Crack the Case - Kellogg TMP 6-10-06-2

8/3/2019 Crack the Case - Kellogg TMP 6-10-06-2

1/57

Kellogg TMP June 10 2006 v1

1

Case Interview Prep:Driving to Success

June 10, 2006

TMP Consulting Club2006


2/57


2

- Consulting hiring is up!8Many of the firms plan to hire more this year

8 Firms tend to interview a large portion of the class

- You can build these skills8 Every year people who practice do better8

Getting a solid start will be critical to getting ready

- I have lots of insights to share8 This last year and a half I worked with over 250 people

one-on-one8

Stars are fairly consistent in their patterns8 Case interviewing is a skill and you can get better

This is a good year for consulting


3/57


3

David Ohrvall- Consultant & Strategist8 3 years with Nalco, Director of Corporate Strategy8 4 years with Bain Chicago, summer associate to manager8 5 years with Andersen Worldwide, manager8Wharton undergrad, Wharton MBA

- Interviewer8 Gave cases to MBAs and undergrads at top programs

- Author/ Entrepreneur8 Author of Crack the Case: How to Conquer Your Case

Interviews8 Founder of mbacase.com

8 Launched Formabilities, childrens interactive toy company

- Trainer/ Coach8 9 years of training roles within consulting8 2 years of teaching outside of consulting

8 Personal case coaching


4/57


4

So why am

I here?


5/57


5

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

i

Solve a case at a high level with you

My objectives during the plenarytoday:


6/57


6

During the workshops in January:

i15-20 people per group

iWell do a detailed case together with one

person up front serving as the intervieweeiEach person works through the case on their

own but stays with the group

iDetailed tips on how to deal with data (notesand charts)

iVery specific

iOne original case pack to keep


7/57


7

Getting Ready


8/57


8

iNot driving the case

iChoosing a limitedframework

iListening andpresenting poorly

iBeing data light

iNot ending well norecommendation, notconcise

Top 5 Ding Reasons Prep P itfalls


9/57


9

iNot driving the case

iChoosing a limitedframework

iListening andpresenting poorly

iBeing data light

iNot ending well norecommendation, notconcise

iStudy only byyourself

iDo mock interviewsonly with yourfriends

iBoil the ocean bytrying to do it all

iTry to cram like

any other exam

iAvoid honestfeedback

Top 5 Ding Reasons Prep P itfalls


10/57


11/57


11

Self Check Action

iDo I understand howbusinesses make money?

iReview how the value driversaffect the bottom line

iDo I know how to dissectbasic case problems?(profit, new business, costreduction, new product, etc.)

iCreate an approach that willhelp you consistently eachand every time

iCan I speakconversationally aboutbusiness topics?

iPractice talking out loudabout the value drivers

iAm I a logical, problemsolver?

iHone your skills with practiceand highlight them throughcommunication

iAm I quick with math? iBrush up on doing numbersin your head (it saves timeand makes you look smart)

Check in first, then build your plan


12/57


12

Partneri Prepare ahead of

time and know thecase facts well

i Take notes on thecandidate

i Tell it like it is!

Feed

back

iBe honest, directand actionable

iFocus on theanalytics, but

dont ignore thecommunication

i Look for patterns

You

iTake the interviewseriously

iMeet, greet, analyze andconclude

iAsk for honest feedback

iTrack your progress

Plan to maximize your mocks


13/57


13

InterviewerExpectations


14/57


14

Pre-Interview

Hand-shakeand

Greeting

0-2

GettingSettled

3-4

Pre-Case

Discussion

5-6

BusinessCase

7-22

YourQuestions

23-25

FarewellAddress

26-27

Business Case Interview Timeline

Whats the interviewerreally thinking?


15/57


15

Pre-Interview

Hand-shakeand

Greeting

0-2

GettingSettled

3-4

Pre-Case

Discussion

5-6

BusinessCase

7-22

YourQuestions

23-25

FarewellAddress

26-27


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

Pre-interview


16/57


17/57


17

Pre-

Interview

Hand-shakeand

Greeting

0-2

GettingSettled

3-4

Pre-Case

Discussion

5-6

BusinessCase

7-22

YourQuestions

23-25

FarewellAddress

26-27


Do I feel comfortable around you? Are you awkward?

Settle-in


18/57


18

Pre-

Interview

Hand-shakeand

Greeting

0-2

GettingSettled

3-4

Pre-Case

Discussion

5-6

BusinessCase

7-22

YourQuestions

23-25

FarewellAddress

26-27


Do you catch my interest? Are you engaging?

