1 00:00:07,410 --> 00:00:09,277 ♪ ♪ 2 00:00:09,346 --> 00:00:16,346 ♪ ♪ 3 00:00:23,927 --> 00:00:30,927 ♪ ♪ 4 00:00:31,902 --> 00:00:33,534 [CHEERS AND APPLAUSE] 5 00:00:33,603 --> 00:00:34,102 >> John: WELCOME, WELCOME, 6 00:00:34,171 --> 00:00:34,735 WELCOME TO "LAST WEEK TONIGHT!" 7 00:00:34,804 --> 00:00:35,703 I'M JOHN OLIVER. 8 00:00:35,772 --> 00:00:37,071 THANKS SO MUCH FOR JOINING US. 9 00:00:37,140 --> 00:00:38,139 IT'S BEEN A BUSY WEEK. 10 00:00:38,208 --> 00:00:38,773 SIDNEY POWELL PLED GUILTY IN THE 11 00:00:38,842 --> 00:00:40,241 2020 ELECTION INTERFERENCE CASE 12 00:00:40,310 --> 00:00:41,742 IN GEORGIA, AND JOE BIDEN FLEW 13 00:00:41,811 --> 00:00:43,678 TO ISRAEL TO OFFER HIS SUPPORT 14 00:00:43,747 --> 00:00:46,013 AMID THE ONGOING HOSTAGE CRISIS. 15 00:00:46,082 --> 00:00:47,415 IN GAZA, CONDITIONS ARE 16 00:00:47,484 --> 00:00:49,450 HORRENDOUS, FOLLOWING BRUTAL 17 00:00:49,519 --> 00:00:50,718 AIRSTRIKES, AND A BLOCKADE OF 18 00:00:50,787 --> 00:00:52,386 FOOD, FUEL AND WATER, WHICH SOME 19 00:00:52,455 --> 00:00:53,087 COMMENTATORS ARE JUST WAY TOO 20 00:00:53,156 --> 00:00:56,057 COMFORTABLE WITH. 21 00:00:56,126 --> 00:00:56,624 JUST LISTEN TO THIS EXCHANGE 22 00:00:56,693 --> 00:00:58,025 BETWEEN A RETIRED SENIOR 23 00:00:58,094 --> 00:00:58,659 MILITARY OFFICIAL AND AN ANCHOR 24 00:00:58,728 --> 00:01:03,531 ON CNN. 25 00:01:03,600 --> 00:01:04,165 >> I THINK WHAT THEY NEED TO DO 26 00:01:04,234 --> 00:01:05,366 IS ENCIRCLE IT, THEY NEED TO 27 00:01:05,435 --> 00:01:06,901 CONTINUE TO APPLY THE PRESSURE 28 00:01:06,970 --> 00:01:07,769 OF THE BRIGADE, OF THIS BLOCKADE 29 00:01:07,838 --> 00:01:09,170 THAT THEY'VE ESTABLISHED. 30 00:01:09,239 --> 00:01:10,138 THE PEOPLE ARE GOING TO SUFFER, 31 00:01:10,207 --> 00:01:11,405 BUT THEY'RE GOING TO COME UP ON 32 00:01:11,474 --> 00:01:12,807 THE NET AND SAY, "LOOK, GET US 33 00:01:12,876 --> 00:01:14,142 OUT OF HERE." 34 00:01:14,211 --> 00:01:21,211 >> BUT DOES THAT MEAN -- YOU SAY 35 00:01:22,853 --> 00:01:23,417 SAY -- DOES THAT MEAN STARVE THE 36 00:01:23,486 --> 00:01:25,286 PALESTINIAN PEOPLE? 37 00:01:25,355 --> 00:01:25,920 CONTINUE TO, BECAUSE THEY WILL 38 00:01:25,989 --> 00:01:26,487 BE SO HUNGRY, AND WILL BE SO 39 00:01:26,556 --> 00:01:27,789 DESPERATE FOR WATER, AND 40 00:01:27,858 --> 00:01:29,490 MEDICINE, THAT THEN THEY WILL 41 00:01:29,559 --> 00:01:30,124 GIVE UP HAMAS? 42 00:01:30,193 --> 00:01:30,691 >> IT SOUNDS CALLOUS, BUT I 43 00:01:30,760 --> 00:01:35,196 MEAN, THIS IS A WAR. 44 00:01:35,265 --> 00:01:36,531 >> John: WHAT?! 45 00:01:36,600 --> 00:01:39,300 IT IS A WAR. 46 00:01:39,369 --> 00:01:41,135 YOU'RE DESCRIBING A WAR CRIME. 47 00:01:41,204 --> 00:01:41,736 ONE THING DOES NOT JUSTIFY THE 48 00:01:41,805 --> 00:01:46,541 OTHER. 49 00:01:46,610 --> 00:01:47,175 JUST A THOUGHT FOR THAT ANCHOR, 50 00:01:47,244 --> 00:01:48,876 WHO PROBABLY DIDN'T GET UP THAT 51 00:01:48,945 --> 00:01:49,610 MORNING THINKING HE'D HAVE TO 52 00:01:49,679 --> 00:01:51,112 GENUINELY EXPLAIN "YOU CAN'T 53 00:01:51,181 --> 00:01:52,480 STARVE PEOPLE" TO A FORMER US 54 00:01:52,549 --> 00:01:53,614 MILITARY OFFICIAL. 55 00:01:53,683 --> 00:01:54,215 BUT, WE'RE GOING TO FOCUS ON 56 00:01:54,284 --> 00:01:55,383 WASHINGTON THIS WEEK, WHERE 57 00:01:55,452 --> 00:01:56,417 REPUBLICANS STILL HAVEN'T 58 00:01:56,486 --> 00:01:57,752 MANAGED TO ELECT A NEW SPEAKER. 59 00:01:57,821 --> 00:01:58,352 JIM JORDAN WENT THROUGH THREE 60 00:01:58,421 --> 00:01:59,954 VOTES, ENJOYABLY LOSING SLIGHTLY 61 00:02:00,023 --> 00:02:02,457 MORE EACH TIME. 62 00:02:02,526 --> 00:02:03,524 AND AT ONE POINT, WAS 63 00:02:03,593 --> 00:02:04,125 PHOTOGRAPHED COMING OUT OF A 64 00:02:04,194 --> 00:02:05,226 CLOSED-DOOR MEETING WITH A 65 00:02:05,295 --> 00:02:06,994 HANDWRITTEN NOTE READING, "WHAT 66 00:02:07,063 --> 00:02:08,996 IS THE REAL REASON?" 67 00:02:09,065 --> 00:02:10,231 WHICH LOOKS LESS LIKE A BID TO 68 00:02:10,300 --> 00:02:11,265 BE SPEAKER AND MORE LIKE AN 69 00:02:11,334 --> 00:02:14,168 EARLY DRAFT OF A SUICIDE NOTE. 70 00:02:14,237 --> 00:02:15,303 THIS IS A HUMILIATING SITUATION 71 00:02:15,372 --> 00:02:17,004 FOR REPUBLICANS, ALTHOUGH ONE 72 00:02:17,073 --> 00:02:17,939 MEMBER DID HIS BEST TO SPIN THE 73 00:02:18,008 --> 00:02:20,608 CHAOS AS A POSITIVE. 74 00:02:20,677 --> 00:02:21,209 >> OUR DEMOCRATIC COLLEAGUES 75 00:02:21,278 --> 00:02:22,043 WILL NOT WORK WITH US ON A 76 00:02:22,112 --> 00:02:24,045 SINGLE THING TO SECURE THE 77 00:02:24,114 --> 00:02:25,146 BORDER, NOT ONE THING- 78 00:02:25,215 --> 00:02:25,980 >> YOU'RE THE ONES WHO CAN'T GET 79 00:02:26,049 --> 00:02:27,415 BEHIND A CANDIDATE HERE. 80 00:02:27,484 --> 00:02:28,483 >> WE ARE LAYING THIS ALL OUT IN 81 00:02:28,552 --> 00:02:29,584 PUBLIC VIEW, AND THE AMERICAN 82 00:02:29,653 --> 00:02:30,585 PEOPLE CAN SEE IT, IT IS THE 83 00:02:30,654 --> 00:02:32,053 SAUSAGE GETTING MADE, IT IS THE 84 00:02:32,122 --> 00:02:32,687 WORST SYSTEM EXCEPT FOR ALL THE 85 00:02:32,756 --> 00:02:36,891 OTHERS. 86 00:02:36,960 --> 00:02:37,892 >> YOU THINK THIS LOOKS GOOD? 87 00:02:37,961 --> 00:02:38,626 >> John: NO, IT DEFINITELY 88 00:02:38,695 --> 00:02:39,894 DOESN'T LOOK GOOD. 89 00:02:39,963 --> 00:02:40,661 DO NOT CLAIM THAT YOU'RE "LAYING 90 00:02:40,730 --> 00:02:42,029 THIS MESS OUT IN PUBLIC TO BE 91 00:02:42,098 --> 00:02:42,697 TRANSPARENT ABOUT HOW THE 92 00:02:42,766 --> 00:02:44,132 SAUSAGE IS MADE." 93 00:02:44,201 --> 00:02:44,832 IT'S GETTING LAID OUT BECAUSE 94 00:02:44,901 --> 00:02:45,666 YOU'RE INCAPABLE OF MAKING A 95 00:02:45,735 --> 00:02:47,301 SAUSAGE AT ALL. 96 00:02:47,370 --> 00:02:48,302 WHEN PEOPLE GO TO THE GROCERY 97 00:02:48,371 --> 00:02:50,171 STORE, THEY EXPECT OSCAR MEYER 98 00:02:50,240 --> 00:02:51,672 WEINERS, NOT OSCAR MEYER "A PIG 99 00:02:51,741 --> 00:02:53,574 ANUS AND OTHER ASSORTED ANIMAL 100 00:02:53,643 --> 00:02:54,509 PARTS." 101 00:02:54,578 --> 00:02:55,910 AND TO BE FAIR, REPUBLICANS 102 00:02:55,979 --> 00:02:57,311 AREN'T ALONE IN DEALING WITH 103 00:02:57,380 --> 00:02:58,780 SOME PUBLIC EMBARRASSMENT. 104 00:02:58,849 --> 00:02:59,781 DEMOCRATIC NEW JERSEY SENATOR 105 00:02:59,850 --> 00:03:01,682 BOB MENENDEZ IS FACING FEDERAL 106 00:03:01,751 --> 00:03:02,717 CHARGES FOR ALLEGEDLY ACCEPTING 107 00:03:02,786 --> 00:03:04,352 BRIBES TO HELP, AMONG OTHERS, 108 00:03:04,421 --> 00:03:05,586 THE EGYPTIAN GOVERNMENT, IN 109 00:03:05,655 --> 00:03:06,954 FORMS INCLUDING GOLD BARS AND 110 00:03:07,023 --> 00:03:08,890 STACKS OF CASH. 111 00:03:08,959 --> 00:03:09,724 AND, THE STORY JUST KEEPS 112 00:03:09,793 --> 00:03:11,159 DEVELOPING. 113 00:03:11,228 --> 00:03:12,326 >> BOB MENENDEZ IS FACING NEW 114 00:03:12,395 --> 00:03:13,694 CHARGES, ACCUSING THE NEW JERSEY 115 00:03:13,763 --> 00:03:14,929 DEMOCRAT OF PLOTTING WITH HIS 116 00:03:14,998 --> 00:03:16,397 WIFE AND AN ASSOCIATE TO MAKE 117 00:03:16,466 --> 00:03:19,133 THE SENATOR AN AGENT OF EGYPT, 118 00:03:19,202 --> 00:03:19,934 WHILE HE WAS CHAIRMAN OF THE 119 00:03:20,003 --> 00:03:21,736 FOREIGN RELATIONS COMMITTEE. 120 00:03:21,805 --> 00:03:22,603 THE NEW INDICTMENT SHOWING 121 00:03:22,672 --> 00:03:24,038 MENENDEZ AND HIS WIFE HOSTING 122 00:03:24,107 --> 00:03:25,239 ONE EGYPTIAN OFFICIAL IN HIS 123 00:03:25,308 --> 00:03:26,507 SENATE OFFICE AND DINING WITH 124 00:03:26,576 --> 00:03:28,209 ANOTHER AT A WASHINGTON, D.C. 125 00:03:28,278 --> 00:03:29,410 STEAKHOUSE. 126 00:03:29,479 --> 00:03:30,611 AT THAT DINNER, NADINE MENENDEZ 127 00:03:30,680 --> 00:03:32,280 ALLEGEDLY ASKING, "WHAT ELSE CAN 128 00:03:32,349 --> 00:03:34,816 THE LOVE OF MY LIFE DO FOR YOU?" 129 00:03:34,885 --> 00:03:36,150 >> John: I DON'T LIKE THAT AT 130 00:03:36,219 --> 00:03:38,753 ALL. 131 00:03:38,822 --> 00:03:40,321 THAT SOUNDS LESS LIKE A REQUEST 132 00:03:40,390 --> 00:03:41,522 FOR BRIBES AND MORE LIKE A 133 00:03:41,591 --> 00:03:42,824 COUPLE IN AN OPEN RELATIONSHIP, 134 00:03:42,893 --> 00:03:44,258 COMING ON A LITTLE TOO STRONG TO 135 00:03:44,327 --> 00:03:46,093 YOU AT A BAR. 136 00:03:46,162 --> 00:03:47,195 "WHAT ELSE CAN THE LOVE OF MY 137 00:03:47,264 --> 00:03:49,730 LIFE DO FOR YOU THIS EVENING?" 138 00:03:49,799 --> 00:03:50,531 ABSOLUTELY NOTHING! 139 00:03:50,600 --> 00:03:53,234 LEAVE ME ALONE. 140 00:03:53,303 --> 00:03:54,302 AND, THE WEIRD DETAILS DON'T 141 00:03:54,371 --> 00:03:54,969 STOP THERE. 142 00:03:55,038 --> 00:03:55,803 >> FEDERAL PROSECUTORS SAY 143 00:03:55,872 --> 00:03:57,305 SENATOR MENENDEZ LIFTED A BLOCK 144 00:03:57,374 --> 00:03:58,372 ON U.S. MILITARY AID TO EGYPT, 145 00:03:58,441 --> 00:04:00,274 TEXTING HIS WIFE, "TELL WILL I 146 00:04:00,343 --> 00:04:04,979 AM GOING TO SIGN OFF THIS SALE 147 00:04:05,048 --> 00:04:06,514 TO EGYPT TODAY, 10,000 ROUNDS 148 00:04:06,583 --> 00:04:08,116 TANK AMMUNITION." 149 00:04:08,185 --> 00:04:09,016 >> John: OH THAT SOUNDS FINE, 150 00:04:09,085 --> 00:04:10,952 JUST SOME NORMAL COUPLE STUFF, 151 00:04:11,021 --> 00:04:11,986 TEXTING ABOUT THOUSANDS OF 152 00:04:12,055 --> 00:04:13,988 ROUNDS OF TANK AMMUNITION. 153 00:04:14,057 --> 00:04:14,856 ACCORDING TO THE INDICTMENT, 154 00:04:14,925 --> 00:04:15,756 THAT TEXT EVENTUALLY GOT 155 00:04:15,825 --> 00:04:17,391 FORWARDED TO EGYPTIAN OFFICIALS, 156 00:04:17,460 --> 00:04:18,159 ONE OF WHOM REPLIED SIMPLY WITH 157 00:04:18,228 --> 00:04:21,195 A "THUMBS UP" EMOJI. 158 00:04:21,264 --> 00:04:22,530 AND, COME ON. 159 00:04:22,599 --> 00:04:23,164 YOU'RE CONFIRMING THE RECEIPT OF 160 00:04:23,233 --> 00:04:24,665 TANK AMMUNITION WITH A THUMBS 161 00:04:24,734 --> 00:04:25,533 UP? 162 00:04:25,602 --> 00:04:26,901 HAVE SOME PANACHE! 163 00:04:26,970 --> 00:04:28,202 WHERES THE DOLLAR HANDSHAKE OR 164 00:04:28,271 --> 00:04:31,606 THE MONEYBAG BOMB CHAMPAGNE SHHH 165 00:04:31,675 --> 00:04:33,074 OR THE FLYING MONEY AND THE 166 00:04:33,143 --> 00:04:34,275 TRUCK, MAKING THE OTHER GUY GO 167 00:04:34,344 --> 00:04:35,443 "WHAT IS THE TRUCK FOR?" 168 00:04:35,512 --> 00:04:36,077 ONLY TO GET THE RESPONSE, "THEY 169 00:04:36,146 --> 00:04:38,045 DON'T HAVE TANKS, THAT WAS THE 170 00:04:38,114 --> 00:04:39,113 BIGGEST TRUCK," GETTING THE 171 00:04:39,182 --> 00:04:40,748 REPLY, "OKAY, GOT IT, COOL." 172 00:04:40,817 --> 00:04:41,382 AND THEN, AND ONLY THEN, IS THE 173 00:04:41,451 --> 00:04:44,519 THUMBS-UP EMOJI APPROPRIATE. 174 00:04:44,588 --> 00:04:45,720 NOW, MENENDEZ - ALONG WITH 175 00:04:45,789 --> 00:04:46,621 EVERYONE ELSE CHARGED IN THIS 176 00:04:46,690 --> 00:04:48,089 CASE - HAS DENIED WRONGDOING, 177 00:04:48,158 --> 00:04:49,757 AND SAID THIS WEEK "NOTHING HAS 178 00:04:49,826 --> 00:04:50,424 CHANGED IN THIS INDICTMENT 179 00:04:50,493 --> 00:04:51,793 EXCEPT THE NEW CHARGE." 180 00:04:51,862 --> 00:04:52,393 THOUGH, THAT NEW CHARGE IS A 181 00:04:52,462 --> 00:04:54,762 PRETTY GIGANTIC ONE. 182 00:04:54,831 --> 00:04:55,363 AND IT'S NOT A GREAT SIGN THAT 183 00:04:55,432 --> 00:04:56,631 POLITICO RAN THE ACTUAL 184 00:04:56,700 --> 00:04:58,132 HEADLINE, "IS IT LEGAL FOR A 185 00:04:58,201 --> 00:04:59,967 SENATOR TO WORK AS A FOREIGN 186 00:05:00,036 --> 00:05:00,968 AGENT? 