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How McKinsey cashed in by consulting for both companies and their regulators

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How McKinsey cashed in by consulting for both companies and their regulators

McKinsey & Firm administration consulting agency operates in additional than 60 international locations.

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McKinsey & Firm administration consulting agency operates in additional than 60 international locations.

Fabrice Coffrini /AFP by way of Getty Photographs

The McKinsey & Firm consulting agency, which operates in additional than 60 international locations and employs greater than 30,000 individuals, presents itself as a values-driven group that cares not nearly income, but in addition about communities around the globe. It is a status the agency attracts on when hiring new consultants, usually from the nation’s prime universities.

“They’ve a pitch which they current to those college students that in the event you be part of McKinsey, you may make an impression on the world,” New York Occasions reporter Michael Forsythe advised Recent Air.

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However the actuality is commonly extra sophisticated. In a brand new e book, When McKinsey Involves City, Forsythe and fellow Occasions reporter Walt Bogdanich make the case that the corporate has a historical past of partaking in ethically questionable work — from serving to firms increase tobacco and opioid gross sales to working with repressive authoritarian regimes, together with Saudi Arabia and Russia.

Bogdanich says that McKinsey has a set of values that it posts on the partitions of every workplace and insists its consultants adhere to. In the beginning is that the shopper’s curiosity at all times comes first. However, he provides, “What does that imply when you’ve gotten an opioid producer who’s pushing opioids in the midst of an epidemic?”

Forsythe notes that McKinsey was working with Purdue Pharma to spice up gross sales of OxyContin as lately as 2013: “That is nicely after the risks of OxyContin and the addictive energy of OxyContin have been extensively recognized. … And but McKinsey drove proper in.” (In 2020, McKinsey issued an apology for its involvement with Purdue Pharma, stating: “We acknowledge that we didn’t adequately acknowledge the epidemic unfolding in our communities or the horrible impression of opioid misuse.”)

Although McKinsey is tight lipped about its work, refusing even to reveal its shopper record, Bogdanich and Forsythe managed to get lots of of inner paperwork and interview greater than 100 present and former staff. Along with Purdue Pharma, they discovered that McKinsey began working with tobacco firms in 1956 and, extra lately, with the e-cigarette firm Juul. In the meantime, the agency started consulting for the FDA’s division that regulates vaping and nicotine.

“McKinsey’s working for the businesses and in addition the regulators that regulate them,” Forsythe says. “I believe most affordable individuals would take a look at that and say, ‘I believe that is an issue.’”

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Interview highlights

When McKinsey Comes to Town, by Michael Forsythe and Walt Bogdanich
When McKinsey Comes to Town, by Michael Forsythe and Walt Bogdanich

On McKinsey’s hiring practices

Forsythe: McKinsey has a really, very sturdy enchantment to those elite, Ivy League-educated both MBA college students and even out of undergraduate faculties. McKinsey consultants say time and again … that they are searching for insecure overachievers. There are college students that go to Harvard, Yale, Stanford, locations like that, who’ve been prime achievers their entire lives, they usually’ve been on the prime of their class. They’ve even excelled at college, even in these aggressive environments, they usually wish to have a job once they graduate that’s commensurate, that’s simply as prestigious because the elite faculties that they went to — and McKinsey matches that invoice.

Bogdanich: The truth that they’re vivid and laborious working and have rules and that is why they got here to McKinsey actually was useful to us, as a result of as Mike identified, once they see what’s taking place out within the area, they turn out to be disillusioned. They turn out to be offended. They might come discuss to us. They might give us paperwork. And in reality, they did give us paperwork.

On McKinsey’s discretion concerning its shopper record

Forsythe: So it has been a longstanding coverage at McKinsey for a lot of, many many years, they usually do make this clear to whoever hires them that they’ll work, they’ll characterize opponents. So, for instance, in the event that they’re representing Normal Motors, they may be representing Ford or Chrysler. That is what they do. And the best way they resolve that is they are saying they arrange inner firewalls contained in the system. So in the event you’re consulting for Normal Motors, say you are not allowed for some time frame to seek the advice of for Ford. In different phrases, these secrets and techniques that you simply’re studying at Normal Motors or possibly the technique that you simply’re telling Normal Motors on methods to beat Ford, you are not going to have the ability to go over to Ford and inform Ford methods to beat GM.

