Analysis of information sources in references of the Wikipedia article "Bain & Company" in English language version.
Four years ago the firm developed a Bain Index, which charts the performance of Bain client stocks against various indexes. The index, audited for FORTUNE by Price Waterhouse, shows that the stock market value of all Bain's U.S. clients has increased 319% since 1980, compared with 141% for the Dow Jones industrial average and 67% for an index of stocks in industries in which Bain has clients.
In order to guarantee clients a proprietary strategy, he promised that his firm would not work for their competitors. The notion was unique; other consultants thought nothing of working for two or more competitors simultaneously. In return for abiding by that restriction, Bain ultimately expected a long-term commitment from the client.
For one thing, Bain has seldom had to market itself; it lets satisfied customers do the job. Word of Bain's unique product has spread, primarily by word of mouth, from boardroom to boardroom. Chief executives at Baxter Travenol, Chrysler Motors, Dun & Bradstreet, Owens Illinois, and Sterling Drug rave about Bain's services.
If a satisfied chief executive is worth his weight in billings, a dependent one is even better. Indeed, competitors carp that the Bain approach demands an insecure C.E.O. To that end Bainies stick around to implement their recommendations.
This also helps the firm achieve another of its objectives -- to grow its billings from a client every year. With Bainies swarming all over them, it becomes difficult for clients to disengage themselves from the firm. Says one: They anchor themselves in the stomach of the business. They forge a dependent relationship: 'If you have a problem, call us.' There should be a weaning-away process.
Even in these bad economic times, the top three have also been increasingly working with governments around the world - in healthcare, for example, and helping to support struggling and restructuring industries (BCG has been an important adviser on the US automotive rescue).
Bain & Co said it was disappointed that the report "mischaracterises" its role at South Africa's revenue service (SARS) but that it would continue to co-operate fully with authorities.
Over the years, Bain's list of major clients grew to encompass some of the leading corporations of the nation, including the likes of Baxter International, Burlington Industries, Dun & Bradstreet, Hughes Tool, Iowa Beef, Monsanto and Wells Fargo. The results have often been impressive. In a March 1989 Price Waterhouse audit, the market value of all of Bain's clients was shown to have increased 456 percent since 1980. The audit was based on the in-house Bain Index. It compares the performance of clients' stocks with that of the Dow Jones industrial average, which was up only 192 percent. Bain claims that, for every dollar it charges clients, they increase their profits by a factor of 5 to 10.
Bain & Co said it was disappointed that the report "mischaracterises" its role at South Africa's revenue service (SARS) but that it would continue to co-operate fully with authorities.