187 00:05:01,037 --> 00:05:03,171 THE ANSWER WON'T SURPRISE YOU." 188 00:05:03,240 --> 00:05:05,206 AND IF YOU'RE NOTICING THAT 189 00:05:05,275 --> 00:05:06,541 MENENDEZ'S WIFE, NADINE IS 190 00:05:06,610 --> 00:05:08,709 FEATURING A LOT IN THIS STORY, 191 00:05:08,778 --> 00:05:09,343 IT'S BECAUSE SHE'S ACTUALLY BEEN 192 00:05:09,412 --> 00:05:11,012 CHARGED, TOO. 193 00:05:11,081 --> 00:05:11,913 ACCORDING TO THE INDICTMENT, 194 00:05:11,982 --> 00:05:13,548 SOME OF THE ITEMS OF VALUE THAT 195 00:05:13,617 --> 00:05:14,282 MENENDEZ RECEIVED WERE FOR HER 196 00:05:14,351 --> 00:05:15,683 BENEFIT. 197 00:05:15,752 --> 00:05:16,317 IT MENTIONS THAT AT ONE POINT, 198 00:05:16,386 --> 00:05:17,852 SHE TOTALED HER CAR -- SOMETHING 199 00:05:17,921 --> 00:05:18,920 THAT HAPPENED, INCIDENTALLY, 200 00:05:18,989 --> 00:05:20,455 WHEN SHE HIT AND KILLED A MAN IN 201 00:05:20,524 --> 00:05:22,089 2018 -- WHICH I DON'T EVEN HAVE 202 00:05:22,158 --> 00:05:23,458 TIME TO GET INTO. 203 00:05:23,527 --> 00:05:24,759 GOOGLE THAT YOURSELVES. 204 00:05:24,828 --> 00:05:25,626 AND, THE INDICTMENT ALLEGES THAT 205 00:05:25,695 --> 00:05:27,228 THIS BUSINESSMAN HELPED HER PAY 206 00:05:27,297 --> 00:05:28,863 FOR THIS NEW $60,000 MERCEDES IN 207 00:05:28,932 --> 00:05:30,064 EXCHANGE FOR FAVORS FROM 208 00:05:30,133 --> 00:05:31,766 MENENDEZ. 209 00:05:31,835 --> 00:05:32,700 AND WHEN THE CAR TURNED UP, 210 00:05:32,769 --> 00:05:35,570 NADINE SEEMED VERY HAPPY. 211 00:05:35,639 --> 00:05:36,971 >> PROSECUTORS SAY THAT AFTER 212 00:05:37,040 --> 00:05:38,639 NADINE MENENDEZ GOT THE NEW CAR, 213 00:05:38,708 --> 00:05:41,075 SHE TEXTED THE SENATOR, QUOTE, 214 00:05:41,144 --> 00:05:42,543 "CONGRATULATIONS MON AMOUR DE LA 215 00:05:42,612 --> 00:05:43,878 VIE, WE ARE THE PROUD OWNERS OF 216 00:05:43,947 --> 00:05:45,847 A 2019 MERCEDES," ALONG WITH A 217 00:05:45,916 --> 00:05:48,616 HEART EMOJI. 218 00:05:48,685 --> 00:05:49,450 >> John: WOW, SAY WHAT YOU WANT 219 00:05:49,519 --> 00:05:51,285 ABOUT NADINE MENENDEZ -- AND 220 00:05:51,354 --> 00:05:53,054 THAT PEDESTRIAN SHE RAN OVER 221 00:05:53,123 --> 00:05:54,122 CERTAINLY CAN'T -- BUT SHE LOVES 222 00:05:54,191 --> 00:05:56,224 THAT CAR. 223 00:05:56,293 --> 00:05:56,791 AND, BY THE WAY, NOT A GREAT 224 00:05:56,860 --> 00:05:58,926 LOOK FOR MERCEDES THERE. 225 00:05:58,995 --> 00:06:00,895 NOW, ARE THE MENEDEZES THE WORST 226 00:06:00,964 --> 00:06:01,529 POLITICAL FIGURES THAT MERCEDES, 227 00:06:01,598 --> 00:06:02,964 AS A BRAND, HAS EVER BEEN 228 00:06:03,033 --> 00:06:04,499 ASSOCIATED WITH? 229 00:06:04,568 --> 00:06:05,833 NO, THAT WOULD PROBABLY BE THIS 230 00:06:05,902 --> 00:06:09,036 GUY. 231 00:06:09,105 --> 00:06:09,670 ALTHOUGH, TO BE FAIR, IT'S NOT 232 00:06:09,739 --> 00:06:11,339 LIKE MERCEDES IS THE CAR OF 233 00:06:11,408 --> 00:06:12,940 CHOICE FOR NAZIS ANYMORE. 234 00:06:13,009 --> 00:06:14,308 THESE DAYS, THAT'S REALLY MORE 235 00:06:14,377 --> 00:06:16,744 OF A TESLA THING. 236 00:06:16,813 --> 00:06:18,479 THE MENENDEZES HAVE CLEARLY 237 00:06:18,548 --> 00:06:22,650 GOTTEN THEMSELVES INTO AN 238 00:06:22,719 --> 00:06:24,285 IMPRESSIVE AMOUNT OF SHIT FOR A 239 00:06:24,354 --> 00:06:24,919 COUPLE THAT APPARENTLY ONLY MET 240 00:06:24,988 --> 00:06:25,920 FIVE YEARS AGO. 241 00:06:25,989 --> 00:06:27,021 AND IN SOME PRETTY STRANGE 242 00:06:27,090 --> 00:06:28,256 CIRCUMSTANCES. 243 00:06:28,325 --> 00:06:28,890 >> THE COUPLE TOLD THE NEW YORK 244 00:06:28,959 --> 00:06:30,091 TIMES THEY MET IN DECEMBER 2018 245 00:06:30,160 --> 00:06:30,691 AT AN IHOP IN UNION CITY, NEW 246 00:06:30,760 --> 00:06:31,659 JERSEY. 247 00:06:31,728 --> 00:06:32,426 SHE TOLD THE NEW YORK TIMES SHE 248 00:06:32,495 --> 00:06:34,996 THOUGHT MENENDEZ WAS "VERY 249 00:06:35,065 --> 00:06:35,730 INTELLIGENT," AND "VERY, VERY 250 00:06:35,799 --> 00:06:37,999 HOT." 251 00:06:38,068 --> 00:06:39,167 >> John: OKAY, I'LL BE HONEST -- 252 00:06:39,236 --> 00:06:41,035 IF SOMEONE TOLD ME THEY FOUND 253 00:06:41,104 --> 00:06:42,737 THIS MAN TO BE "VERY, VERY HOT," 254 00:06:42,806 --> 00:06:44,505 I THINK MY ONLY LOGICAL RESPONSE 255 00:06:44,574 --> 00:06:45,139 WOULD BE, "YOU MEAN LIKE, TO THE 256 00:06:45,208 --> 00:06:48,009 TOUCH? 257 00:06:48,078 --> 00:06:49,777 IS HE OKAY?" 258 00:06:49,846 --> 00:06:50,411 BECAUSE, HE LOOKS LIKE A KEEBLER 259 00:06:50,480 --> 00:06:52,947 ELF BECAME A TAX ACCOUNTANT. 260 00:06:53,016 --> 00:06:53,714 HE LOOKS LIKE WHAT WOULD HAPPEN 261 00:06:53,783 --> 00:06:57,218 IF YOU COMBINED THE OLD MAN AND 262 00:06:57,287 --> 00:06:59,120 THE LITTLE BOY FROM "UP" INTO A 263 00:06:59,189 --> 00:07:00,354 SINGLE PERSON. 264 00:07:00,423 --> 00:07:00,955 AND, LET'S NOT SKIP OVER THEIR 265 00:07:01,024 --> 00:07:03,624 MEETING PLACE -- AN IHOP IN 266 00:07:03,693 --> 00:07:04,125 UNION CITY, NEW JERSEY. 267 00:07:04,194 --> 00:07:05,660 THAT'S NOT A MEET-CUTE. 268 00:07:05,729 --> 00:07:06,194 THAT'S A 269 00:07:06,263 --> 00:07:09,197 MEET-CLINICALLY-DEPRESSED. 270 00:07:09,266 --> 00:07:10,164 "AN IHOP IN NEW JERSEY" IS NOT 271 00:07:10,233 --> 00:07:11,499 WHERE YOU EXPECT A SENATOR TO 272 00:07:11,568 --> 00:07:15,236 MEET HIS WIFE. 273 00:07:15,305 --> 00:07:16,771 IT'S WHERE YOU EXPECT A CUSTOMER 274 00:07:16,840 --> 00:07:18,606 TO MEET "THEIR OWN PERSONAL ROCK 275 00:07:18,675 --> 00:07:19,941 BOTTOM." 276 00:07:20,010 --> 00:07:20,575 AND I'D SAY "MEETING AT A UNION 277 00:07:20,644 --> 00:07:21,776 CITY IHOP" IS THE MOST JERSEY 278 00:07:21,845 --> 00:07:22,510 THING ABOUT THIS COUPLE, BUT IT 279 00:07:22,579 --> 00:07:23,311 ISN'T. 280 00:07:23,380 --> 00:07:24,412 NOT ONLY DOES NADINE HAVE 281 00:07:24,481 --> 00:07:25,546 MULTIPLE PICTURES WITH CAST 282 00:07:25,615 --> 00:07:26,747 MEMBERS OF THE REAL HOUSEWIVES 283 00:07:26,816 --> 00:07:27,782 OF NEW JERSEY AND MOB WIVES, BUT 284 00:07:27,851 --> 00:07:29,484 PERHAPS THE PHOTO OF HER THAT 285 00:07:29,553 --> 00:07:30,118 SCREAMS "NEW JERSEY" THE MOST IS 286 00:07:30,187 --> 00:07:32,620 THIS ONE. 287 00:07:32,689 --> 00:07:34,956 LOOK AT THESE JEANS. 288 00:07:35,025 --> 00:07:36,657 THEY ARE IN ITALY IN THIS PHOTO. 289 00:07:36,726 --> 00:07:39,160 ITALY. 290 00:07:39,229 --> 00:07:40,628 HOME OF PRADA, GUCCI, AND 291 00:07:40,697 --> 00:07:41,796 ARMANI, YET SHE LOOKS LIKE SHE'S 292 00:07:41,865 --> 00:07:43,331 ON THE DISNEY CHANNEL RED CARPET 293 00:07:43,400 --> 00:07:47,969 IN 2005. 294 00:07:48,038 --> 00:07:49,137 THIS IS A CHAOTIC RELATIONSHIP. 295 00:07:49,206 --> 00:07:51,839 THEY GOT ENGAGED ON A TRIP TO 296 00:07:51,908 --> 00:07:52,940 INDIA, AND THERE'S ACTUALLY 297 00:07:53,009 --> 00:07:54,909 VIDEO OF THE PROPOSAL, WHERE 298 00:07:54,978 --> 00:07:55,943 YOU'LL SEE MENENDEZ SERENADING 299 00:07:56,012 --> 00:07:57,912 NADINE WITH A NUMBER FROM "THE 300 00:07:57,981 --> 00:07:58,546 GREATEST SHOWMAN" BEFORE POPPING 301 00:07:58,615 --> 00:08:00,081 THE QUESTION. 302 00:08:00,150 --> 00:08:00,748 >> ♪ TOWERS OF GOLD ARE STILL 303 00:08:00,817 --> 00:08:02,850 TOO LITTLE ♪ 304 00:08:02,919 --> 00:08:03,451 ♪ THESE HANDS COULD HOLD THE 305 00:08:03,520 --> 00:08:05,787 WORLD ♪ 306 00:08:05,856 --> 00:08:08,923 ♪ AND IT WILL NEVER BE ENOUGH ♪ 307 00:08:08,992 --> 00:08:15,992 ♪ NEVER BE ENOUGH FOR ME ♪ 308 00:08:17,701 --> 00:08:18,933 >> OH MY GOD! 309 00:08:19,002 --> 00:08:20,668 >> WOW. 310 00:08:20,737 --> 00:08:24,372 >> John: YEAH, WOW! 311 00:08:24,441 --> 00:08:25,640 IT DOESN'T LOOK GREAT NOW TO 312 00:08:25,709 --> 00:08:27,074 HEAR THE WORLD'S OLDEST THEATER 313 00:08:27,143 --> 00:08:28,376 KID SING ABOUT HOW "TOWERS OF 314 00:08:28,445 --> 00:08:29,844 GOLD" WILL NEVER BE ENOUGH FOR 315 00:08:29,913 --> 00:08:31,612 HIM, GIVEN THE MULTIPLE GOLD 316 00:08:31,681 --> 00:08:33,047 BARS THAT WERE FOUND IN HIS 317 00:08:33,116 --> 00:08:35,216 HOUSE. 318 00:08:35,285 --> 00:08:36,451 I DON'T CARE HOW MUCH YOU LIKE A 319 00:08:36,520 --> 00:08:37,218 SONG, IF IT SOUNDS THAT MUCH 320 00:08:37,287 --> 00:08:38,820 LIKE A CONFESSION, MAYBE DON'T 321 00:08:38,889 --> 00:08:40,922 SING IT IN PUBLIC. 322 00:08:40,991 --> 00:08:41,689 IT'S ONE OF THE MANY REASONS THE 323 00:08:41,758 --> 00:08:43,324 NEW SWEENEY TODD REVIVAL ON 324 00:08:43,393 --> 00:08:44,292 BROADWAY STARS JOSH GROBAN AND 325 00:08:44,361 --> 00:08:45,927 NOT O.J. SIMPSON. 326 00:08:45,996 --> 00:08:47,261 BECAUSE REGARDLESS OF HOW GOOD 327 00:08:47,330 --> 00:08:49,630 JUICE WOULD BE IN THE ROLE, THE 328 00:08:49,699 --> 00:08:50,264 KNIFE CRIMES HAPPENING ON STAGE 329 00:08:50,333 --> 00:08:51,666 WOULDN'T BE THE ONES I'D BE 330 00:08:51,735 --> 00:08:53,935 THINKING ABOUT. 331 00:08:54,004 --> 00:08:54,635 NOW, MENENDEZ HAS STEPPED DOWN 332 00:08:54,704 --> 00:08:56,571 AS CHAIR OF THE SENATE FOREIGN 333 00:08:56,640 --> 00:08:58,239 RELATIONS COMMITTEE, BUT IS 334 00:08:58,308 --> 00:08:58,840 FACING INCREASING CALLS FROM 335 00:08:58,909 --> 00:09:00,975 WITHIN HIS OWN PARTY TO STEP 336 00:09:01,044 --> 00:09:02,543 DOWN AS SENATOR ALTOGETHER -- A 337 00:09:02,612 --> 00:09:03,811 MOVE THAT APPARENTLY 70% OF NEW 338 00:09:03,880 --> 00:09:05,880 JERSEYANS SUPPORT. 339 00:09:05,949 --> 00:09:07,381 WHICH IS STRIKING. 340 00:09:07,450 --> 00:09:08,783 IT'S HARD TO THINK OF SOMEONE 341 00:09:08,852 --> 00:09:10,118 THAT NEW JERSEYANS HATE MORE 342 00:09:10,187 --> 00:09:10,751 THAN MENENDEZ. 343 00:09:10,820 --> 00:09:12,887 NOT IMPOSSIBLE. 344 00:09:12,956 --> 00:09:14,455 JUST HARD. 345 00:09:14,524 --> 00:09:16,457 THE POINT IS: BOB MENENDEZ IS 346 00:09:16,526 --> 00:09:18,793 CLEARLY IN A LOT OF TROUBLE. 347 00:09:18,862 --> 00:09:19,427 AND WHILE I DON'T KNOW WHERE HIS 348 00:09:19,496 --> 00:09:21,362 CASE IS GOING LEGALLY, IF YOU 349 00:09:21,431 --> 00:09:22,730 WERE TO ASK ME IF HE SHOULD 350 00:09:22,799 --> 00:09:25,233 RESIGN FROM CONGRESS, I AND THE 351 00:09:25,302 --> 00:09:26,601 PEOPLE OF NEW JERSEY WOULD GIVE 352 00:09:26,670 --> 00:09:28,369 YOU A VERY STRONG THUMBS UP 353 00:09:28,438 --> 00:09:29,937 EMOJI. 354 00:09:30,006 --> 00:09:31,973 AND NOW, THIS. 355 00:09:32,042 --> 00:09:33,574 >> Announcer: AND NOW, SOME 356 00:09:33,643 --> 00:09:37,345 THINGS THAT TURN STU VARNEY ON. 357 00:09:37,414 --> 00:09:39,947 >> GIVE ME SOME EXAMPLE OR 358 00:09:40,016 --> 00:09:40,782 DEMONSTRATE HOW AUGMENTED 359 00:09:40,851 --> 00:09:46,087 REALITY WORKS. 360 00:09:46,156 --> 00:09:50,057 WHAT I'M GOING TO SEE, HOW I'M 361 00:09:50,126 --> 00:09:51,626 GOING TO USE IT. 362 00:09:51,695 --> 00:09:52,660 TURN ME ON. 363 00:09:52,729 --> 00:09:54,095 WHAT WAS THAT NEURALINK? 364 00:09:54,164 --> 00:09:54,729 I WANT TO FOCUS ON THAT BECAUSE 365 00:09:54,798 --> 00:09:55,630 IT TURNS ME ON. 366 00:09:55,699 --> 00:09:57,532 WHAT TURNS ME ON IS GOOGLE AND 367 00:09:57,601 --> 00:09:59,734 -- VIDEO. 