Case Interviews

Opening of the case is very formulaic, ending of the case is very formulaic. There is more than one way to be right
You need to have processes to elicit data from the interviewer
Big part of the skill is figuring out what to ask for
Estimation/Back of the envelope/Guesstimates Case in Point Marc Cosentino
The pyramid principle Barbara Minto

Consultant Rules

Rule # 1 The Consultants Motto: Often right, never without data driven justification
Rule # 2 Its not about just being right. Its about being right in a Client Friendly way
o Dont make conclusions without showing your work
o Dont be scatter brained
o Explain everything visually, if not it is a bad answer
o Everything has to be justified with facts and data
o Give practical answers more than logical answers
Rule # 3 Dont be condescending/make the client look like an idiot

Case Interview Basics

Business Situation; Estimation Question

Data & feedback during the interview is usually given for a reason

Interviewer Mindset (Predictable)

Process Excellence Vs Specific Answer Process trumps specific answer, other way is seen as having gotten lucky.
Right approach wrong answer is better than wrong approach right answer. Repeatable process is the key.
Logical, data-driven analysis
Independence (Can I drop this candidate in the middle of a crisis with a Client and expect to win?)
80/20 Vs Boil the Ocean 80/20 Is asking just for the things you need, Instead of asking for the entire set of data.
Precise Vs Good Enough (Tolerance for ambiguity) Is it worth doing the analysis? Do we need more precision?
Constant pressure to get done more with less resources as the client does not like to pay more. Billing benefit of a
fresh Consultant on a first job is negative
Synthesis (The Big Picture) & Presentation of the Conclusion

Open a Case

Very regimented opening structure and later with experience creativity can kick in
Stall: Thats an interesting question
Verify your understanding: (a) Terminology and facts (b) The problem to be solved. Can I ask some background
questions before we get started?
Structure the case for Analysis
o Identify the problem type/situation
o Match to appropriate framework (Otherwise you will be gathering data in the wrong places, waste of time)
o Identify the key components of the framework (Profit = Revenue Cost, etc.)
o Draw the framework on a piece of paper (Client Friendly)

Analyze a Case

To Analyze = To break things down into component parts. When in doubt break down the problem into pieces
Step # 1 Ask for any info on where to start
Step # 2 State a Hypothesis
Step # 3 Pick a branch of framework to start
Step # 4 Identify key issues within branch (State all the issues then dive in)
Step # 5 Ask standard questions to gather initial data (Have revenues gone up, down or stayed the same?)
 Step # 6 Go deeper down the branch if data suggests to do so, or go UP a level and work a different branch
Step # 7 Refine hypothesis as you discover more insights and state what specific information you need to prove
it. Do not ask open ended questions.
Tip # 1 - Think out loud
Tip # 2 Use hypothesis a lot
Tip # 3 Critical comparison of numbers. Company Vs Competitor (Company specific, Industry-wide problem)
Tip # 4 Current Year Vs Previous Year (Find the trend)
Tip # 5 Segment your numbers
Tip # 6 Always ask for more data. Explain why you are asking the data first. Segments is a good word to use.
Segment by region, channel etc.

Close a Case/Synthesize

Figure out whats important about your discoveries throughout the case
Provide a Big Picture point of view or conclusion (Preferably with a recommendation)
Support your point of view with data
Synthesize: Combine separate elements to form a coherent whole (Exact opposite of analysis)
Good close: Conclusions, three relevant pieces of data that support the conclusion
Great close: Conclusion with a definitive action recommendation and three pieces of data that are logically
related to the conclusion and restate the conclusion. Star the drill down and key findings so that it becomes
easier to synthesize/summarize/conclude.

Frameworks

Profitability Framework

Profit problem (Profit, Revenues, Cost) Decline in volume, decline in price, increase in costs
E.g. VC Segment the variable cost further. Raw materials, Manufacturing, Distribution/SGA, Customer service
In case you find out that the costs of the entire industry have gone up it would be better to switch gears now to
business situation framework. Porters five forces is very good to look at an entire ecosystem.

Business Situations Framework

You are looking for critical information in each response and looking to branch off once you have sufficient
information. Deviate from the framework then.
Business Situations
o Enter a new market/Start a new product
o Introduce new product
o Respond to competitor behavior
o Respond to changes in demand
o How to grow
Mergers & Acquisitions Framework

Is this merger a good idea?

Supply/Demand (Industry Capacity, numbers around supply/demand ,dollars to produce capacity issues)
o Capacity change through acquisition, merger
o Build/ shut-down factory
o Capacity shift in response to change in demand

Reminders

Find the trend

Comparisons: Company specific Vs Industry-wide
Totals and averages are misleading. Segment your metrics
o Segment revenues (product, channel, customer type, region) (total revenues, revenue per unit)
o Segment costs (FC, VC within each segment of the value chain) (Total cost, cost per unit)
o Segment by customers (demographic, needs, purchasing patterns, price points)
o Segment competitors (by channel, distribution, product, customer segment)
Ignore previous knowledge and use data from the case

Practice for Case Interviews

Practice opening & closing cases on your own (Business week, portfolio magazines)
Practice analysis with a partner
 Practice drawing different things (frameworks, math computations) on different mediums (White board, sheets)
Practice math of large numbers (5000*15000, 2 million *2500 etc.)

Interview Tips - Strategic Planning

Whats your competitive advantage? Do you leverage it by going into consulting?

Consulting is NOT the end all, be all
If you dont enjoy the case interviews, you probably wont enjoy the job
Who doesnt get hired by consulting firms?
o Creative, non-linear thinkers, Visionaries (Polar opposites of consultants)
Pick something you enjoy, and something you do unusually well
You get hired for analytical skills, you get promoted for Client skills (aka Sales)