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CNBC Transcripts: CNBC's Becky Quick Speaks with Target Chairman & CEO Brian Cornell and Former Secretary of State Condoleezza Rice Today

WHEN: Today, Wednesday, June 19, 2019

WHERE: CNBC's "Squawk Box" – Live from KPMG Women's Leadership Summit in Chaska, Minnesota

The following are the unofficial transcripts a CNBC interviews with CNBC's Becky Quick and Target Chairman and CEO Brian Cornell and former Secretary of State Condoleezza Rice on CNBC's "Squawk Box" (M-F 6AM – 9AM) today, Wednesday, June 19th. The following are links to video of both interviews on CNBC.com: https://www.cnbc.com/video/2019/06/19/target-ceo-full-interview-brian-cornell-.html and https://www.cnbc.com/video/2019/06/19/watch-cnbcs-full-interview-with-condoleezza-rice.html.

All references must be sourced to CNBC.

TARGET CHAIRMAN AND CEO BRIAN CORNELL

BECKY QUICK: Right now, let's get to our first "Squawk" news maker of the morning. With us right now to talk retail, the state of the consumer and those nationwide technical difficulties from over the weekend is Brian Cornell. He's the Chairman and CEO of Target. And Brian, it's great to see you on your home turf.

BRIAN CORNELL: Good morning. Welcome.

BECKY QUICK: Thank you very much for having us here today. We've been planning on talking to you for a while, and then when we heard the news of what happened over the weekend, I guess that puts more of a little bit more of a focus on what's happening internally at Target right now. What did happen over the weekend?

BRIAN CORNELL: Well, obviously, tough weekend. Tough for our brand and really disappointing for our guests. So, I need to start out by apologizing to the thousands of guests shopping at up stores on Saturday and again on Sunday. And unfortunately, we had issues on both days. On Saturday, we had an internal issue, just tied to standard maintenance that, you know, knocked us down for a couple of hours. And on Sunday we had an issue with our partner NCR, one of their upstream data centers. So, a disappointing weekend for us. We have let down the guests, our consumer. But the good news was, you know, we were quickly able to determine: no data breach, which was important to communicate. And within a couple of hours, our teams were able to identify the root cause and push the fix to our stores and get us back up and running. But --

BECKY QUICK: It's so weird –

BRIAN CORNELL: --disappointing performance.

BECKY QUICK: It's so weird it happened, one was an internal issue, one was an external issue. There was nothing related between those two outages?

BRIAN CORNELL: There was not. But it just happened to happen. So, you know, a difficult weekend. The good news, our teams rallied around it. If you look at some of the social media posting, you know, the number of people who posted stories about our store team members trying to make this situation as -- you know, as positive as it could be for our guests. And they really stood tall. And our guests appreciated it. But you know, we're committed to doing a better job and making sure we provide better stability going forward.

BECKY QUICK: Brian, I read one analyst estimate that said it could have cost you as much as $100 million, just based on the number of cashiers that were out for the number of hours. Is it material?

BRIAN CORNELL: No, we were down for a couple of hours. I think the real question – I might as well answer it right upfront: is it going to change our guidance for the second quarter? And the answer is no. We're committed to our guidance, from a comp standpoint, an op income and an EPS standpoint. And we'll build on our momentum that we started with in Q1.

BECKY QUICK: Alright, let's talk about what you're seeing from the consumer right now. Last August when you joined us back at "Squawk Box" you told us that you were seeing a fantastic retail environment. I thought it was the best ever but you said it was one of the best ever in your career. So, what are you seeing right now?

BRIAN CORNELL: You know, we continue to see a really healthy consumer environment. And, you know, GDP has clicked down a bit, but we're still seeing strong gdp growth. Unemployment obviously very low. Wages are rising. Interest rates obviously have stayed in check. And overall, there's strong consumer confidence. So, I think what we're starting to see in the retail environment and I talked about this during earnings is really a bifurcation between winners and losers. And certainly, we think we're in the winner's camp right now. We had our best year in 2018 in a decade. Q1 got off to a really strong start. Our comps were up by 4.8%. Digital grew by 42%. Our Op Income was up 9%. And EPS grew 15%. So, from where we sit, we see a really healthy environment. But I think you're seeing the separation between winners and losers in retail.

