mckinsey swissair they gave some particularly dubious advice to which led to its bankruptcy but. these guys have eighty five percent of their businesses repeat business so they clearly have some happy customers and they're pretty much in the in the corner offices of the majority of and the big companies in any economy of note in the world these guys are literally everywhere now there is notoriously secretive mckinsey as a company how were you able to gain access to such a company. you know one interesting thing about their secrecy is that as a reporter it's it's often hard to get people to say negative things about a subject you're writing about just for fear of reprisal or the fact that people just don't like to be quoted saying negative things about anybody with mckinsey it was actually the opposite because part of the deal they have with their clients is that mckinsey doesn't take credit for their ideas it's actually harder to get their satisfied customers to talk about them because if you're the c.e.o. of some company that used them and made a great decision you're not about

you were interviewed by the mckinsey team. do you remember when? >> april timeframe. >> during when this was being developed. do you recall what you talked about? >> primarily, why i was intimating to the mckinsey team was a schedule challenge, because during april we had just started qhp submission and working with issuers. >> what is qhp? >> qualified health plans. during that month it was a rapid process to collect all the qualified health plan data that you see on healthcare.gov and the state-based workplaces. i was remarking on how that is unprecedented and only issuers only a short time to make their data, and we need to make adjustments in the windows to make sure they could come back and make corrections. >> that is an example of what i talked about in terms of the schedule challenges that we were trying to undertake something large-scale, fairly complex, compared to what is happening in the insurance landscape today, and that this was new and we were working on a short timeframe. >> i will stipulate those are legitimate concerns. on page o

>> not in the mckinsey report, no. i think we talked about issues and priorities for october 1. >> i see. well, i have no further questions. so, mr. chuck, i appreciate you spending so much time with us today. we are going to take a real five -- the real quick five minute break. we will be back in five minutes. again, thank you, mr. chao. >> thank you. >> all right. this hearing has reconvened. i would now like to introduce the witnesses on the second time for today's hearing and thank you all for being so patient and waiting to our first witness is jason providakes. he is with center for connected government admire corporation is director of the centers for medicare and medicaid services alliance to modernize medicare. our second witness is maggie bauer. she is the senior vice president of health services at creative computing solutions inc., also note as see csi. has extensive operations management can sit experience, i.t. infrastructure, software, lifecycle and end-user support on services that will drive performanc

my first question is when were you made aware of the mckinsey briefing document? >> i was aware a document because being prepared because i went through the meetings. but towards the end i was not part of them. >> were you aware they were hired to come in and basically troubleshoot the status of the website? >> i don't think they were brought into troubleshoot. i think they were brought in to make an assessment by conducting various interviews with key stake holders. >> did this group talk to you? >> yes. >> they did come in and visit with you? >> they interviewed me before. >> once? twice? >> at least two times. >> since you have been made aware of the document, have you studied it? >> no, i was not made aware of the document. i was interviewed by the team. when it was assembled i didn't get a copy of it. it is in the "washington post" now has mr. dingle pointed out. before becoming to the s subcommittee did you peruse the document? >> i have not. >> on page one, it says the worker group, whoever that is, determined that the extended the go-live date shouldn't be

you were interviewed by the mckinsey team, do you remember when? >> april time frame. >> during when this was being developed. do you require -- recall what you talked about? >> primarily, why i was intimating to the mckinsey team was a schedule challenge, because during april we had just startedqhp submission and working with issuers. >> what is qhp? lands.ified health during that month it was a rapid process to collect all the qualified health fan data -- health plan data that you see on -ealthcare.gov and the state based workplaces. i was remarking on how that is unprecedented the only gave -- give issuers only a short time to make their data, and we need to make adjustments in the windows to make sure they could come back and make corrections. >> that is an example of what i talked about in terms of the schedule challenges that we were trying to undertake something complex,le, fairly compared to what is happening in the insurance escape today, and that this was new and we were working on a short timeframe. those arestipulate legitimate concerns