The corporate is extraordinarily stovepiped. Individuals are discouraged from speaking at lunchtime, for instance, in regards to the shopper work they’re doing. You are solely supposed to essentially speak about your shopper work inside your circle of individuals on what they name the CST, the shopper service staff. However in so many cases within the e book, we see the place there’s crossover, that there’s data that there are particular consultants that work for one firm after which additionally they are working for one more firm.

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On McKinsey consulting Purdue Pharma to promote extra OxyContin as latest as 2013

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Forsythe: McKinsey began working for them about 20 years in the past. … Clearly, Purdue Pharma developed the drug OxyContin, which took off like wildfire. And it started to be abused in massive portions and many individuals say helped set off the opioid disaster in the US, which has killed lots of and lots of of 1000’s of individuals. And McKinsey got here into Purdue Pharma and in a single occasion was making an attempt to spice up gross sales on the firm, increase gross sales of OxyContin, and used the phrase “turbocharge.”

They developed gross sales applications to work with Purdue’s gross sales pressure, to work with docs and get details about docs and which docs have been almost certainly to prescribe opioids that OxyContin in nice portions and to focus on these docs. So McKinsey used its smarts, its capacity to take massive reams of knowledge and distill that and to discover a strategy to goal individuals like docs with a view to increase gross sales of an addictive drug. That is one factor McKinsey did. McKinsey additionally did some work with Purdue Pharma to assist develop a tamper resistant formulation for OxyContin as nicely. So that they do the gross sales work they usually additionally do a few of the R&D work as nicely.

These magic phrases, “turbocharge,” have been utilized in supplies McKinsey put collectively for Purdue Pharma in 2013. That is nicely after the risks of OxyContin and the addictive energy of OxyContin have been extensively recognized. And in reality, after there was already a authorized motion in opposition to Purdue Pharma for that very downside and for Purdue Pharma’s advertising of OxyContin. So it was well-known at that time — and but McKinsey drove proper in.

On McKinsey’s work with the tobacco trade for over 50 years

Bogdanich: While you take a look at tobacco, probably the most deadly shopper product in American historical past, McKinsey labored for them for over a half century and lengthy, lengthy, lengthy after it was well-known that individuals have been dying from it and that the tobacco firms have been mendacity in regards to the dangers that individuals confronted in smoking. However McKinsey continued — regardless of all the warnings, regardless of the surgeon normal in 1964, regardless of two federal judges that labeled them racketeers or liars — they continued to work for [the tobacco companies]. And I assumed it was essential to ask them: Why? Why did they proceed, after this was well-known? They usually would not reply it.

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Forsythe: McKinsey solely stopped working with the tobacco firms in 2021, final 12 months. And as lately as 2016, McKinsey was placing collectively some pitches for work with Altria on loyalty applications for Marlboro cigarettes, and in a single slide, which we obtained, it exhibits a mockup of an app, an iPhone app from Marlboro cigarettes, and the concept being the … extra Marlboros you purchase, that may earn you factors. And this specific one confirmed an image of a bottle opener — purchase some cigarettes after which you’ll be able to earn a bottle opener. That is the type of materials that McKinsey was placing collectively at a degree when cigarette smoking had been banished from places of work, banished from eating places. It was extensively recognized that this was a killer product. And but McKinsey continued to work with Altria and different tobacco makers till final 12 months.

On McKinsey staff’ capacity to choose out of working with sure shoppers

Forsythe: McKinsey does permit its staff to choose out of sure work, and there are a lot of staff who’ve opted out of the prospect to work for Altria, previously Philip Morris. The issue is these are normally associates, the decrease finish, comparatively junior individuals. And what individuals say who we have talked to at McKinsey, or former McKinsey individuals, stated that that places the moral burden on these very younger individuals. In different phrases, McKinsey continued to have the ability to work for firms like Purdue Pharma, for firms like Altria, as a result of the moral onus, the choice not to try this work was placed on very junior individuals.