368 00:09:59,803 --> 00:10:00,301 THE IDEA OF THAT YARD SALE 369 00:10:00,370 --> 00:10:01,169 REALLY TURNS ME ON. 370 00:10:01,238 --> 00:10:02,270 >> ARE YOU A FAN? 371 00:10:02,339 --> 00:10:02,670 >> IT TURNS ME ON. 372 00:10:02,739 --> 00:10:04,272 >> HEY GIRL. 373 00:10:04,341 --> 00:10:05,339 >> SPACE TURNS ME ON FOR 374 00:10:05,408 --> 00:10:06,107 WHATEVER REASON. 375 00:10:06,176 --> 00:10:06,908 IT'S ANOTHER SPACE STORY, AND 376 00:10:06,977 --> 00:10:08,376 IT'S FOR YOU. 377 00:10:08,445 --> 00:10:11,646 >> LOOK AT THAT. 378 00:10:11,715 --> 00:10:13,614 >> THIS TURNS ME ON. 379 00:10:13,683 --> 00:10:15,817 THE REHABILITATION OF PEOPLE 380 00:10:15,886 --> 00:10:18,486 WITH SERIOUS SPINAL CORD AND 381 00:10:18,555 --> 00:10:19,187 SKELETAL INJURIES, THAT'S WHAT 382 00:10:19,256 --> 00:10:20,955 REALLY TURNS ME ON. 383 00:10:21,024 --> 00:10:21,823 WHAT I'M INTERESTED IN IS CHINA 384 00:10:21,892 --> 00:10:23,224 STOCKS, SPECIFICALLY BAIDU WITH 385 00:10:23,293 --> 00:10:24,058 A STOCK BUYBACK PLAN. 386 00:10:24,127 --> 00:10:26,494 THAT ALWAYS TURNS ME ON, RIGHT? 387 00:10:26,563 --> 00:10:27,628 >> IT DOES. 388 00:10:27,697 --> 00:10:28,296 >> DOES IT? 389 00:10:28,365 --> 00:10:30,331 [LAUGHTER] 390 00:10:30,400 --> 00:10:34,635 DIDN'T NEED TO KNOW THAT. 391 00:10:34,704 --> 00:10:35,069 [ 392 00:10:35,138 --> 00:10:35,903 ♪ ♪ 393 00:10:35,972 --> 00:10:37,071 >> John: MOVING ON. 394 00:10:37,140 --> 00:10:37,872 OUR MAIN STORY TONIGHT CONCERNS 395 00:10:37,941 --> 00:10:39,006 BUSINESS. 396 00:10:39,075 --> 00:10:40,174 A WORD THAT SOMEHOW DESCRIBES 397 00:10:40,243 --> 00:10:41,976 THE FRONT PART OF A MULLET, THE 398 00:10:42,045 --> 00:10:42,510 SECOND-NICEST SEATS ON AN 399 00:10:42,579 --> 00:10:43,144 AIRPLANE AND THE SINGLE SADDEST 400 00:10:43,213 --> 00:10:44,378 ROOM IN ANY HOTEL. 401 00:10:44,447 --> 00:10:45,546 SPECIFICALLY, WE'RE GOING TO 402 00:10:45,615 --> 00:10:46,180 TALK ABOUT THE BUSINESSES THAT 403 00:10:46,249 --> 00:10:47,181 MAKE OTHER BUSINESS'S BUSINESS, 404 00:10:47,250 --> 00:10:48,382 THEIR BUSINESS: MANAGEMENT 405 00:10:48,451 --> 00:10:50,151 CONSULTANTS. 406 00:10:50,220 --> 00:10:50,751 THERE'S THREE BIG FIRMS, AND 407 00:10:50,820 --> 00:10:51,752 TONIGHT, WE'RE GOING TO FOCUS ON 408 00:10:51,821 --> 00:10:53,221 THE OLDEST AND LARGEST ONE: 409 00:10:53,290 --> 00:10:54,655 McKINSEY & COMPANY. 410 00:10:54,724 --> 00:10:55,523 IT'S BEEN AROUND FOR NEARLY A 411 00:10:55,592 --> 00:10:56,824 CENTURY, ADVISING BOTH BIG 412 00:10:56,893 --> 00:10:57,892 COMPANIES AND GOVERNMENT 413 00:10:57,961 --> 00:10:59,026 AGENCIES ON HOW TO FIX THEIR 414 00:10:59,095 --> 00:11:00,461 MOST COMPLEX AND URGENT 415 00:11:00,530 --> 00:11:01,629 PROBLEMS. 416 00:11:01,698 --> 00:11:03,097 >> McKINSEY WAS FOUNDED IN 1926 417 00:11:03,166 --> 00:11:04,699 BY JAMES O McKINSEY. 418 00:11:04,768 --> 00:11:06,033 HE WAS A PROFESSOR AT THE 419 00:11:06,102 --> 00:11:07,668 UNIVERSITY OF CHICAGO AND AN 420 00:11:07,737 --> 00:11:10,371 EXPERT IN MANAGEMENT ACCOUNTING. 421 00:11:10,440 --> 00:11:11,272 BY THE 1950S, THE FIRM WAS 422 00:11:11,341 --> 00:11:13,207 ASSISTING THE WHITE HOUSE WITH 423 00:11:13,276 --> 00:11:14,542 STAFFING ORGANIZATION, WHICH, 424 00:11:14,611 --> 00:11:15,810 ACCORDING TO THE COMPANY, WOULD 425 00:11:15,879 --> 00:11:17,779 LEAD TO THE CREATION OF THE 426 00:11:17,848 --> 00:11:19,781 CHIEF OF STAFF ROLE. 427 00:11:19,850 --> 00:11:21,115 IN 1970, McKINSEY HELPED CREATE 428 00:11:21,184 --> 00:11:23,351 THE BARCODE. 429 00:11:23,420 --> 00:11:27,321 YES, THAT BAR CODE. 430 00:11:27,390 --> 00:11:28,489 >> John: THAT'S TRUE! 431 00:11:28,558 --> 00:11:29,123 McKINSEY DID HELP INVENT THE BAR 432 00:11:29,192 --> 00:11:31,926 CODE. 433 00:11:31,995 --> 00:11:32,727 AND I KNOW THAT'S DISAPPOINTING. 434 00:11:32,796 --> 00:11:33,861 MAYBE YOU THOUGHT IT WAS 435 00:11:33,930 --> 00:11:35,129 INVENTED BY A GROCER IN THE 60S 436 00:11:35,198 --> 00:11:36,764 WHO DREAMT OF A WAY FOR 437 00:11:36,833 --> 00:11:39,133 COMPUTERS TO TASTE FRUIT. 438 00:11:39,202 --> 00:11:40,268 MAYBE, YOU THOUGHT THE BEEPS 439 00:11:40,337 --> 00:11:41,936 WERE JUST HOW THE PROGRAM SAYS 440 00:11:42,005 --> 00:11:43,104 "YUM." 441 00:11:43,173 --> 00:11:43,738 BUT, I'M AFRAID YOU'RE IMAGINING 442 00:11:43,807 --> 00:11:44,772 A BETTER WORLD THAN THE ONE WE 443 00:11:44,841 --> 00:11:46,207 LIVE IN. 444 00:11:46,276 --> 00:11:46,974 BUT, IT'S NOT JUST BAR-CODE 445 00:11:47,043 --> 00:11:48,209 INNOVATION. 446 00:11:48,278 --> 00:11:48,743 FIRMS LIKE McKINSEY SELL 447 00:11:48,812 --> 00:11:49,977 THEMSELVES AS CAN-DO EXPERTS WHO 448 00:11:50,046 --> 00:11:51,212 CAN COME IN, PROVIDE AN OUTSIDE 449 00:11:51,281 --> 00:11:52,580 PERSPECTIVE, AND FIX WHATEVER 450 00:11:52,649 --> 00:11:53,781 AILS A COMPANY -- WHETHER IT'S 451 00:11:53,850 --> 00:11:55,249 RE-ENGINEERING AN ORGANIZATIONAL 452 00:11:55,318 --> 00:11:56,984 CHART, WORKING ON DIGITAL 453 00:11:57,053 --> 00:11:58,619 STRATEGIES, OR DECIDING WHETHER 454 00:11:58,688 --> 00:11:59,821 TO SELL OFF PART OF THEIR 455 00:11:59,890 --> 00:12:01,522 BUSINESS -- YOU NAME IT, THEY'LL 456 00:12:01,591 --> 00:12:02,890 ADVISE YOU ON WHAT TO DO. 457 00:12:02,959 --> 00:12:04,158 AND, McKINSEY'S WORKED WITH 458 00:12:04,227 --> 00:12:04,759 EVERYONE, FROM COMPANIES LIKE 459 00:12:04,828 --> 00:12:07,528 COCA COLA, BEST BUY, AND AT&T TO 460 00:12:07,597 --> 00:12:08,729 GOVERNMENT AGENCIES, LIKE THE 461 00:12:08,798 --> 00:12:10,731 DEPARTMENT OF DEFENSE AND ICE. 462 00:12:10,800 --> 00:12:12,967 McKINSEY IS MASSIVE, AND 463 00:12:13,036 --> 00:12:14,268 UBIQUITOUS -- IT HAS OFFICES IN 464 00:12:14,337 --> 00:12:17,205 AT LEAST 65 COUNTRIES, AND AN 465 00:12:17,274 --> 00:12:18,272 ANNUAL REVENUE ESTIMATED AT $15 466 00:12:18,341 --> 00:12:20,808 BILLION. 467 00:12:20,877 --> 00:12:22,143 BUT, McKINSEY DOESN'T SEE ITSELF 468 00:12:22,212 --> 00:12:23,544 AS JUST A BUNCH OF 469 00:12:23,613 --> 00:12:30,613 POWERPOINT-SLINGING, 470 00:12:31,388 --> 00:12:32,120 POWER-SUIT-WEARING 471 00:12:32,189 --> 00:12:34,055 MICROMANAGERS. 472 00:12:34,124 --> 00:12:34,589 AS YOU CAN TELL FROM THEIR 473 00:12:34,658 --> 00:12:35,890 RECRUITMENT VIDEOS, THEY SEE 474 00:12:35,959 --> 00:12:36,824 THEMSELVES AS OPERATING AS A 475 00:12:36,893 --> 00:12:38,226 FORCE FOR GOOD IN THE WORLD. 476 00:12:38,295 --> 00:12:38,893 >> OUR PURPOSE IS TO CREATE 477 00:12:38,962 --> 00:12:39,894 POSITIVE ENDURING CHANGE IN THE 478 00:12:39,963 --> 00:12:40,828 WORLD. 479 00:12:40,897 --> 00:12:41,462 >> THE WORK YOU DO WITH McKINSEY 480 00:12:41,531 --> 00:12:42,597 WILL MATTER. 481 00:12:42,666 --> 00:12:43,264 >> WHAT WE ARE DOING ON A DAY TO 482 00:12:43,333 --> 00:12:44,265 DAY BASIS IS REALLY IMPACTING 483 00:12:44,334 --> 00:12:45,533 THE LIVES OF THOUSANDS OF 484 00:12:45,602 --> 00:12:46,167 PEOPLE, SOMETIMES MORE. 485 00:12:46,236 --> 00:12:46,834 >> WHAT'S REALLY GREAT ABOUT 486 00:12:46,903 --> 00:12:48,002 McKINSEY IS IT PROVIDES YOU WITH 487 00:12:48,071 --> 00:12:48,936 AN OPPORTUNITY TO WORK ON REALLY 488 00:12:49,005 --> 00:12:50,505 HARD PROBLEMS THAT ARE ALSO 489 00:12:50,574 --> 00:12:52,306 REALLY INTERESTING, AND ALSO 490 00:12:52,375 --> 00:12:54,909 REALLY ACTUALLY MATTER 491 00:12:54,978 --> 00:12:56,110 >> John: RIGHT. 492 00:12:56,179 --> 00:12:57,378 McKINSEY CONSULTANTS ARE 493 00:12:57,447 --> 00:12:58,846 ENCOURAGED TO SEE THEMSELVES AS 494 00:12:58,915 --> 00:13:01,616 WORLD-CHANGERS. 495 00:13:01,685 --> 00:13:02,216 AS A HUMBLE McKINSEY PARTNER 496 00:13:02,285 --> 00:13:03,151 ONCE PUT IT, "THERE ARE ONLY 497 00:13:03,220 --> 00:13:04,185 THREE GREAT INSTITUTIONS LEFT IN 498 00:13:04,254 --> 00:13:05,453 THE WORLD: THE MARINES, THE 499 00:13:05,522 --> 00:13:06,854 CATHOLIC CHURCH, AND McKINSEY." 500 00:13:06,923 --> 00:13:07,822 WHICH IS A HELL OF A GROUP TO 501 00:13:07,891 --> 00:13:10,691 PUT YOURSELF IN. 502 00:13:10,760 --> 00:13:11,359 "LOOK -- THERE'S JUST THREE COOL 503 00:13:11,428 --> 00:13:12,560 GUYS LEFT IN THE WORLD: HENRY 504 00:13:12,629 --> 00:13:14,162 KISSINGER, KEVIN SPACEY, AND 505 00:13:14,231 --> 00:13:17,598 ME." 506 00:13:17,667 --> 00:13:18,800 AND THE TRUTH IS, McKINSEY'S 507 00:13:18,869 --> 00:13:20,868 REPUTATION HAS TAKEN A BIT OF A 508 00:13:20,937 --> 00:13:21,736 KNOCK IN RECENT YEARS. 509 00:13:21,805 --> 00:13:22,670 IT'S FOUND ITSELF UNDER SCRUTINY 510 00:13:22,739 --> 00:13:23,805 FOR EVERYTHING FROM EXACERBATING 511 00:13:23,874 --> 00:13:25,440 INCOME INEQUALITY, TO HELPING 512 00:13:25,509 --> 00:13:26,774 MARKET DANGEROUS PRODUCTS, TO 513 00:13:26,843 --> 00:13:29,911 ENABLING AUTHORITARIAN REGIMES. 514 00:13:29,980 --> 00:13:30,912 AND, FORMER EMPLOYEES HAVE 515 00:13:30,981 --> 00:13:32,146 POINTED OUT THAT FOR ALL ITS 516 00:13:32,215 --> 00:13:33,281 TALK OF MAKING THE WORLD A 517 00:13:33,350 --> 00:13:34,682 BETTER PLACE, IT'S WORKED FOR 518 00:13:34,751 --> 00:13:36,417 SOME OF THE PLANET'S BIGGEST 519 00:13:36,486 --> 00:13:38,219 POLLUTERS, WHILE GETTING 520 00:13:38,288 --> 00:13:39,454 HUNDREDS OF MILLIONS OF DOLLARS 521 00:13:39,523 --> 00:13:41,022 IN RETURN. 522 00:13:41,091 --> 00:13:41,989 IN FACT, ONE OF THOSE 523 00:13:42,058 --> 00:13:43,191 DISILLUSIONED EMPLOYEES PAINTS A 524 00:13:43,260 --> 00:13:44,459 PRETTY DAMNING PORTRAIT OF WHAT 525 00:13:44,528 --> 00:13:46,627 THE COMPANY IS AT ITS CORE. 526 00:13:46,696 --> 00:13:49,730 >> THEY SERVE A LOT OF CLIENTS 527 00:13:49,799 --> 00:13:50,932 WITH REALLY HARMFUL EFFECTS. 528 00:13:51,001 --> 00:13:52,033 THEY KNOW EXACTLY WHAT THE 529 00:13:52,102 --> 00:13:53,668 REPERCUSSIONS ARE GOING TO BE 530 00:13:53,737 --> 00:13:54,268 AND THEN THEY SAY "WE'RE GOING 531 00:13:54,337 --> 00:13:55,870 TO DO IT ANYWAY." 532 00:13:55,939 --> 00:13:56,804 AND, THAT TELLS YOU ALL YOU NEED 533 00:13:56,873 --> 00:13:58,873 TO KNOW ABOUT THE FIRM. 534 00:13:58,942 --> 00:13:59,740 >> John: RIGHT, THAT'S AN 535 00:13:59,809 --> 00:14:01,109 INHERENTLY ALARMING THING TO 536 00:14:01,178 --> 00:14:02,844 HEAR ABOUT A BUSINESS. 537 00:14:02,913 --> 00:14:04,378 GENERALLY, YOU WANT COMPANIES TO 538 00:14:04,447 --> 00:14:05,780 MITIGATE HARM, NOT ACTIVELY SEEK 539 00:14:05,849 --> 00:14:07,148 IT OUT. 540 00:14:07,217 --> 00:14:08,583 IT'S WHY LEGO HAS A CHOKING 541 00:14:08,652 --> 00:14:10,184 HAZARD WARNING ON ITS PACKAGING, 542 00:14:10,253 --> 00:14:12,286 INSTEAD OF ONE THAT SAYS, "NOW 543 00:14:12,355 --> 00:14:14,288 WITH BLUE RASPBERRY FLAVOR!" 544 00:14:14,357 --> 00:14:15,523 SO IF IT'S THAT INFLUENTIAL, 545 00:14:15,592 --> 00:14:16,657 THAT UBIQUITOUS, AND IS BEHIND 546 00:14:16,726 --> 00:14:18,292 SO MUCH HARM, TONIGHT, LET'S 547 00:14:18,361 --> 00:14:20,461 TAKE A LOOK AT McKINSEY. 548 00:14:20,530 --> 00:14:21,729 AND, IF THIS IS THE FIRST TIME 549 00:14:21,798 --> 00:14:23,064 YOU'RE HEARING McKINSEY'S NAME 550 00:14:23,133 --> 00:14:25,266 -- DON'T BE EMBARRASSED. 