning and bamboo learning is a startup dedicated to developing voice. I applications in education Really aimed at Children Teens and their families And we actually have five products out already. that cover range of different topics From math to reading As well as history and music so Cited to be here with you on the podcast. We'll awesome thank you so much for joining me today. And the reason I wanted to bring you on I had heard you on Colin born podcast voicing startups. It was an excellent episode. Everybody should go check it out But in that episode You know as you were describing. Bamboo learning I kinda dawned on me that this was really interesting application that you were building in so I tweeted out You know. Keep an eye on bamboo learning because I think it's one of the most interesting You know basically applications that are being built within the Alexi ecosystem. So I wanted to have you on today on the podcast. Actually kind of flesh out why I think that is. I think there's four main reasons why So I kind of wanted to go one by one with you as to I think you you all are so interesting so the first is your background in your Co Founder. Arenas background in the way in which is combining together so rather than me steal your thunder. Can you share a little bit about you? Know your time at Amazon In how that led you to Bambu and then arena in her background in education in how the to have sort of mixed together to lead to bamboo learning Absolutely so I Have been running Bamboo for about two years and prior to that had a twelve year about twelve and a half year career Amazon. Most of the time I was leading a one or more different device businesses And the last of ice businesses that actually ran were echo and Alexa and Iran. That team from the very beginning of the idea. that Really the kernel of the idea came from a review with with Amazon Ceo Jeff Bezos and We started building A team developed to develop ECO and Alexa ray around Two thousand Ten or so and Started working on that Pretty early and from the very beginning Rethought of Alex as broad based computing platform. So that's No other things I did. At Amazon I led the Amazon kindle. Business the e book reader and Also the fire phone which maybe wasn't the best Amazon hardware product but it was a lot of fun and had quite a bit of innovation in it and a number of those engineers are An end product folks are working very successfully on everything from Alexa Fire TV. We actually also incubated fire TV within my team And I was pretty adamant that the voice interface for Fire TV was absolutely critical to the today My co-founder Irina fine As much as I've spent three decades in technology she spent the same amount of time In education including everything from being a teacher of elementary school kids and older students as well. She also trained teachers at at Hunter College And she's done research and curriculum design for many many years and also worked Both for A startup in In education content development that was eventually acquired by McGraw Hill and also spent some time as a consultant at McKinsey so she has a really strong background in education and And as well as just kind of curriculum and development etc We actually know each other because she used to work for me. In the early nineties I had a consulting firm in Russia and She was one of the first people I hired there. And one of these great employees that you hire Who whatever you give them in terms of Some additional work to do she did that. And you know was done in about a third of the time of most normal humans and so gave her more work etcetera so we Probably about a two and a half years ago we started talking about. Could we combine our expertise Both her deep knowledge On Education and education theory and practice and mine on devices and Echo and Alexa in particular and create a brand new company where we could build education applications And try to create these long-form experiences on Alexa that we've as far a we've been reasonably successful at doing through Through our bamboo products.
European stocks and U.S. equity futures tumble after grim coronavirus forecast
"Roger we gotta try sector of legendary investors coming out and warning the Clarion call for mal case Jeffrey Gundlach saying that the assumption of a V. shaped recoveries too optimistic he says that we haven't yet seen the bottom for the S. and P. five hundred oak trees Howard marks saying that the recent market Roddy's overly optimistic so he does see a pessimism among investors just waiting to rear its head and then we hear from Jim Rogers again who warns that we could see the worst band market off his lifetime in the next two years yeah and it's all driven of course by the numbers there because what we're hearing out of out of America that figure one of Donald trump's medical advisers saying could be two hundred and forty thousand Americans dying in this bill trump changing his tone as well something to look grim about this I'm sure that's what's driving investors to some extent because in the end that's what they need to grapple with yeah I mean are you wouldn't think that Jeff Gundlach Jim Rogers Howard marks have reacted necessary to the news but not like what I think that's certainly pointing to is the fact that the base case really among observers among the market does seem to have been so far for this V. shaped recovery in that we see a rebound in the second half of the year but will you stop assumption when this is a virus that we don't know how it could involve there's so many things that we don't know about the health crisis itself who's to say that could not be a double dip recession a depression the the lockdowns now could be lifted but then they'll have to be resumed again later in the year there's just so much for the market to factory in and I mean I've said on the show before I personally don't think that some of those worst case scenarios happen factored into equity or bond markets and that is something that good luck roaches I'm marks are pointing to and of course and the fact that the world and investing and markets could changing ways we just count imagine after this is all over and we do get out the other side yeah I don't think that I've really noticed actually overnight was was also this US consumer confidence figures because over the within the month Sir United Arab in talking about consumers being clicking in terms of driving what's going on the U. S. consumer being what's giving everything of the good times when they would be existed now it's fallen to its lowest level since mid twenty seventeen but it's still exceeding expectations that perhaps the U. S. consumer will keep things going that with those of headlines how to see how well McKinsey points out that forty percent of Americans would struggle if they had an extra four hundred dollars to pay and they have to find that cash from somewhere so that tells you something about the strain on consumers in general in the U. S. not to mention how much the global consumer is aimed in decades at the moment that said if we take a look at markets then on to move it forward off the west coast of equities since two thousand and eight we all starting in the Reds for April the stock six hundred down two percent right now as we take a look across regional equity benchmarks what you're seeing is the fifty one hundred down two point four percent of the dax down more than three percent the ibex inputs he made in the red as well U. S. futures also pointing to a lower open Dow S. and P. and nasdaq futures all down by at least two and a half percent the ten year treasury yield slipping almost six basis point sixty one handle we've got yield slipping in Europe as well after they moved high yesterday the ten year bond yield down almost four basis points negative fifty ten year gilt yields dropped four basis points we are seeing a little bit of dollar strength to kick off the month of April of the repo lifeline from the fed does the latest move from band aids that can ease some of the dollar liquidity strains I'm taking a look at oil it's been fluctuating a bit in today's session when I was seven tenths of a cent higher on WTI just above twenty dollars a barrel worst quarter since well ever is what we've just seen it for oil president trump talking about potentially having discussions with Saudi Arabia and Russia how much difference will that make him what you're seeing is Dimond