On McKinsey’s public place on local weather change

Forsythe: When you take a look at their public statements, you’d get the impression that McKinsey is a really inexperienced firm. Internally, they work to be carbon impartial, ensuring that they purchase offsets for the carbon that their road-warrior consultants would possibly emit flying on all their airplanes. … The agency has been very upfront about the truth that local weather change is actual and that the world has to handle this downside. It is pressing. … However what we present in researching this e book is that whereas McKinsey is superb about articulating the risks of local weather change and the urgency to resolve it, on the similar time, they’re working with a few of the world’s greatest polluters.

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On McKinsey’s work with main carbon emitters

Forsythe: One instance we checked out was an organization in Canada known as Teck Assets. Teck Assets mines metallurgical coal. That is the coal that is utilized in metal mills, just like the one in Gary, Indiana, for instance, to smelt its metal. McKinsey labored for this firm on many various tasks. And people tasks have been targeted on rising the effectivity of the corporate. There was one research, for instance, that was merely known as “drill and blast.” Different research have been coal-process optimization. So this was the main focus. It was the concept of creating this Canadian firm, which is without doubt one of the world’s largest producers of this metallurgical coal, right into a extra environment friendly coal miner.

On why McKinsey is unlikely to cease working with controversial shoppers

Forsythe: It is arrange like a legislation agency, with these very impartial companions unfold all around the world who run fiefdoms, mainly. … How do they management a companion in China who is aware of a lot greater than they do about what is going on on inside China? How can they oversee these sorts of tasks or proposals for tasks? How do they presumably perceive when these companions around the globe have a lot energy to say yay or nay to tasks? It is actually troublesome for an organization that’s so decentralized to have an actual deal with on that.

I believe the opposite downside is that McKinsey’s obtained to feed the beast. Senior companions, companions at McKinsey, make hundreds of thousands of {dollars} a 12 months and there is 1000’s of those individuals now. … That is an enormous burden on them within the sense that they must pay these salaries. And with a view to preserve paying these salaries, they must preserve producing work. So there’s a battle there between being extra selective on who you select as a shopper and paying your consultants who assume they should be paid as a lot as any Goldman Sachs banker.

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Sam Briger and Seth Kelley produced and edited this interview for broadcast. Bridget Bentz and Molly Seavy-Nesper tailored it for the online.

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Sharp-tongued, indomitable, and beloved actress Dame Maggie Smith dies at 89

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Sharp-tongued, indomitable, and beloved actress Dame Maggie Smith dies at 89

Oscar, Emmy, and Tony-winning actor Maggie Smith played everything from wistful ingenues in Shakespeare to Harry Potter’s Prof. McGonagall and the Dowager Countess in Downton Abbey. She died Friday at age 89.

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Dame Maggie Smith – whose acting career spanned seven decades and traversed the stage and screen – has died at age 89. She passed away peacefully surrounded by family and friends on Friday morning, her publicist confirmed.

Smith was once so slender and delicate as Desdemona that Laurence Olivier’s Othello could easily smother her with a pillow. By the end of her career, no one would’ve dared try.

Though she was fine-featured and stood barely five-foot-five, casting directors realized early-on that her characters would inevitably appear indomitable, whether she was bristling with epithets in Shaw, casting spells as Harry Potter’s Professor McGonagall, or silencing opposition with sideways glances as Downton Abbey‘s formidable Lady Violet.

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Act One: Precise diction in her prime

What Maggie Smith learned about holding audiences rapt, she learned early. She arrived on the professional stage in her teens, and graduated quickly to Britain’s National Theater, the West End and Broadway, where her precise diction proved ideal for delivering the barbs of restoration comedy, and the epigrams of Noel Coward. Let her play the sort of chatterbox that George Bernard Shaw wrote in The Millionairess, and it was sometimes hard for her co-stars to get a word in edgewise.