551 00:14:25,335 --> 00:14:25,900 BECAUSE, FOR A COMPANY WITH SO 552 00:14:25,969 --> 00:14:27,268 MUCH REACH, IT'S GONE OUT OF ITS 553 00:14:27,337 --> 00:14:28,703 WAY TO TRY AND KEEP A LOW 554 00:14:28,772 --> 00:14:30,304 PROFILE. 555 00:14:30,373 --> 00:14:31,172 IT DOESN'T PUBLICIZE ITS CLIENT 556 00:14:31,241 --> 00:14:32,840 LIST, AND EVEN ITS OFFICES CAN 557 00:14:32,909 --> 00:14:35,143 BE HARD TO SPOT. 558 00:14:35,212 --> 00:14:36,177 >> WE STOPPED BY McKINSEY'S 559 00:14:36,246 --> 00:14:37,879 HEADQUARTERS AT 3 WORLD TRADE 560 00:14:37,948 --> 00:14:40,014 CENTER IN LOWER MANHATTAN. 561 00:14:40,083 --> 00:14:41,816 IT'S SUCH A POWERFUL COMPANY, 562 00:14:41,885 --> 00:14:42,784 AND YET YOU WOULD NEVER KNOW 563 00:14:42,853 --> 00:14:43,551 THEY WERE HERE. 564 00:14:43,620 --> 00:14:44,786 THERE'S NOT A SINGLE McKINSEY 565 00:14:44,855 --> 00:14:45,753 SIGN ANYWHERE. 566 00:14:45,822 --> 00:14:47,221 WHY IS THAT? 567 00:14:47,290 --> 00:14:48,289 >> THEY DON'T WANT ANYONE TO 568 00:14:48,358 --> 00:14:49,423 KNOW ANYTHING ABOUT THEM. 569 00:14:49,492 --> 00:14:50,892 THEY WANT EVERYTHING DONE IN 570 00:14:50,961 --> 00:14:52,160 SECRET, AND IF THAT INCLUDES 571 00:14:52,229 --> 00:14:55,363 WHERE THEY WORK, THEN SO BE IT. 572 00:14:55,432 --> 00:14:56,364 >> John: THAT'S NOT INNATELY 573 00:14:56,433 --> 00:14:58,566 SUSPICIOUS AT ALL! 574 00:14:58,635 --> 00:15:00,268 YOU'VE BUILT YOURSELF AN 575 00:15:00,337 --> 00:15:01,702 EXPENSIVE, GLASS-FRONTED 576 00:15:01,771 --> 00:15:02,970 NAMELESS LAIR THAT'S COMPLETELY 577 00:15:03,039 --> 00:15:06,340 INVISIBLE TO ANYONE, UNLESS THEY 578 00:15:06,409 --> 00:15:08,242 SIMPLY TYPE McKINSEY INTO 579 00:15:08,311 --> 00:15:09,010 "GOOGLE MAPS" OR HAPPENED TO 580 00:15:09,079 --> 00:15:10,478 HEAR THAT JOURNALIST SAY "3 581 00:15:10,547 --> 00:15:12,079 WORLD TRADE CENTER" WHILE SHE 582 00:15:12,148 --> 00:15:12,814 LITERALLY SHOWED YOU THEIR 583 00:15:12,883 --> 00:15:14,248 ADDRESS. 584 00:15:14,317 --> 00:15:16,217 KUDOS. 585 00:15:16,286 --> 00:15:17,985 THAT WAS A DICK MOVE AND I 586 00:15:18,054 --> 00:15:19,954 APPRECIATE IT. 587 00:15:20,023 --> 00:15:20,588 BUT, DISCRETION IS ONLY PART OF 588 00:15:20,657 --> 00:15:21,656 McKINSEY'S BRAND. 589 00:15:21,725 --> 00:15:22,190 THEY'VE ALSO CULTIVATED A 590 00:15:22,259 --> 00:15:23,524 REPUTATION FOR HIRING THE BEST 591 00:15:23,593 --> 00:15:24,859 AND BRIGHTEST, FRESH OUT OF 592 00:15:24,928 --> 00:15:26,894 ELITE COLLEGES AND MBA PROGRAMS. 593 00:15:26,963 --> 00:15:28,696 AND YOUNG, HIGH-ACHIEVING TYPES 594 00:15:28,765 --> 00:15:29,931 OFTEN USE A STINT AT McKINSEY AS 595 00:15:30,000 --> 00:15:31,799 A SPRINGBOARD TO BIGGER THINGS 596 00:15:31,868 --> 00:15:33,434 -- FORMER EMPLOYEES INCLUDE PETE 597 00:15:33,503 --> 00:15:35,403 BUTTIGIEG, SENATOR TOM COTTON, 598 00:15:35,472 --> 00:15:37,004 FACEBOOK'S SHERYL SANDBURG, AND 599 00:15:37,073 --> 00:15:39,407 GOOGLE'S CEO SUNDAR PICHAI. 600 00:15:39,476 --> 00:15:40,141 AND, McKINSEY PICKS ITS 601 00:15:40,210 --> 00:15:41,976 CONSULTANTS THROUGH A 602 00:15:42,045 --> 00:15:42,844 NOTORIOUSLY RIGOROUS INTERVIEW 603 00:15:42,913 --> 00:15:44,745 PROCESS, ASKING CANDIDATES 604 00:15:44,814 --> 00:15:45,213 CHALLENGING, SLIGHTLY 605 00:15:45,282 --> 00:15:47,815 UNCONVENTIONAL QUESTIONS. 606 00:15:47,884 --> 00:15:48,449 >> ONE OF THE INTERVIEW 607 00:15:48,518 --> 00:15:50,118 QUESTIONS I WAS ASKED IN MY 608 00:15:50,187 --> 00:15:50,751 FINAL ROUNDS WAS, "HOW MANY PIGS 609 00:15:50,820 --> 00:15:53,087 ARE IN CHINA?" 610 00:15:53,156 --> 00:15:53,721 WHICH SOUNDS LIKE A VERY SILLY 611 00:15:53,790 --> 00:15:55,022 QUESTION, BUT IT'S A REALLY GOOD 612 00:15:55,091 --> 00:15:55,623 QUESTION TO TEST HOW YOU THINK 613 00:15:55,692 --> 00:15:58,526 BECAUSE, IT'S NOT ONLY - THE 614 00:15:58,595 --> 00:15:59,961 ANSWER DOESN'T MATTER. 615 00:16:00,030 --> 00:16:00,561 IT'S, HOW CAN YOU STRUCTURE A 616 00:16:00,630 --> 00:16:02,563 PROBLEM? 617 00:16:02,632 --> 00:16:03,464 CAN YOU TAKE A VERY NEBULOUS 618 00:16:03,533 --> 00:16:05,666 SITUATION AND PUT STRUCTURE 619 00:16:05,735 --> 00:16:06,267 AROUND IT IN A WAY THAT MAKES 620 00:16:06,336 --> 00:16:08,336 SENSE, AND THEN LOGICALLY DEDUCE 621 00:16:08,405 --> 00:16:09,270 THINGS IN ORDER TO GET TO AN 622 00:16:09,339 --> 00:16:12,573 ANSWER THAT'S MEANINGFUL. 623 00:16:12,642 --> 00:16:13,207 >> John: SURE, THAT'S ONE WAY TO 624 00:16:13,276 --> 00:16:15,076 DESCRIBE IT. 625 00:16:15,145 --> 00:16:17,145 ANOTHER WAY MIGHT BE TO SAY THAT 626 00:16:17,214 --> 00:16:17,779 THEY'RE JUST TRYING TO SEE HOW 627 00:16:17,848 --> 00:16:19,213 GOOD YOU ARE AT BULLSHITTING 628 00:16:19,282 --> 00:16:20,414 YOUR WAY TO A PLAUSIBLE-SOUNDING 629 00:16:20,483 --> 00:16:21,983 ANSWER. 630 00:16:22,052 --> 00:16:22,984 BECAUSE, IF A BUSINESS "REALLY" 631 00:16:23,053 --> 00:16:24,051 NEEDS TO KNOW HOW MANY PIGS ARE 632 00:16:24,120 --> 00:16:25,486 IN CHINA, THERE ARE WAYS TO FIND 633 00:16:25,555 --> 00:16:27,155 THAT OUT. 634 00:16:27,224 --> 00:16:28,222 LIKE CALL CHINESE PORK MAGNATE 635 00:16:28,291 --> 00:16:30,258 QIN YINGLIN, OR JUST GOOGLE "HOW 636 00:16:30,327 --> 00:16:32,393 MANY PIGS IN CHINA." 637 00:16:32,462 --> 00:16:32,960 OR IF YOU'RE ON YOUR PHONE, 638 00:16:33,029 --> 00:16:35,463 GOOGLE "HOWKANY OIGSNCHINA," 639 00:16:35,532 --> 00:16:36,764 BECAUSE THAT'S STILL ENOUGH FOR 640 00:16:36,833 --> 00:16:37,899 IT TO GO ON. 641 00:16:37,968 --> 00:16:38,800 WHAT DO I HAVE TO DO, DRAW IT A 642 00:16:38,869 --> 00:16:39,567 MAP? 643 00:16:39,636 --> 00:16:40,802 I'M IN A HURRY. 644 00:16:40,871 --> 00:16:41,569 MY THUMBS ARE FAT AND I'VE GOT 645 00:16:41,638 --> 00:16:42,970 PLACES TO BE. 646 00:16:43,039 --> 00:16:43,771 BUT, ONCE THEY'RE HIRED, 647 00:16:43,840 --> 00:16:45,640 McKINSEY CONSULTANTS WORK 648 00:16:45,709 --> 00:16:46,707 INSANELY LONG HOURS, WHILE BEING 649 00:16:46,776 --> 00:16:48,009 SCHOOLED IN "THE McKINSEY WAY" 650 00:16:48,078 --> 00:16:49,844 OF DOING THINGS -- SOMETHING THE 651 00:16:49,913 --> 00:16:50,912 FIRM ITSELF CAN BE PRETTY 652 00:16:50,981 --> 00:16:53,381 INSUFFERABLE ABOUT. 653 00:16:53,450 --> 00:16:54,449 A PARTNER ONCE SAID, "WE DON'T 654 00:16:54,518 --> 00:16:55,716 LEARN FROM CLIENTS. 655 00:16:55,785 --> 00:16:56,384 THEIR STANDARDS AREN'T HIGH 656 00:16:56,453 --> 00:16:57,752 ENOUGH. 657 00:16:57,821 --> 00:16:58,953 WE LEARN FROM OTHER McKINSEY 658 00:16:59,022 --> 00:17:00,087 PARTNERS" -- A SENTENCE SO SMUG 659 00:17:00,156 --> 00:17:01,389 THAT, EVEN IF YOU JUST READ IT, 660 00:17:01,458 --> 00:17:02,290 YOU'D HAVE AUTOMATICALLY HEARD 661 00:17:02,359 --> 00:17:09,359 MY ACCENT IN YOUR HEAD. 662 00:17:10,233 --> 00:17:13,534 BECAUSE THAT'S NOT JUST SMUG: 663 00:17:13,603 --> 00:17:15,536 THAT IS BRITISH EMPIRE SMUG. 664 00:17:15,605 --> 00:17:16,170 AND THE THING IS, THAT LEVEL OF 665 00:17:16,239 --> 00:17:17,905 SWAGGER MIGHT MAKE SOME SENSE IF 666 00:17:17,974 --> 00:17:18,372 McKINSEY'S ADVICE WAS 667 00:17:18,441 --> 00:17:19,607 CONSISTENTLY NOVEL AND 668 00:17:19,676 --> 00:17:22,210 BRILLIANT. 669 00:17:22,279 --> 00:17:22,844 BUT, IT'S HAD SOME BIG MISSES -- 670 00:17:22,913 --> 00:17:23,678 FAMOUSLY, IN THE EARLY 1980S, 671 00:17:23,747 --> 00:17:25,046 ITS CLIENT AT&T ASKED McKINSEY 672 00:17:25,115 --> 00:17:26,013 TO ESTIMATE HOW MANY CELL PHONES 673 00:17:26,082 --> 00:17:26,948 WOULD BE IN USE IN THE WORLD BY 674 00:17:27,017 --> 00:17:28,549 THE TURN OF THE CENTURY, AND 675 00:17:28,618 --> 00:17:29,117 McKINSEY CONCLUDED THAT THE 676 00:17:29,186 --> 00:17:30,485 TOTAL MARKET WOULD ONLY BE ABOUT 677 00:17:30,554 --> 00:17:31,786 900,000 PHONES, TOTAL, WHICH 678 00:17:31,855 --> 00:17:32,687 PERSUADED AT&T TO PULL OUT OF 679 00:17:32,756 --> 00:17:34,989 THE MARKET. 680 00:17:35,058 --> 00:17:36,557 AND, TO BE FAIR, McKINSEY WERE 681 00:17:36,626 --> 00:17:40,697 ONLY OFF BY ABOUT $739 MILLION, 682 00:17:44,100 --> 00:17:44,765 AND, TO BE FAIR, McKINSEY WERE 683 00:17:44,834 --> 00:17:45,733 ONLY OFF BY ABOUT 739 MILLION, 684 00:17:45,802 --> 00:17:50,071 OR 82,000%. 685 00:17:50,140 --> 00:17:50,538 BUT, EVEN WHEN THEY'RE 686 00:17:50,607 --> 00:17:51,539 TROUBLESHOOTING EXISTING 687 00:17:51,608 --> 00:17:53,341 PROBLEMS, THEIR "BESPOKE" 688 00:17:53,410 --> 00:17:53,908 SOLUTIONS CAN BE BLINDINGLY 689 00:17:53,977 --> 00:17:55,009 OBVIOUS. 690 00:17:55,078 --> 00:17:55,877 WATCH AS ONE McKINSEYITE BRAGS 691 00:17:55,946 --> 00:17:56,911 IN A PROMOTIONAL VIDEO ABOUT THE 692 00:17:56,980 --> 00:17:57,745 FIRM'S ABILITY TO COME UP WITH 693 00:17:57,814 --> 00:17:58,713 UNIQUE SOLUTIONS. 694 00:17:58,782 --> 00:17:59,280 >> WE WERE SERVING AN ENERGY 695 00:17:59,349 --> 00:18:00,982 CLIENT, AND THEIR PROBLEM WAS 696 00:18:01,051 --> 00:18:01,749 THAT THEY HAVE OFFSHORE DRILLING 697 00:18:01,818 --> 00:18:03,151 RIGS, AND THEY HAD STACKS AND 698 00:18:03,220 --> 00:18:04,619 STACKS OF PAPER INVOICES THAT 699 00:18:04,688 --> 00:18:06,721 THEY WOULD FLY OUT TO THESE RIGS 700 00:18:06,790 --> 00:18:07,989 IN THE MIDDLE OF THE GULF COAST 701 00:18:08,058 --> 00:18:10,057 -- IN HURRICANE WEATHER -- TO 702 00:18:10,126 --> 00:18:10,825 HAVE TO GET SOMEBODY TO SIGN OFF 703 00:18:10,894 --> 00:18:12,593 AND THEN HELICOPTER BACK TO 704 00:18:12,662 --> 00:18:13,861 HEADQUARTERS. 705 00:18:13,930 --> 00:18:15,329 WE BROUGHT IN A TEAM THAT HAD 706 00:18:15,398 --> 00:18:16,731 PARTNERS WHO WERE EXPERTS IN THE 707 00:18:16,800 --> 00:18:18,399 ENERGY SECTOR, WE HAD PARTNERS 708 00:18:18,468 --> 00:18:19,467 WHO WERE EXPERTS IN PROCUREMENT 709 00:18:19,536 --> 00:18:21,702 AS A FUNCTION, AND THEY WERE 710 00:18:21,771 --> 00:18:22,837 ABLE TO GET TOGETHER WITH OUR 711 00:18:22,906 --> 00:18:24,105 DIGITAL TEAM, AND SAY "ACTUALLY, 712 00:18:24,174 --> 00:18:25,406 WE DON'T KNOW IF SIGNATURES ARE 713 00:18:25,475 --> 00:18:27,442 REALLY REQUIRED FOR THIS." 714 00:18:27,511 --> 00:18:31,279 >> John: YEAH, NO SHIT! 715 00:18:31,348 --> 00:18:32,046 I'M NOT SURE IT SPEAKS WELL OF 716 00:18:32,115 --> 00:18:34,515 YOU THAT YOU NEEDED THE DIGITAL 717 00:18:34,584 --> 00:18:35,349 TEAM AND EXPERTS IN THE ENERGY 718 00:18:35,418 --> 00:18:36,984 SECTOR AND "PROCUREMENT AS A 719 00:18:37,053 --> 00:18:38,085 FUNCTION," WHATEVER THE FUCK 720 00:18:38,154 --> 00:18:39,720 THAT MEANS, TO GET TO THE 721 00:18:39,789 --> 00:18:40,922 CONCLUSION "WHY NOT SEND AN 722 00:18:40,991 --> 00:18:42,256 EMAIL INSTEAD OF A FUCKING 723 00:18:42,325 --> 00:18:45,460 HELICOPTER?" 724 00:18:45,529 --> 00:18:47,061 AND THAT'S NOT A ONE-OFF -- OVER 725 00:18:47,130 --> 00:18:47,962 THE YEARS, THERE HAVE REPEATEDLY 726 00:18:48,031 --> 00:18:49,597 BEEN GRUMBLES THAT McKINSEY 727 00:18:49,666 --> 00:18:51,332 OVERSELLS ITS BRILLIANCE. 728 00:18:51,401 --> 00:18:51,999 IN THE WORDS OF ONE FORTUNE 729 00:18:52,068 --> 00:18:53,100 STORY, WHILE "SOME OF ITS WORK 730 00:18:53,169 --> 00:18:54,702 CAN BE HIGHLY SOPHISTICATED, 731 00:18:54,771 --> 00:18:56,604 MUCH OF THE TIME THE FIRM MERELY 732 00:18:56,673 --> 00:18:58,973 REORGANIZES SALES FORCES OR 733 00:18:59,042 --> 00:19:00,441 DESIGNS BY-THE-NUMBERS 734 00:19:00,510 --> 00:19:02,143 DOWNSIZING TO REDUCE OVERHEAD." 