with startling foresight, the consulting firm mckinsey predicted more than six months ago that the rollout of healthcare.gov would be hobbled by evolving requirements, insufficient time for end-to-end testing, and significant dependency on external parties and contractors. louisiana republican steve scalise: >> this report lays out the chaos that was going on, but all of this information was known within the white house. >> reporter: mckinsey was hired by the administration to do the review and interviewed 40 people involved with the web site, including henry chao, a key manager at the centers for medicare and medicaid. today, chao testified he never saw the 14-page presentation. >> i think i was aware that some document was being prepared because i had gone through the interviews, but towards the end, when the briefings occurred, i was not part them. >> reporter: chao told michigan's john dingell recent fears about the web site's security are unfounded. >> is healthcare.gov safe? >> yes. >> reporter: but at a separate hearing, a panel of security experts called the site's safety measures

the minimum return required by shareholders which is ten to twelve percent the average cost of equity mckinsey says more companies will have to employ a quote back to basics strategy by dropping marginal consumer products and limiting the industries they serve. and finally don't blame the grinch for stealing christmas this year blame wal-mart yes wal-mart now with a market cap of over two hundred billion dollars the mega retailer decided it couldn't possibly it just can't possibly honor prices for items accidentally put on sale via its website now wal-mart online said experience glitches this week which resulted in expensive items like computers and televisions being sold at a fraction of their cost items like a six hundred dollars treadmill sold for thirty three bucks two thousand dollars t.v. went for only a couple hundred bucks and even a popular sixty dollars video game grand theft auto five the fifth edition that was sold for twenty dollars under twenty dollars in fact now when word got out about the super sale shoppers obviously flocked to the site however as soon as wal-mart learned of

. >> henry today said to you and the committee that he was aware of the mckinsey rert that he participated in it and yet, he said he had never seen t report and somehow he seemed to suggest that he should not be held accountable. >> it was in the washington st today, this morning, and he said, he still hasn't seen it. when he testified. you just wonder what these people are really doing. they spent taxpayers' money on a site that didn't work. there are reports that we have uncovered going back to 2010 where the president clearly knew that people wouldn't be able to keep their health care that they like. it's really sad when the americaneople can no longer trust their president. >> all right, well, the bureauc asha racy, that should frighten american taxpayers as well. >> in fact the mckinsey report which i reviewed it basically describes chaos in the obama administration. where you have multiple people giving conflicting orders to the contract contractors. nobody testing the thing. as you mentioned, i program computers. i wrote test plans. the programs that i wrote actually worked because

. >> henry today said to you and the committee that he was aware of the mckinsey report that he participated in it and yet, he said he had never seen the report and somehow he seemed to suggest that he should not be held accountable. >> it washington post today, this morning, and he said, he still hasn't seen it. when he testified. you just wonder what these people are really doing. they spent taxpayers' money on a site that didn't work. there are reports that we have uncovered going back to 2010 where the president clearly knew that people wouldn't be able to keep their health care that they like. it's really sad when the american people can no longer trust their president. >> all right, well, the bureauc asha racy, that should frighten american taxpayers as well. >> in fact the mckinsey report which i reviewed it basically describes chaos in the obama administration. where you have multiple people giving conflicting orders to the contract contractors. nobody testing the thing. as you mentioned, i program computers. i wrote test plans. the programs that i wrote actually worked because we te