BECKY QUICK: Has growth slowed at all in your stores just from what you see in the consumer spend?

BRIAN CORNELL: You know, we started off with 4.8% growth in the first quarter. The stores grew by over 2%. Digital was up over 42%. We took market share in all of the categories. And our growth was tied to traffic growth, which is really important. So, we're seeing a really healthy environment and others are reporting a very healthy start to the year. On the other hand, clearly there's retailers that are donating share right now. And I think what you're seeing is retailers that have been investing in their stores, in their brands, in their digital assets, in their teams are winning. Those that are trying to save their way from quarter to quarter and can't invest in the omnichannel requirements, well, they're giving up shares. So, I think we're seeing the separation in the marketplace. But overall, it continues to be a really healthy consumer environment.

BECKY QUICK: You just announced last week that you are increasing benefits for your store associates. You're going to be offering more time off to either take care of a new child or a sick family member. Is that something you're doing because you see Bernie Sanders going around and beating up the likes of Walmart, or is that something you have to do because it's such a tight job market right now?

BRIAN CORNELL: No, Becky, it's something we started talking about all the way back in February of 2017. And you and I have spent a lot of time actually on camera talking about investment in stores and building new small formats and brands and all the fulfillment options. But you have also heard me talking about the most important investment we made was in our team. Going back to February of 2017 I talked about our commitment to building a path to a starting minimum wage of $15 by 2020. Well, we are on that path. But we also recognized we need to think about what else we could do for our team. And we want to have honestly the best team in retail. So, we've started thinking about what are the family benefits we need to offer? So, we're starting to think very differently about paid family leave. And we doubled the number of weeks available for our team members. So, they can now take four weeks. And if they have a sick child, a spouse, a parent that they need to take care of, we get the insurance that we'll do that. And we're doing it across our headquarter team, our store team and our distribution centers, both for salaried and hourly workers. So, really making sure that we provide them the benefits that they need. We want to make sure they also have backup care. Hopefully today while you're in town, you'll see one of our stores. And, you know, in our case, half of our store directors are women. You know, it's one of the reasons I'm here today at the conference. And backup child care for a store director that might be running a $50 million business with hundreds of team members that has a couple of kids and then all of a sudden they have a problem in the morning that backup care is really, really important. So, we want to make sure we're providing our team, you know, great starting wages but also the benefits they need to ensure they have the support that they expect from a company like Target.

BECKY QUICK: Have you spoken with any of the Democratic candidates? Because, you know, doing all of these things, boosting wages, adding additional benefits has been so front and center for so many of them, but you guys have been doing it since before those campaigns took off.

BRIAN CORNELL: We got off to a head start. So, this is not driven by any of the environmental issues we are talking about today. We thought it was the right thing for our company and the right thing for our business. And again, I have always said, while we have got a great strategic plan that's working, the most important part of our overall plan is the work that our team does. It always comes down to our team members.

BECKY QUICK: Brian, just in terms of things that could affect the bottom line, I know you have been pretty vocal with the administration. You guys wrote last fall to the administration explaining what it would mean if the additional tariffs from China were put on. I know Target was one of the signatory 600 companies that wrote in to the administration last week too. What would additional tariffs mean? I know the tariffs haven't really affected your bottom line to this point but if the additional $300 billion in tariffs went on Chinese goods, what would it mean to your bottom line?

