Good morning, Broadsheet readers. Yahoo CEO Marissa Mayer surprised investors yesterday with slightly better-than-expected earnings, and former Microsoft CEO Steve Ballmer defended his successor’s comments about women and pay. Read on to learn why Detroit is brimming with female entrepreneurs. Have a great Wednesday!
• Yahoo beats expectations… barely. The Internet giant, led by CEO Marissa Mayer, reported a 1% increase in third-quarter revenue to $1.02 billion. Yahoo also announced more than $200 million in mobile revenue, which could potentially ease some of the pressure Mayer is facing from activist investor Starboard Value. Fortune
ALSO IN THE HEADLINES
• CVS gets tougher on tobacco. CVS Health, which already stopped selling tobacco in its retail pharmacies, is now offering a prescription-drug plan that charges patients more if they buy their medications from pharmacies that sell tobacco products. The move, led by President of CVS/Pharmacy Helena Foulkes, likely will be a boon for the company’s own network of drugstores. WSJ
• Spanx CEO: To be successful, you have to care. Sara Blakely didn’t have any financial backers when she started building out her underwear company in 2000, but she was her product’s biggest fan. Today, Spanx has made her the youngest self-made female billionaire. “I did not have the most experience in the industry or the most money,” said Blakely at Forbes 30 Under 30 Summit. “But I cared the most.” Forbes
• Royal Mail CEO: Get more women into the boardroom. To get more women on boards, executives first need to change how they talk about women in the workplace, says Moya Greene. “People ascribe negative qualities to women who reveal they have ambition,” she said. “It’s doubly difficult to get the numbers to change if people don’t think they can do the job.” Telegraph
• Can a pro-life platform win an election? Marjorie Dannenfelser, the president of pro-life organization the Susan B. Anthony List, is trying to change the way politicians talks about abortion. To start, she wants to eliminate the world “anti-abortion” to help candidates who are wary of being associated too closely with the pro-life movement. “Now I’m going to sleep thinking, Oh, my gosh, thirty-eight hundred children are going to die tomorrow. What am I going to do to actually save some of them,” she said. New Yorker
• Steve Ballmer defends his successor. In an interview with CBS This Morning, the new LA Clippers owner stood up for Microsoft CEO Satya Nadella and his recent comment that women shouldn’t negotiate for a raise. “He allowed good karma to happen and good things happened to him and he was very fortunate, and that’s his genuine belief in life. But you do have people who don’t necessarily get a fair shake through the process,” he said. CBS News
KPMG’s Vice Chair Lynne Doughtie gets strategic with new practice
Business leaders across industries are facing unprecedented change. KPMG is adding a new strategy unit to help them prepare for those ever-growing disruptors.
KPMG, one of the “Big Four” accounting firms, is getting even bigger.
Today, the company is announcing plans to create a new strategy-consulting unit. KPMG, which already advises approximately one-third of the Fortune 100 on strategy, is creating its own strategy unit to keep up with growing demand for its services. KPMG Strategy will be housed under the company’s advisory practice and is comprised of 900 employees across 35 KPMG firms around the world. The new venture with be lead by Lynne Doughtie, KPMG’s vice chair of advisory and the only woman currently leading the U.S. advisory and consulting practice of a big four firm.
“Strategy is the starting point for a transformation that needs to occur and how that company must change to win,” Doughtie said in an exclusive interview with Fortune. “We can provide a point of view and a vision into the future for our clients within their respective industries.”
The company decided to dive deeper into strategy because of the fast-paced direction Doughtie and others are seeing the business world move in. From rapidly changing technologies to increased regulatory pressure, Doughtie says she is seeing KPMG clients asking for more forward-looking services to grow shareholder value and keep up with competitors. While KPMG already offers audit, tax and advisory services, strategy will allow the firm to think more long-term with clients about how they can shape their businesses.
The move pulls KPMG into the already saturated space of strategy consulting. The other members of the big four — Deloitte, PricewaterhouseCoopers and Ernst & Young – all offer strategy services while consulting firms like Bain & Company, BCG and McKinsey market themselves as strategy experts as well. Yet Doughtie is still lauding KPMG’s push as unique. Unlike Deloitte and EY, which respectively acquired strategy businesses within the last two years, KPMG is building out its new unit largely from talent it already has in-house. This will allow KPMG Strategy clients to take advantage of the wide-range of services the firm offers outside of the specific strategy unit, says Doughtie.
“Our whole approach to delivering strategy to our clients is having a very integrated approach,” she added. “Many of the strategy houses don’t have the depth of world-class risk capability that a KPMG has, particularly in industries where regulation is a key driver such as financial services or healthcare.”
Click over to Fortune.com to read my full story.
IN CASE YOU MISSED IT
• Why women entrepreneurs love Detroit. The embattled city may have a hard time recruiting big companies to come and set up shop, but a large group of young female entrepreneurs are making the move. Why? It’s easier for entrepreneurs to have an impact in the Motor City than in larger, more stable locations, a source told Fortune. Fortune
• The untapped voting power of Gen-Y women. Millennial entrepreneur Amanda Pouchot is working to rally more women her age to vote in November’s midterm elections. She thinks the demographic is critical and says “change isn’t always monumental. It can be incremental, such as a single vote.” Fortune
ON MY RADAR
We’ve stopped talking about domestic violence and the NFL FiveThirtyEight
Ruth Bader Ginsburg gets ready for her closeup Politico
How we lied to Afghan girls The Daily Beast
Pulitzer-winning women on what it takes to win Bizwomen
I’m hardcore. Don’t cry in the office. Obviously, if you hear horrible personal news, that’s one thing. But, if you get upset at work, don’t cry. Go to the bathroom, or go for a walk. Screaming in the office isn’t professional, and there’s a whole range of unprofessional office behaviors — but, crying is absolutely one of them.Debora Spar, president of Barnard College, tells Refinery 29.