"mckinsey" Discussed on Election Ride Home
"Slash begin. Ziprecruiter Ritter the smartest way to hire and now the impeachment news in about five minutes or so first up a correction to last weeks Thursday segment in which I talked about the four law professors. Who testified before Congress? Thank you Professor Howard. BUNCE's a listener. Who wrote in to point out that I didn't properly characterize what Professor Jonathan Turley said in his testimony? Turley was the professor called by Republican Committee members. Today I want to give you a more complete sense of what he said and how. It strongly contradicted the views of the other three professors. Here's a quote from an OP. Ed Turley wrote for the hill after his testimony any which gets at the heart of his argument quote. My objection is not that you cannot impeach trump for abuse of power but that this record is comparably comparably thin compared to pass impeachments and contains conflicts contradictions and gaps including various witnesses not subpoenaed. I suggested suggested that Democrats drop the arbitrary schedule a vote by the end of December and complete their case and this record before voting on any articles of impeachment and in my view they have not proven abuse of power in this incomplete record and quote and one more quote. I do not believe Steve. Crime has been proven over the Ukraine controversy. Though I said such crimes might be proven with a more thorough investigation end quote. SORTA so to summarize. He's saying I don't see the case there but on Thursday I characterize his testimony as being all about you know let the courts do their work but maybe imply that he we did see a case there anyway moving on. Let's talk about what happened today. In the house. Judiciary Committee proceedings have shifted. The topic is now reviewing viewing all the existing evidence as a steppingstone toward writing or maybe revising articles of impeachment. Today testimony got off to a rocky start a a protester interrupted the proceedings. Just a few minutes in and was escorted from the room shouting all the way. Meanwhile Republican Committee members continue their strategy of bringing motions arguing points of procedure within the committee. This slowed things down. And it Causes Chairman Jerry Nadler to spend a good bit of time on procedural stuff and in some cases calling doing votes before the actual witnesses began speaking they were congressional lawyers. Berry Burke Steve Caster and Daniel Goldman the trio were there to sum. I'm up evidence and arguments from the previous hearings. Burke and Goldman made the case for the Democrats while castor spoke for Republicans reading from a live blog by Peter Baker Acre for the New York Times. Quote the evidence is overwhelming said Berry Age Burke the lawyer repeating the phrase to emphasize the point to counter sure in advance Republican arguments that the impeachment inquiry has been rushed and inadequate. The facts assembled in recent weeks were uncontradicted and cannot ought be disputed he added as he played video clips from witnesses who testified last month before the House Intelligence Committee and quote. Okay and let's read once more from from the Times this time. It's about the testimony of castor. The lawyer for the Republican side quote this unfair process reflects the degree to which Democrats are obsessed. I with impeaching president trump by any means necessary. Mr Castro told lawmakers the Democrats went searching for a set of facts on which to impeach the president the emoluments clause the president's business and financial records the mullahs report and allegations of obstruction. There before settling on Ukraine and quote again as I mentioned mentioned last week a part of this argument at present boils down to Democrats saying the facts are the main thing while Republicans are saying the process is the main thing and yes. There is deep disagreement. On what the facts even our and yeah. There is also disagreement about the process as well L.. So you know this continues to be messy. Okay wrapping this up. I will have more on that testimony tomorrow. The big question for now is whether Democrats will include an article of impeachment related to obstruction of Justice in the Russia Affair Aka the findings of the Mullahs report listening to chairman. Nadler today. It sure sure sounds like they will but never assume what people in Congress are GONNA do until they do it Today Paul Volcker died at the age of ninety two now. He was not running for office and he was not involved in this election directly exactly but I want to mention here who he was and how his views have echoes in this election today. Reading here from a brief article by Joanna Walters writing for the Guardian quote in two thousand eighteen. He published a memoir titled Keeping at it the quest for sound money and good government and expressed concern about the direction fraction of the federal government and the loss of respect for it. The central issue is. We're developing into a plutocracy. He told The New York Times in October over twenty eighteen. We've got an enormous number of enormously rich people that have convinced themselves that they're rich because they're smart and constructive you've and they don't like government and they don't like to pay taxes in two thousand. Nine Volker began serving as a key financial advisor to President Barack Obama faced a Maelstrom of financial turmoil government bailouts and fallout from the deepest recession since the nineteen thirties. Great Depression in working to help the US economy recover from the two thousand eight crisis. He proposed what became known as the Volcker rule that restricted banks for making high risk investments with with depositors cash since Donald Trump who favors fewer regulations became president in two thousand seventeen. The rule has been under review and quote Volcker Voelker was chair of the Federal Reserve from nineteen seventy nine through nineteen eighty seven other words. He was appointed by the Democrat. Jimmy Carter and reappointed by Republican Ronald Reagan Reagan while volkers policies are far too complex to get into within this podcast. I think it's important to note that his message about rich. Folks and tax avoidance and plutocracy is strongly related to many of the policies and arguments. We hear from Democrats in this primary and to a great extent the the senators and the other long serving high level folks in this race have enough history with Volker that they will likely react.