BRIAN CORNELL: We're all watching it almost every day and now it's almost an hour occurrence to understand what's actually going to happen. And obviously that fourth list is one that's concerning to all of us. You know, 25% tariffs on $300 billion – that's big number for us. So, we're watching it carefully and you know, as a consumer focused, family focused company anything that's going to increase the cost on essential goods is concerning to us. So, I actually look at it with almost two hats on. I think you may know that I currently Chair the Retail Industry Leadership Association. And if you think about the impact on retail, and on consumers, if these tariffs go into effect and prices go up, you know, it could have significant impact on the consumer for the balance of the year. And it's on essential items. It's the car seats you need, it's, you know, items for going back to school and back to college in the fall. So, particularly if you're a single category retailer and you don't have flexibility in your portfolio, these are tough issues. From a Target stand point, we have a little bit more flexibility. One, we've got this--

BECKY QUICK: A little bit more flexibility, but would you have the flexibility if it was on everything coming out of China? Would you still be able to make your way out of that?

BRIAN CORNELL: Well, we have this multi-category portfolio. So, you know, 20% of our business is apparel, but 20% is beauty and household essentials, you know, 20% is in home, but another 20% is in food and beverage. So, we've got more versatility in our portfolio. That really helps. We have been in this business for a long time. You know, one of the hidden jewels within our company is the Target Sourcing Team. They have offices around the world, they're very experienced and talented and they've been working on this for a while. And, because of our scale, you know, we have got sophisticated vendor partnerships. And they have been working on diversifying their manufacturing--

BECKY QUICK: Away from China?

BRIAN CORNELL: Away from -- for a long time. So, this didn't just start yesterday. So, we had a had a head start--

BECKY QUICK: When did it start? Last year?

BRIAN CORNELL: Years and years. You go back to the Boarder Adjustment Tax. We started thinking about diversifying our portfolio back then. So, we have a few more levers to pull, but obviously, if these tariffs go into effect, you know, prices are going to go up. And that's going to affect the consumers and hopefully not impact the current rate of growth in the economy.

BECKY QUICK: Brian, you said one of the reasons you're here today is because you are looking for more women to kind of put through the ranks at Target. What do you hope to hear here? What do you hope to tell the women who are here – the women executives who are here?

BRIAN CORNELL: Well, I mean, a couple things that I plan to talk about, and it's somewhat ironic based on where we started today. This might surprise you, but we have over 3,000 engineers and data scientists at Target.

BECKY QUICK: That does surprise me.

BRIAN CORNELL: 25% of which, you'll be happy to know, are women. And that number is way up versus a few years ago. And we made a concerted effort to bring more women in to engineering. A third of our tech leaders are women. And on campus, our college recruits -- over 50% of the recruits we bring in are also women. So, we're building that pipeline. You know, we made a big commitment to diversity and inclusion. I think it's why, you know, when we sit here and talk about our success, it's a combination of those initiatives and the team and the caliber of people we bring in. But I think our commitment to D&I is so important to the fabric of this company. A third of my board of directors are women. Over 40% of my direct reports are also women. All those stores we run, over 50% are run by women. So, we've made a real commitment to ensuring that our leadership team reflects the consumer we serve. And we're a family-focused company—

BECKY QUICK: I was going to say, how many of your shoppers are women?

BRIAN CORNELL: Correct. So, we want to make sure our leadership reflects the audience we serve. So, our commitment to diversity and inclusion, the steps we are taking, that's why I'm here today. And we want to talk about our commitment to making sure, you know, we are a great company to work for. But people realize we're a purpose-driven company. We wake up every day thinking about how we bring joy to all those families we serve. But we have this amazing commitment to diversity and inclusion. And we'll talk about that later today.

BECKY QUICK: Alright, Brian, I want to thank you for your time today.

BRIAN CORNELL: It's great to be here. Thanks.

BECKY QUICK: Brian Cornell, again, is the Chairman and CEO of Target. And Andrew, we'll send it back to you in the studio.

FORMER SECRETARY OF STATE CONDOLEEZZA RICE

BECKY QUICK: Good morning again, everybody. Welcome back to "Squawk Box" right here on CNBC. I'm Becky Quick coming to you live from the KPMG Women's Leadership Summit in Chaska, Minnesota. Our next "Squawk" newsmaker of the hour joins us right now: Condoleezza Rice, the Former Secretary of State under George W. Bush. She is also a Former National Security Advisor and now a Professor in global business and the economy at the Stanford Graduate School of Business. And Madam Secretary, thank you very much for joining us this morning.

