TMP Consulting Club 2006

Case Interview Prep: Driving to Success

June 10, 2006

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This is a good year for consulting

- Consulting hiring is up! 8 Many of the firms plan to hire more this year 8 Firms tend to interview a large portion of the class - You can build these skills 8 Every year people who practice do better 8 Getting a solid start will be critical to getting ready - I have lots of insights to share 8 This last year and a half I worked with over 250 people one-on-one 8 Stars are fairly consistent in their patterns 8 Case interviewing is a skill and you can get better

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David Ohrvall
- Consultant & Strategist 8 3 years with Nalco, Director of Corporate Strategy 8 4 years with Bain Chicago, summer associate to manager 8 5 years with Andersen Worldwide, manager 8 Wharton undergrad, Wharton MBA - Interviewer 8 Gave cases to MBAs and undergrads at top programs - Author/ Entrepreneur 8 Author of Crack the Case: How to Conquer Your Case Interviews 8 Founder of mbacase.com 8 Launched Formabilities, childrens interactive toy company - Trainer/ Coach 8 9 years of training roles within consulting 8 2 years of teaching outside of consulting 8 Personal case coaching
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So why am I here?

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My objectives during the plenary today: iBuild your confidence and skills iOutline a plan for getting prepared iLet you know what the interviewers want iGive you a few tips on how to crack your cases iSolve a case at a high level with you

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During the workshops in January:

i15-20 people per group iWell do a detailed case together with one person up front serving as the interviewee iEach person works through the case on their own but stays with the group iDetailed tips on how to deal with data (notes and charts) iVery specific iOne original case pack to keep

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Getting Ready

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Top 5 Ding Reasons iNot driving the case iChoosing a limited framework iListening and presenting poorly iBeing data light iNot ending well no recommendation, not concise

Prep Pitfalls

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Top 5 Ding Reasons iNot driving the case iChoosing a limited framework iListening and presenting poorly iBeing data light iNot ending well no recommendation, not concise

Prep Pitfalls iStudy only by yourself iDo mock interviews only with your friends iBoil the ocean by trying to do it all iTry to cram like any other exam iAvoid honest feedback
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Plan to succeed

2-3 months

4 weeks

2 Weeks

Goal

Get familiar with the game Read up and make a prep plan

Identify weak spots

Hear the honest truth Seek brutally honest feedback

Fix your defects Drill, drill and drill

Be confident Do 15 real mocks

Action

Do some practice cases and look for patterns

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Check in first, then build your plan

Self Check
i Do I understand how businesses make money? i Do I know how to dissect basic case problems? (profit, new business, cost reduction, new product, etc.) i Can I speak conversationally about business topics? i Am I a logical, problem solver? i Am I quick with math?

Action
i Review how the value drivers affect the bottom line i Create an approach that will help you consistently each and every time i Practice talking out loud about the value drivers i Hone your skills with practice and highlight them through communication i Brush up on doing numbers in your head (it saves time and makes you look smart)
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Plan to maximize your mocks

i Take the interview seriously i Meet, greet, analyze and conclude i Ask for honest feedback You i Track your progress

i Be honest, direct and actionable i Focus on the analytics, but dont ignore the communication i Look for patterns
F

d ee

k ac b

Pa rt

ne

i Prepare ahead of time and know the case facts well i Take notes on the candidate i Tell it like it is!

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Interviewer Expectations

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Whats the interviewer really thinking?

Business Case Interview Timeline

Handshake and Greeting 0-2 Getting Settled 3-4 PreBusiness Case Case Discussion 5-6 7-22 Your Questions 23-25 Farewell Address 26-27

PreInterview

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Pre-interview

Business Case Interview Timeline

Handshake and Greeting 0-2 Getting Settled 3-4 PreBusiness Case Case Discussion 5-6 7-22 Your Questions 23-25 Farewell Address 26-27

PreInterview

Im tired, how many more of these do I have today?

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Meet and Greet

Business Case Interview Timeline

Handshake Interview and Greeting 0-2 PreGetting Settled 3-4 PreBusiness Case Case Discussion 5-6 7-22 Your Questions 23-25 Farewell Address 26-27

Do you have any energy? Are you confident?

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Settle-in

Business Case Interview Timeline

PreInterview Handshake and Greeting 0-2 Getting Settled 3-4 PreBusiness Case Case Discussion 5-6 7-22 Your Questions 23-25 Farewell Address 26-27

Do I feel comfortable around you? Are you awkward?

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Pre-case Discussion

Business Case Interview Timeline

PreInterview Handshake and Greeting 0-2 Getting Settled 3-4 PreCase Discussion 5-6 Business Case 7-22 Your Questions 23-25 Farewell Address 26-27

Do you catch my interest? Are you engaging?