"mckinsey" Discussed on Bloomberg Radio New York
"Powered by more than twenty seven hundred journalists and analysts in more than one hundred twenty countries. I'm Susanna Palmer. This is Bloomberg. You're listening to Berg long. I'm June Grosso. Rajon Gupta was part of the global business elite the head of MacKenzie aboard member of Goldman Sachs. American Airlines Proctor and gamble and philanthropist. But then in two thousand twelve was convicted of insider trading he exhausted all his appeals and served two years in prison. Now, he's written a book about his rise and fall entitled Rajat Gupta mind without fear. And he joins me now in our New York studio. Thanks for coming in. Thank you, you write that since your parents death. You led a charmed life before the trial. Tell me a little about what you meant by that. That is that you know, I went to one of the best schools in Indem technology engineering school. I go to Harvard Business School on full financial aid. You know, then I got my job at McKinsey and company, and I spend thirty seven years there. Was an unlikely Joyce became the head of McKinsey at age forty five and had wonderful nine years needing the from. And then I became much more engaged in Rodas society shoes in global, health and education and philanthropy in many different ways. So I I I was leading very productive and in a way Chom life. I mean. So do you think you should have retired? And maybe this would never have happened. What do you look at as regret in your life? There are many small regrets in this thing. This this thing happened when a loan of circumstances confluence. I mean, the simplest one is I had resigned from the Goldman board in two thousand eight and the designation was accepted best release was drafted, and it was going to go out. And then they. Please don't resign because Leman was going back up and so on it'd be don't want people to take one of our board members is resigning and so on and if I'd stuck with my decision to resign. None of this would've happened. So element of destiny. All this. You know, I had died from the foam, I was more spending diamond philanthropic into those anyway, so also destiny Rosh Rajaratne meeting him. How would you describe Roger rotten? I would say he was you know, now that is a lot of business history. But in those days, he was an extraordinary success. In Wall Street. He was considered to be very smart may bright trader before I investment in my actually checked with Hank Paulson who is very different from many many years and Geico and they came up with flying. Nations for rod saying his. And I had seen his philanthropic side. Also, he was a big doughnut today in school of business. So I had a very good opinion of him just before I knew him by predation and use very smart guy. If you could change one thing about your relationship with him. What would it be? It would be that. I wouldn't. So for each us, Tim, you know, I invested ten million dollars with him without a signature. I thought he was a test where the guy and anyway, he was very rich. Why would he do anything out of the ordinary for me? You know? So yeah, I would I would Jane that. Now, I wanna go to the time of the trial. There are few key pieces of evidence one being a wiretap of a conversation. You had with Roger rotten where you confirmed a rumor that Goldman might buy commercial Bank. The prosecutors call that a tip what firstly eight was not any. Inside information. The sense. It was not market moving information. It would not even confidential information the market already knew about it. Goldman Sachs executives themselves to the market. It was a conversation that was had at a board meeting a month before that recording. And no trading based on that. So it was like, you know, this is well-known information. Okay. The context of eight was voted meeting way. If you'd remember those times, basically, there was discussion always about who should merge with whom and companies in trouble and so on so forth. And we had a strategy discussion of the board where there was every Kennedy discussed should go to like why some whole bunch of different candidates or they should merge with somebody cetera. And this was information that the Goldman executives conveyed to the marketplace. And the context of this conversation was that Roger was having a meeting with guy Cohen was the president of Goldman dot with one of the biggest lines of Gordon Chang. Brokerage accounts. I was trying to make sure that I always Goldman is a extrordinary outstanding sedition because he was about everybody going bankrupt. And he's going to movies money to Europe, the prime brokerage accounts. Don't do that Goldman movie. The last Bank standing there, the smartest Beck. And so this was kind of depend on me. I didn't call him say it wasn't like I was started. Getting he called me said I'm having a meeting with guy going tomorrow. Can you tell me, and he said I heard Goldman is going to thinking it's like everybody was thinking mugging with everybody. Coming up on Bloomberg law. All continue my conversation with Rajon Gupta and explore. Why he thinks he did not get a fair trial? I'm June Grosso. This is Bloomberg is.
