How do companies view the management improvement plan? Do they resist change?
JING HUANG, BAIN: Bain Capital’s style adopts active involvement in portfolio management, which may or may not be welcome by entrepreneurs. Earlier in this conference, our discussions about the 100-day blue-printing process and budgets for management improvement highlighted how often these requirements shock entrepreneurs. They are accustomed to having fixed asset capex, buying machines, building facilities, buying lands, and maybe paying for software, but consulting services such as those by McKinsey, Bain and BCG frighten them. From the start of negotiations, it is clear that such entrepreneurs just want your capital. You will be welcome to attend the Board meetings, but other than that, do not bother anyone! Such entrepreneurs would probably not become our partners. Bain Capital has three portfolio companies in China. In each case, we conducted or ARE conducting a 100-day blue-printing process. One company has completed the process. The entrepreneurs were skeptical first and asked,