Almost as nonstop was the title role that won her a Best Actress Oscar in 1970 — her deluded teacher at a Scottish girls’ school in The Prime of Miss Jean Brodie.

“Give me a gherll at an impressionable age,” she purred, “and she is mine for life.”

The character was not, in fact, in her prime, but Smith most definitely was. In the next eight years, she starred in six films, including Travels With My Aunt and Death on the Nile, triumphed on TV in everything from Shakespeare’s The Merchant of Venice to The Carol Burnett Show, and on stage, held title roles from Hedda Gabler to Peter Pan.

Maggie Smith in February 1969.

Maggie Smith in February 1969.

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All of this before winning another Oscar in Neil Simon’s California Suite, for playing multiple characters including a conniving actress who is herself up for an Oscar, and who practices a delicious, hammily self-deprecating acceptance speech at one point, saying she doesn’t want to “sob all over Burt Reynolds.”

No sobs in Smith’s actual acceptance speech at the Oscars. She thanked her writer, director and co-star.

Act Two: Best exotic roles, some written just for her

All of this was well before a sort of second act in Smith’s career that found her prim and proper as a chaperone in A Room with a View, primly comic as the mother superior in Sister Act with Whoopi Goldberg, cranky in The Best Exotic Marigold Hotel movies, crankier still as the woman who came to stay in Alan Bennett’s driveway in The Lady in the Van, and downright viperish as mother to Ian McKellen’s King in Shakespeare’s Richard III.

Though he’d been slaughtering all comers for most of the movie at that point, there was such venom in her declaration that he was “proud, subtle, sly and bloody,” that McKellen looked shaken. As well he might.

Contemporary playwrights had also taken note. Peter Shaffer, the author of Amadeus and Equus, remembered he was once asked by Smith at a party why he kept writing plays about two men talking. He responded by going home and writing Lettice and Lovage specifically for her, about an extravagantly over-imaginative tour guide “to celebrate her glee and glitter and perfect timing,” he told interviewers. “And above all wit — her presence is witty. ”

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Act Three: From Harry Potter to Downton

And then Smith’s career — for which she’d been made a Commander of the Order of the British Empire, and later a Dame and a member of the Order of the Companions of Honor — had a third act. One in which her fame grew out of all proportion to what she’d known before. Children recognized her on the street from the Harry Potter movies (she was in all but one of them).

Maggie Smith as Violet, Dowager Countess of Grantham on Downton Abbey.

Maggie Smith as Violet, Dowager Countess of Grantham on Downton Abbey.

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And while she was casting spells on kids, their parents and grandparents awaited her every utterance on TV’s Downton Abbey, where for six seasons, she brought a capricious sense of humor to the sort of woman she never was in real life — aloof, entitled, un-diplomatic, impatient, argumentative, hidebound, and so thoroughly winning, audiences couldn’t get enough of her.

That, at least, Lady Violet had in common with the woman who played her. Maggie Smith left audiences craving more of her presence for seven decades, though she worked so constantly that the dowager countess’ most famously clueless question — “what is a weekend?” — might almost have been her own.

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L.A. Affairs: An LAX flirtation had me on cloud nine. Could we land the plane?

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L.A. Affairs: An LAX flirtation had me on cloud nine. Could we land the plane?

My brother dropped me off curbside at Los Angeles International Airport and yelled, “Run!” Our timing getting to LAX was thwarted by the kind of notorious L.A. traffic that airline change fees and crushed dreams are made of. Departure to Newark, N.J., was at 8:05 a.m.

It was 7:25 a.m.

I raced through the terminal and up the escalator, two steps at a time, with a carry-on and boots that were not made for running. The line to get through security was a mile long.

“Am I going to make it?” I deliriously asked the TSA agent as I handed him my boarding pass, shaking from the mad dash.

