The Case Interview

Source: Boston Consulting Group

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WHY ARE CASE INTERVIEWS GIVEN? To Test Two Things

How much will you like consulting? Expose candidates to case situations and the kind of work consultants do How much will consulting like you? Give the firm a sense of how you might approach a case situation

Firms generally do not expect an extensive business background Most companies try to give cases that do not require business experience or knowledge of business jargon

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WHAT ARE CASE INTERVIEWS?

Two Main Types
Brain teaser or market sizing How many pencils are sold annually in the United States? How many dogs are there in California? What are the chances of rolling double sixes three times in a row? A pharmaceutical company is trying to decide whether to manufacture its drugs in-house or outsource; how would you help? The company that owns Vail mountain has seen a decline in revenues over the past five years; what should it think about?
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Business problem

WHAT DO COMPANIES LOOK FOR?

Not The Answer
Creativity Apply a unique perspective to business situations See the big picture Draw conclusions from partial info Make assumptions, see patterns, generate hypotheses Poise Appear excited by the kinds of issues consultants face Not intimidated by process/problems Assimilate info quickly/effectively Ask insightful questions Analytics Provide structure to unstructured problems Break problems into components Apply transparent, logical thinking to each component Synthesize discussion into solution

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HOW DO I ATTACK A CASE?

Creating a Logical Structure is Key to Success
Framing/organizing Ability to identify key issues which he/she needs to deal with in order to solve the problem
Ability to assess the issues, prioritize them and form a coherent plan of attack Ability to dig deep enough to find the detailed information which leads to a meaningful answer Ability to use information given and manipulate it accurately into a logical conclusion - identify the key displays or data dimensions needed to reach a solution - derive relationships among different dimensions of data Ability to predict relationships and outcomes based on sound reasoning - clear logic to conclusion - delineation of alternatives

Framing
Prioritizing issues

Analysis

Identifying relevant information Drawing conclusions from facts

Conclusion
Identifying key implications and next steps

Communication skills tested throughout interview

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INTRODUCTION TO THE CASE

Our client owns and operates an independent mom and pop gas station
Sells gas for $1.01 per gallon
Operates at break-even profitability

Exxon opened a gas station across the street twelve months ago
Sells gas for $0.91 per gallon
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DEMONSTRATION OF CASE INTERVIEWING #1a: FRAMING

Interviewer Interviewee

Discussion and Q&A?

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WHAT IS A FRAMEWORK?
Description Models, tools or maps that provide a systematic, logical way of analyzing a problem Show cause and effect relationships to focus on Distill a complex, ambiguous problem to the relevant issues

Benefits

Guides intelligent questioning of the interviewer Lays out your analysis in a logical, coherent manner paints a picture of how you think Allows you to apply your experience to an unfamiliar situation
SWOT analyses Familiar frameworks5 forces, 7 Cs, 7 Ss, 4 Ps Matrices2x2, more sophisticated multi-dimensional Value chain analysis Comparative economics Product/technology life cycle Decision trees

Examples

Key is application of, not simply stating, a framework

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DEMONSTRATION OF CASE INTERVIEWING #1b: FRAMING

Interviewer Interviewee

Discussion and Q&A?

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FRAMING
Dos
Use one to structure your answer Explain insights derived using framework Creativity is key Get buy-in from interviewer Use analogies if possible Practice, practice, practice

Donts
Force fit a framework Overuse buzzwords (e.g., Porters 5 forces) Try to apply a framework that you do not know well Ignore direction from interviewer

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DEMONSTRATION OF CASE INTERVIEWING #2: ANALYSIS

Interviewer Interviewee

Discussion and Q&A?

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ANALYSIS
Dos
Scratch your analysis on
Overly

Donts
worry about basic math mistakesyet, dont make too many of them Worry about decimal-point precision Lose sight of the issue (get lost in the details) Lose contact with your interviewer Ignore when analytics disprove original hypotheses Keep your thought processes to yourself

papereven stream of consciousness thoughts Use facts provided to develop support for your conclusions Ask for more data, clarifying information Keep your framework in mind (tie back) Do math on paper Use round numbers Start over if needed Think out loud

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DEMONSTRATION OF CASE INTERVIEWING #3: CONCLUSION

Interviewer Interviewee

Discussion and Q&A?

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CONCLUDING THE CASE

Dos
Summarize your analysis Provide a clear recommendation or hypothesis derived from your analysis Highlight any additional information you would need to know Identify any implications of your recommendations (e.g., competitor response, client reaction)

Donts
Forget to conclude the case regardless of progress made or time constraints Waffle or be indecisivehave a point of view and confidently support it Ask for feedback Forget the original question

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HOW DO I PREPARE?
No Magical Formula
With classmates, friends who interviewed last year, and people at your schools career services Practice Decreasing performance impact Look on the web for firm-provided practice questions (bcg.com) Case interview guides (e.g., WetFeet) View the interview as an opportunity, not a hurdle Remember, most questions have no right answer Prepare mentally Familiarize yourself with frameworks Dont forget about your conclusion Wall Street Journal Read, read, read . . . and think Financial Times New York Times business section

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PRACTICAL TIPS FOR SUCCESS Bring a pen/pencil and a pad of paper

Feel free to pause, particularly at the beginning Dont panicask questions to clarify facts, learn more information Structure your analysis before you begin Think out loud Be clear about your assumptions

Silence can be golden

Do what makes you comfortableapproach with your personal style, not what you think is expected

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