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Cracking the Case: A Consulting Interview PrimerPage 1 of 3Web Exclusive You don't have to be Sherlock Holmes to ace the cases in a consulting-firm interview. In fact, a little preparation can make solving them seem, well, elementary.Firms Are There to Help YouConsulting Industry GuideRemember your seventh-grade algebra teachers three favorite words? "Show your work." At the time, it seemed silly: Why not just show the right answer? Now that youre older and wiser, however, you know that in many cases how you get to the right answer is more important than simply knowing the answer itself.The same goes for the case questions that consulting recruiters lob at you. Consulting is a demanding job with few "correct" answers; this method of interviewing gauges how well you manage the process of getting to an answer and how you perform under simulated client-engagement conditions. We talked to consultant-hunters at several firms to glean their advice on cracking the case interview. Here's what the recruiters revealedand how you can best prepare. Why the Case Interview?Case interviews have long been used by recruiters to see a candidate's thought processes in motion. Can you deconstruct and analyze complex, open-ended business problems? Do you stay calm, or will you sweat bullets under pressure at a client site? At the most basic level, a case interview is about asking the right questions, developing a logical way of working through the relevant issues, and arriving at a recommendation. Your structure may be a packaged framework or it may be various frameworks strung together; you may even choose not to use frameworks at all. What's important is that you demonstrate some defined structure. “Case studies are an imperfect science,” concedes Michael Gibney, project manager at PricewaterhouseCoopers, “but are easily implementable in the 30 to 45 minutes we have for each interview.” Since they measure your analytical skills, they're an improvement over simple "fit" or "resumé" interviews. In most case interviews, the recruiter gives you an example of a real-life client problem. Some typical categories include: · Company Strategy: “My client is thinking of making an acquisition, and ” · Brain Games: “How many tennis balls are in the United States?” · Operations Improvement: “Why is my clients factory running behind?” · Market Size: “How big is the global air conditioner market?” Although each requires a slightly different approach, all are meant mainly to evaluate the process you use, not the answer you come up with. Practice Makes PerfectYou absolutely, positively must prepare in advance for case interviews. “It becomes pretty clear pretty fast who hasand who has notpracticed,” says Gibney. “I know there is a basic sort of business acumen that may not be able to be practiced, but candidates must have an understandable approach to solving problems. Thats what our clients demand of us. If we cant relate solutions to the client, its a problem.” Dont assume that attending a case-oriented business school will give you an upper hand. John Flato, Cap Gemini Ernst & Youngs national director of university recruiting, says these candidates dont seem to do any better or worse than candidates from non-case schools. Study different kinds of case questions. Just because your buddy interviewed before you and gave you a heads-up on the questions doesnt mean you have a leg up. Recruiters have tons of case questions in their repertoire, and the chances of their using the same question multiple times on one campus visit are slim to none. Get a classmate or friend to role-play the interview with you, and use any resources (such as a casebook) that your school's consulting club provides. The more mock cases you sink your teeth into, the more likely you are to be relaxed and poised for the real thing. Sometimes you learn more by presenting a case question to someone than you do when solving the case yourself. Deliberately pick industries you're not familiar with so as to test your analytical skills, not memorized facts; for instance, if your pre-B-school experience is mostly in media and entertainment, ask your case buddy to ask you about steel production or medical device marketing. That said, do consider brushing up on the basics in several industriesfor instance, know the product development cycle in pharmaceutical research, and understand current trends in technology. (For more information on various fields, check out our industry guides.) Although each case is different, with practice you will improve your analytical reasoning skills and solution method. Think Through the ProcessWhen it comes to strategy or product marketing questions, the interviewer will often give you only the bare bones of a case and will wait for you to request further details: How many competitors does the company have? What are the major cost and revenue drivers? Who are the major clients? And don't forget to ask for the firm's missionif you don't know what a company's goals are, you might come up with a validbut misguidedsolution. Use some basic frameworks to drive your questionsthe four P's and the three C's, for instance. A sample question Gibney used recently involved a manufacturer/distributor/retailer of computer products. This client has traditionally gone directly to the consumer and has developed a solid brand image. The client now wants an assessment as to the issues relating to the core business, as well as the opportunities for the company to get into the services side, which it views as a high-margin/high-growth-rate business. The candidate now needs to provide an approach or evaluative framework for analyzing each of the two different problems. As long as it's permitted, work your answers out on paper. Pencils and pens, plus a notebook or legal pad should be standard equipment in any interview. “Its amazing how many people show up without a pen and paper,” marvels Kamenna Rindova, a senior associate at Mercer Management Consulting. Thinking through all the facts is a must, and youre not going to do it all in your head. Page 2 of 3Web Exclusive You don't have to be Sherlock Holmes to ace the cases in a consulting-firm interview. In fact, a little preparation can make solving them seem, well, elementary.Firms Are There to Help YouConsulting Industry GuideMay the Five Forces (Not) Be with YouSome recruiters are turned off when potential hires draw on a packaged analytical framework (such as the five forces) to solve a problem. Others, however, are impressed. To be on the safe side, if you use a framework, dont stray too far from the issue. Eileen Coveney, vice president at L.E.K. Consulting, warns candidates about the perils of frameworks: “When people depend too much on a pre-established framework, they may not be thinking deeply enough about the problem at hand. This may indicate that when presented with an actual client issue, they are not going to focus on the details and specifics of the clients problem. Rather, they may be inclined to jump into easy and obvious solutions.” If you do use one, choose wisely. If the case is about a business that's considering entry into an industry, Porter's five forces may indeed be your best bet. If you're