CONDOLEEZZA RICE: It's a pleasure to be with you.

BECKY QUICK: It's great to see you, and I can't think of a more timely issue -- or a more timely time to be coming to you than with everything we have seen in recent weeks. I thought we'd start off this morning just talking about what's happening in the middle east right now.

CONDOLEEZZA RICE: Right.

BECKY QUICK: And the tanker attacks that took place just last week. There's been so much speculation about what's gone on, but from what your vantage point and what you know, how do you read this?

CONDOLEEZZA RICE: Well, it's obviously a complicated and it's a dangerous situation. I do think that we are seeing that Iran is the big troublemaker in the Middle East. I think we have known that for a long time. But the Iranians can be reckless. They can engage in activities that you would think 'Why would you do that?' because it's going to provoke a response. Obviously, they are being squeezed pretty hard under the sanctions that the administration has put on. And I will say that the decision to leave the Iran Nuclear Deal, clearly the Iranians are trying to fight back, but it says something about the deal that the Iranians are so quickly able to start saying that that they can break out, that they can start enriching at a very high level. I watched Secretary Pompeo. I think that he is somebody of significant substance and a cool head. I know the people like John Bolton. I think they will manage this. We need the Europeans with us, this is a time for the United States and Europe to say to the Iranians, 'It's fine to come back to the table, but not when you're threatening to cause havoc in the Middle East or in the -- along the sea lanes.'

BECKY QUICK: Do you think that the 2015 agreement was the wrong choice for the United States?

CONDOLEEZZA RICE: I didn't support the agreement. I certainly understand wanting to get there with Iran. I actually started the negotiations with Iran when I was Secretary of State. So, I think negotiation is the right way to go. But this particular agreement had certain weaknesses in verification. Also, we know now because Iranians themselves leaked the budget that a lot of the money that was unfrozen actually went to help Hezbollah and Hamas cause chaos in Syria. And so, I didn't support the agreement. But you can get a better agreement if the United States and Europe will hold together and say to the Iranians, 'If you really want to join the international community, then sit down, let's get an agreement that really does put your nuclear policy and your nuclear arrangements into an international framework that is safe for all of us. If you want to do that Iran, we're there.'

BECKY QUICK: The argument at the time was that the Europeans wouldn't stand with us if we didn't go that direction. Do you think there is room for us and the Europeans to kind of get on the same page?

CONDOLEEZZA RICE: I really do think there's room for us to be on the same page. First of all, the administration didn't leave the agreement on day one, as was said in campaigns. A lot of things are said in campaigns. The President gave it a year. And during that period of time, it would have been good to negotiate other elements of the agreement. But even now I think the Europeans -- the Iranians are trying to get the ear of the Europeans. I think the Europeans and others should say to the Iranians, 'Stop threatening. Let's go back to the table and we're willing to negotiate but it's going to have to be on terms that really do put a halt to that -- to the nuclear program.'

BECKY QUICK: You're a Professor of economics and business now, too. So, taking your Secretary of State hat, combining that with your Professor role right now, what do you think when you look at the oil markets? There is this global slowdown in demand.

CONDOLEEZZA RICE: Yes.

BECKY QUICK: Watching what's happening with that. Bbut then at the same time, all of these issues happening in the Strait of Hormuz. What happens next?