. >> henry today said to you and the committee that he was aware of the mckinsey report that he participated in it and yet, he said he had never seen the report and somehow he seemed to suggest that he should not be held accountable. >> it was in the washington post today, this morning, and he said, he still hasn't seen it. en he testified. you just wonder what these people are really doing. they spent taxpayers' money on a site that didn't work. there are reports that we have uncovered going back to 2010 where th president clearly knew that people wouldn't be able to keep their health care that they like. it's really sad when the american people can no longer trust their president. >> all right, well, the bureauc asha racy, th should frighten american taxpayers as well. >> in fact the mckinsey report which i reviewed it basically describes caos in the obama administration. where you have multiple people giving confltingorders to the contract contractors. nobody testing the thing. as you mentioned, i program computers. i wrote test plans.rams that i actually worked because we tested them. yo

that was going on, but these -- all of this information was known within the white house recommend mckinsey was hired by the administration to do the review and interviewed 40 people involved with the website including henry chow, a key manager for medicare and medicaid. chow testified he never saw the 14-page presentation. >> i think i was aware some document was being prepared because i went through the interviews but toward the end when the briefing occurred, i was not part of them. >> reporter: chao told michigan's john dingell that it's unfounded. but at a separate hearing, a panel of security experts called the safety flimsy and unconstructive. >> i say it's been hacked already or will be soon. >> reporter: new york republican chris collins. >> do any of you today think site is secure? >> no. >> no. >> no. >> no. >> reporter: the centers for medicare and medicaid responded sight security is tested daily. democrats argue republicans are using these hearings to try to scare americans into avoiding the website. nancy cordes, cbs news, capitol hill. >>> voters in mexico city reject add la

according to a study conducted by the mckinsey and co consulting company experts noted that the main reasons for reducing the number of banks which are working globally is the desire of shareholders to make more money. and the growing differentiation of lending institutions which will lead to the merger was leaving the financial institutions. makenzie has ingrained those banks which will be eliminated or divide it. bloomberg noted that the study analyzed to fill five hundred banks in the world. experts emphasize the fact that the twenty twelve that was going on between the largest institutions respond eight point six percent. although he's more compared with seven point nine per cent in twenty eleven the shareholders expect to get ten to twelve percent. the profitability of us found succeeded be a european counterparts. for example did have a ritual you can begin with spines was eight percent while in view of the speaker stood at two percent. referring to the state statistical bureau of china seem to why news agency has reported that during the recent thirty five years the average an

he had the mckinsey report briefing. and we don't know what took place, but it is 14 slides and shows concerns. did he continue to follow the things they suggested to work out? when he said it hit him as a surprise, the problems with the website, it is legit to think they knew more. >> thank you. >> good luck with the bangaenga and steelers! >> one university is dropping health coverage for all students rather than offer new plans with much higher cost. we are live from the school in mary land. how is this going so far, peter? >> reporter: we are getting a mixed reaction. the plans were $49 per semester and more than half of the students were covered but only $5,000 per incident. not enough to comply. it would go up to $1800 per year per student. the university is recognizing that students enter the mary land health exchange. and one student blogged this is a way to make sure the cost of the aca is balanced out. not all students are update. >> i think the university made the right decision as a university. if they were t

with the inside scoop on one of the world's most secretive businesses that's right we're talking about mckinsey and company the consulting firm has had a hand in everything from and wrong to the latest president.

with the inside scoop on one of the world's most secretive businesses that's right we're talking about mckinsey and company the consulting paper.

with the inside scoop on one of the world's most secretive businesses that's right we're talking about mckinsey and company the consulting firm has had a hand in everything from and wrong to the way this.

. >> last spring administration officials were warned by outside consulting firm mckinsey and company there were serious concerns about the development of the healthcare.gov website, such as there being a single decisionmaker with power and involving requirements from the government during requirement. health and human services secretary, medicare administrator, and white house chief technology officer were some of the senior administration officials briefed on the consulting firm red flags >> two weeks before testifying before this committee secretary sibelius was president -- present at an april 14th meeting were experts identified significant threats and risks watching this side on october october 1st. >> upton says sibelius' testimony to the committee on april 18th did not match what was happening behind-the-scenes. >> at this point our energy and resources are focused on getting it up and running, and we're on track to land contracts have been led cmdr monitoring it every step of the way. >> in miami she says she got aboard. >> we are hopeful that the testing we did, and we did s