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Without a word, he whisked me past a serpentine of travelers and straight to the metal detector. I was baffled. Maybe he was psychic. I thanked him profusely and kept running.

I couldn’t miss this flight.

My mother insisted I fly “home” to New Jersey for my birthday — her treat. I was deep into a drifting divorce, disillusioned, depressed and avoiding the other “D” word … dating. I also was hiding from the unwelcome advances once the word got out. I felt perpetual dread and I felt wobbly. “Snap out of it,” Cher kept telling me in my mind.

By the time I got to Gate 40, I was giddy from shock and out of breath. I looked around and exhaled.

To my left was a tall, bald man wearing glasses and a tweed blazer. He looked familiar. “Who is that?” I whispered to the also tall, handsome man to my right, holding a coffee cup and wondering if I was talking to him.

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He looked at me quizzically and squinted: “Isn’t that the guy who wrote ‘L.A. Confidential’?”

Bingo. Impressive. But neither one of us could remember his name. It was fun trying.

Suddenly, I felt compelled to tell this lovely man how close I came to missing the flight, how much traffic there was, how fast I ran, in boots with a heel, and how I imagined he‘d probably experienced the same exact thing minus the boots.

No. He had gotten there hours before, breezed through security and was on his third cup of coffee.

Boarding started. It felt like we both wished there were more time. “It was nice talking with you. Have a great trip,” I said and meant it.

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“You too,” he said, smiling back.

Sparks flew.

After the in-flight movie ended, I looked up, and there he was. I waved; I was glad to see him again. I thought he was on his way to the restroom. He wasn’t. He‘d come to find me. It was good I had an aisle seat.

For the next two hours, we dove in, surrounded by strangers.

He’d spent the last few years in L.A. dating around since his divorce. He seemed as universally disillusioned as I was and had told his mom a few days before that he was giving up.

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At one point, he knelt down in the aisle to get closer. His salt-and-pepper cool felt warm. He touched my shoulder a few times. I didn’t mind. He was confident, funny and very much a grown man who also seemed impervious to heavy turbulence.

People in the rows nearby could hear everything we were saying. Some were staring. Some climbed over him. Then the beverage cart came butting in. We made plans to have dinner when we returned to L.A. He gave me his card.

“That was incredible,” said the woman next to me, who had pretended to be asleep to give us some privacy. It was incredible. A big cloud lifted. I couldn’t stop smiling.

When I got to baggage claim, there he was again. I told him my mom was coming to pick me up. “Can I meet your mom?”

Her SUV was waiting exactly where we exited. She ran out to hug me and open the liftgate, wondering who this guy was carrying my luggage.

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“Mom, this is Mark. We met on the plane,” I said.

“Hi, I’m your daughter’s new boyfriend,” he said as if it were already true.

Without missing a beat, she shot back: “Good, because you’re very handsome.” We said goodbye in a flurry.

“What happened to you on that flight? You’re different. You’re going to marry him,” my mom said emphatically.

I stuttered. I kind of believed her. I was different. Over the next week, we texted and decided on Terroni for dinner, a mutual Italian favorite.

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He was waiting for me out front. We spent five hours in a booth drinking, eating and laughing. When we were in the middle of dessert, fireworks went off from the Christmas tree lighting nearby at the Grove. Everyone ran outside. He sat next to me when we came back in for the first kiss. We closed the place down. We didn’t want the night to end.

He made me an engagement ring out of a plastic swizzle stick a few nights later at a sushi bar. We didn’t feel like we were moving too fast. We felt like we couldn’t move fast enough.

With that, I had to move my divorce from stalled to finalized. Quick.

Both of our marriages had come to screeching halts very unexpectedly. He had years of healing under his belt. I was still in the thick of it. I was stuck in quicksand, and he helped pull me out. His patience was steady as I cut cords and untangled myself.

We had planned to get married at a rooftop L.A. restaurant, with skyline views past the smog, to symbolize how we met and fell in love. Exactly two weeks beforehand, however, my mother was rushed to the ER with critical embolisms. We flew a red-eye back East with my brother and his wife.

