Football analogy
You need to learn the building blocks / fundamentals in order to be able to play well
- E.g. receive, pass, shot, tackle, positioning
- Things you can train in isolation
-> Same thing for consulting
The 6 Building Blocks of Case Interviews
Structure-related building blocks
- Brainstorming
- Frameworks
- Hypothesis Testing
Analysis-related building blocks
- Estimations
- Quantitative Analyses
- Chart Interpretation
What is brainstorming?
What is it not?
- Brainstorming is using issue trees to build a structured list of hypotheses and ideas
- It is NOT throwing out a random list of ideas/hypothesis without structure and priority
Examples of brainstorming
- An iron-ore mining company has seen its revenue drop 30% in the last year despite heavy investments, what are plausible hypotheses that could explain that?
- A large university wants more applicants for their undergrad program next year. What are some ideas of what they could do to get that?
- Apple wants to launch a cheaper version of iPhone - what are the risks?
What is frameworks?
- Frameworks are decision-making plans - a list of the questions you need answered to make a decision and a systemic way to make sense of them
- The skill being tested here is how you create this plan, not if you know a pre-made one
Examples of frameworks?
- How can Nestle create a long term growth strategy?
- Help a Health Minister combat childhood obesity.
- How would you help a soft drinks company increase its profits?
What is hypothesis testing?
- Hypothesis Testing serves to test the hypotheses you organized and prioritized when brainstorming or building your frameworks
- These test need to be rigorous, but also practical
Examples of hypothesis testing
- Is passing a law to increase physical activity in schools a good idea to reduce childhood obesity?
- Would it be worth for Nestle to start a super premium line of baby food products in order to grow sales in Europe?
- Will the building of nicer dorms increase the number of applicants of a university’s undergrad program?
What is estimations?
- Estimations are used to quantify when you have no data (or insufficient data) by using logic and assumptions
- It is also used to see if you have what it takes to model scenarios in consulting
Examples of estimations
- What is the market size of road maintenance in the US?
- What are the revenue of a local Starbucks store?
- How much do pharma companies spend on R&D every year?
What is quantitative analyses?
- When you have the data to calculate, we call it a Quantitative Analysis
- Getting to the right number is the minimum - how you do this and what you do after you find it is as important
Examples of quantitative analyses
- Calculate revenue synergies from introducing your competitor’s products into Starbucks stores after an acquisition
- Calculate cost savings in R&D after implementing this new process
- Given this table of data, how much will it cost to improve the quality of this university’s dorm rooms?
What is chart interpretation?
- Chart interpretation questions happen when interviewed give you an already done analysis in the form of a chart to see how you understand it and find the implications
- Great candidates finds more insights, communicate them better and develop next steps
Examples of chart interpretation
- Table comparing different countries Nestle could invest on expansion
- Graph charting effectiveness, addressable population and cost of different public policies to reduce childhood obesity
- Chart showing the iron and ore supply and demand curves with prices and volumes of all main global supplier and buyers
Your Preparation Toolbox, Three key tools:
Theory
- Step-by-step method
- Apply principles to real cases
- Consultants follow certain patterns
Drills
- Video drills, targeted practice
- Specific questions, not a whole case
- Give yourself more time than in a real case, e.g. take 10-15 min to develop your framework
- Use the drills to learn in your own pace
- The bridge between the theory and mock interviews
- Safe playing ground
Mock interviews
- Simulations of the real thing
- Complement to theory and drills
- What is the specific issue I’m trying to solve, and what tool do I need to solve it?
Be in charge of your own preparation, e.g.:
- Find patters on how to solve different problems
- Think of questions that could have been asked
- Find patterns on what you need to improve
Three mindsets to prepare effectively for your cases
Mindset #1: Cases are meant to be crafted, not cracked
Mindset #2: My preparation is a case in itself
Mindset #3: I should be curious and ask why
Advantages and drawbacks of using the 6 Building Blocks
Advantages
- Thorough and works for any case interview
- Each part can be learned and practiced in isolation
- Doesn’t oversimplify cases, but makes it simpler to solve
- No memorization needed, it is a system to help you think
- Straight from the consulting job, doesn’t sound “robotic”
Drawback
- No shortcuts, you need to understand what you’re doing!
Mindset #1: Cases are meant to be crafted, not cracked
- Cases are …
- Craft …
- Learn to …
- The … that matters, not …
simulations of real world problems → not one right answer
the best plan and arguments based on the information that we get
solve problems like real consultants
line of work
the answer
Mindset #2: My preparation is a case in itself
- Look at your preparation as …
- Plan the preparation in a …
- Tackle … of problems instead of …
- Do …
- Apply … to your own preparation
- Framework:
a problem to be solved
structured way
root causes
symptoms
tough cases
consulting principles
1. Find your weaknesses
2. Find the best practices to fix them
3. Practice until you have internalized it
4. Repeat
Mindset #3: I should be curious and ask why
- Great consultants are …
- They like to understand …, and they like to understand things from …
- Be curious about your …, and be curious about your …
- Ask yourself …
- Be … at the same time as you are …
- Think of each problem’s …, try to do … frameworks
- Be curious with the …
curious thinkers
why things happen
first principles
cases
preparation
“why?”
systematic
flexible and curious
uniqueness
specific and tailored
feedback you receive