735 00:19:02,212 --> 00:19:03,911 AND, THOSE ARE JUST OBVIOUS, 736 00:19:03,980 --> 00:19:05,379 FIRST-THOUGHT IDEAS. 737 00:19:05,448 --> 00:19:06,948 ESSENTIALLY, McKINSEY IS A FIRM 738 00:19:07,017 --> 00:19:07,682 THAT PROJECTS A HUGE AMOUNT OF 739 00:19:07,751 --> 00:19:09,350 CONFIDENCE TO SELL A FREQUENTLY 740 00:19:09,419 --> 00:19:11,285 UNREMARKABLE PRODUCT AT SKY-HIGH 741 00:19:11,354 --> 00:19:13,387 PRICES, MAKING THEM TRULY THE 742 00:19:13,456 --> 00:19:15,756 SALT BAE OF COMPANIES. 743 00:19:15,825 --> 00:19:17,625 "YOU'VE HAD SALT BEFORE, BUT 744 00:19:17,694 --> 00:19:22,130 HAVE YOU HAD IT FROM A DOUCHE?" 745 00:19:22,199 --> 00:19:23,998 AND, LET'S TALK FOR A MINUTE 746 00:19:24,067 --> 00:19:25,399 ABOUT DOWNSIZING. 747 00:19:25,468 --> 00:19:26,267 BECAUSE, THERE IS A LONG HISTORY 748 00:19:26,336 --> 00:19:27,401 OF COMPANIES BRINGING IN 749 00:19:27,470 --> 00:19:29,036 CONSULTING FIRMS LIKE McKINSEY, 750 00:19:29,105 --> 00:19:30,471 AND VERY SOON AFTER, 751 00:19:30,540 --> 00:19:32,540 AGGRESSIVELY CUTTING COSTS. 752 00:19:32,609 --> 00:19:33,741 THIS GETS DRESSED UP WITH FANCY 753 00:19:33,810 --> 00:19:35,042 TERMS LIKE "FINDING 754 00:19:35,111 --> 00:19:35,643 EFFICIENCIES" AND 755 00:19:35,712 --> 00:19:37,278 "ORGANIZATIONAL STREAMLINING," 756 00:19:37,347 --> 00:19:38,646 BUT WHAT THAT OFTEN AMOUNTS TO 757 00:19:38,715 --> 00:19:40,715 IS MASS LAYOFFS. 758 00:19:40,784 --> 00:19:42,183 AND LOOK: LAYOFFS ARE SOMETIMES 759 00:19:42,252 --> 00:19:43,518 NECESSARY, BUT THEY'RE ALWAYS 760 00:19:43,587 --> 00:19:45,219 PAINFUL -- AND MUCH MORE PAINFUL 761 00:19:45,288 --> 00:19:47,522 THAN SOME MID-20S IVY LEAGUER 762 00:19:47,591 --> 00:19:49,157 WHO FANCIES HIMSELF A BUSINESS 763 00:19:49,226 --> 00:19:50,458 GENIUS MIGHT REALIZE. 764 00:19:50,527 --> 00:19:51,626 24 YEARS AGO, McKINSEY ALLOWED A 765 00:19:51,695 --> 00:19:53,528 DOCUMENTARY CREW RARE ACCESS TO 766 00:19:53,597 --> 00:19:55,062 FILM A TRAINING SESSION FOR 767 00:19:55,131 --> 00:19:56,497 YOUNG CONSULTANTS, GOING THROUGH 768 00:19:56,566 --> 00:19:58,533 AN EXERCISE WHERE THEY 769 00:19:58,602 --> 00:19:59,167 ROLE-PLAYED ADVISING A REAL-LIFE 770 00:19:59,236 --> 00:20:00,601 CLIENT. 771 00:20:00,670 --> 00:20:01,869 HERE THEY ARE, JOKING ABOUT HOW 772 00:20:01,938 --> 00:20:03,237 THEY'D BREAK THE NEWS THAT 773 00:20:03,306 --> 00:20:04,071 LAYOFFS WERE GOING TO BE 774 00:20:04,140 --> 00:20:05,440 NECESSARY. 775 00:20:05,509 --> 00:20:05,973 >> WE'VE GOT A VERY SIMPLE 776 00:20:06,042 --> 00:20:07,575 STRATEGY. 777 00:20:07,644 --> 00:20:08,709 JUST - 778 00:20:08,778 --> 00:20:10,044 ♪BOM, BOM, BOM, BOM BOM♪ 779 00:20:10,113 --> 00:20:11,345 ♪ BOM, BOM, BOM, BOM♪ 780 00:20:11,414 --> 00:20:12,780 ♪ HIT THE ROAD, JACK♪ 781 00:20:12,849 --> 00:20:13,981 ♪ AND DON'T YOU COME BACK♪ 782 00:20:14,050 --> 00:20:14,615 ♪ NO MORE, NO MORE, NO MORE, NO 783 00:20:14,684 --> 00:20:19,754 MORE♪ 784 00:20:19,823 --> 00:20:21,589 ♪ HIT THE ROAD, JACK♪ 785 00:20:21,658 --> 00:20:22,190 ♪ AND DON'T YOU COME BACK NO 786 00:20:22,259 --> 00:20:24,292 MORE, NO MORE♪ 787 00:20:24,361 --> 00:20:25,827 THAT'S NOT OUR COMMUNICATIONS 788 00:20:25,896 --> 00:20:27,895 STRATEGY. 789 00:20:27,964 --> 00:20:29,430 >> John: COOL. 790 00:20:29,499 --> 00:20:30,298 NOW, I'M NOT A VIOLENT PERSON, 791 00:20:30,367 --> 00:20:31,098 BUT IF ALL THOSE DICKHEADS 792 00:20:31,167 --> 00:20:32,834 EXPLODED, I WOULD ABSOLUTELY 793 00:20:32,903 --> 00:20:33,734 SPIN AROUND SINGING "IT'S 794 00:20:33,803 --> 00:20:35,036 RAINING MEN." 795 00:20:35,105 --> 00:20:36,337 BUT, THAT'S EMBLEMATIC OF A 796 00:20:36,406 --> 00:20:37,805 MAJOR ROLE CONSULTANTS LIKE 797 00:20:37,874 --> 00:20:39,240 McKINSEY PLAY: ESSENTIALLY, 798 00:20:39,309 --> 00:20:40,975 ALLOWING EXECUTIVES TO SAY, "I 799 00:20:41,044 --> 00:20:42,643 KNOW JOB CUTS ARE BAD NEWS, BUT 800 00:20:42,712 --> 00:20:44,045 IT'S WHAT McKINSEY TOLD US TO 801 00:20:44,114 --> 00:20:45,847 DO. 802 00:20:45,916 --> 00:20:46,447 AS ONE BOOK ON THE COMPANY PUT 803 00:20:46,516 --> 00:20:48,349 IT, "THEY ARE, WITHOUT QUESTION, 804 00:20:48,418 --> 00:20:50,218 THE GO-TO CONSULTANTS FOR 805 00:20:50,287 --> 00:20:50,818 MANGERS SEEKING JUSTIFICATION 806 00:20:50,887 --> 00:20:52,620 FOR SAVAGE COST CUTTING, AS WELL 807 00:20:52,689 --> 00:20:54,122 AS A CONVENIENT SCAPEGOAT ON 808 00:20:54,191 --> 00:20:56,057 WHOM TO BLAME IT." 809 00:20:56,126 --> 00:20:56,858 THOUGH, THERE'S ONE AREA WHERE 810 00:20:56,927 --> 00:20:58,626 McKINSEY HAS HISTORICALLY 811 00:20:58,695 --> 00:20:59,927 ADVISED THE EXACT OPPOSITE OF 812 00:20:59,996 --> 00:21:01,229 COST-CUTTING, AND THAT'S 813 00:21:01,298 --> 00:21:02,830 EXECUTIVE PAY. 814 00:21:02,899 --> 00:21:04,098 STARTING IN 1950, A CONSULTANT 815 00:21:04,167 --> 00:21:05,800 OF THEIRS NAMED ARCH PATTON 816 00:21:05,869 --> 00:21:06,901 STARTED ADVISING CORPORATE 817 00:21:06,970 --> 00:21:08,569 LEADERS THEY WERE UNDERPAID -- 818 00:21:08,638 --> 00:21:10,404 WRITING BOOKS LIKE, "MEN, MONEY 819 00:21:10,473 --> 00:21:11,639 AND MOTIVATION: EXECUTIVE 820 00:21:11,708 --> 00:21:14,675 COMPENSATION AS AN INSTRUMENT OF 821 00:21:14,744 --> 00:21:15,243 LEADERSHIP." 822 00:21:15,312 --> 00:21:17,044 HIS ADVICE WAS SO WILDLY POPULAR 823 00:21:17,113 --> 00:21:17,578 THAT, FOR A TIME, PATTON 824 00:21:17,647 --> 00:21:19,580 PERSONALLY ACCOUNTED FOR ALMOST 825 00:21:19,649 --> 00:21:22,450 10% OF THE FIRM'S BILLINGS, AND 826 00:21:22,519 --> 00:21:23,084 LATER CAME TO BE SEEN AS A MAJOR 827 00:21:23,153 --> 00:21:25,286 CONTRIBUTOR TO SKYROCKETING 828 00:21:25,355 --> 00:21:26,621 EXECUTIVE PAY. 829 00:21:26,690 --> 00:21:28,055 IN FACT, WHEN HE WAS ASKED IN 830 00:21:28,124 --> 00:21:30,958 THE '80S ABOUT HOW HE FELT ABOUT 831 00:21:31,027 --> 00:21:35,797 THE EFFECT OF HIS WORK, HIS 832 00:21:35,866 --> 00:21:37,765 REPLY WAS SIMPLE: "GUILTY." 833 00:21:37,834 --> 00:21:38,466 AND WHILE IT'S HARD TO GAUGE 834 00:21:38,535 --> 00:21:39,767 TONE FROM THAT, I'M GOING TO 835 00:21:39,836 --> 00:21:41,235 HOPE IT WAS A SOBER, REFLECTIVE 836 00:21:41,304 --> 00:21:42,236 "GUILTY," AND NOT -- AS SEEMS 837 00:21:42,305 --> 00:21:43,838 MORE LIKELY -- A NAUGHTY, 838 00:21:43,907 --> 00:21:45,339 MISCHIEVOUS "GUIL-TY!" 839 00:21:45,408 --> 00:21:46,707 LIKE YOU'D USE TO RESPOND TO 840 00:21:46,776 --> 00:21:47,608 "WHO SPIKED THE PUNCH?" 841 00:21:47,677 --> 00:21:49,277 SO, TO RECAP: McKINSEY'S ADVICE 842 00:21:49,346 --> 00:21:50,778 CAN BE EXPENSIVE BUT OBVIOUS, 843 00:21:50,847 --> 00:21:51,913 ITS PREDICTIONS CAN BE DEEPLY 844 00:21:51,982 --> 00:21:53,414 FLAWED, AND IT'S ARGUABLY HELPED 845 00:21:53,483 --> 00:21:54,782 SUPERCHARGE ECONOMIC INEQUALITY 846 00:21:54,851 --> 00:21:56,384 IN THIS COUNTRY. 847 00:21:56,453 --> 00:21:58,319 ALL OF WHICH IS PRETTY STRIKING, 848 00:21:58,388 --> 00:21:59,754 COMING FROM A COMPANY WHOSE 849 00:21:59,823 --> 00:22:00,855 LEADER YOU'VE ALREADY SEEN SUM 850 00:22:00,924 --> 00:22:01,856 UP ITS FUNDAMENTAL MISSION LIKE 851 00:22:01,925 --> 00:22:03,491 THIS. 852 00:22:03,560 --> 00:22:04,859 >> OUR PURPOSE IS TO CREATE 853 00:22:04,928 --> 00:22:05,726 POSITIVE, ENDURING CHANGE IN THE 854 00:22:05,795 --> 00:22:07,628 WORLD. 855 00:22:07,697 --> 00:22:09,597 >> John: YEAH, IS IT, THOUGH? 856 00:22:09,666 --> 00:22:10,932 BECAUSE, LET'S TALK ABOUT THAT. 857 00:22:11,001 --> 00:22:11,766 A QUICK LOOK AT McKINSEY'S 858 00:22:11,835 --> 00:22:13,234 CLIENT LIST SHOWS A BUNCH OF 859 00:22:13,303 --> 00:22:14,402 COMPANIES GOING OUT OF THEIR WAY 860 00:22:14,471 --> 00:22:14,969 TO DO THE EXACT OPPOSITE OF 861 00:22:15,038 --> 00:22:17,004 "POSITIVE ENDURING CHANGE." 862 00:22:17,073 --> 00:22:18,506 BECAUSE, IT'S NOT JUST THOSE OIL 863 00:22:18,575 --> 00:22:19,107 AND GAS COMPANIES I MENTIONED 864 00:22:19,176 --> 00:22:20,675 EARLIER. 865 00:22:20,744 --> 00:22:21,609 THE FIRM ALSO BEGAN COUNSELING 866 00:22:21,678 --> 00:22:23,344 THE TOBACCO INDUSTRY IN 1956, 867 00:22:23,413 --> 00:22:24,946 WELL AFTER WE KNEW SMOKING 868 00:22:25,015 --> 00:22:26,948 CAUSED CANCER. 869 00:22:27,017 --> 00:22:28,349 YOU MIGHT BE THINKING, "WELL, 870 00:22:28,418 --> 00:22:30,384 C'MON, IT WAS THE '50s, LOTS OF 871 00:22:30,453 --> 00:22:30,985 PEOPLE WERE OKAY WITH SMOKING 872 00:22:31,054 --> 00:22:32,320 BACK THEN." 873 00:22:32,389 --> 00:22:33,688 BUT, YOU SHOULD KNOW, McKINSEY 874 00:22:33,757 --> 00:22:34,922 ONLY "STOPPED" WORKING WITH 875 00:22:34,991 --> 00:22:37,558 TOBACCO COMPANIES IN 2021. 876 00:22:37,627 --> 00:22:38,192 WHICH IS, AND THIS IS TRUE, TOO 877 00:22:38,261 --> 00:22:40,761 LATE. 878 00:22:40,830 --> 00:22:41,662 THAT WOULD BE LIKE FINDING OUT 879 00:22:41,731 --> 00:22:43,698 SUBWAY DROPPED JARED'S CONTRACT 880 00:22:43,767 --> 00:22:45,399 "TODAY." 881 00:22:45,468 --> 00:22:46,367 WAIT: HE WAS STILL IN 882 00:22:46,436 --> 00:22:47,568 COMMERCIALS? 883 00:22:47,637 --> 00:22:49,137 FROM PRISON? 884 00:22:49,206 --> 00:22:49,771 HOW COULD ANYONE THINK THAT WAS 885 00:22:49,840 --> 00:22:53,174 OKAY? 886 00:22:53,243 --> 00:22:54,041 AND, IF YOU THINK THAT WAS 887 00:22:54,110 --> 00:22:55,476 DAMAGING, McKINSEY ALSO WORKED 888 00:22:55,545 --> 00:22:58,746 WITH PURDUE PHARMA. 889 00:22:58,815 --> 00:22:59,347 THEY ACTUALLY MADE NEARLY $84 890 00:22:59,416 --> 00:23:01,649 MILLION IN FEES FROM PURDUE, FOR 891 00:23:01,718 --> 00:23:02,884 ADVICE ON HOW TO, QUOTE, 892 00:23:02,953 --> 00:23:04,452 "TURBOCHARGE" SALES OF 893 00:23:04,521 --> 00:23:05,553 OXYCONTIN. 894 00:23:05,622 --> 00:23:06,120 IN FACT, LISTEN TO THE AG OF 895 00:23:06,189 --> 00:23:07,755 MASSACHUSETTS EXPLAIN JUST HOW 896 00:23:07,824 --> 00:23:09,023 INTIMATELY McKINSEY WAS INVOLVED 897 00:23:09,092 --> 00:23:10,458 IN PURDUE'S SALES PROCESS. 898 00:23:10,527 --> 00:23:11,793 >> McKINSEY CONSULTANTS ACTUALLY 899 00:23:11,862 --> 00:23:13,861 RODE ALONG WITH, WENT WITH 900 00:23:13,930 --> 00:23:15,730 PURDUE SALES REPS TO DOCTOR'S 901 00:23:15,799 --> 00:23:17,965 OFFICES HERE IN MASSACHUSETTS TO 902 00:23:18,034 --> 00:23:20,001 CRITIQUE THEM ON HOW EFFECTIVE 903 00:23:20,070 --> 00:23:23,070 THEY WERE AT SELLING OXYCONTIN. 904 00:23:23,139 --> 00:23:25,339 >> John: IT'S TRUE, THEY DID 905 00:23:25,408 --> 00:23:25,840 RIDE-ALONGS! 906 00:23:25,909 --> 00:23:26,641 AND HONESTLY, I DIDN'T THINK I 907 00:23:26,710 --> 00:23:28,342 COULD HAVE ANY SYMPATHY FOR 908 00:23:28,411 --> 00:23:30,478 PURDUE SALES REPS, UNTIL I 909 00:23:30,547 --> 00:23:31,179 LEARNED THAT THEY WERE TRAPPED 910 00:23:31,248 --> 00:23:32,180 IN A CAR WITH A McKINSEY 911 00:23:32,249 --> 00:23:33,948 CONSULTANT FOR HOURS. 912 00:23:34,017 --> 00:23:35,016 "YEAH, YOU MENTIONED YOU WENT TO 913 00:23:35,085 --> 00:23:37,351 HARVARD. 914 00:23:37,420 --> 00:23:38,786 CAN WE PLEASE JUST BE QUIET AND 915 00:23:38,855 --> 00:23:41,823 GO SELL SOME POISON?" 