Pre-case Discussion


19/57


19

Pre-

Interview

Hand-shakeand

Greeting0-2

GettingSettled

3-4

Pre-Case

Discussion

5-6

BusinessCase

7-22

YourQuestions

23-25

FarewellAddress

26-27


How smart are you? Can you crack this case?

Business Case


20/57


20

Pre-

Interview

Hand-shakeand

Greeting0-2

GettingSettled

3-4

Pre-Case

Discussion

5-6

BusinessCase

7-22

YourQuestions

23-25

FarewellAddress

26-27


Are you truly interested or going through the motions?

Your Questions


21/57


21

Pre-

Interview

Hand-shakeand

Greeting0-2

GettingSettled

3-4

Pre-Case

Discussion

5-6

BusinessCase

7-22

Your

Questions

23-25

FarewellAddress

26-27


I ve gotta hurry and get back on schedule

Farewell


22/57


22

Crack Your Case


23/57


23

Pre-

Interview

Hand-shakeand

Greeting0-2

GettingSettled

3-4

Pre-Case

Discussion

5-6

BusinessCase

7-22

Your

Questions

23-25

FarewellAddress

26-27


5 simple steps w ill help you w ith every case

Crack the case every time!


24/57


24

The FRAME Methodworks on any type of case

End the Case!

M ine for Data

Anchor a Hypothesis

Read Your Audience

Form a Plan


25/57


25

iYou do not have to use a traditional framework- Some firms are even discouraging them

- Common sense is not so common anymoreiMention 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 ourrevenue. I also would like to look at costs.

Form a plan to begin well


26/57


26

Whats your objectivewith every case?

Maximize the Value of

the Company


27/57


27

Maximum Value Model (MVM)

Strategy

Operations

Organization

Finance

R

C

VolumePrice

FixedVariable

People

Systems

Processes

Measure

.

CA$H

D/E

SP

E C I AL

T

Zone 1

Zone 2

Zone 3

Zone 4

Zone 5


28/57

St t i h h i k


29/57


29

Strategy increase, change, shrink

Strategy

Zone 1

Zone 2

Zone 3

Zone 4

O ti d t


30/57


30

Operations revenue and cost

Strategy

Operations

R

C

VolumePrice

FixedVariable

Zone 1

Zone 2

Zone 3

Zone 4

Organization people systems


31/57


31

Organization people, systems,processes and measurement

Strategy

Operations

Organization

R

C

VolumePrice

FixedVariable

People

Systems

Processes

Measure

.

Zone 1

Zone 2

Zone 3

Zone 4

Finance cash debt equity


32/57


32

Finance cash, debt, equity

Strategy

Operations

Organization

Finance

R

C

VolumePrice

FixedVariable

People

Systems

Processes

Measure

.

CA$H

D/E

Zone 1

Zone 2

Zone 3

Zone 4

External Forces


33/57


33

External Forces

SP

E C I AL

T

Zone 5

Suppliers

Public

Economy

Competitors Industry

Technology

Legal

Auditing

Maximum Value Model (MVM)


34/57


34

Maximum Value Model (MVM )

Strategy

Operations

Organization

Finance

R

C

Volume

Price

FixedVariable

People

Systems

Processes

Measure

.

CA$H

D/E

SP

E C I AL

T

Zone 1

Zone 2

Zone 3

Zone 4

Zone 5


35/57

MVM Use it as a roadmap


36/57


36

MVM Use it as a roadmap

Strategy

Operations

Organization

Finance

R

C

Volume

Price

FixedVariable

People

Systems

Processes

Measure

.

CA$H

D/E

SP

E C I AL

T

Zone 1

Zone 2

Zone 3

Zone 4

Zone 5

3

2

4

1

Read your audience at all times


37/57


37

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

Read your audience at all times

Anchor a hypothesis


38/57


38

iThis approach is the real differentiator

iPut a mental stake in the ground on what you

think solve to prove or disprove itiYou do not have to state your hypothesis!

Hypothesis

Assertion 1 Assertion 2 Assertion 3

Anchor a hypothesis

Always Fresh (check the web)


39/57


39

ays es (c ec t e eb)

iSubsidiary of $30B consumer products conglomerate

iSuccessful line of deodorant/anti-perspirant spray, roll-on andstick

iTeam is ready to go abroad and youre the team leader

i Is international expansion a good idea? Which countriesare best?

It is a good idea. I

need to find theright location.