"mckinsey" Discussed on The Horse Racing Radio Network Podcast
"Obviously, the only time you have it came close to a sprint. I I wouldn't be surprised if more ice picked up the pieces and blue this exact up at a big price. I'm taking to exact game winner over Noah contested Morris. That's how I think game one. There's a lead pipe cinch. In the grade one Santa needed every tomorrow afternoon at the great race place. We'll wrap it up with the big cap race number ten. Six hundred thousand on the line mile and a quarter a look Baffert's Forty-five. He's got McKinsey going ten panels. Yeah. Mackenzie certainly should be able to get the distance. He's giving one pound to his main competitor gift box. But I don't know if there's really. A lot of difference between those two MacKenzie has been relatively sensational. I would say. Other than the the ill-fated idea to run him in the Breeders Cup. Classic. Off second start off a layoff. I just thought that was a stupid place to run them. His records. Really good. I mean, he's a very nice horse. So I'm a I'm a McKinsey fan. I'm gonna put McKinsey on top gift box. I really don't like anybody else. I never thought these words ever possibly come out of my mouth. I want all I can get on gift box on amount. A quarter of Kim tomorrow. I just don't think he wants to go to for a lot of words wanna go too far. I think use the last one in the world that I would think wants to go to five always thought this distance from the -tations, I don't think amount of quarter against any bunch and gift boxes. Really turned it around. I'm gonna try gift box tomorrow in race ten the grade. One Santa Anita handicap all thirteen races are in the books time now for the mayor abets best that it is the naira beds. Best bet. Away. I'm gonna go to the bluegrass, and I'm gonna take signalman. Band shot a hundred point bluegrass. I am going to do something. I don't want to narrowly like to do. I am. I am going to go to a turf sprint. I don't really like to put all my eggs in that bedroom. That's my biggest biggest chink in my handicapping Lama is turf sprints. But Imprimis man, I am just so impressed with this horse. I think he'll he works out his trip because he has his speed. He's nearly perfect on the turf seabed Kripa too. I think Imprimis is going to win race number seven great to Shakur town. He is my naira.
"mckinsey" Discussed on Stuff They Don't Want You To Know Audio
"Oh, and we also have a list here of I guess some prominent clients that mckinsey's worked for let's see the Saudi Arabia regime on just kidding. It's the monarchy there turkeys autocratic. Leader Ertegun, and let's see oh, the president of Ukraine who was ousted former president Viktor, you know, kovic believe at which gonna go vich, that's it. And then several other Chinese and Russian companies who are under or were under sanctions heavy sanctions at the time people to MacKenzie swoops in says, you guys need some help will guess what this hand, it's very helpful. And don't worry. It doesn't know what the left hand does. Right. Or at least it doesn't talk to the left hand omerta my friends. So let's us trading. If it's a trading thing, then we can make something right? So what what we're exploring then. Or what we have explored today is the story of a company that operates largely out of the headlines in the halls of power. It's. It's a power behind the throne. You know, sort of this corporate vizier that advises companies corporations countries in power and many times it comes into conflict with the law with various countries legal systems. So the question is are we seeing just the the bad stuff? We are. We only hearing about McKenzie. When there's a problem. Well, we are hearing a lot about MacKenzie's problems when they pop up, and there does seem to be a pattern are we being unfair. When we say that this organization is committing crime or are journalists being unfair. When they say that. We'd like to we'd like to hear from you. So let us know what you think of this. In the meantime, for conclusions McKinsey is not going away anytime soon, we are not kicking someone while they're down. No anyway, and from their perspective, again, they don't actually do these things they advise clients the clients take it from there, but not everyone's buying this one last note in January of twenty nine thousand nine this month. A bankruptcy case just got reopened here in the US alleged McKinsey was illegally making money off bankruptcy cases, it became involved with and more. So that it has a established a pattern of doing this that this is not a one off thing. But something more akin to a business practice..
"mckinsey" Discussed on Stuff They Don't Want You To Know Audio
"Claims here's how the model worked. This is incredibly unethical. They would offer deliberately lower settlement to any policyholder files. A claim much lower than are actually entitled to according to what their insurance agreements if you accept the lower payment than boom, you're claims resolved lickety-split, if you say, hey, this says I'm supposed to have X amount of cash wedge, you give me why amount of money. They will say we have to. If you're denying the settlement. We have to process this claim, and that will be delayed and delayed and delayed forever. Until the policyholders are finally forced to accept the payment or just give up altogether. That's brutal. In addition to this guy named knob deep Aurora was convicted for illegally depleting state farm of over five hundred thousand dollars over a period of eight years in cahoots with the state, farm employees. So in addition to. Creating this model that says, hey, you're an insurance company. Don't do your job and try to bilk people out of it. And then pay us for telling you to do that certain employs. We're also stealing money from the company. In addition. God. No, thank you know. Thanks. They've also been Societa d- with pharmaceutical. I don't know if you call them scandals, but controversies there's a company called valiant Canadian pharmaceutical company that was investigated by the SEC they've been accused of cooking their books and of using predatory price hikes to boost growth. The financial times had an intriguing statement here. Matt they said Valiants downfall is not exactly McKenzie's fault. But it's fingerprints are everywhere cheese. Okay. I mean, what are you doing that three out of six of the senior executives were recent McKinsey employees, and the the chair of the talent and compensation committee was also an ex McKenzie. If feels it feels like MacKenzie has this like part-time upright citizens brigade gig where they go around the movie like the TV show, not the improv group where they're just wreaking havoc everywhere in chaos on purpose just to see what they can get away with. Yeah. It sounds like that we have to ask if we're just hearing about the bad cases that made it to court. We most certainly are shopping. That's without a doubt. But the bad cases are pretty pretty bad. And would the cases that are considered successful for the client and the company be considered successful? For other people or they publicized because this this kind of company can do multiple things. But one of the things that consultancy is often going to be associated with is quote, unquote. Streamlining. Fire the workforce pay the pay the upper level management more or give them a sweetheart golden parachute. Walkaway deal kind of thing and their competitors. Have also complained about unfair business practices. There was court case in two thousand eighteen MacKenzie went to court over allegations from competitors. That was purposely misleading or miss informing clients by not telling the whole truth, essentially, or as little of the truth is they could get away with because it wouldn't. It wouldn't disclose conflicts like conflicts of interest in through in this comes into play later. Right. So like if you or what's the best way to put it. Okay. Let's say that. I'm McKinsey group. And. You are a a creditor of finance year. And you hire me to bail out. Let's say no has a bankrupt headphone company. The headphone mill is in trouble. And it's bankrupt. Your in charge of how this bankruptcy happens. You go to me MacKenzie and say here's a couple mill. Here's a cool who few mil what's the best way to restructure this? How do we determine who gets paid? What? Then I say. All right. I've got the perfect plan. But I don't tell you that as you. And I were cracking this deal. I went through a different company and bought up a ton of this debt. So now what I'm doing is say, well, you gotta pay that head Inc. I know what I mean. And then so like, okay. Well, you really expert and soupy not been incorporated. I then on top of that cool..
