squeaker.net consulting interview preparation
DESCRIPTION
Introduction to the Case Interview in the application process at Consulting Firms. Presented by Stefan Menden of www.squeaker.net - Author of the leading German Case-Interview prep book.TRANSCRIPT
OFW World Business Dialogue 2009
The Consulting Interview
OFW World Business DialogueStefan Menden (www.squeaker.net)
OFW World Business Dialogue 2009
Agenda
• Introduction• The Consulting Interview
– Introduction– Personal fit– Case Interview– Questions
• Summary and Q&A
OFW World Business Dialogue 2009
About me
• Former OFW team (World Business Dialogue 1999)
• Founder of career network www.squeaker.net
• Author of leading German Consulting Interview Prep books
• 3 years Strategy Consulting with Oliver Wyman
• 2 years Venture Capital
OFW World Business Dialogue 2009
The consulting environment
Revenue
per
Consultant
Consultants
Boutique firms Strategy Consulting
Small firms Full Service / I T-Consulting
• goetzpartners• Horváth & Partners• LEK• Monitor• OC&C
• Bain & Company• BCG• Booz & Company• McKinsey• Oliver Wyman• Roland Berger
• Accenture• Bearing Point• IBM• Deloitte
OFW World Business Dialogue 2009
The recruiting process
Select target firms Application Screening
1st round interviews
2nd round interviews
Offer letter
• Recruiting fairs• Company websites• Online Networks• Press• Personal network
• Letter• CV• References etc
• CV screening• Knock-out criteria
• Additional criteria• Overall evaluation
• (Phone interview)
• Cases• Personal Fit• (Quantitative tests)
• Cases• Personal Fit• Partner interview• (Präsentations)• (Group assignment)
• Base salary• Bonus• Perks• Entry position• Location
Internship
OFW World Business Dialogue 2009
The recruiting process
100 75
20
4 1-3
ApplicationScreening 1st round2nd round Offer
OFW World Business Dialogue 2009
Agenda
• Introduction• The Consulting Interview
– Introduction– Personal fit– Case Interview– Questions
• Summary and Q&A
OFW World Business Dialogue 2009
The consulting interview
• Introduction / small talk
• Personal fit / experience interview
• Case Interview
• Questions
The consulting reality
• Complex problems
• Demanding hours
• Changing priorities
• Teamwork / new teams
• High impact
• ...
The interviewer‘s checklist
Does the candidate have:
• Drive, motivation• Flexibility• Analytical ability• Quantitative skills• Communicative &
leadership skills• Maturity
Will the candidate enjoy consulting?
Do I want to work with this person?
Why consulting firms use case interviews
OFW World Business Dialogue 2009
The components of the consulting interview
Introduction / small talk
Personal fit / experience
Case Interview
Questions
1
2
3
4
3-5 mins
5-15 mins
30-45 mins
3-5 mins
OFW World Business Dialogue 2009
Part one: Introduction
Do’s
Listen attentively, keep eye-contact
Ask questions, join in conversation
SMILE
Don’ts
Don‘t take over the lead
Don‘t pretend
Don‘t think that this is not already part of the interview
Clarify process
Reduce nervousness
Get first feeling for candidate‘s social skills
Get to know the interviewer
Explain the process
Small talk
OFW World Business Dialogue 2009
Part two: Personal fit / experience interview
Do’s
Present your previous experience in a cohesive way
Add interesting details and personal experiences
Be prepared to answer questions about your CV
Don’ts
Don‘t just repeat what‘s on paper
Don‘t be arrogant
Don‘t be too nervous
Does the candidate fit into our team and culture?
Do I want to work with this person / spend long hours in the same room?
Can the candidate represent our firm in front of clients?
Discuss your CV and personal achievements
Understand your motivations and communication style
Why do you want to become a consultant?
Why with our firm?
OFW World Business Dialogue 2009
Personal fit: Typical questions
„Talk about yourself“
„What are your strong points?“
„What are your weak points?“
„Why did you choose your particular subjects in university?“
„What was your greatest challenge?“ How did you overcome it?“
„Why do you want to go into consulting?“
„When did you lead a team?“
„Your grades are not outstanding, don‘t you think?“
OFW World Business Dialogue 2009
Personal fit exercise: Skill assessment
Take a piece of paper and draw a 5x3 table like this:
1) 1st column: What do you think are the 5 most important skills a consultant needs
2) 2nd column: Score yourself against these skills (Points 1-10)
3) 3rd column: How can you prove this from your CV?