Demand existsand can beestimated

Product isdifferentiable;

can takecompetitors

share

We can supportit: team and

finances are inplace

M ine for an answer (find data!)


40/57


40


Find specific answers to your questions

Demand existsand can beestimated

iDo peoplewant thisproduct?

iEstimatedemand?

iPrice?iWhere is

highestdemand?

Product isdifferentiable

iWhat isunique aboutproduct?

iHow can wedifferentiate?

iHow w illcompetitorsrespond?

We cansupport it

iIs the teamin place? Dow e have astrongleader?

iHow w ill wesell anddistribute theproduct?

iFinancing inplace?

M ine for an answer (continued)


41/57


41

M ine 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 w ill bring in annualrevenue of $183M

End the case!


42/57


42

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!

The FRAME Method


43/57


43

End the Case!

M ine for Data

Anchor a Hypothesis

Read Your Audience

Form a Plan


44/57


44

Sample Case

Fitness Xtreme


45/57


45

Fitness Xtreme, land of the limberand lean, needs to go on a diet.

Membership fees are down and themanagement team is eyeing its costs.

Should the trainers get the axe?

Fitness Xtreme


46/57


46

CASEQUESTION

Form a plan (what you think)


47/57


47

Strategy

Operations

Organization

Finance

R

C

Volume

Price

FixedVariable

People

Systems

Processes

Measure

.

CA$H

D/E

SP

E C I AL

T

Zone 1

Zone 2

Zone 3

Zone 4

Zone 5

3

1

2

Form a plan (what you say)


48/57


48

There are several areas I would like toexplore:

Review costs and savings of eliminating trainers

Assess the team, look for w in/ w in structures

Understand the revenue impact of changes

Read Your Audience


49/57


49

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

Anchor a hypothesis


50/57


50

Training staff can be

reduced but notcompletely eliminated

Trainer costsare small andwill offer little

savings

Trainers havelittle impact on

revenue

Minimum set oftrainers will

keep members

happy andimage high



51/57


51

Costs AreSmall

iWhat does thetotal cost barlook like?

iWhat % aretrainerssalaries?

iFull time vs.part-time

iAt what pointw ill trainersleave due to

salary cuts?

Little Impacton Revenue

iWhat ismembershiprevenue?

iWhat portion isfrom training?

iWho usestrainers?

iWhat wouldhappen tomembership iftrainers left?

Minimize theNumber ofTrainers

iWhat portionof the trainerstime isunused?

iCan we meetdemand with

fewer trainers?

iWhat risk isthere to havingfewer, higherquality

trainers?

Find specific answers to your questions

Pull it all together


52/57


52

Manage the data

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

Xtreme Caf

Outsourced Maintenance

Internal Maintenance & Parts

Other

Employee Salaries

Lease Payments

Maintenance

Part-time Admin

Spa/ Beauty

Full-time Admin

Sales Staff

Trainers

Total FXAnnual Costs

AnnualSalary Costs

$6.75M $1.8M

0

20

40

60

80

100%

Costs in Percent

Caf

Classes

Personal TrainingSpa

MembershipDues/ Fees

Total Fitness XtremeAnnual Revenue

$9.6M

0

20

40

60

80

100%

Revenue in Percent

End the case!


53/57


53

Trainers represent 10% of costs, but providelittle more than break-even revenue

Evidence on the trainers abili ty to provide

intrinsic value to the member is unclear

Revenue dow nside: if all one-on-one traineesleft the gym, wed lose 3% of revenue

Reducing them by 1/ 3 is possible but savingswould be only $250k per year

Creative Solution: I recommend using theircapacity for revenue generation: free trainingor discounted training. They could be a bigger

draw for new members

Report Card


54/57


54

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 theway.

I found insights and pulled them together.

I closed concisely and had a recommendation thatanswered the main question.


55/57


56/57


56

One on One Coaching

- Jump start your training with a real appraisal

- Learn how to systematically attack your cases

- Reduce performance variability

Standard Package:

2 hours for $425

iIncludes 2 practice cases

iPerformance analysis

iCase drills and action

planiAdditional hours are

$175/hour

iIncludes 3-4 practice cases

iPerformance analysis

iCase and resume drills

iFit analysis

iAccess to me throughout yourrecruiting season

iAdditional hours are $150/hour

Packages and Pricing

Premium Package:4 hours for $750

TMP Consulting Club2006


57/57


57

Questions?

www.mbacase.com

2006

Documents

Crack the Case - Kellogg TMP 6-10-06-2