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Miraculously, my mom recovered but couldn’t fly. We canceled the wedding. She was adamant that we still get married on the day we planned: July 8. It was July 7.

Because my brother was going to marry us anyway, we thought: Why not get married on the plane? Flying back to L.A. from New Jersey, the same way we met but in reverse?

And we did. Flying over Tulsa, Okla.

United Airlines published an in-flight magazine story about our on-the-fly midair ceremony with the headline, “On This Flight, I Thee Wed.” Ring-size steel hose clamps from the hardware store served as stand-in wedding bands. A flight attendant crafted a bouquet out of tissues.

“Do you believe in life after love?” I do now, Cher. I finally snapped out of it.

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The author is a creative writer and producer who is directing the music-based documentary “Play That, Teo.” She’s a recovering stand-up comic, proudly from New Jersey and now residing in Los Angeles. She’s on Instagram: @olanadigirolamo

L.A. Affairs chronicles the search for romantic love in all its glorious expressions in the L.A. area, and we want to hear your true story. We pay $400 for a published essay. Email LAAffairs@latimes.com. You can find submission guidelines here. You can find past columns here.

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Dear Life Kit: My wife wants to use the last of our savings for a 4th round of IVF

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Dear Life Kit: My wife wants to use the last of our savings for a 4th round of IVF

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Have a question you want to ask Dear Life Kit anonymously? Share it here. For our next episode, we’re looking for your queries on crushes or drama in the workplace.

Dear Life Kit is NPR’s advice column, where experts answer tricky questions about relationships, social etiquette, work culture and more. 

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This question was answered by marriage and family therapist Moraya Seeger DeGeare. The conversation has been edited for length and clarity.

Dear Life Kit, 

My wife and I have tried and failed to have a child via in vitro fertilization three times, and we are now scraping the bottom of our savings. We’re both heartbroken. 

She wants to use the last of our savings to try one more time. But I want to move on and try to adopt a child. 

She focuses on how she may never have a child. She often cries or gets angry if someone plays a movie on TV with pregnancy or childbirth in the plot. Our daily conversations veer into crisis as our focus returns to babies. I don’t know how to help her. — Baby Blues 

Headshot of therapist Moraya Seeger DeGeare looking confidently at the camera, she wears a bright yellow sweater and there is a colorful abstract painting in the background.

Moraya Seeger DeGeare is a marriage and family therapist.

Photograph by Nick Di Giugno

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My heart truly goes out to both of you. I’ve worked with couples working through this, and there’s no right and wrong.

We’re looking at several questions: How do I support this person I love? Should we try IVF again? And how can I tend to my grief when my partner is weeping next to me?

The first thing to do is calm your bodies down. There is a lot of pain here. Come together as a couple to bring less stress to your life. Work out together, meditate, go to therapy.

Once you both get to a place of calm, have a conversation about your emotions regarding the decision to try IVF again. One partner may be driven by practicality or the fear of losing money. Another may be driven by the desire to experience pregnancy. You may find that you have the same fears, but are expressing your feelings very differently.

Ask yourself some hard questions. Is the clock ticking in terms of a potential pregnancy? If we spend the money on IVF, how are we going to recoup the savings? What fears does your partner have about fostering and adoption?

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Then talk about what a meaningful life looks like for the both of you. We often attach ourselves to what the future is going to look like. When we do that, we attach to so many factors outside our control, like having a baby. But there are some aspects of the future that you do have autonomy over, like financial stability and healthy relationships. How can you flourish and create a beautiful life together? Create a plan around that.

Don’t forget to allow yourself to grieve. It’s easier to hold onto hope for a pregnancy when we allow ourselves to accept the idea that it might not happen, but also say it’s OK to try.

This story was written by Malaka Gharib. It was edited by Beck Harlan and Andee Tagle. The visual editor is Beck Harlan.

We’d love to hear from you. Email us at LifeKit@npr.org. Listen to Life Kit on Apple Podcasts and Spotify, or sign up for our newsletter.

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