CONDOLEEZZA RICE: I always think, Becky, if we had been sitting here ten or 15 years ago with that kind of tension in the Strait of Hormuz we would have seen the oil prices spike through the roof. But we're seeing a structural change in the nature of oil markets. Largely because of the North American platform, because of the United States and Canada and even Mexico able to take a role in so much of the demand. I think you're seeing a calmer set of oil markets. It really is a bit of a lesson, by the way, to the bad boys of the oil markets that they can't play these games in quite the same way. I was Secretary of State when oil spiked at $146 a barrel. Nothing warps diplomacy than oil at $146 a barrel. You had Hugo Chavez buying elections all over Latin America. You had the Iranians refusing to come to the table to negotiate about their nuclear program. You had the Russians talking about cutting off supply of the gas to the Ukrainians and by implication to Eastern Europe, even to Western Europe. Those games are going to be hard to play if the North American platform fully develops as the premier oil and gas market in the world. And that's one of the reasons that that's what we should be doing.

BECKY QUICK: I forgot one more field of expertise for you. You were also on Chevron's board.

CONDOLEEZZA RICE: That's right. Yes.

BECKY QUICK: How much of is this different because the United States has the Permian Basin and the Bakken Shale?

CONDOLEEZZA RICE: A lot of it is different. And it will be even more different if we fully develop these resources. But, you know, there's still work to do, obviously. We have to work on the pipeline structure. We need to work on the terminal structure to be able to supply abroad. And one of the things that we're going to have to do is continue to build the relationship between Canada, the United States and Mexico. It's one reason that the follow-on agreement to NAFTA, the U.S., Mexico and Canada trade agreement is so important. I know that there are a lot of questions about it that Congress has. But I really would urge people to take a hard look at it and to pass it.

BECKY QUICK: What did you think about President Trump raising the issue of tariffs on Mexico if they didn't help us with immigration?

CONDOLEEZZA RICE: Well, I'm not a big fan of using trade policy in what we used to call 'linkage' to other issues. Let's solve it on the basis of the immigration issue. Apparently, it got Mexico's attention. But I don't think we should make a practice of threatening tariffs to get policy responses in other areas.

BECKY QUICK: China is a little bit of different situation.

CONDOLEEZZA RICE: Yes.

BECKY QUICK: This is where the President is trying to address what he sees as an unequal -- uneven playing field.

CONDOLEEZZA RICE: Right.

BECKY QUICK: What do you anticipate coming out of the G20 later this month now that President Xi and President Trump have both agreed they are going to be meeting?

CONDOLEEZZA RICE: Well here I think you have bipartisan agreement. And I would even say more than outside of the government you have agreement among many CEOs that the playing field isn't level with China. That, because of China's industrial policy, whether it's IP theft or using joint ventures to cover IP theft so that you give your IP and suddenly the joint venture owns it and then you're out. The markets that are closed in China, the banking sector, is still basically completely closed. The cyber security problems that we have had with China. So, I think there's a general sense that something needed to be done. Now, we are at the edge, I hope, of the tariff retaliation on both sides. Because the truth of the matter is that the U.S. economy will not grow very much longer unless the international economy can grow. And the international economy is going to have trouble growing if China doesn't grow. And so, we need to get resolution to this. I'm glad that they're meeting. I hope that the Chinese come back this time to what apparently had been agreed during the last negotiations. One hears that a lot was agreed in terms of changes in Chinese regulation, laws, industrial policy that was then walked back.

BECKY QUICK: Right.

CONDOLEEZZA RICE: I'm quite certain it's hard in Beijing to get these things through because there are a lot of vested interests. You know, we tend to think of China as well, it's just authoritarian and Xi Jinping can do anything he wants. But of course, there are vested interests he has to think about. But hopefully the Chinese will come back, recognize that they were admitted to the WTO prematurely, because people wanted to encase the Chinese economy in the larger international economy. With that comes certain responsibilities to really have reciprocal policies and so we should be looking to that. I believe that's what the administration is trying to do. But sooner or later, I hope we get an agreement.

BECKY QUICK: Can we still get a good agreement even if we don't get 100% of what we thought we had started in the negotiations last month?

