As Bain & Co.’s newly appointed Global Performance Improvement Practice leader, Miles Cook oversees one of his firm’s largest practices -- one that touches almost all of the firm’s client engagements. And because of that perspective, Consulting's One-on-One sat down with him to learn where and how he thinks client demand is shifting.

Consulting: What are the biggest issues facing your clients today?
Cook: Because of the economy, companies have been working to rid their business processes of waste to free up cash. They are continuing to attack inefficiencies, but are starting to get to the harder stuff. And they are realizing it’s going to require more outside help to make that change happen. The easy, first order things have already been driven internally. Now, a lot of functions need to change to drive the next layer of cost savings. And it will require firms like us to manage the delivery of those programs.

Consulting: Are firms also looking at growth opportunities?
Cook: I also think that people are beginning to think about transitioning from defense to offense. They are seeing competitive windows opening and companies are moving to capture market share and expand into new sectors. We’re hearing from a number of companies who want help to figure out when, and how, they move from defense -- driving efficiency -- to offense – leveraging their existing, and/or building new, capabilities to win in the market.

Consulting: Looking back, how was this downturn different from past downturns? And how is that likely to impact the recovery-driven consulting opportunities?
Cook: Unlike prior slowdowns, in this downturn companies were willing to retain some resources to invest in core business opportunities, even when budgets were tight. I think what we’re seeing now are clients beginning to take the foot off the brake even more. They are starting to spend on some non-discretionary projects and focusing on, say, two high-priority growth opportunities at once. They are now thinking about growth as much as their margins.

Consulting: How confident are business leaders in the recovery?
Cook: CEOs are certainly more confident that they are through the bottom. The descent has stopped. And, as a result, they are willing to take on more risk. Their outlook, generally, is no worse than flat, with an upswing in some sectors. The more successful ones also see some of the competitors on their backs now. Those really hurt by the downturn remain weak and are slow to respond to changing market conditions. Those companies that are emerging from the downturn in a healthier position see a window of opportunity to gain a relative advantage. If they have resources and the other guy doesn’t, they can move far more aggressively.

Consulting: Based on the feedback you’re getting from clients, how do you see the recovery taking shape?
Cook: There are a lot of theories of what it will look like. I think most of us think we’re going to see a more muted recovery, one that has a slow upslope. You can’t count on the market to lift you because the environment is improving very slowly.

Consulting: Where are you starting to see growth opportunities?
Cook: We’re seeing regional differences. We’re starting to see signs of life in a number of developing markets like China and India. And in certain regions of Europe – but not all – we’re seeing some improvement. Central Europe, in particular, is taking longer than other areas. In Latin America, we’re seeing some resilience. And in Eastern Europe and North America, we’re seeing a shift in momentum. We’re also seeing some pent-up demand across all markets. Business leaders are realizing that they can’t defer things forever. A lot of clients are coming back to say, ‘remember what we talked about 18 months ago.’ We’re having more of those dialogues start again. That’s leading to new M&A opportunities, new product launches, and projects to help clients expand into emerging markets.