"mckinsey" Discussed on Stuff They Don't Want You To Know Audio
"With the energy companies and the actual energy prices. And just all of these the way it's all interconnected, right? The way that sometimes to turn a larger profit we will have tankers of oil waiting just off the coast. Right. Yes. He's happy before all of them. I mean, that's, you know, during the depression, people were starving to death in urban areas, while farmers were just slaughtering, pigs wholesale, and then throwing milk in a creek in an attempt to raise the prices burn that we feel man, this is the point where a consultant would come in and say, hey, we can improve this workflow. Oh. Might be right. You know what? I mean. There's a reason that the consultancy industry exists if only the peaky blinders excuse me, the McKenzie group around back, then wait now. So in two thousand eight do you remember the financial crisis? Oh, oh, do I have a tattoo of it. Yeah. I really think that everything that happened. And there's that's crazy because the tattoo, and it's just nothing because nothing changed. Bleak. I love it. So mackenzie. Mackenzie gets accused of being a prime mover in the financial crisis, which will because they were allegedly promoting the securitization of mortgage assets and asking banks to fund their operations with a lot of debt, and according to their critics this led to a poisoning of the global financial system and created alternately that two thousand eight meltdown. There's a great article on this. There are several grade articles on this, but one that will mention the financial crisis little bit more detail is MacKenzie. How does it always get away with it by guy named Ben chew writing for the independent and? What what the eventually came out in the wash about this? Was something incredibly despicable that ties in with their activities with insurance so McKinsey and company sold major insurers at places like AllState, a new business model.
"mckinsey" Discussed on Stuff They Don't Want You To Know Audio
"We're back in how prescient yes, you are. Correct. My friend Enron. So Enron was the creation of guy named Jeff skilling. Jeff skilling was McKinsey consultant for twenty one years when Enron collapsed. He actually went to jail he did relatively rare for a lot of financial crimes MacKenzie reportedly fully endorsed the dubious accounting methods that caused the company to implode in two thousand and one and Enron reportedly used McKinsey for twenty different projects and. It became a situation. Where MacKenzie consultants would say, you know, Enron is kind of a sandbox for us. Let's just shake things up. Let's roll the dice make it interesting Vegas, baby. Yeah. Let's see what we can do. We can get away with does this make money if we just say this or we just do this. It's pretty brilliant. And if you've ever seen the documentary, it's called Enron, the smartest guys in the room. I would recommend it highly. Go check it out. If you get a chance find it somewhere. We have we done an Enron episode. I think I don't know if we have we've talked about it a lot. I think it's worth it. Like just taking this expanding it onto a whole episode. Just because there's there are a lot of details in here about the weirdness that occurred there, right? Okay. So. The high level quick and dirty. Look at this Enron was the largest bankruptcy reorganization in American history at its time. It was also called the biggest failure of an audit. The scandal went public in October two thousand one Enron was an energy company based in Houston, Texas, and it was formed in nineteen eighty five sear doing the whole episode right now, this is a whole episode vessel. But yes, I to hear the facts section. I feel well a lot of people went to jail. It had. Intil I think until WorldCom went bankrupt. The very next year Enron was the largest corporate bankruptcy in history. Because I think it was valued at sixty three point four billion dollars. And then all went kaput. Yeah. Just sean. So maybe we'll do an Enron episode. Yeah. There should be worth it. It might be dry a little bit. But I think we can pull some stuff out of there. Just from I in the insanity of our financial systems like as they work.
"mckinsey" Discussed on Stuff They Don't Want You To Know Audio
"So insider trading is so. At least at least in our country here in the United States insider trading is such a hazy concept, you know. Yeah. Because it's not you sharing anything necessarily in the setup in in a way, it's a consultancy group. It's a partner that is connected. But really not connected, and at this level, the the laws are free rigorous about this, but the can also be fairly complicated. So insider trading occurs all the time in the United States of for a while for longtime actually members of the US congress. We're not subject to the same insider trading laws that everybody else was in theory subject to that's checks out men shirt. And if you're in the Senate, you gotta be able to Greece those palms. Somehow, and if you could do it on your own time, and it's not somebody else, Greece in your palm note. It is somebody else. Oh, wait. Oh, it's corruption. Oh got. Oh, no. Some of us are more equal than others. Right. Yeah. So let's pause here for a word from our sponsor return to some more tales from the black book of the McKinsey company. Get ready for Enron. It's coming. Wars. From the same team that brought you at Lanta monster comes a new season and a new monster season, two tackles, the riveting story of one of the most infamous serial killers in history, the zodiac.