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Business Case

Business Case Interview Timeline

PreInterview Handshake and Greeting 0-2 Getting Settled 3-4 PreBusiness Case Case Discussion 5-6 7-22 Your Questions 23-25 Farewell Address 26-27

How smart are you? Can you crack this case?

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Your Questions

Business Case Interview Timeline

PreInterview Handshake and Greeting 0-2 Getting Settled 3-4 PreBusiness Your Case Case Questions Discussion 5-6 7-22 23-25 Farewell Address 26-27

Are you truly interested or going through the motions?

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Farewell

Business Case Interview Timeline

PreInterview Handshake and Greeting 0-2 Getting Settled 3-4 PreBusiness Case Case Discussion 5-6 7-22 Farewell Questions Address 23-25 26-27 Your

Ive gotta hurry and get back on schedule

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Crack Your Case

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Crack the case every time!

Business Case Interview Timeline

PreInterview Handshake and Greeting 0-2 Getting Settled 3-4 PreBusiness Case Case Discussion 5-6 7-22 Your Questions 23-25 Farewell Address

26-27

5 simple steps will help you with every case

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The FRAME Method works on any type of case

Form a Plan Read Your Audience Anchor a Hypothesis Mine for Data End the Case!
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Form a plan to begin well

iYou do not have to use a traditional framework
- Some firms are even discouraging them - Common sense is not so common anymore

iMention where you want to start

- Keep your plan holistic - Think MECE: Mutually Exclusive, Collectively Exhaustive - Use simple language - Id like to first look at revenue . . . .

Mention areas you want to explore

- . . . and how the competitors are impacting our revenue. I also would like to look at costs.

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Whats your objective with every case?

Maximize the Value of the Company

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Maximum Value Model (MVM)

Zone 5

T
Zone 4
Finance

Zone 3
Organization

Zone 2 Zone 1
Strategy Operations

Volume Price Fixed Variable

People Systems

CA$H
Measure

D/E

Processes

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Waterfall each zone adds value

Zone 4 Zone 3 Zone 2 Zone 1

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Strategy increase, change, shrink

Zone 4 Zone 3 Zone 2 Zone 1

Strategy

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Operations revenue and cost

Zone 4 Zone 3 Zone 2 Zone 1

Strategy Operations

Volume Price Fixed Variable

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Organization people, systems, processes and measurement

Zone 4 Zone 3
Organization

Zone 2 Zone 1
Strategy Operations

Volume Price Fixed Variable

People Systems

Measure C Processes

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Finance cash, debt, equity

Zone 4 Zone 3
Organization Finance

Zone 2 Zone 1
Strategy Operations

Volume Price Fixed Variable

People Systems

CA$H
Measure

D/E

Processes

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External Forces

Zone 5

Suppliers Public Economy Competitors

Technology Legal Auditing Industry

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Maximum Value Model (MVM)

Zone 5

T
Zone 4
Finance

Zone 3
Organization

Zone 2 Zone 1
Strategy Operations

Volume Price Fixed Variable

People Systems

CA$H
Measure

D/E

Processes

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Always Fresh (check the web)

i Subsidiary of $30B consumer products conglomerate i Successful line of deodorant/anti-perspirant spray, roll-on and stick i Team is ready to go abroad and youre the team leader i Is international expansion a good idea? Which countries are best?

How do I start in a simple and common sense way?

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MVM Use it as a roadmap

Zone 5

C
3

T
Zone 4
Finance

Zone 3
Organization

Zone 2 Zone 1
Strategy Operations

4 1 2
R Volume Price Fixed Variable People Systems Measure C Processes .

CA$H D/E

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Read your audience at all times

iNote his or her style
- Chatty Charlie vs. Data Maam vs. Silent Partner

iExpect changes in style throughout the interview

- Relaxed to intense to relaxed again is common

iRespond!
- Stay nimble: speed up, slow down, listen intently - Track with the interviewer at all times

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Anchor a hypothesis

iThis approach is the real differentiator iPut a mental stake in the ground on what you think solve to prove or disprove it iYou do not have to state your hypothesis!

Hypothesis

Assertion 1

Assertion 2

Assertion 3

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Always Fresh (check the web)

i Subsidiary of $30B consumer products conglomerate i Successful line of deodorant/anti-perspirant spray, roll-on and stick i Team is ready to go abroad and youre the team leader i Is international expansion a good idea? Which countries are best? It is a good idea. I need to find the right location.

Demand exists and can be estimated

Product is differentiable; can take competitors share

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We can support it: team and finances are in place

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Mine for an answer (find data!)

Demand exists and can be estimated
iDo people want this product? iEstimate demand? iPrice? iWhere is highest demand?