916 00:23:41,892 --> 00:23:42,957 BUT, IT'S NOT JUST PRIVATE 917 00:23:43,026 --> 00:23:44,292 COMPANIES -- REMEMBER, 918 00:23:44,361 --> 00:23:45,193 McKINSEY'S FREQUENTLY HIRED BY 919 00:23:45,262 --> 00:23:46,861 GOVERNMENT AGENCIES, TOO, WHERE, 920 00:23:46,930 --> 00:23:47,428 AGAIN, THEIR ADVICE HAS NOT 921 00:23:47,497 --> 00:23:48,229 BROUGHT UNIVERSALLY POSITIVE 922 00:23:48,298 --> 00:23:50,231 CHANGE. 923 00:23:50,300 --> 00:23:50,865 FOR INSTANCE, IN 2014, NEW YORK 924 00:23:50,934 --> 00:23:53,100 CITY BROUGHT McKINSEY IN TO 925 00:23:53,169 --> 00:23:54,469 FIGURE OUT HOW TO REDUCE 926 00:23:54,538 --> 00:23:56,838 VIOLENCE AT RIKERS -- A PROJECT 927 00:23:56,907 --> 00:23:58,239 WHOSE COST BALLOONED TO $27 928 00:23:58,308 --> 00:24:00,408 MILLION. 929 00:24:00,477 --> 00:24:02,443 PEOPLE ASKED QUESTIONS AT THE 930 00:24:02,512 --> 00:24:03,044 TIME ABOUT WHETHER THAT WAS A 931 00:24:03,113 --> 00:24:04,178 GOOD USE OF MONEY, BUT THE HEAD 932 00:24:04,247 --> 00:24:06,080 OF THE CITY'S CORRECTIONS BACK 933 00:24:06,149 --> 00:24:07,181 THEN INSISTED McKINSEY WAS WORTH 934 00:24:07,250 --> 00:24:09,083 EVERY PENNY. 935 00:24:09,152 --> 00:24:10,351 >> IF WE MADE ANY PROGRESS, IT 936 00:24:10,420 --> 00:24:12,086 WAS BECAUSE OF McKINSEY'S HELP 937 00:24:12,155 --> 00:24:14,522 IN AREAS THAT WE NEEDED HELP IN. 938 00:24:14,591 --> 00:24:15,056 >> John: WOW, THAT'S HIGH 939 00:24:15,125 --> 00:24:17,158 PRAISE! 940 00:24:17,227 --> 00:24:17,758 TO CLAIM THAT McKINSEY WAS THE 941 00:24:17,827 --> 00:24:19,994 "SOLE" REASON FOR ANY PROGRESS 942 00:24:20,063 --> 00:24:21,729 MADE AT RIKERS WOULD BE A PRETTY 943 00:24:21,798 --> 00:24:23,164 IMPRESSIVE COMPLIMENT, IF YOU 944 00:24:23,233 --> 00:24:24,432 DIDN'T KNOW ANYTHING ABOUT THE 945 00:24:24,501 --> 00:24:26,567 STATE OF RIKERS. 946 00:24:26,636 --> 00:24:28,503 SO, WHAT IMAGINATIVE STRATEGIES 947 00:24:28,572 --> 00:24:30,404 DID McKINSEY TRY TO IMPLEMENT? 948 00:24:30,473 --> 00:24:30,972 OH, I DUNNO, JUST FUN THINGS 949 00:24:31,041 --> 00:24:32,707 LIKE EXPANDING THE USE OF 950 00:24:32,776 --> 00:24:33,975 TASERS, SHOTGUNS, AND AGGRESSIVE 951 00:24:34,044 --> 00:24:35,476 DOGS. 952 00:24:35,545 --> 00:24:37,812 IT'S SOME "VERY" OUTSIDE THE BOX 953 00:24:37,881 --> 00:24:38,412 THINKING, FOR PEOPLE LITERALLY 954 00:24:38,481 --> 00:24:40,581 TRAPPED INSIDE BOXES. 955 00:24:40,650 --> 00:24:41,582 BUT, ITS BIG PROJECT WAS AN 956 00:24:41,651 --> 00:24:42,817 ANTI-VIOLENCE PROGRAM CALLED 957 00:24:42,886 --> 00:24:46,554 "RESTART." 958 00:24:46,623 --> 00:24:47,121 IT CLAIMED THAT VIOLENCE HAD 959 00:24:47,190 --> 00:24:48,156 DROPPED MORE THAN 50 PERCENT IN 960 00:24:48,225 --> 00:24:49,290 THE RESTART FACILITIES. 961 00:24:49,359 --> 00:24:49,824 WHICH SOUNDS GREAT! 962 00:24:49,893 --> 00:24:50,992 UNFORTUNATELY, IT TURNED OUT, 963 00:24:51,061 --> 00:24:52,527 THAT NUMBER WAS BOGUS, BECAUSE 964 00:24:52,596 --> 00:24:54,662 JAIL OFFICIALS AND McKINSEY 965 00:24:54,731 --> 00:24:55,630 CONSULTANTS HAD REPORTEDLY 966 00:24:55,699 --> 00:25:02,699 JOINTLY RIGGED THE RESTART 967 00:25:03,139 --> 00:25:03,805 PROGRAM, BY STACKING THE UNITS 968 00:25:03,874 --> 00:25:05,072 WITH INMATES THEY BELIEVED TO BE 969 00:25:05,141 --> 00:25:06,441 UNLIKELY TO GET INTO FIGHTS OR 970 00:25:06,510 --> 00:25:07,041 TO ATTACK STAFF IN THE FIRST 971 00:25:07,110 --> 00:25:08,042 PLACE. 972 00:25:08,111 --> 00:25:08,810 AND, WHILE McKINSEY, TO THIS 973 00:25:08,879 --> 00:25:10,144 DAY, DEFENDS THAT PROGRAM AND 974 00:25:10,213 --> 00:25:11,212 DENIES SKEWING THE RESULTS, IT'S 975 00:25:11,281 --> 00:25:12,914 NOTABLE THAT WHEN PROPUBLICA 976 00:25:12,983 --> 00:25:13,514 LATER CRUNCHED THE NUMBERS FOR 977 00:25:13,583 --> 00:25:15,016 RIKERS OVERALL, THEY FOUND THAT, 978 00:25:15,085 --> 00:25:16,484 JAILHOUSE VIOLENCE THERE HAD 979 00:25:16,553 --> 00:25:18,119 ACTUALLY RISEN NEARLY 50% SINCE 980 00:25:18,188 --> 00:25:20,021 McKINSEY BEGAN ITS ASSIGNMENT. 981 00:25:20,090 --> 00:25:20,822 AND HONESTLY: YOU'VE KIND OF GOT 982 00:25:20,891 --> 00:25:23,224 TO HAND IT TO THEM THERE. 983 00:25:23,293 --> 00:25:25,726 NOT MANY FIRMS COULD GET PAID 984 00:25:25,795 --> 00:25:28,996 $27 MILLION OF TAXPAYER MONEY TO 985 00:25:29,065 --> 00:25:31,766 LEAVE RIKERS SOMEHOW WORSE. 986 00:25:31,835 --> 00:25:33,067 AND, IT'S NOT JUST JAILS: 987 00:25:33,136 --> 00:25:34,635 McKINSEY'S GOVERNMENT CLIENTS 988 00:25:34,704 --> 00:25:37,004 ALSO INCLUDE REGULATORS. 989 00:25:37,073 --> 00:25:38,406 WHICH CAN GET A LITTLE WEIRD, 990 00:25:38,475 --> 00:25:39,040 WHEN YOU CONSIDER THAT McKINSEY 991 00:25:39,109 --> 00:25:39,774 ALSO REPRESENTS CORPORATE 992 00:25:39,843 --> 00:25:41,442 CLIENTS. 993 00:25:41,511 --> 00:25:42,176 FOR INSTANCE: REMEMBER HOW IT 994 00:25:42,245 --> 00:25:43,978 WORKED WITH PURDUE PHARMA? 995 00:25:44,047 --> 00:25:45,179 WHILE IT WAS WORKING FOR THEM, 996 00:25:45,248 --> 00:25:46,948 IT WAS ALSO WORKING WITH THE 997 00:25:47,017 --> 00:25:48,616 FDA. 998 00:25:48,685 --> 00:25:49,417 THAT SURE SEEMS LIKE A CLEAR 999 00:25:49,486 --> 00:25:52,587 CONFLICT OF INTEREST. 1000 00:25:52,656 --> 00:25:53,187 AND, IT WAS ONE THAT EVEN MR. 1001 00:25:53,256 --> 00:25:54,822 "POSITIVE AND ENDURING CHANGE" 1002 00:25:54,891 --> 00:25:56,457 HERE FOUND A LITTLE HARD TO 1003 00:25:56,526 --> 00:25:57,058 EXPLAIN TO CONGRESS AFTER THE 1004 00:25:57,127 --> 00:25:58,659 FACT. 1005 00:25:58,728 --> 00:25:59,160 >> OKAY. 1006 00:25:59,229 --> 00:26:00,561 SO, LET ME ASK YOU, DID YOU 1007 00:26:00,630 --> 00:26:02,330 DISCLOSE TO THE FDA YOUR -- 1008 00:26:02,399 --> 00:26:04,499 McKINSEY'S WORK AT THE SAME TIME 1009 00:26:04,568 --> 00:26:06,200 -- DID YOU DISCLOSE TO THE FDA 1010 00:26:06,269 --> 00:26:07,969 THAT McKINSEY WAS WORKING AT THE 1011 00:26:08,038 --> 00:26:09,170 SAME TIME IT WAS WORKING FOR THE 1012 00:26:09,239 --> 00:26:10,271 FDA, THAT IT WAS WORKING FOR 1013 00:26:10,340 --> 00:26:11,739 PURDUE? 1014 00:26:11,808 --> 00:26:12,306 DID YOU DISCLOSE THAT TO THE 1015 00:26:12,375 --> 00:26:15,276 FDA? 1016 00:26:15,345 --> 00:26:16,577 >> WE MADE CLEAR IN MULTIPLE 1017 00:26:16,646 --> 00:26:18,312 INSTANCES THAT THE INDIVIDUALS 1018 00:26:18,381 --> 00:26:19,881 INVOLVED HAD EXPERIENCE IN BOTH 1019 00:26:19,950 --> 00:26:21,749 PHARMACEUTICALS AND OPIOIDS. 1020 00:26:21,818 --> 00:26:22,583 >> RECLAIMING MY TIME. 1021 00:26:22,652 --> 00:26:23,351 MR. STERNFELS, THEY DIDN'T HAVE 1022 00:26:23,420 --> 00:26:24,986 EXPERIENCE. 1023 00:26:25,055 --> 00:26:26,954 THEY WERE THE IDENTICAL HUMANS 1024 00:26:27,023 --> 00:26:28,556 WORKING FOR BOTH AT THE SAME 1025 00:26:28,625 --> 00:26:30,925 TIME. 1026 00:26:30,994 --> 00:26:32,026 >> John: EXACTLY, AND THERE'S A 1027 00:26:32,095 --> 00:26:33,628 BIG DIFFERENCE BETWEEN HAVING 1028 00:26:33,697 --> 00:26:35,096 EXPERIENCE WORKING FOR BOTH, AND 1029 00:26:35,165 --> 00:26:36,697 ACTIVELY WORKING FOR BOTH AT THE 1030 00:26:36,766 --> 00:26:38,199 SAME TIME. 1031 00:26:38,268 --> 00:26:38,866 IT'S THE SAME DIFFERENCE BETWEEN 1032 00:26:38,935 --> 00:26:40,501 TELLING YOUR WIFE ABOUT YOUR 1033 00:26:40,570 --> 00:26:41,235 EX-GIRLFRIEND, AND TELLING YOUR 1034 00:26:41,304 --> 00:26:41,936 WIFE ABOUT YOUR CURRENT 1035 00:26:42,005 --> 00:26:44,205 GIRLFRIEND. 1036 00:26:44,274 --> 00:26:45,940 ONE IS DRAMATICALLY WORSE THAN 1037 00:26:46,009 --> 00:26:48,176 THE OTHER. 1038 00:26:48,245 --> 00:26:49,143 AND, KATIE PORTER WAS RIGHT -- 1039 00:26:49,212 --> 00:26:50,778 THERE WERE MULTIPLE INSTANCES OF 1040 00:26:50,847 --> 00:26:52,013 McKINSEY CONSULTANTS WORKING FOR 1041 00:26:52,082 --> 00:26:53,815 BOTH PURDUE AND THE FDA AT THE 1042 00:26:53,884 --> 00:26:55,183 SAME TIME. 1043 00:26:55,252 --> 00:26:56,717 AT ONE POINT, FOUR CONSULTANTS 1044 00:26:56,786 --> 00:26:58,686 WORKING ON AN FDA CONTRACT TO 1045 00:26:58,755 --> 00:26:59,987 ENHANCE DRUG SAFETY WERE 1046 00:27:00,056 --> 00:27:01,722 SIMULTANEOUSLY WORKING FOR 1047 00:27:01,791 --> 00:27:03,357 PURDUE, ON PROJECTS DESIGNED TO 1048 00:27:03,426 --> 00:27:05,693 PERSUADE THE FDA OF THE SAFETY 1049 00:27:05,762 --> 00:27:07,728 OF PURDUE'S PRODUCTS. 1050 00:27:07,797 --> 00:27:09,263 ONE PROJECT EVEN HAD THEM 1051 00:27:09,332 --> 00:27:10,998 WRITING SCRIPTS FOR PURDUE TO 1052 00:27:11,067 --> 00:27:11,966 USE IN A MEETING WITH THE FDA, 1053 00:27:12,035 --> 00:27:13,768 ON THE SAFETY OF PEDIATRIC 1054 00:27:13,837 --> 00:27:15,636 OXYCONTIN. 1055 00:27:15,705 --> 00:27:17,271 PEDIATRIC OXY! 1056 00:27:17,340 --> 00:27:19,173 OXY FOR KIDS. 1057 00:27:19,242 --> 00:27:20,341 Y'KNOW, JUST LIKE IN THAT 1058 00:27:20,410 --> 00:27:22,410 EPISODE OF "DORA THE EXPLORER" 1059 00:27:22,479 --> 00:27:23,744 WHEN BACKPACK IS GETTING A BIT 1060 00:27:23,813 --> 00:27:25,580 TOO HEAVY AND BOOTS GIVES HER A 1061 00:27:25,649 --> 00:27:26,147 LITTLE SOMETHING TO TAKE THE 1062 00:27:26,216 --> 00:27:28,015 EDGE OFF. 1063 00:27:28,084 --> 00:27:29,584 NOW, McKINSEY CLAIMS THERE WAS 1064 00:27:29,653 --> 00:27:30,785 NO CONFLICT, AND THAT THE NATURE 1065 00:27:30,854 --> 00:27:33,287 OF THEIR WORK FOR FDA AND PURDUE 1066 00:27:33,356 --> 00:27:34,689 WAS DIFFERENT. 1067 00:27:34,758 --> 00:27:36,290 WHICH IS HARD TO TAKE, 1068 00:27:36,359 --> 00:27:37,725 CONSIDERING THEY SOLD THEMSELVES 1069 00:27:37,794 --> 00:27:39,527 TO PURDUE AT THE TIME, WITH THE 1070 00:27:39,596 --> 00:27:40,795 NOTION THAT THEY HAD SPECIAL 1071 00:27:40,864 --> 00:27:42,430 INSIGHTS INTO THE FDA. 1072 00:27:42,499 --> 00:27:44,732 THEY TOLD PURDUE IN 2014 THAT 1073 00:27:44,801 --> 00:27:46,734 THEY BROUGHT AN "UNEQUALED 1074 00:27:46,803 --> 00:27:48,703 CAPABILITY BASED ON WHO WE KNOW 1075 00:27:48,772 --> 00:27:51,038 AND WHAT WE KNOW," INCLUDING 1076 00:27:51,107 --> 00:27:53,207 "THE FDA, WHO WE HAVE SUPPORTED 1077 00:27:53,276 --> 00:27:54,308 FOR OVER FIVE YEARS." 1078 00:27:54,377 --> 00:27:57,512 SO, WHICH IS IT? 1079 00:27:57,581 --> 00:27:58,613 WAS THE WORK YOU DID FOR THE FDA 1080 00:27:58,682 --> 00:28:00,281 "TOTALLY DIFFERENT," OR DID IT 1081 00:28:00,350 --> 00:28:01,883 HELP YOU BRING AN "UNEQUALED 1082 00:28:01,952 --> 00:28:03,584 CAPABILITY" TO PURDUE? 1083 00:28:03,653 --> 00:28:06,554 IT CAN'T BE BOTH. 1084 00:28:06,623 --> 00:28:07,054 THIS ISN'T SCHRODINGER'S 1085 00:28:07,123 --> 00:28:08,222 CONTRACT. 1086 00:28:08,291 --> 00:28:09,190 YOU DON'T GET TO CLAIM IT'S BOTH 1087 00:28:09,259 --> 00:28:10,892 RELEVANT AND UNRELATED DEPENDING 1088 00:28:10,961 --> 00:28:12,126 ON WHO THE FUCK YOU'RE TALKING 1089 00:28:12,195 --> 00:28:14,128 TO. 1090 00:28:14,197 --> 00:28:15,296 AND AT THIS POINT, I COULD STOP. 1091 00:28:15,365 --> 00:28:17,431 TOBACCO, OPIOIDS, RIKERS. 1092 00:28:17,500 --> 00:28:18,833 THOSE ARE ALREADY SOME PRETTY 1093 00:28:18,902 --> 00:28:19,867 UNPLEASANT STAINS ON A COMPANY'S 1094 00:28:19,936 --> 00:28:22,637 RECORD. 