CONDOLEEZZA RICE: Well, they can only answer that question from inside. Because I don't know how completely the Chinese were walking back. I do think you have to get something on the intellectual property. I think you have to get something on changing the nature of access to certain markets. It can't be whole segments of the markets are shut off. We are seeing the bigger issues between the China and technology in the United States. And there, the Chinese, I think, made a bit of a mistake when they went out and said, 'Oh, we're going to surpass the United States in quantum computing and AI by 2030.' And I've told some my Chinese friends, 'You know, that was a big mistake. Because –'

BECKY QUICK: Big mistake in doing it or a big mistake in telling us they're going to do\?

CONDOLEEZZA RICE: Well, big mistake in saying it, first of all. And secondly, it's not the way to think about the broadening of knowledge in the -- across the globe. Now, it's very clear that China is going to use these tools in ways that I think would make all of us uncomfortable. Whether it's promoting social credits for certain patriotic activities or statements. What they're doing to –

BECKY QUICK: Or tracking people—

CONDOLEEZZA RICE: – or with the Uyghurs. Right. So, obviously, we would be very uncomfortable with this. But I hope that we recognize that free peoples are always going to innovate better than captive ones.

BECKY QUICK: You have mentioned intellectual property theft a few times. Speaking of that, Huawei—is this a case of intellectual property theft? Is this a case of pay back -- trying to use them as a lever in the trade talks, or do you think they are actually a security risk?

CONDOLEEZZA RICE: Well, I think any Chinese company is going to do what the Chinese government tells them to do.

BECKY QUICK: Right.

CONDOLEEZZA RICE: That's just the nature of the beast. And so, the questions about the imbedding of technology from a Chinese company into networks, I think it's a serious problem. And I do think that there is a kind of an aggressiveness on the part of this Chinese leadership that is a little bit more than we have seen with leaderships before. And if China is going to want to play on the global stage with its big, private companies, it's going to have to find a way to give people confidence that these aren't just arms of the Chinese government. And right now, I don't think people are confident of that.

BECKY QUICK: While we're talking about technology, let's talk about Stanford's commencement speech.

CONDOLEEZZA RICE: Yes.

BECKY QUICK: Just last weekend. Tim Cook was the commencement speaker and he really stepped out. He has taken on a front position about privacy concerns and about concerns and responsibilities of big technology. He focused on that in his speech this time around.

CONDOLEEZZA RICE: Yes. Yes.

BECKY QUICK: You're in the heart of Silicon Valley, too.

CONDOLEEZZA RICE: Right.

BECKY QUICK: What do you think about all of these issues and how they played out? And by the way, you're a former HP member of the board.

CONDOLEEZZA RICE: That's right.

BECKY QUICK: And you're on Dropbox's board, too.

CONDOLEEZZA RICE: That's right. Yeah. First of all, let me say that Tim Cook gave a tremendous address. And he said something that I hope everybody will say to graduates. He talked about having your own voice and, you know, and the -- but also with responsibility. We talk a lot these days about rights, my rights to do this, my right to do that, my right to my opinion. We don't talk enough about the responsibility that comes with that. And I think for somebody who speaks out, you have to recognize that certain responsibility to be truthful in the way that you speak, to listen to others who may disagree, to do it in a civil way. These are the points that I think are really important if you want to have a voice. In terms of privacy issues, the first thing I would say is we're in a new world. We're in a world in which the data that is gathered is gathered in many ways without transparency. And so, one of the things that I have been saying to companies is just be transparent with your customers. Let them know what you're doing and I think a lot of us actually kind of like the convenience of -- well, if I go on and I say, 'I want to buy golf balls' they'll say 'You may want golf clubs, too.' And I kind of like the convenience of that. I like being able to sign in and not having to put in my credit card data every time.

BECKY QUICK: Me too.

CONDOLEEZZA RICE: So we're a little bit conflicted as consumers, too. If we can be transparent about it, I think some of this can be dealt with.

BECKY QUICK: But I don't want them sharing my medical history.

CONDOLEEZZA RICE: That's right – that's right.

BECKY QUICK: I don't want them sharing any of financial information.

CONDOLEEZZA RICE: That's right.