"mckinsey" Discussed on Stuff They Don't Want You To Know Audio
"It's about sending a message because what if they felt it was necessary to. Purposely cripple Eskom, which is an electric provider and Transnet which is the rail and pipeline from what they felt it was not only necessary to do that. But what if they felt they could do it? Well. You know what I mean? So there was an even higher level of the playing field that was going on. Yeah. What if I don't think they accidentally did this man, I at this level? It's a really tall milkshake to say that someone just consistently screwed the pooch multiple times at the perfect time to things terrible. You know what I mean? Yeah. So maybe that was part of it. But that's that's just one example. We could probably do a whole episode on that one. There's also the galleon insider trading scandal. This is where the different Gupta comes in. So there's a guy named Rajat Gupta. Who was a former McKinsey senior executive. He was running the ship. No relation again to the Gupta family in South Africa. And a guy named Neil Kumar. These two guys and smothers were convicted in a government investigation into insider trading for sharing inside information with a hedge fund owner, the owner of a hedge fund called galley and group a guy named Rosh Russia not room, although McKinsey itself, the company was not a queue. Of any wrongdoing. The convictions were incredibly embarrassing for the firm because it prides itself on not telling its clients business right on client, confidentiality Lee. There's a senior partner Neil Kamar who described or he has been described as the protege of Gupta. He he left. The firm after these allegations started servicing in two thousand nine and then he ended up pleading guilty in January two thousand ten and it's well, okay. So well, this guy and some of the other partners had been pitching mckinsey's like services their consulting services to this galleon group and Kumar in this Rosia rotten him fellow. They reached this. They reached a private consulting agreement which I'm interested in so just kind of behind closed doors. They reach an agreement that violated mckinsey's policies on confidentiality, which okay, again, we see them kind of maybe breaking there. Own rules a little bit. Yeah. Yeah. That's that's the if if they really are breaking the rules if they are breaking the are the rules. Just outward facing, I don't know. So in October of two thousand eleven Gupta was arrested by the F B I on criminal charges of sharing insider information from these confidential board meetings with Rosia rotten them Gupta was convicted in June of two thousand twelve on four counts of conspiracy and securities fraud, and then was acquitted on two counts. So did alternately get found guilty as some stuff and the big questions. Here are things like how will wear was McKinsey and company of this activity. Yeah, we're they somehow complicit where they was. He was he relying on the network in some to some degree, the answer's probably. Yes. Yeah. I would think so it's a weird great instruments, not gray. But it feels like a gray area here insider trading this idea that if you have these close connections between the company that is valued at a certain amount that you're betting on is going to increase in value. And then you're a hedge fund owner that is placing those values, and somehow you've got this consultancy group that perhaps touches both things. I don't know that it puts tremendous power in that third party in that that has that connection because if you want to you can pull those strings or you can threaten to pull those strings, I I don't know that. They just got caught. That's it. They got caught doing what what maybe they're kind of setup to do this the thing..
"mckinsey" Discussed on Stuff They Don't Want You To Know Audio
"Our sponsor was the McKenzie. This episode of stuff. They don't want. You to know is brought to you by the firm. Here's where it gets crazy. There's a net of nepotism, that's what we're describing much of the criticism concerning MacKenzie comes from the activities of its former employees. We we mentioned that they have noticeably significantly higher chance of becoming CEO's of very prestigious companies, but they do end up having their hands and a lot of pots their fingers in a lot of pies. And most of the time that you hear someone criticizing this organization. They're going to be talking about one of any number of scandals as we explore this to be absolutely fair. We have to point out that MacKenzie can make an argument where they say, well, this was happening because some member of our company or some group within our comes. To this. But the company overall did not know about this. We are unaware. Yeah. When you have all those tendrils fourteen thousand of them, or so you you it's hard to point the finger, especially if they're a consultant for somebody else. Right. And that that is a valid argument to make they'll also say that look we just advise these clients, we don't decide things for them. And while that is true. It is also true that. Since. For years MacKenzie is either been directly involved in or closely associated with a number of huge scandals. Reuters even described these incidents entire as in indicative of not a few bad apples, not a couple of unscrupulous people in the company, but instead as a culture of corruption so we can we can look through a few of these in. We'll we'll give. Let's give the the bare bones the one oh one. Because each of these subjects that were about to mention is each one is the tip of a much larger iceberg. Right. And then yeah, there's a lot going on under the water. Let's start with South Africa. Is that? Okay. Yeah. Talking about Eskom the power company that was kind of in dire straits at the time and Transnet as well. So the story starts with the Gupta family new relation to the former head of McKinsey a guy who also had the last him Gupta. Totally unrelated this Gupta. Family a wealthy Indian-born South African family who were best known for owning a business empire that spans computer equipment media mining and so on and it at close ties to Jacob Zuma during his presidency. Here's what happened. They found out the. Gupta. Family had strategically placed corrupt people in various parts of the South African government, and in if it's infrastructure and its utility sectors. And the idea is that MacKenzie was complicit in this corruption, and they were using their connection with his family to get consulting contracts from places like Eskom and Transnet these are state owned companies. And then they provided they worked with someone called trillion capital partners T R, I L L A N to provide like seventy five million dollars worth of services. And then trillion got a commission off that for facilitating the business, and then they were found. I don't want to say caught red-handed, but caught pink handed light red handed with in the midst of acts of bribery and corruption and payments to this capital partner, and eventually South Africa's government in early two thousand eighteen found that McKinsey and trillion had been involved in fraud theft, corruption and money laundering. So yes, so this is this is a big time financial crime, right? If if it's true and. The the like, okay McKinsey has hired legal teams to defend them surprise. They can afford a ton of lawyers. Right. I know that they when they were first getting in bed with a lot of these companies specifically with the Eskom one they were looking at a contract for like seven hundred million dollars for the firm to come in. And that's just one piece of it. We're working with the people that the Gupta family was involved with like the money that was was at stake. When I'm thinking about that connected up to their values about only doing things that they know they can do and own, you know, telling the client the truth all the time and all this stuff and not putting the money above everything else. This feels like maybe this was a slip up where the money was above everything else. Is it a thing where it's not about the money though?.