1095 00:28:22,706 --> 00:28:23,237 BUT, HERE'S THE THING: ALL THE 1096 00:28:23,306 --> 00:28:24,806 EXAMPLES SO FAR ARE JUST FROM 1097 00:28:24,875 --> 00:28:26,107 THE US. 1098 00:28:26,176 --> 00:28:26,741 AND REMEMBER -- McKINSEY NOW HAS 1099 00:28:26,810 --> 00:28:28,443 OFFICES ALL OVER THE WORLD. 1100 00:28:28,512 --> 00:28:29,777 AND FROM THEM, THEY'VE COZIED UP 1101 00:28:29,846 --> 00:28:31,946 TO SOME TRULY TERRIBLE CLIENTS. 1102 00:28:32,015 --> 00:28:33,114 THEY'VE WORKED FOR A RUSSIAN 1103 00:28:33,183 --> 00:28:34,682 DEFENSE CONTRACTOR, AND ARE SO 1104 00:28:34,751 --> 00:28:35,750 DEEPLY ENTRENCHED IN THE 1105 00:28:35,819 --> 00:28:37,652 GOVERNMENT OF SAUDI ARABIA THAT 1106 00:28:37,721 --> 00:28:38,486 SAUDI ARABIA'S PLANNING MINISTRY 1107 00:28:38,555 --> 00:28:39,487 HAS BEEN DUBBED "THE MINISTRY OF 1108 00:28:39,556 --> 00:28:41,422 McKINSEY." 1109 00:28:41,491 --> 00:28:43,825 AND, IT'LL LOUDLY DEFEND ITS 1110 00:28:43,894 --> 00:28:44,725 WORK THERE, SAYING THAT IT FEELS 1111 00:28:44,794 --> 00:28:46,027 IT'S MAKING THE COUNTRY A BETTER 1112 00:28:46,096 --> 00:28:47,195 PLACE. 1113 00:28:47,264 --> 00:28:47,695 BUT, THAT FEAT OF MENTAL 1114 00:28:47,764 --> 00:28:49,564 GYMNASTICS GOT A LITTLE TRICKIER 1115 00:28:49,633 --> 00:28:50,298 AFTER JAMAL KHASHOGGI WAS 1116 00:28:50,367 --> 00:28:52,567 ASSASSINATED. 1117 00:28:52,636 --> 00:28:53,201 JUST A FEW MONTHS LATER, 1118 00:28:53,270 --> 00:28:54,268 McKINSEY'S HEAD AT THE TIME WAS 1119 00:28:54,337 --> 00:28:55,970 ON CNBC, TRYING TO DEFEND ITS 1120 00:28:56,039 --> 00:28:57,238 WORK IN THE COUNTRY, AND 1121 00:28:57,307 --> 00:28:58,506 REASSURING EVERYONE IT HAD A 1122 00:28:58,575 --> 00:29:00,975 STRICT MORAL CODE. 1123 00:29:01,044 --> 00:29:01,809 >> THE WORK THAT WE DO -- AND WE 1124 00:29:01,878 --> 00:29:03,177 THINK VERY HARD ABOUT THE WORK 1125 00:29:03,246 --> 00:29:04,612 WE DO -- NEEDS TO BE WORK THAT 1126 00:29:04,681 --> 00:29:06,447 DOES MAKE A POSITIVE DIFFERENCE. 1127 00:29:06,516 --> 00:29:06,914 >> SURE. 1128 00:29:06,983 --> 00:29:09,717 >> AND, THAT'S WHAT I'M -- 1129 00:29:09,786 --> 00:29:11,352 -- MAKING SURE WE -- 1130 00:29:11,421 --> 00:29:11,919 >> BUT JUST STRAIGHT UP AND 1131 00:29:11,988 --> 00:29:13,187 DOWN, DOING BUSINESS WITH A 1132 00:29:13,256 --> 00:29:14,489 MURDERER IS OKAY BY YOU? 1133 00:29:14,558 --> 00:29:15,456 >> NO, IT'S ABSOLUTELY NOT. 1134 00:29:15,525 --> 00:29:16,090 >> OKAY, AND YOU -- AND WHEN -- 1135 00:29:16,159 --> 00:29:17,258 WHEN YOU FIND OUT THAT YOUR 1136 00:29:17,327 --> 00:29:17,859 CLIENT IS A MURDERER, YOU DO 1137 00:29:17,928 --> 00:29:18,893 WHAT? 1138 00:29:18,962 --> 00:29:19,494 >> YOU WALK. 1139 00:29:19,563 --> 00:29:20,962 >> YOU WALK. 1140 00:29:21,031 --> 00:29:22,730 >> John: OH, YOU WALK, DO YOU? 1141 00:29:22,799 --> 00:29:23,131 THAT SOUNDS GOOD! 1142 00:29:23,200 --> 00:29:24,031 EXCEPT HERE'S THE THING: THEY 1143 00:29:24,100 --> 00:29:25,500 DIDN'T WALK. 1144 00:29:25,569 --> 00:29:26,267 THEIR CLIENT KILLED AND 1145 00:29:26,336 --> 00:29:27,635 DISMEMBERED A JOURNALIST, AND 1146 00:29:27,704 --> 00:29:29,170 McKINSEY RESPONDED BY 1147 00:29:29,239 --> 00:29:29,771 PARTICIPATING IN A MAJOR SAUDI 1148 00:29:29,840 --> 00:29:31,105 INVESTMENT CONFERENCE THAT SAME 1149 00:29:31,174 --> 00:29:33,074 MONTH, EVEN AS OTHER COMPANIES 1150 00:29:33,143 --> 00:29:34,108 PULLED OUT. 1151 00:29:34,177 --> 00:29:35,676 SO UNLESS "YOU WALK" IS SHORT 1152 00:29:35,745 --> 00:29:37,211 FOR "YOU WALK TO THE FRONT OF 1153 00:29:37,280 --> 00:29:38,379 THE LINE AND PICK UP YOUR 1154 00:29:38,448 --> 00:29:39,947 LANYARD FOR ANOTHER FUN WEEKEND 1155 00:29:40,016 --> 00:29:41,315 AT THE JOURNALIST-CHOPPIN' 1156 00:29:41,384 --> 00:29:42,784 BUSINESS JAMBOREE," YOU ARE FULL 1157 00:29:42,853 --> 00:29:44,585 OF SHIT! 1158 00:29:44,654 --> 00:29:46,954 BUT WAIT -- IT GETS EVEN WORSE. 1159 00:29:47,023 --> 00:29:48,489 BECAUSE IT LATER EMERGED THAT IN 1160 00:29:48,558 --> 00:29:49,323 ONE OF McKINSEY'S REPORTS, IT 1161 00:29:49,392 --> 00:29:50,892 HIGHLIGHTED THREE PEOPLE WHO 1162 00:29:50,961 --> 00:29:52,326 "DROVE NEGATIVE CONVERSATION ON 1163 00:29:52,395 --> 00:29:53,494 TWITTER" ABOUT SAUDI GOVERNMENT 1164 00:29:53,563 --> 00:29:54,896 POLICIES. 1165 00:29:54,965 --> 00:29:56,497 THIS IS THAT SLIDE -- FEATURING 1166 00:29:56,566 --> 00:29:57,965 NAMES, PICTURES, CRITICISMS AND 1167 00:29:58,034 --> 00:29:59,734 FOLLOWER COUNTS. 1168 00:29:59,803 --> 00:30:00,735 AND SUBSEQUENTLY, SOME OF THOSE 1169 00:30:00,804 --> 00:30:02,036 PEOPLE WERE -- YOU'RE NOT GONNA 1170 00:30:02,105 --> 00:30:03,704 BELIEVE THIS -- TARGETED BY THE 1171 00:30:03,773 --> 00:30:06,274 SAUDI GOVERNMENT. 1172 00:30:06,343 --> 00:30:07,175 IN FACT, ONE OF THEIR PHONES WAS 1173 00:30:07,244 --> 00:30:08,342 HACKED, REVEALING COMMUNICATIONS 1174 00:30:08,411 --> 00:30:09,811 WITH, YOU GUESSED IT, JAMAL 1175 00:30:09,880 --> 00:30:11,979 KHASHOGGI. 1176 00:30:12,048 --> 00:30:19,048 AT THIS POINT, I HAVE TO TELL 1177 00:30:19,990 --> 00:30:21,889 YOU McKINSEY CONSISTS 1178 00:30:21,958 --> 00:30:22,824 "THERE IS NO EVIDENCE THE SLIDE 1179 00:30:22,893 --> 00:30:23,825 DECK WAS CONNECTED TO THE DEATH 1180 00:30:23,894 --> 00:30:24,525 OF JAMAL KHASHOGGI OR EXPOSED 1181 00:30:24,594 --> 00:30:25,393 DISSIDENTS." 1182 00:30:25,462 --> 00:30:26,027 AND, THAT IT WASN'T PREPARED FOR 1183 00:30:26,096 --> 00:30:26,761 THE SAUDI GOVERNMENT. 1184 00:30:26,830 --> 00:30:27,261 IN FACT, WHEN THIS STORY 1185 00:30:27,330 --> 00:30:29,163 INITIALLY CAME TO LIGHT, THEY 1186 00:30:29,232 --> 00:30:29,730 SAID THE REPORT'S INTENDED 1187 00:30:29,799 --> 00:30:34,202 PRIMARY AUDIENCE WAS "INTERNAL," 1188 00:30:34,271 --> 00:30:34,836 AND THAT THEY WERE HORRIFIED BY 1189 00:30:34,905 --> 00:30:36,137 THE POSSIBILITY, HOWEVER REMOTE, 1190 00:30:36,206 --> 00:30:36,771 THAT IT COULD HAVE BEEN MISUSED 1191 00:30:36,840 --> 00:30:38,673 IN ANY WAY. 1192 00:30:38,742 --> 00:30:40,208 BUT, COME ON. 1193 00:30:40,277 --> 00:30:41,876 IT'S SAUDI ARABIA. 1194 00:30:41,945 --> 00:30:43,611 EVEN IF THAT REPORT DIDN'T FALL 1195 00:30:43,680 --> 00:30:45,379 INTO THEIR HANDS -- AND "PLEASE" 1196 00:30:45,448 --> 00:30:47,115 -- WHAT PART OF THE WAY SAUDI 1197 00:30:47,184 --> 00:30:48,883 ARABIA OPERATES MADE YOU THINK 1198 00:30:48,952 --> 00:30:50,785 THAT "A McKINSEY-CURATED LIST OF 1199 00:30:50,854 --> 00:30:52,453 SHIT-TALKING DISSIDENTS" WOULD 1200 00:30:52,522 --> 00:30:54,088 BE A GOOD THING TO PUT TOGETHER? 1201 00:30:54,157 --> 00:30:55,022 YOU'RE WORKING IN ONE OF THE 1202 00:30:55,091 --> 00:30:56,924 ROOTINEST, TOOTINEST, JOURNALIST 1203 00:30:56,993 --> 00:30:58,993 SHOOTINEST REGIMES IN THE MIDDLE 1204 00:30:59,062 --> 00:31:01,195 EAST, AND YOU FIGURED IT WAS 1205 00:31:01,264 --> 00:31:02,463 FINE TO DRAW UP A LIST LIKE 1206 00:31:02,532 --> 00:31:03,998 THIS, BECAUSE THE POTENTIAL FOR 1207 00:31:04,067 --> 00:31:05,600 MISUSE WAS "REMOTE?" 1208 00:31:05,669 --> 00:31:07,368 WHAT ARE YOU TALKING ABOUT? 1209 00:31:07,437 --> 00:31:09,103 THIS IS A GOVERNMENT LED BY 1210 00:31:09,172 --> 00:31:10,471 MOHAMMED BIN-SALMAN, A MAN WHO, 1211 00:31:10,540 --> 00:31:11,906 AND THIS IS TRUE, ONCE DETAINED 1212 00:31:11,975 --> 00:31:14,575 HIS OWN MOTHER. 1213 00:31:14,644 --> 00:31:16,043 DO YOU THINK IF MBS WERE TO 1214 00:31:16,112 --> 00:31:17,245 STUMBLE ACROSS A LIST OF HIS 1215 00:31:17,314 --> 00:31:18,746 HATERS, HE'D JUST SEND THEM A 1216 00:31:18,815 --> 00:31:20,181 BIG "NO HARD FEELINGS ABOUT ALL 1217 00:31:20,250 --> 00:31:21,449 THE DISSIDENT STUFF" EDIBLE 1218 00:31:21,518 --> 00:31:25,419 ARRANGEMENT? 1219 00:31:25,488 --> 00:31:27,188 THE FUCK IS WRONG WITH YOU? 1220 00:31:27,257 --> 00:31:28,556 AND FOR WHAT IT'S WORTH, A 1221 00:31:28,625 --> 00:31:29,490 FORMER McKINSEY CONSULTANT HAS 1222 00:31:29,559 --> 00:31:31,092 CALLED THAT WHOLE "INTERNAL 1223 00:31:31,161 --> 00:31:32,627 DOCUMENT" EXCUSE "UTTER 1224 00:31:32,696 --> 00:31:34,061 HORSESHIT." 1225 00:31:34,130 --> 00:31:34,796 AND LOOK: McKINSEY WILL CLAIM 1226 00:31:34,865 --> 00:31:36,531 THAT EVERYTHING I'VE MENTIONED 1227 00:31:36,600 --> 00:31:37,899 TONIGHT ARE ISOLATED CASES, NOT 1228 00:31:37,968 --> 00:31:38,833 REPRESENTATIVE OF THEIR WORK 1229 00:31:38,902 --> 00:31:40,468 OVERALL. 1230 00:31:40,537 --> 00:31:41,102 WHAT'S MORE, THEY'LL SAY THEY'VE 1231 00:31:41,171 --> 00:31:42,637 REVAMPED THEIR POLICIES ON 1232 00:31:42,706 --> 00:31:43,271 CLIENT SELECTION, AND THAT "IF A 1233 00:31:43,340 --> 00:31:45,139 CLIENT OR PROPOSED PROJECT FALLS 1234 00:31:45,208 --> 00:31:46,808 SHORT OF OUR STANDARDS, WE WILL 1235 00:31:46,877 --> 00:31:48,075 NOT DO THE WORK." 1236 00:31:48,144 --> 00:31:49,610 ALTHOUGH, THEY'RE STILL WORKING 1237 00:31:49,679 --> 00:31:50,478 IN SAUDI ARABIA, SO THOSE 1238 00:31:50,547 --> 00:31:51,612 STANDARDS SEEM, AT BEST, FUCKING 1239 00:31:51,681 --> 00:31:54,449 FLEXIBLE. 1240 00:31:54,518 --> 00:31:55,283 THEY ALSO WANT ME TO TELL YOU 1241 00:31:55,352 --> 00:31:57,018 THEY DO A LOT OF PROJECTS LIKE 1242 00:31:57,087 --> 00:31:58,686 HELPING CLIENTS DEPLOY VACCINES, 1243 00:31:58,755 --> 00:32:00,421 OR SUPPORTING REFUGEES AND 1244 00:32:00,490 --> 00:32:01,522 REBUILDING IN UKRAINE, WHICH IS 1245 00:32:01,591 --> 00:32:03,157 VERY NICE. 1246 00:32:03,226 --> 00:32:05,259 BUT, THINK OF IT LIKE THIS: HOW 1247 00:32:05,328 --> 00:32:06,661 MANY UPLIFTING McKINSEY PROJECTS 1248 00:32:06,730 --> 00:32:07,829 LIKE "MORE SNUGGLES AT THE PUPPY 1249 00:32:07,898 --> 00:32:09,597 FACTORY" OR "MAKE GRANDMA LIVE 1250 00:32:09,666 --> 00:32:11,299 FOREVER," WOULD YOU NEED TO HEAR 1251 00:32:11,368 --> 00:32:12,667 ABOUT TO EFFECTIVELY 1252 00:32:12,736 --> 00:32:13,901 COUNTERBALANCE "TURBOCHARGE THE 1253 00:32:13,970 --> 00:32:15,970 OPIOID EPIDEMIC," "HELP FUCK UP 1254 00:32:16,039 --> 00:32:18,506 RIKERS EVEN MORE," AND "MAKE A 1255 00:32:18,575 --> 00:32:20,942 SAUDI ARABIAN SNITCH LIST?" 1256 00:32:21,011 --> 00:32:23,644 AND LOOK, IT'S NOT JUST McKINSEY 1257 00:32:23,713 --> 00:32:25,480 WITH THESE ISSUES: THEIR MAIN 1258 00:32:25,549 --> 00:32:27,682 COMPETITORS HAVE HAD THEM TOO. 1259 00:32:27,751 --> 00:32:28,416 BCG WAS ALSO DEEP IN WITH THE 1260 00:32:28,485 --> 00:32:30,618 SAUDIS, AND BAIN WAS BANNED FROM 1261 00:32:30,687 --> 00:32:31,686 STATE CONTRACTS IN SOUTH AFRICA 1262 00:32:31,755 --> 00:32:36,390 FOR A DECADE, THANKS TO ITS ROLE 1263 00:32:36,459 --> 00:32:37,158 IN A MASSIVE CORRUPTION SCANDAL. 1264 00:32:37,227 --> 00:32:37,825 AND, I'M NOT EVEN SAYING THE 1265 00:32:37,894 --> 00:32:39,260 CONSULTING INDUSTRY SHOULD BE 1266 00:32:39,329 --> 00:32:40,661 ABOLISHED. 1267 00:32:40,730 --> 00:32:41,295 GETTING OUTSIDE FEEDBACK ON BEST 1268 00:32:41,364 --> 00:32:42,330 PRACTICES CAN MAKE A LOT OF 1269 00:32:42,399 --> 00:32:45,700 SENSE FOR AN ORGANIZATION. 