BECKY QUICK: Or marketing to me based on that.

CONDOLEEZZA RICE: Exactly. And that's why the transparency is important. And perhaps there's been some overreach in some of the areas.

BECKY QUICK: Does it require a regulation from Washington?

CONDOLEEZZA RICE: Well, there's going to be regulation from Washington. I hope that the regulators will – you know, sometimes, Becky, regulators will regulate even if they don't understand what they're regulating. And I was a little spooked by some of the hearings when Mark Zuckerberg and others were up that maybe the level of knowledge on the Hill seemed to me, not quite there for what we're actually looking at in the technology revolution. Well, people -- people need to study. But we are going to get regulation. One of the things that we can do with the Europeans, you asked earlier about, 'Can we get on the same page with the Europeans?' I know that we and the Europeans don't have exactly the same views of privacy. But whatever our differences about privacy, they are nothing like our differences with the Chinese about privacy. So, this is an area where the United States and Europe I think can work together with the companies and with the governments to have sensible regulation that doesn't kill the goose that laid the golden egg.

BECKY QUICK: Let's talk about the reason you're here. The Women's Leadership Summit that's taking place today. Why is this important to you? What do you here?

CONDOLEEZZA RICE: Well, I have been a part of this since KPMG started some five years ago. And I just believe that we are getting to a point at which we have enough women poised for really remarkable leadership roles and we just need to make sure that we make that next step and get over the hump. And we have had women Secretary of State and Attorneys General, we have had CEOs of major corporations, not enough of them to be sure. KPMG is led by a woman. But obviously and we had a survey done of the women who have been here over the last five years at these Leadership Summits, and there's still a sense that, 'Maybe I don't quite belong' or 'How do I belong?' And I think we need more ways to give women confidence that if they are prepared, and many of them are, that they're going to be able to make that next leap. When i started, Becky, there weren't that many role models. You know, I have been waiting for a black female Soviet specialist role model. But now there are women moving in to the positions of authority who can help bring other women along with them. And so, the Summits have brought women who are poised to go into the C-suite. Not quite there yet. Giving them tools, giving them a network so that they know they're not alone in some of the trepidation that they might feel about making that next step. And I just applaud KPMG for its commitment to this and we get to do it at beautiful golf courses like this.

BECKY QUICK: It's fantastic.

CONDOLEEZZA RICE: While the LPGA is showing that is showing that women play this game of golf pretty well, too.

BECKY QUICK: They do. The survey you mentioned, a lot of the women executives said they felt like they needed to change their style of leadership to match up with expectations. Did you ever feel like that in your rise?

CONDOLEEZZA RICE: I actually think what is going on here is you do change your style of leadership as you go up the ladder. The fact is you now are leading larger teams of people. You're having to make decisions that are much tougher than decisions that you had when you were lower on the rungs. You can't just pass it off to somebody else. You have to learn that sometimes you're building consensus. Sometimes you're just informing.

BECKY QUICK: So maybe that's a universal.

CONDOLEEZZA RICE: And I think it is a little bit more universal, but I can understand why people feel that they have to change their leadership style. I've certainly had to change my leadership style. I think in some cases I've changed it for the better. When I was younger, I wasn't very good at delegating. I always wanted to go do somebody else's job for them. So, I would say to women, yes, it is going to change. You don't have to change who you are. You will have to acquire new tools, you'll have to acquire new ways of dealing with people, and you'll have to ask yourself hard questions about what you may be doing that may be holding you back. But these are the kinds of issues that can be addressed in Summits like this, where women can network with other women.

BECKY QUICK: Secretary Rice, thank you so much for your time. It is really a pleasure to see you.

CONDOLEEZZA RICE: Pleasure being with you, Becky.

For more information contact:

Jennifer Dauble
CNBC
t: 201.735.4721
m: 201.615.2787
e: jennifer.dauble@nbcuni.com

Emma Martin
CNBC
t: 201.735.4713
m: 551.275.6221
e: emma.martin@nbcuni.com