. >> last spring administration officials were warned by outside consulting firm mckinsey and company there were serious concerns about the development of the healthcare.gov website, such as there being a single decisionmaker with power and involving requirements from the government during requirement. health and human services secretary, medicare admistrator, and white house chief technology officer were some of the senior administration officials briefed on the consulting firm red flags >> two weeks before testifying before this committee secretary sibelius was president -- present at an april 14th meeting were experts identified significant threats and risks watching this side on october october 1st. >> upton says sibelius' testimony to the committee on april 18th did not match what was happening bind-the-scenes. >> at this point our energy and resources are focused on getting it up and running, and we're on track to land contracts have been led cmdr monitoring it every step of the way. >> in miami she says she got aboard. >> we are hopeful that the testing we did, and we did some

. >> henry today said to you and the committee that he was aware of the mckinsey report that he participated in it and yet, he said he had never seen the report and somehow he seed to suggest that he should not be held accountable. >> it was in the washington post today, this morning, and he said, he still hasn't seen it. when he testified. you jujust wonder what these people are really doing. they spent taxpayers' money on a si that didn't work. there are reports that we have uncovered going back to 2010 where the president clearly knew that people wouldn't be able to ep their health care that they like. it's really sad when the american people can no longer trust their president. >> all right, well, the bureauc asha racy, that should frighten american taxpayers as well. >> in factkinsey report which i reviewed it basically describes chaos in the obama administration. where you have multiple people giving conflicting orders to the contract contractors. nobo testing the thing as you mentioned, i program computers. i wrote test plans. the programs that i wrote actually worked cause we tested

. >> to the original question, there was a study not that long ago that mckinsey did that found that one of the biggest differentiators of the school systems that are getting the best results is the fact that they actually do select their teachers based on a very rigorous standards before they invest in their training and support. we have a very different system here. we have got lots of people majoring in teacher education schools of education notoriously don't attract the most talented of our folks academically although there are some flexible we have a very different system in terms of who is drawn into the profession. >> i kind of underestimated, i realize it mattered if he had a great education and might be easier to teach the subject but we know that's not enough. it's not a predictor of great teaching. what was surprising to me were the signals that is sent to everybody else, to the parents, to the taxpayers and to the kids about the profession and education in general. when we say they are teaching is but we don't really act like it in many cases. it adds this credibility tha

two i think primarily while i was intimating to the mckinsey team, it was a scheduled challenge because we had just started this submission and working with the issuers they were very nervous. >> what is to hp? >> qualified health plans and i apologize. >> no problem. >> during that month, it was a rapid process to collect all of the qualified health plan data that you see on health care.gov as well as in the state pleased marketplaces and i was remarking on how that is unprecedented to only give an issue where the amount of time to submit the data and we need to make adjustments in the windows so that they could come back in and make corrections. yes, that is an example of what i talked about in terms of schedule challenges that we were trying to undertake, some kind of large-scale fairly complex compared to what has been happening in the landscape today. but this was new and we were working on a short timeframe. >> yes, those are legitimate concerns. on page one of this document, it highlighted that the working group determined that extending this should not be part of the analysis an

he started to see some of our major business consultants, mckinsey, others coming out with a message that was quite a change to their clients. the analysis on cost that has led us in the past to look at locations and those cost calculations have changed. what we will look at in the future over the next 10 years, which is what you should be looking for. the which productivity factor now has turned around and will favor the united states, number one. number two, the realization of the natural gas costs, that 50% lower costs. third, in 2011, there is a greater realization that perhaps are more hidden or uncertain costs and overly diffuse and remote supply chain. perhaps that was spurred by the natural disaster in japan, etc. all of the started leading to reconsideration. people were advising their companies and trying to make a focus that we should be looking at manufacturing locations likely look at r&d. it is not an industrial policy. it is an innovation strategy. that location matters and has significant spillover impacts. athink we felt that this was policy that the president suppor