1270 00:32:45,769 --> 00:32:46,334 WE CERTAINLY NEED TO PRESERVE A 1271 00:32:46,403 --> 00:32:47,802 CAREER PATH FOR HIGH-ACHIEVING 1272 00:32:47,871 --> 00:32:48,936 TYPE-A BULLSHITTERS WHO DON'T 1273 00:32:49,005 --> 00:32:50,705 WANT TO COMMIT TO LAW SCHOOL AND 1274 00:32:50,774 --> 00:32:51,439 WANT TO SPEND THEIR PRIME YEARS 1275 00:32:51,508 --> 00:32:53,107 FLYING BUSINESS CLASS TO DALLAS. 1276 00:32:53,176 --> 00:32:54,509 COMPANIES CAN FEEL FREE TO HIRE 1277 00:32:54,578 --> 00:32:55,877 AS MANY FRESH-FACED DORK 1278 00:32:55,946 --> 00:32:57,779 SOCIOPATHS AS THEY WANT TO TAKE 1279 00:32:57,848 --> 00:32:58,780 THE HEAT FOR WHATEVER LAYOFFS 1280 00:32:58,849 --> 00:33:00,348 AND-OR ATROCITIES THEY WERE 1281 00:33:00,417 --> 00:33:01,249 ALREADY LAUNCHING IN THE FIRST 1282 00:33:01,318 --> 00:33:02,450 PLACE. 1283 00:33:02,519 --> 00:33:03,618 IT'S A FREE COUNTRY, OR NOT, 1284 00:33:03,687 --> 00:33:04,819 DEPENDING ON WHERE THE McKINSEY 1285 00:33:04,888 --> 00:33:07,488 OFFICE IS. 1286 00:33:07,557 --> 00:33:08,523 BUT, IF THEIR WORK, AS THEY 1287 00:33:08,592 --> 00:33:09,924 CLAIM, REALLY DOES IMPACT THE 1288 00:33:09,993 --> 00:33:11,559 LIVES OF MILLIONS OF PEOPLE, 1289 00:33:11,628 --> 00:33:12,994 THEY SHOULDN'T GET TO BE 1290 00:33:13,063 --> 00:33:14,595 INVISIBLE AND THEY SHOULD EXPECT 1291 00:33:14,664 --> 00:33:15,797 MUCH MORE ACCOUNTABILITY FOR 1292 00:33:15,866 --> 00:33:18,099 THEIR MISTAKES. 1293 00:33:18,168 --> 00:33:18,900 AND, UNTIL SUCH TIME AS THAT 1294 00:33:18,969 --> 00:33:20,535 HAPPENS, THE VERY LEAST THEY CAN 1295 00:33:20,604 --> 00:33:22,703 DO IS BE A BIT MORE TRANSPARENT 1296 00:33:22,772 --> 00:33:23,271 WITH THEIR RECRUITING VIDEOS 1297 00:33:23,340 --> 00:33:29,076 GOING FORWARD. 1298 00:33:29,145 --> 00:33:29,744 ♪ ♪ 1299 00:33:29,813 --> 00:33:31,579 >> HI. 1300 00:33:31,648 --> 00:33:32,146 HERE AT MCKINSEY, WE ARE AN 1301 00:33:32,215 --> 00:33:33,414 ELITE GROUP OF STRATEGISTS, 1302 00:33:33,483 --> 00:33:35,283 THINKERS, INNOVATORS, GUYS NAMED 1303 00:33:35,352 --> 00:33:42,352 BRADEN, AND DELTA PLATINUM 1304 00:33:42,826 --> 00:33:46,060 SKYMILES REWARDS MEMBERS, HERE 1305 00:33:46,129 --> 00:33:47,128 TO DRIVE SUCCESS AT ANY BUSINESS 1306 00:33:47,197 --> 00:33:47,795 VENTURE. 1307 00:33:47,864 --> 00:33:49,197 WE ARE PROUD TO SAY MCKINSEY 1308 00:33:49,266 --> 00:33:50,298 ALUMS INCLUDE MANY OF THE MOST 1309 00:33:50,367 --> 00:33:51,966 POWERFUL PEOPLE ON EARTH. 1310 00:33:52,035 --> 00:33:53,634 AND ALSO, PETE BUTTIGIEG. 1311 00:33:53,703 --> 00:33:54,702 >> WE AT MCKINSEY GENUINELY 1312 00:33:54,771 --> 00:33:55,736 BELIEVE GREAT CONSULTANTS CAN 1313 00:33:55,805 --> 00:33:57,638 COME FROM ANYWHERE. 1314 00:33:57,707 --> 00:33:58,139 THAT'S WHY OUR WORKFORCE 1315 00:33:58,208 --> 00:33:59,407 FEATURES AN INCREDIBLY DIVERSE 1316 00:33:59,476 --> 00:34:01,476 ARRAY OF GRADUATES FROM ALL OVER 1317 00:34:01,545 --> 00:34:03,878 THE IVY LEAGUE, EVEN CORNELL. 1318 00:34:03,947 --> 00:34:06,180 >> SO, IF YOU ARE AN AMBITIOUS 1319 00:34:06,249 --> 00:34:06,981 COLLEGE SENIOR OR AN MBA 1320 00:34:07,050 --> 00:34:09,650 GRADUATE WHO NEEDS TO BE TOLD 1321 00:34:09,719 --> 00:34:10,751 "YOU'RE SPECIAL" OR YOU WILL 1322 00:34:10,820 --> 00:34:13,321 DIE, WE WOULD LIKE YOU TO 1323 00:34:13,390 --> 00:34:15,056 CONSIDER A CAREER AT MCKINSEY. 1324 00:34:15,125 --> 00:34:15,957 >> THE BEST PART OF MY HARVARD 1325 00:34:16,026 --> 00:34:17,091 EDUCATION WAS THE LOOK ON 1326 00:34:17,160 --> 00:34:17,758 PEOPLE'S FACES WHEN I SAID "I GO 1327 00:34:17,827 --> 00:34:19,527 TO HARVARD." 1328 00:34:19,596 --> 00:34:22,864 I'M REALLY PASSIONATE ABOUT 1329 00:34:22,933 --> 00:34:23,531 BELONGING IN GROUPS THAT OPPRESS 1330 00:34:23,600 --> 00:34:24,999 PEOPLE, AND SO TO BE ABLE TO 1331 00:34:25,068 --> 00:34:25,600 CONTINUE THAT AT MCKINSEY HAS 1332 00:34:25,669 --> 00:34:27,602 BEEN VERY FULFILLING. 1333 00:34:27,671 --> 00:34:28,936 >> ONE OF THE INTERVIEW 1334 00:34:29,005 --> 00:34:30,171 QUESTIONS I WAS ASKED IN MY 1335 00:34:30,240 --> 00:34:31,239 FINAL ROUND WAS "HOW MUCH WOOD 1336 00:34:31,308 --> 00:34:32,440 WOULD A WOODCHUCK CHUCK IF A 1337 00:34:32,509 --> 00:34:34,075 WOODCHUCK COULD CHUCK WOOD?" 1338 00:34:34,144 --> 00:34:36,844 SOUNDS LIKE A SILLY QUESTION. 1339 00:34:36,913 --> 00:34:43,913 IT'S A SMART WAY TO TEST YOUR 1340 00:34:48,458 --> 00:34:50,825 APPROACH TO PARTNERS AND HOW 1341 00:34:50,894 --> 00:34:52,960 MANY BILLABLE HOURS YOU CAN TALK 1342 00:34:53,029 --> 00:34:53,327 FOR. 1343 00:34:53,396 --> 00:34:54,695 IN MY CASE, A LOT. 1344 00:34:54,764 --> 00:34:55,263 >> HERE AT MCKINSEY, YOU'LL 1345 00:34:55,332 --> 00:34:56,964 HAVE THE OPPORTUNITY TO CHANGE 1346 00:34:57,033 --> 00:34:57,465 THE WORLD, BY SERVING A 1347 00:34:57,534 --> 00:34:58,666 SURPRISINGLY WIDE ARRAY OF 1348 00:34:58,735 --> 00:34:59,567 CLIENTS. 1349 00:34:59,636 --> 00:35:00,201 >> BUT, NOT JUST ANYONE. 1350 00:35:00,270 --> 00:35:01,068 FOR INSTANCE, WE PROUDLY DON'T 1351 00:35:01,137 --> 00:35:02,203 WORK FOR TOBACCO CLIENTS, AND 1352 00:35:02,272 --> 00:35:02,870 HAVEN'T SINCE THE START OF THIS 1353 00:35:02,939 --> 00:35:03,938 SENTENCE. 1354 00:35:04,007 --> 00:35:05,440 >> WE HAVE GOT CLIENTS WHO 1355 00:35:05,509 --> 00:35:06,073 APPEAL TO EVERY INTEREST: LOCAL 1356 00:35:06,142 --> 00:35:07,341 INTERESTS, FOREIGN INTERESTS, 1357 00:35:07,410 --> 00:35:08,810 AND EVEN CONFLICT OF INTERESTS. 1358 00:35:08,879 --> 00:35:10,445 >> I WORK FOR THE FDA AND 1359 00:35:10,514 --> 00:35:12,580 PURDUE PHARMA. 1360 00:35:12,649 --> 00:35:14,649 AT THE SAME TIME. 1361 00:35:14,718 --> 00:35:16,017 I CAN'T BELIEVE I WAS ALLOWED TO 1362 00:35:16,086 --> 00:35:17,385 DO THAT. 1363 00:35:17,454 --> 00:35:18,553 MY MOM DID SAY "SHOULDN'T THAT 1364 00:35:18,622 --> 00:35:19,153 BE ILLEGAL?" 1365 00:35:19,222 --> 00:35:20,321 THAT MADE ME REALLY WORRIED, 1366 00:35:20,390 --> 00:35:21,355 UNTIL I REMEMBERED SHE'S NOT A 1367 00:35:21,424 --> 00:35:22,557 CONSULTANT, OF COURSE SHE 1368 00:35:22,626 --> 00:35:23,691 WOULDN'T UNDERSTAND. 1369 00:35:23,760 --> 00:35:24,292 I WAS BASICALLY TALKING TO AN 1370 00:35:24,361 --> 00:35:26,194 APE. 1371 00:35:26,263 --> 00:35:27,562 >> WE HOLD OUR EMPLOYEES AND OUR 1372 00:35:27,631 --> 00:35:28,896 CLIENTS TO A HIGHER PERSONAL AND 1373 00:35:28,965 --> 00:35:30,865 ETHICAL STANDARD. 1374 00:35:30,934 --> 00:35:31,833 CORE MCKINSEY VALUES WILL 1375 00:35:31,902 --> 00:35:33,301 ALWAYS -- 1376 00:35:33,370 --> 00:35:38,106 >> SORRY, YOU HAVE A PHONE CALL? 1377 00:35:38,175 --> 00:35:39,574 >> NOT NOW? 1378 00:35:39,643 --> 00:35:41,709 >> IT'S THE SAUDIS. 1379 00:35:41,778 --> 00:35:42,343 >> ACTUALLY, I DO HAVE TO TAKE 1380 00:35:42,412 --> 00:35:43,211 THIS. 1381 00:35:43,280 --> 00:35:44,812 I THINK IT MIGHT BE ABOUT -- THE 1382 00:35:44,881 --> 00:35:48,483 THING. 1383 00:35:48,552 --> 00:35:50,618 >> YOU'VE GOT BRADEN BEAT. 1384 00:35:50,687 --> 00:35:51,352 >> THE POINT IS, YOU WILL BE 1385 00:35:51,421 --> 00:35:53,321 USING YOUR BIG, SPECIAL, EARLY 1386 00:35:53,390 --> 00:35:54,088 '20S BRAIN UNENCUMBERED BY 1387 00:35:54,157 --> 00:35:57,091 PRACTICAL EXPERIENCE TO DEVELOP 1388 00:35:57,160 --> 00:35:58,693 BESPOKE TAILOR SOLUTIONS TO 1389 00:35:58,762 --> 00:36:00,027 ADDRESS COMPANIES' SPECIFIC 1390 00:36:00,096 --> 00:36:04,232 NEEDS. 1391 00:36:04,301 --> 00:36:04,832 >> WHAT WE ARE RECOMMENDING IS 1392 00:36:04,901 --> 00:36:06,234 FINDING SIGNIFICANT 1393 00:36:06,303 --> 00:36:07,101 EFFICIENCIES, BY LAYING OFF THE 1394 00:36:07,170 --> 00:36:08,870 PEOPLE AT THE BOTTOM OF THE 1395 00:36:08,939 --> 00:36:10,304 COMPANY AND PAYING MORE TO THE 1396 00:36:10,373 --> 00:36:11,773 PEOPLE AT THE TOP. 1397 00:36:11,842 --> 00:36:14,942 >> HEY, THAT'S ME! 1398 00:36:15,011 --> 00:36:15,443 THE MONEY SIGNS! 1399 00:36:15,512 --> 00:36:16,778 >> YES! 1400 00:36:16,847 --> 00:36:18,012 >> THAT'S ME AT THE TOP! 1401 00:36:18,081 --> 00:36:20,782 [LAUGHS] 1402 00:36:20,851 --> 00:36:21,382 >> LOOK: WE BELIEVE THERE ARE 1403 00:36:21,451 --> 00:36:22,784 THREE GREAT INSTITUTIONS LEFT IN 1404 00:36:22,853 --> 00:36:24,118 THE WORLD: THE MARINES, THE 1405 00:36:24,187 --> 00:36:26,821 CATHOLIC CHURCH, AND MCKINSEY. 1406 00:36:26,890 --> 00:36:28,189 >> THAT'S BECAUSE THE MARK OF 1407 00:36:28,258 --> 00:36:29,557 ANY GOOD INSTITUTION IS MATCHING 1408 00:36:29,626 --> 00:36:31,793 OUTFITS, EVASION OF 1409 00:36:31,862 --> 00:36:34,462 RESPONSIBILITY THROUGH 1410 00:36:34,531 --> 00:36:35,062 INSTITUTIONAL SECRECY, AND THE 1411 00:36:35,131 --> 00:36:36,731 MISPLACED BELIEF THAT YOU ARE 1412 00:36:36,800 --> 00:36:38,166 SAVING THE WORLD. 1413 00:36:38,235 --> 00:36:39,300 BECAUSE AT THE END OF THE DAY -- 1414 00:36:39,369 --> 00:36:40,802 >> WE'RE MCKINSEY. 1415 00:36:40,871 --> 00:36:42,136 >> WE'RE MCKINSEY. 1416 00:36:42,205 --> 00:36:43,738 >> WE'RE MCKINSEY. 1417 00:36:43,807 --> 00:36:45,273 >> WE'RE MCKINSEY. 1418 00:36:45,342 --> 00:36:46,774 >> AND, WE ARE CAPABLE OF 1419 00:36:46,843 --> 00:36:48,109 ANYTHING. 1420 00:36:48,178 --> 00:36:49,444 >> AND CULPABLE FOR NOTHING. 1421 00:36:49,513 --> 00:36:50,378 [LAUGHS] 1422 00:36:50,447 --> 00:36:53,347 >> I LOVE THAT LINE. 1423 00:36:53,416 --> 00:36:53,981 >> I MEAN IT'S TRUE, THEY CAN'T 1424 00:36:54,050 --> 00:36:54,248 TOUCH US. 1425 00:36:54,317 --> 00:36:55,650 >> IT'S TRUE. 1426 00:36:55,719 --> 00:36:56,918 >> JOHN: THAT'S OUR SHOW, 1427 00:36:56,987 --> 00:36:57,518 THANKS SO MUCH FOR WATCHING. 1428 00:36:57,587 --> 00:36:58,152 WE'LL SEE YOU NEXT WEEK. 1429 00:36:58,221 --> 00:37:01,088 GOOD NIGHT. 1430 00:37:01,157 --> 00:37:01,556 [CHEERS AND APPLAUSE] 1431 00:37:01,625 --> 00:37:02,723 ♪ ♪ 1432 00:37:02,792 --> 00:37:03,925 >> JUST TRADITIONAL FIRING 1433 00:37:03,994 --> 00:37:08,863 SONGS. 1434 00:37:08,932 --> 00:37:11,432 OF COURSE, NSYNC. 1435 00:37:11,501 --> 00:37:12,500 THE VERB, FOR ANY GEN X PEOPLE 1436 00:37:12,569 --> 00:37:13,601 YOU MIGHT BE FIRING. 1437 00:37:13,670 --> 00:37:14,202 >> YOU WOULD HAVE TO TAKE THE 1438 00:37:14,271 --> 00:37:15,169 DIAMOND OUT OF THE WOODCHUCK'S 1439 00:37:15,238 --> 00:37:16,637 MOUTH, TIME THE VOLUME, SO YOU 1440 00:37:16,706 --> 00:37:17,171 COULD GET AN AVERAGE BITE, 1441 00:37:17,240 --> 00:37:18,306 PASSING SIZE, AND THEN YOU HAVE 1442 00:37:18,375 --> 00:37:19,240 TO MULTIPLY THAT WITH THE TOTAL 1443 00:37:19,309 --> 00:37:26,309 WOOD CONSUMPTION IN AMERICA, 1444 00:37:26,516 --> 00:37:27,415 WHICH THEY WOODCHUCK HAS MADE, 1445 00:37:27,484 --> 00:37:31,586 AND JUST OFF THE TOP OF MY HEAD, 1446 00:37:31,655 --> 00:37:32,787 ABOUT 3.4 BILLION VOLUMES 1447 00:37:32,856 --> 00:37:34,589 OF WOOD -- SO, THE FOREST AND 1448 00:37:34,658 --> 00:37:35,356 DEVASTATION, CLIMATE CHANGE. 1449 00:37:35,425 --> 00:37:35,957 I WOULD SAY A WOODCHUCK COULD 1450 00:37:36,026 --> 00:37:37,291 PROBABLY CHUCK ABOUT 2 BILLION 1451 00:37:37,360 --> 00:37:38,893 CUBITS OF WOOD PER YEAR. 1452 00:37:38,962 --> 00:37:41,229 >> WAIT, I'M SORRY, HE DID 1453 00:37:41,298 --> 00:37:41,762 ANOTHER ONE. 1454 00:37:41,831 --> 00:37:42,363 OH, MY GOD. 1455 00:37:42,432 --> 00:37:44,267 WHICH NEWSPAPER?