OFW World Business Dialogue 2009
Personal fit exercise 2: SWOT introspection
Strengths Weaknesses
Opportunities Threats
OFW World Business Dialogue 2009
Part three: The Case Interview
Mini Case
Business Case
Market-Sizing
Brainteaser
The Case Interview
Typical types of questions
OFW World Business Dialogue 2009
Business Cases
• Often based on real cases
• Often a part of a more complex problem
• No one-size-fits-all solutions
• Often include a strategic and a quantitative part
Examples
• Market entry
• Product innovation
• Competitive Response
• Reaction to changing market conditions
• M&A activities
• …
OFW World Business Dialogue 2009
Example case
„Your customer is a European
low-cost-airline. The CEO asks
you to prepare a
recommendation for the board
meeting this afternoon if the
company should offer
transatlantic routes as well.“
OFW World Business Dialogue 2009
How to solve the case
Hypothesize & ask questions
Structure the case
Solve the case
Present and evaluate
1
2
3
4
OFW World Business Dialogue 2009
Frameworks to structure business cases
Profit equation
Michael Porter‘s Five Forces
4 P‘s: Price, Product, Place & Promotion
SWOT Analysis (Strengths, Weaknesses, Opportunities, Threats)
2x2-Matrix
Break-Even-Calculation
4 C‘s: Customer, Competition, Cost, Capabilities
…
Use frameworks to structure problems – not as a one-size-fits-all solution to problems
OFW World Business Dialogue 2009
Structuring problems: The pyramid principle
Haus
Dachziegel
Dach Dachstuhl
Rauchfang
Grundmauern
Ziegeln
Mörtel
Gerade Ziegel
Eckziegel
Beton
Zuschlagstoffe
Wasser
Mörtel
Ziegeln
Schrauben
Kantholz
Dachziegelverbindungen
Eckdachziegel
Gerade Dachziegel
Innenräume
Möbel
Einbauteile
Böden
Tische
Stühle
Einbauteile Badezimmer
Einbauteile Küche
Einbauteile Keller
Holzböden
Spannteppichböden
.......
Fließenböden
AnbauteileFenster
Türen
OFW World Business Dialogue 2009
The most important framework
Profit
Revenue Cost
Price Quantity variable fix
-
x +
The profit equation
OFW World Business Dialogue 2009
2x2 Matrix
high
high
low
low
OFW World Business Dialogue 2009
Porter‘s Five Forces
OFW World Business Dialogue 2009
Break Even analysis
OFW World Business Dialogue 2009
Consultants LOVE charts
Kosten R&D Produktion Vertrieb Logistik
11%
24%
15%
5%6%
0%
5%
10%
15%
20%
25%
30%
Hills Wal-Mart Kmart Target Ames
Zielsegment!
x
y
Bekanntheit
€
Firma A
Firma B
Firma CFirma D
SPD
CDU
FDP
Grüne
KFZ
Nutz
Privat
Kauf
Lease
Lease
KaufR&D Launch Serie
Produkt Prozess
1) Balken: Vergleich von Variablen 2) Waterfall: Aufteilung von Kosten
3) Linien: Entwicklung über die Zeit 4) Funktionale Zusammenhänge
5) Bubble-Chart: Relative Positionen 6) Pie-Chart: Anteile
7) Logikbaum: Zusammensetzung 8) Flussdiagramm: Prozesse
2.000900
400
200
500
Kosten R&D Produktion Vertrieb Logistik
11%
24%
15%
5%6%
0%
5%
10%
15%
20%
25%
30%
Hills Wal-Mart Kmart Target Ames
Zielsegment!
