WEBVTT

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- BCG TURN is our approach and methodology

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for rapid full company transformation.

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We created TURN,

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because we found that our
clients were increasingly

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in situations of facing
existential pressures,

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either externally focused
or internally focused.

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BCG TURN is a methodology that allows us

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to work shoulder to
shoulder with our clients,

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helping them improve the
business in a comprehensive way.

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Technology companies have been undergoing

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massive transformation

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over the course of the
past couple of decades.

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This went from an industry,

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which was primarily driven by growth,

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as an industry, as a sector,
grew at double digits,

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to now one which is much more faced,

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focused on return on investment,

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running efficient operations,

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while still continuing to
innovate and invest for growth.

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One interesting fact is
that the technology sector

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has been one of the most targeted
by shareholder activists,

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which are obviously a catalyst

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for full a company transformation.

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TURN programs differ in three ways.

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Number one, the full company is in scope.

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That means that any
lever for value creation,

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that may be relevant to the company,

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from organization redesign to growth,

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to even working with the balance
sheet and working capital,

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is in scope.

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Number two, BCG works shoulder
to shoulder with our clients,

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often helping them make decisions.

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Literally potentially even staffing roles,

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that the client may have
on their senior team

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or as a chief transformation officer.

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Number three,

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we are accountable and
incentivized by results.

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We want our clients to realize
the benefits of the program,

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and for BCG to actually
have skin in the game.

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What this means is we don't

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shake your hand, and
walk away, and just say,

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"Good luck with the program,"

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but we're actually there working with you,

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until you realize the
benefits of the program.

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People think about TURN,

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and their first thought

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may be companies that are
in financial distress.

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In truth, this can apply to
a broad suite of companies,

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which could include companies,

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which are still growing
at 10% plus annually,

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but have a significant opportunity

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to improve their operations
and effectiveness.

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This could come from
making decisions faster,

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as a senior team.

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This could come from having
better connectivity to customers

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and understanding what's top
of mind for those customers.

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This could involve things like setting up

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a shared services center
in a low cost location.

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The business outcomes are everything

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from improving organizational
efficiency and effectiveness.

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So making decisions faster,

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having better connectivity

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to the frontline and to customers,

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all the way through to
realizing cost efficiencies.

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And so typically we're seeing

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on the order of a hundred
million dollars of cost,

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annual operating expense reduction.

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Plus it could be,

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it could be significantly more,

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it could be in the hundreds
of millions of dollars.

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Companies are able to
reinvest in the business,

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particularly in technology where
innovation is so paramount.

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And so we can see them

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reinvesting into core R and D functions.

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We can see them reinvesting
into areas like marketing,

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which can drive a
significant amount of upside.

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In addition, we can also
see them having more cash,

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in order to return to shareholders
in one form or fashion.