"mckinsey" Discussed on Stuff They Don't Want You To Know Audio
"High priced most prestigious most consistently successful most envied most-trusted most disliked management consulting firm on earth while love through that most disliked in there right at the end. I wonder who dislikes it a lot of people competitors. Dislike it victims, or I guess you'd say unsatisfied clients, right or people who as a result of project, maybe lost their livelihood. Yeah. Amid there's some law enforcement agencies that don't like him so much just because they're probably so good at you know, keeping a face on whatever situation is going on. It's true. But the, you know, there you can't be this large without having critics as well as fans right opponents as well as supporters. Yeah. According to BusinessWeek, the firm is ridiculed reviled and revered depending on one's perspective, which makes complete sense. That's what we're talking about. If you're on the front lines with McKinsey or rather MacKenzie. On your front lines. You're probably like in them a lot because it does seem like they're pretty accommodating inner gonna get whatever job done you need done. There's one quote that I kept seeing float around which said that amidst the leaders of the business world was a saying that you can't be fired for hiring MacKenzie. Whoa. So they also seem to be dependable at least in certain circles. Let's talk about some of these statistics they have over a hundred and twenty offices. The have force of fourteen thousand consultants they've been in business for almost a century. Now ninety plus years and one of the key. Murky pieces of MacKenzie is its alumni who are a hugely influential force more current informer fortune five hundred CEO's are alumni of MacKenzie than any other company. I think they have the highest chance of becoming CEO's in general. It's one six hundred ninety which sounds like tough odds, but that's a hugely favorable number. Okay. So two things here. They're they're being consultants in partners. And then they end up becoming CEO's. That's what we're saying. Here of these giant corporations, and okay, we're not talking about like pod people situation like CIA infiltration replacing CEO's with MacKenzie. Ari? I don't know. I mean, it is a there is a revolving door argument. But it's not it's not a public private revolution. It's private private. He I really is. I guess that's true. So will do also alumni do also go into public service. That's what I was going to say alumni, go in public service. But then I wonder I do wonder how many public servants and up at the McKenzie group as like a side gig. But it seems like it would be a very demanding job. Not exactly retirement. It's yeah. It's a pretty rigorous system internally they have churn of about one fifth of their workforce a year because. They practice something called upper out, which means that you're either getting promoted or being kicked out to hang. They know which is another piper lens to their credibility. Right. Yeah. Okay. No dying on the vine there. Just GTS. You're hired and promoted if you search on YouTube now, you'll see a lot of fritzy fascinating videos from people who were talking about how to get through the McKinsey hiring process. Oh, man. That's those are the number one hits more. So than the any idea of McKinsey cover up first step hack, the person that you're going to be interviewed by how do, you know? They haven't already hacked you. How do you know, you weren't already selected? I mean, so officially once their officials officially MacKenzie describes itself as what you said met, a, quote global management consulting firm that serves a broad mix of private public and social sector institutions. So they're active in nonprofits, they're active in private corporations and their active in mechanisms of the state, it also it doesn't make a secret of its alumni actions. It's pretty proud of the work of its former employees. Yeah. According to its own website, quote, alumni, number more than thirty four thousand and work in virtually every business sector in one hundred twenty countries three or four bullets and informal networking four McKinsey consultants make insisting professional relationships..