x
y
Bekanntheit
€
Firma A
Firma B
Firma CFirma D
SPD
CDU
FDP
Grüne
KFZ
Nutz
Privat
Kauf
Lease
Lease
KaufR&D Launch Serie
Produkt Prozess
1) Balken: Vergleich von Variablen 2) Waterfall: Aufteilung von Kosten
3) Linien: Entwicklung über die Zeit 4) Funktionale Zusammenhänge
5) Bubble-Chart: Relative Positionen 6) Pie-Chart: Anteile
7) Logikbaum: Zusammensetzung 8) Flussdiagramm: Prozesse
2.000900
400
200
500
OFW World Business Dialogue 2009
How to tackle the case interview
Do’s Take notes
Ask for missing information
Lead the conversation
Listen for details
Take your time
Structure, structure, structure
Involve the interviewer in your thinking
Clearly state your assumptions
Sum up your conclusions
OFW World Business Dialogue 2009
How to tackle the case interview
Do’s
Don‘t „copy-paste“ your solution / framework think!
Practice mental arithmetic and written calculations without calculator
Sanity-check your conclusions and assumptions
Be well prepared and up-to-date on current economic events
Let your hypothesis guide you
Practice cases by inventing your own
Relax, keep cool and have fun!
OFW World Business Dialogue 2009
How to tackle the case interview
Don’ts Don‘t be too spontaneous
Don‘t guess
Don‘t go into unimportant details – be 80/20
Don‘t be arrogant
Don‘t come late
Don‘t lose your calm and maturity – imagine you are presenting to your client
OFW World Business Dialogue 2009
Market sizing
Test ability to structure a concrete problem
Test quantitative abilities
Test mental arithmetic skills and written calculation without calculator
Test ability to handle large numbers accurately
Often part of a business case
Examples
Market size / potential of a product or service for a country, region, city
„What is the market size for car stereos in Germany?“
Calculation of the market share of a company
„What is the market share of Volkswagen in Germany?“
Quantitative exercises
„How many tennis balls fit into a Boeing 737?“
OFW World Business Dialogue 2009
Example
“For what price would you buy the Golden Gate Bridge?”
“What is the turnover of the Starbucks on Friesenplatz in Cologne?”
“How many songs are stored on ipods in Germany?”
OFW World Business Dialogue 2009
Brainteaser
• Ability to structure an abstract problem
• Ability to elaborate and present a solution in a coherent way
• Tenacity
• Ability to tackle a seemingly unsolvable problem
• Quantitative skills
• Creativity
Examples
„How many seconds from now until New Year’s Eve?“
„You are on a boat on a lake and raise the anchor – will the water level rise or fall?“
„Why are manhole covers round?“
Weighing balls
Measuring the angle between hands on a clock
OFW World Business Dialogue 2009
Questions
Do’s
Prepare a few questions, that
are not too obvious
are related to your background
are about experiences of the interviewer
Don’ts
Don‘t have no further questions
Don‘t ask „stupid“ questions
Are you really interested in consulting and this firm in particular?
Do you have the right communicative skills?
„Do you have any further questions?“
OFW World Business Dialogue 2009
Agenda
• Introduction• The Consulting Interview
– Introduction– Personal fit– Case Interview– Questions
• Summary and Q&A
OFW World Business Dialogue 2009
The components of the consulting interview
Introduction / small talk
Personal fit / experience
Case Interview
Questions
1
2
3
4
OFW World Business Dialogue 2009
More example cases
1. Call-a-bike: A start-up company wants to offer a system of bike rentals in major cities. Charging is by the minute. Can this be a profitable business?
2. MVNO: Your client runs a major chain of drugstores in Germany. As many other retail chains have started selling low-priced pay-as-you-go mobile SIM cards, your client wants a detailed assessment if they should also enter this market.
3. Netflix: Your client owns a chain of DVD rental stores. As revenues and profit have been declining over the last years, they wonder if they should enter the market for movie downloads over the internet. How can you help them?
4. Google: Your client is Google. The founders, Larry and Sergei, wonder if they should buy facebook – and at what valuation. Their private jets land at the Googleplex in 30 minutes and they want an initial assessment from you for their meeting with Mark Zuckerberg this afternoon.
OFW World Business Dialogue 2009
Recommended reading (in German)
www.squeaker.net/insider
www.consulting-insider.com
OFW World Business Dialogue 2009
Stay in touch!
www.facebook.com/squeakerwww.twitter.com/squeakernet