. >> james, mckinsey which is a nonpolitical, they say that probably one-third of the 150 million people covered by insurance today possibly and probably one-third, 50 million will lose their current employer coverage within the next two years. that's going to be momentus. it's an earthquake. >> be careful because i don't know, and i don't know the study and i don't know people losing employer coverage, losing their job. you just can't throw out these numbers about everybody gets a cancellation, gets it because of obama care. we can say that it had a difficult roll out. we can say all of this. you got to be connected to reality. there has to be some connection. >> james, i'm connected. i'm connected with your argument. i want to disconnect your argument. today, the insurance commissioner of california used that figure, he said a million people have gotten cancellation. as a democrat he's elected to that position. you got the low level, what 40 to 50,000 people signed up. i want to jump ship. i want to ask you about this. they are expecting much more. now get this, we're told today that t

this was the warning that mckinsey gave secretary sebelius last april and said you have to do end to end testing. most of us have never designed a website. it is best to have a plan. and architect's plan. here's the cost and do the job. they were making up as they went along. buildere working on the and not doing testing. that added to the confusion. this firm was saying this is real confusing, we do not know how the pieces fit together. host: the editors of "the new a question asked about the republican alternative and right now there is none. guest: that is not true. we were marking up this bill and offered 30 a more amendments to make changes, including an amendment that said if you like your health care plan you can keep it. democrats voted tit down. the president continues to say, let's work together to get things done. what has been lacking is bringing people together to get things done. we had a vote last week. he said let's bring republicans and democrats together. that is a good idea. he said let's have an executive order to tell insurance companies to do something. insuranc

the world for taking his position at oceana and he worked at the discovery channel real networks and mckinsey and company is degrees from harvard college harvard law school and the london school of economics and he's new book the perfect protein fish lovers guide to saving the oceans and feeding the world is a must read for anyone who wants to understand how eating seafood can save the world and a lot of individuals in it and the sharks welcome to the program thanks for thanks for joining us first let's start out with the. got you interested in conserving our oceans and sea. you know i when we were preparing for the time of the tour about the book you know we brought in experts to advise us to get ready for the interviews and they said the two toughest questions you're going to get asked why did you write the book and which recipe in the back is your favorite one i'll come back to the second if you want but the. i think the moment is like a lot of things you know it's hard to trace through the really key moment but i think the moment is when about four or five years ago i was in geneva. repre

the mckinsey consulting firm. and they found in a march report that was presented to white house officials in april, they thought there were real problems. they thought the website would not be ready. their biggest concern, there was not enough time to do end-to-end testing. and we know that was the case. >> it sure was. okay, jon, thanks very much. >>> now, to the aftermath of the devastating storms in the heartland. people cleaning up from the powerful tornados that sent debris flying more than 100 miles away. abc's alex perez is on the ground for us in the hard-hit town of washington, illinois. good morning, alex. >> reporter: good morning, robin. this morning, the donations for those who lost their homes are streaming in. for the first time, we are getting a closer look at ground zero and seeing how powerful this tornado really was. this morning the magnitude of the monster tornado is just becoming clear. survivor kris lancaster shared his story with us on "good morning america" on monday. >> our dream home is

cnn's david mckinsey has more. >> authorities released the news late on a friday evening with simple statements, but they are about laws that have been around for decades. and some of the most hated policies in china. the one-child policy is extremely controversial, and the reaction on the streets was almost immediate. >> since the policy now allows it, i will definitely have another child. it's too lonely for a single child. >> when i get married, i would prefer having two children because i'm the only child in my family. my childhood was a bit boring. >> they introduced the policy in the late '70s to curb the population overgrowth. applauded by some, but criticized by many. forced aborstions, involuntary sterilizations, and a huge gender imbalance. faced with a clinkisclipging la pool, their hand was forced. couples now can have a second child if at least one of the parents is an only child. some human rights groups say it's not enough and want it abolished all together. the government has abolished another policy, education through labor camps. they were used for decades to detain