Product is differentiable

We can support it

iWhat is unique about product? iHow can we differentiate? iHow will competitors respond?

iIs the team in place? Do we have a strong leader? iHow will we sell and distribute the product? iFinancing in place?

Find specific answers to your questions

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Mine for an answer (continued)

Big markets: Brazil, Japan and Germany

Price differentiation: Spray is higher Brazil and Japan are fragmented, share gains are possible No deodorant type is dominant by country

Entering all three countries will bring in annual revenue of $183M

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End the case!

iPlan the end long before the time is up iBe concise and answer the main question iTie data to your recommendations dont answer just from your gut!

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The FRAME Method

Form a Plan Read Your Audience Anchor a Hypothesis Mine for Data End the Case!
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Sample Case

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Fitness Xtreme

Fitness Xtreme, land of the limber and lean, needs to go on a diet. Membership fees are down and the management team is eyeing its costs. Should the trainers get the axe?

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Fitness Xtreme

CASE QUESTION

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Form a plan (what you think)

Zone 5

T
Zone 4
Finance

Zone 3
Organization

Zone 2 Zone 1
Strategy Operations

3
R Volume Price Fixed Variable

2
People Systems Measure .

CA$H D/E

Processes

1
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Form a plan (what you say)

There are several areas I would like to explore:

Review costs and savings of eliminating trainers

Assess the team, look for win/win structures

Understand the revenue impact of changes

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Read Your Audience

iLook for changes in communication

- Directly asking for data - Picking up the pace - Disengaging

iSilence is a good weapon

- Stick to your points and wait

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Anchor a hypothesis

Training staff can be reduced but not completely eliminated

Trainer costs are small and will offer little savings

Trainers have little impact on revenue

Minimum set of trainers will keep members happy and image high

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Mine for an answer (find data!)

Costs Are Small Little Impact on Revenue Minimize the Number of Trainers
iWhat portion of the trainers time is unused? iCan we meet demand with fewer trainers? iWhat risk is there to having fewer, higher quality trainers?

iWhat does the total cost bar look like? iWhat % are trainers salaries? iFull time vs. part-time iAt what point will trainers leave due to salary cuts?

iWhat is membership revenue? iWhat portion is from training? iWho uses trainers? iWhat would happen to membership if trainers left?

Find specific answers to your questions

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Pull it all together

Manage the data

Costs in Percent
100%

Xtreme Caf

Revenue in Percent
$1.8M
Maintenance Part-time Admin Spa/ Beauty

$6.75M
Outsourced Maintenance

100%

$9.6M
Caf

Classes

Internal Maintenance & Parts

Personal Training
80
Spa

80

Other

60

Employee Salaries Full-time Admin

60

40
Lease Payments

Sales Staff

40

Membership Dues/ Fees

20

20
Trainers

Total FX Annual Costs

Annual Salary Costs

Total Fitness Xtreme Annual Revenue

List your insights Trainers are a break-even proposition Few members use personal training To be valuable, trainers must offer some other intrinsic value Over 30% of a trainers time is spent walking the aisles; we have capacity
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End the case!

Trainers represent 10% of costs, but provide little more than break-even revenue Revenue downside: if all one-on-one trainees left the gym, wed lose 3% of revenue Evidence on the trainers ability to provide intrinsic value to the member is unclear Reducing them by 1/3 is possible but savings would be only $250k per year Creative Solution: I recommend using their capacity for revenue generation: free training or discounted training. They could be a bigger draw for new members
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Report Card

I cracked it! Bring on more cases. I got off to a good start with a clear plan. I had a hypothesis and asked good questions. I kept moving and kept looking for data along the way. I found insights and pulled them together. I closed concisely and had a recommendation that answered the main question.

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Products
- Crack the Case: How to Conquer Your Case Interviews 2006 Edition 8 Maximum Value Model (One Model) 8 The FRAME Method (One Method) 8 10 case packs (~150 pages of answers, insights, tips) 8 10 Practice roadmaps 8 What the firms want, how to avoid wrong turns in preparation and behind the scenes details 8 Hard copies are available today for $40 8 Available on-line (hard copy $45 + shipping, e-book $35)

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One on One Coaching

- Jump start your training with a real appraisal - Learn how to systematically attack your cases - Reduce performance variability Packages and Pricing
Standard Package: 2 hours for $425 iIncludes 2 practice cases iPerformance analysis iCase drills and action plan iAdditional hours are $175/hour Premium Package: 4 hours for $750 iIncludes 3-4 practice cases iPerformance analysis iCase and resume drills iFit analysis iAccess to me throughout your recruiting season iAdditional hours are $150/hour
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TMP Consulting Club 2006

Questions? www.mbacase.com

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