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Bain & Company Chairman Orit Gadiesh on the uncertain economic environment in which businesses operate.
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Office said that Bain and company helps its clients go from playing defense to offense we're joined now quite head Coach at Bain and company chairwoman -- -- completion.
You know you're clients this is a fascinating statistic outperform the market four to one.
I'm signing up at least -- want to know what is the secret sauce and I know it's hard to distill it down to one or two things but.
Just from a baseline point is beginning what does -- company have to -- have to do to be a winner.
If I have to really try to make it as clear as possible.
You -- -- -- to order core values are.
And you carry them through that times good times -- and company was based on an inflation actually consulting.
So bill banks said.
The product until it's not reports its of their results and that the time was -- and when I can't ban to -- company sort established them.
We weren't allowed to write reports it was all about making sure the things happen at three clients.
And took the -- -- bills that we should measure and we actually have an audit committee doing if you don't do it ourselves and we have stuck to that so.
You have that we have a commitment supposed to loyalty -- -- people -- the commitment a few people to certain values.
Among this this is the first ones.
Everything you do.
-- -- that now we have to evolve the way we do business because the times of evil technology has evolved companies edible.
Globalization possible.
-- he expects to providing results so we have changed went to organize the way we do practices and so and so forth.
But it's always about results for the clients and that's -- way we doubt about your car so.
More than here's what surprises me a little bit that lately many -- -- -- sale but.
Seven out of ten CEOs come on our air and say there's too much uncertainty we can't deal with -- uncertainty until things are cleared up.
You tell your clients have -- -- a cop out to say -- -- -- we're paralyzed we can't spend we can't grow we can't hire we can't do capital expenditures.
Patient -- him when they think we'll unchecked will -- -- -- pop up.
It isn't going to be -- more certainty there is now there has never treatments that certainty.
Seven times.
Uncertainty was so invisible nobody into the jobs and was an inquiry developing.
-- and the garage that will change the world.
They're to -- shifts going on all the time so don't expect certainty.
Learn first to acknowledge and certainty.
And then start to think about it in a slightly different way there's some things are truly uncertain what happened in North Africa last week.
Could have been predicted not likely would've been predicted -- -- should have been on the list of things that may be uncertain -- companies frankly you talked about Algeria and the hostage suggestion that.
But they're also things that are unfamiliar.
And those can be -- less so for example historically.
Cash was scarcely reported it to.
Skills were you could find them any time so my view let them go.
Overseeing companies hoard cash now more than two trillion on -- books.
They can unleash that I mean you can see some companies Intel for example saying we don't care what the landscape is we're gonna spend some of this.
And that's why they're probably gonna come out of -- when artists.
You have to not moving ahead.
Is almost a strategic decision and not likely to be the best one there there is risk though for those who go into.
A recession.
Globally in their own country.
Thinking you know what.
We're best in class -- number one will be okay thank you some statistics don't -- that kind of stunned me about winners who go into a recession and what happens to one out of four.
Come on the continent well.
Failures.
Either behind.
Complete -- You have got to innovate throughout infected recession is the best time to gain share and to move forward if -- later -- -- better.
But you don't go and it and say okay things are fine.
You actually have an -- ready keep taking follower.
Watching a -- not taking advantage of it.
Can actually turn to come out it had and summer time -- the younger -- or more entrepreneurial companies we note that.
Do you tell the companies that you consult don't depend on the -- for constant.
Liquidity and pumping up the market.
-- we actually talk about the companies in terms of what they need to do.
Not so much about what they need to does depend on in terms of what governments will do for them.
All of that is relatively unknown although it looks like the Fed is going to continue for at least couple refused to keep interest -- rights -- rights.
Low all the march advanced now because it's easier it's not like the cash is that they ample it's -- can get more cash for office.
You know the last time we spoke.
We have President Obama in office and this time -- just was inaugurated on Monday once again.
Obviously during the entire election process and the campaign so much attention not anything that had been on -- you're not putting capital which is where Mitt Romney is -- -- -- the chief.
You're Bain and company and yet.
In a way I'm sure you had to deal with the daily stories that have those four letters BAI again within that.
There was some nasty ads up there -- and there were some.
That that did resonate with some people not thinking of the one -- stage where they talked about how a company that Mitt Romney company has -- and -- they have the workers build the stage upon which later at this paper plant.
-- came up and said it's -- year old fired and and the the workers at you know I felt like I'd been asked bill -- coffin.
How did you deal with -- at the time and how relieved -- that that's kind of hopefully in the past.
Well people who actually know -- and Bain Capital -- have been done with this confusion a long time ago.
Most all of our clients -- -- the difference between the two.
And I have nothing but expects bring capital by the way independent those stories that you -- they're -- lot of good.
I would say that we were very traveler column -- -- was running.
And it's an honor actually when when you have somebody who -- -- alumni and went and started -- capital to be running.
We're kind of glad to just look forward and not have to daily deal with that and as time went behind most of the -- understood it as well stop confusing us.
And let's go continue but it hasn't stopped -- this -- -- on and we just went right.
We're well here in Davos no one confuses you referred one of the 70% of the men who are here is that very few women just like you guys know I hear adopt a sold out this first year actually have to wait in line for the ladies -- which is.
Which is definitely a metric that we should be looking at that magical back in Philly but somewhat some that haven't discovered that the people.
The current record later RE.
-- you know -- -- -- do even notice that you're one of the few women chairwoman of big banks.
-- -- big businesses rather sheets and.
I don't think they're being.
And either there was another woman or not so it it doesn't even.
It doesn't compute time and I walk into room and night business like look at people of the capabilities of the competencies -- What kind of negotiation or discussion we have to -- so.
Can I really honestly cannot tell you that I just can't for a meeting will -- -- god and myself.
And I would have thought about it if you had to pick -- We'll go to -- -- that -- that you probably have a bit like planes at O'Hare they're lining up for the -- chairman of Bain and company thank you very much.
For joining us thank you she's got meetings to attend let's let her -- -- another tactic here.