talking about how products get from suppliers to end consumers, consider the value chain. Companies that are falling short on sales could use a profitability or cost vs. revenue analysis. If you're marketing a new pharmaceutical product, think about the 4 P's and the 3 C's. "Is That Your Final Answer?"Dont be afraid of pausing. Take the time to draw up notes and sketch out the problem. Dont blurt anything out unnecessarily to end a period of silence. Youre not on a game show; youre interviewing to be a consultant, which is a business as much about thinking as it is about communicating. Above all, be calm. If you do respond to a question too quickly, before understanding all the facts, you may end up contradicting yourself halfway through your responsewhich could be disastrous. “In our environment and our industry,” says Sean Huurman, national recruiting director of KPMG Consulting, “we need to make sure were saying the right thing the first time.” After all the analysis, however, don't forget to come to some kind of conclusion as to what the company should do. Consider presenting a decision rule that the imaginary organization could use to figure out what the best option ise.g., if revenues outstrip costs, then do x.Follow the LeaderMany firms use a group exercise in their second or subsequent rounds to see how well you work with others. If youre assigned a role other than team leader, dont fret. It doesnt matter what your role is in the exercisejust do it well. If you and the team members are told to settle between yourselves who gets to do what, dont fight over who gets to make the presentation or lead the group. Likewise, dont play the shrinking violet. Remember, the recruiter is watching. Whatever you do, show confidence, not arrogance. A display of ego before John Flato at Cap Gemini Ernst & Young is a certain red flag. “Obviously, those who go to business schools are bright and talentedthey wouldnt be there otherwise,” Flato remarks. “We hire bright and talented people, but only those who can work well with team members and not display arrogance.” Page 3 of 3Web Exclusive You don't have to be Sherlock Holmes to ace the cases in a consulting-firm interview. In fact, a little preparation can make solving them seem, well, elementary.Firms Are There to Help YouConsulting Industry GuideReady for some company-specific advice? Here's what five recruiters told us about interviewing at their firms. Recruiter No. 1: Eileen Coveney, vice president, L.E.K. Consulting The Questions:Testing a candidate's skill across a range of areas is the primary reason L.E.K. uses case interviews. Coveney indicates that the case interviews are meant to (1) assess a candidates analytical ability, (2) evaluate a candidate's communication skills and logic flow, (3) understand how a candidate responds to redirection, and (4) test his/her overall fit with the firm. Most questions L.E.K. recruiters ask center around strategic growth opportunities for potential clients. Words of Wisdom:Coveney points out that she doesnt have a preference regarding how a candidate initially reacts to the case interview question. “Some people take some time to formulate their thoughts, other people ask a few questions, and other people jump right in,” Coveney says. “Relax and take your time, focus on the specific issues of the case, remember there is no one right answer to the case, and dont use too many frameworks. Dont throw in the kitchen sink, like Porters five forces, etc. Just be confident, and relaxit will really help with the interview.” Recruiter No. 2: Kamenna Rindova, senior associate, Mercer Management Consulting The Questions:MMC asks most candidates one-on-one questions and doesnt often do group exercises. Reflecting the firms focus, most questions deal with strategy issues, with occasional market sizing questions thrown in. The purpose of the interview for MMC is to see the candidate's ability to structure and think through a problem as they would on the job. Words of Wisdom:Rindova says practice and familiarity with cases is essential, and stresses that an interview can go south if the candidate loses sight of the structure he or she is building. Lastly, beating a clear path to any response is more important than getting it right. “You can give (a recruiter) a wrong answer, but if you thought out loud through the process, you could still have a stellar interview,” Rindova concludes. Recruiter No. 3: Scott Berney, head of U.S. recruiting operations, Monitor Group The Questions:Determining a persons analytical skills, comfort with manipulating numbers, and ability to integrate different pieces of data is the purpose of the case interview for Monitor Group. For the first round of interviews, case questions are usually written and are two to three pages in length. In the final round, a group event is used. Words of Wisdom:“My take on most other firms is that they put a premium on the candidates ability to ask questions in the interview. Monitor cases put a premium on your ability to analyze data, manipulate numbers, integrate, and come up with an answer based on the data youve been given,” says Berney. Like L.E.K.s Coveney, he doesnt like to see candidates use too many frameworks to solve a problem. Recruiter No. 4: Sean Huurman, national recruiting director, KPMG Consulting The Questions:“The case question helps get to a thinking process and various characteristics of a candidate you dont necessarily get in an ordinary interview,” says Huurman. “When we use cases, we are really focusing on things that tie into the client.” The typical KPMG consultant hunter wants to know how a candidate can communicate with the team, their leadership, and the client. Huurman favors group interviews, and knows a lot of candidates can be prepped in advance, but he notes that theres "no amount of coaching" that can prepare you for a group project. Words of Wisdom:“Too many people jump right into the case study and dont put any thought into it,” says Huurman. “I want the interviewees to think things through.” KPMG recruiters are always told to let the candidate have some time to think through the case, but Huurman indicates that very few candidates take advantage of it. Huurman admits that few recruiters would ask interviewees what KPMG stands for (curious? It's Klynveld, Peat, Marwick, and Goerdeler), but its important to do your homework on the firms services, strengths, and culture. Recruiter No. 5: Michael Gibney, project manager, PricewaterhouseCoopers The Questions:Some of PwCs competencies dont require that a case question be asked, but its probably best to plan for one. Interviews are typically one-on-one and are meant to test the business acumen of a candidate. Seeing candidates' insight into business problems and their approach to solving them (most questions are based on true-life client engagements) is the overall goal. Words of Wisdom:Gibney understands that many problems are too big to solve during the course of a half-hour interview, but wants to see a firm grasp of key issues. “The candidate must have an understanding of the overall situation and the overall problem, and then create an approach to solve it,” Gibney says. “For instance, if were talking about a client getting into the services