"mckinsey" Discussed on Stuff They Don't Want You To Know Audio
"Additionally, he is responsible for a corporate culture that continues by all reports today, you'll hear former McKinsey employees say things like they're only three great institutions remain in the world, the marines, the Catholic church and McKinsey and they're serious. Whoa. They believe it. Yeah. This kind of loyalty. Pervent loyalty and. Belief in the company is baked into every single employee. He also established a set of rules rules of engagement and rules of conduct unless was listed. These off consultants should put the interests of clients before McKenzie's revenues. That's a big change. At least if you're a corporation that is for profit. You're you're basically saying in a way the customer's always right in this situation. But in this case, the customer is your partner, and then he said, of course, omerta do not discuss client affairs, that makes sense absolutely Ilisu said tell the truth is UC, even if this means challenging the clients opinion. So let's say that you are working with a large beverage company, and they want to make a new kind of product that you know, as we. Z partner is just not gonna work then it's your job to instead of just taking their money. It's your job to tell them that this ranch dressing flavored sodas a terrible idea. But I'm going to stop you there. Yeah. That is one of the most disgusting things. I've heard in a while. It's also real thing. Oh god. It's a real thing. So did you do that? In the natural flavorings episode now, I was I went to visit our friends Lorne Anne over at saver. Yeah. To do an episode with them about ranch. Okay. So check that out. If you are if you are like forty percent of the American public a die hard fan of ranch forty percent. Wow. Can you believe that my son's in there? Yeah. No, neither I like my buttermilk in Manny separate. I'm kidding. I mean, that's what it was originally. Anyway, as you could check out that episode. Another example, let's say you're a McKinsey partner working for a strong man or dictator in Thorpe -tarian regime, and they say look the best way to subjugate this ethnic minority is to I don't know shoot them all and then you say, no the best way to subjugate this ethnic minority is to imprison all of them, but call them reeducation camps or summer camps. You know, we'll work on the phrasing. That's that's the stuff you're supposed to do as a McKinsey consultant. You're supposed to stick by what you think is the correct answer. Even if your clients some of whom may be quite dangerous people. We'll disagree with you. And then they said only perform work that is both Nestle. Sery- and that MacKenzie can do. Well. Okay. Only stuff that's necessary. I wonder why I wonder why that one is so important, but I guess that's the idea of we're only going to hourly show good work. So if we if we don't know that we can perform this task like to perfection that we're not even going to attempt it that way nothing ever dings, our reputation. Yeah. Yeah. It's there's some self preservation there. Right. And it makes sense. When you think about it, the the idea of only doing work that is necessary. Also also makes sense. It's a matter professionalism. You're not doing unneeded work, and then finding the client or giving them a fee for that. You know, what it means the difference between a good mechanic in an unscrupulous one. Yeah. Absolutely. Here's another rule that McKinsey set for it self. They only work with CEOs, and they only work with clients that the firm itself feels will follow the advice of the firm. So they're not they're not trying to get somebody in there. That's maybe just wealthy enough. But won't. Actually, heed their advice. The again, they're so selective with how they're viewed. I think we keep painting this picture here. And so far since what what was the year nineteen when he twenty-six it's it's just been working for yet. They keep a very very low profile. They did expand their their restriction on C owes to include CEO's of subsidiaries and divisions of larger companies wasn't that nice. Yes. So it's a it's a little bit of a bigger pool than it was originally. But the changes over the years have not fundamentally changed the rules of engagement or the core values of the company, and as you said Matt this has been a winning formula. There was a profile story on MacKenzie in nineteen Ninety-three and said McKinsey and company was quote, the most well known most secretive..
"mckinsey" Discussed on Stuff They Don't Want You To Know Audio
"It didn't just make it through this sucker thrived when the founder James o McKinsey died in nineteen thirty seven a gentleman named Marvin Bauer took the firm, and he took it basically beyond what James had been able to take it to the some would say glory over the next thirty years in part, though, this is part of an obsession with being a quote, unquote, professional in appearance and tone and conduct. So really, creating an outward image of what this firm is what a Representative of the McKenzie group would be in pretty specific and pretty. Meticulous one word that you would use in a corporate boardroom to describe this would be granular. Yeah. So let's talk about some Argyle socks who gets to wear 'em who doesn't get to wear them Argyle. What's your take? Mr. Mr. Bauer Mr. Bauer once forbade all junior consultants from wearing Argyle socks because he thought they would distract clients. And and the firms consultants were all required to wear fidora's this time, they were all we're all probably dudes of until president Kennedy stopped wearing them. Well, how is seen that? I don't know. I just reminds. I do it reminds me of the peaky blinders. That's what I'm seeing in my head. We'll also is interesting because it feels like the guys creating a uniform, right? Yeah. He is creating a uniform not just the fabric, but also of minds. More Bauer is. As can be considered the head brand visionary. Or propagandists. Internal propagandists for McKinsey. He's the one who told everybody is start calling at the firm. He established the terminology jargon nomenclature, whatever you wanna call it that the employees would use going forward. One example would be the employees of a certain type where called partners that was him. It gives everybody some prestige, especially from client basis. You know, I'm not working with an employee now not spending millions of dollars on that. I'm working with apartments my partner. And.
"mckinsey" Discussed on Stuff They Don't Want You To Know Audio
"The religion while a corporation will work to expand its market share. And ultimately, it's bottom line. And all of these things are fine in theory. Right. But none of them are inherently good or evil, which I know can ruffle some feathers, especially we talk about religion. We're not talking about a specific religion. Just the concept. None are inherently good or evil because some nations might improve life for their citizens or some percentage of their population by making things worse for other people in another country or indeed in the same country, and some religions may advocate, slavery or death for nonbelievers that may be. The best way to save their souls, according to some teaching your interpretation thereof, and as we know some corporations may reach tremendous havoc chasing that bottom line. And even ultimately shoot themselves in the foot. You know what I mean? Yeah. But today's stories about something else entirely. Not a religion, not a nation, perhaps not even really a corporation, at least in the way that we would traditionally think about one of those today's episode is about a mysterious consultancy firm called the McKenzie group. But to those in the know it simply called. The firm who I like that movie with Tom Cruise, right? Yeah. There's also a book a book, the firm of theirs Gershom. Yep. And there's a documentary about McKinsey called the firm. So let's let's look at the history. I hear the facts. This thing is very very old. The McKenzie group was founded in nineteen twenty six by fellow named James o McKinsey. He was a university of Chicago professor and an expert on what's known as management accounting. He worked his way up from the bottom..