The Consulting Interview

OFW World Business Dialogue Stefan 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 Boutique firms goetzpartners Horvth & Partners LEK Monitor OC&C Strategy Consulting Bain & Company BCG Booz & Company McKinsey Oliver Wyman Roland Berger Full Service / IT-Consulting Accenture Bearing Point IBM Deloitte

Small firms

Consultants

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The recruiting process

Select target firms Recruiting fairs Company websites Online Networks Press Personal network

Application Letter CV References etc

Screening CV screening Knock-out criteria Additional criteria Overall evaluation (Phone interview)

Internship 1st round interviews Cases Personal Fit (Quantitative tests) 2nd round interviews Cases Personal Fit Partner interview (Prsentations) (Group assignment) Offer letter Base salary Bonus Perks Entry position Location

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The recruiting process

100

75

20 4

1-3

ApplicationScreening 1st round 2nd 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

Why consulting firms use case interviews

The consulting reality The interviewers checklist The consulting interview

Complex problems
Demanding hours Changing priorities Teamwork / new teams High impact ...

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?

Introduction / small talk

Personal fit / experience interview Case Interview Questions

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The components of the consulting interview

1 2

Introduction / small talk Personal fit / experience Case Interview Questions

3-5 mins

5-15 mins

3
4

30-45 mins

3-5 mins

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Part one: Introduction

Get to know the interviewer

Explain the process Small talk

Clarify process
Reduce nervousness Get first feeling for candidates social skills

Dos

Donts

Listen attentively, keep eyecontact Ask questions, join in conversation

Dont take over the lead Dont pretend

SMILE

Dont think that this is not already part of the interview

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Part two: Personal fit / experience interview

Discuss your CV and personal achievements Understand your motivations and communication style Why do you want to become a consultant? Why with our firm? 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?

Dos

Donts Dont just repeat whats on paper Dont be arrogant Dont be too nervous

Present your previous experience in a cohesive way Add interesting details and personal experiences

Be prepared to answer questions about your CV

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Personal fit: Typical questions

Talk about yourself

Why did you choose your particular subjects in university?

What are your strong points?

What are your weak points?

What was your greatest challenge? How did you overcome it?

Why do you want to go into consulting? Your grades are not outstanding, dont you think?
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When did you lead a team?

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?

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Personal fit exercise 2: SWOT introspection

Strengths

Weaknesses

Opportunities

Threats

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Part three: The Case Interview

Typical types of questions

Mini Case The Case Interview Business Case

Market-Sizing
Brainteaser

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Business Cases

Examples Market entry Product innovation 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

Competitive Response
Reaction to changing market conditions M&A activities

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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.

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How to solve the case

1 2

Hypothesize & ask questions Structure the case Solve the case Present and evaluate

3
4

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Frameworks to structure business cases

Profit equation Michael Porters Five Forces 4 Ps: Price, Product, Place & Promotion

SWOT Analysis (Strengths, Weaknesses, Opportunities, Threats)

2x2-Matrix Break-Even-Calculation 4 Cs: Customer, Competition, Cost, Capabilities

Use frameworks to structure problems not as a onesize-fits-all solution to problems

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Structuring problems: The pyramid principle

Gerade Dachziegel Dachziegel Eckdachziegel Dachziegelverbindungen Kantholz Dach Dachstuhl Schrauben

Ziegeln Rauchfang Mrtel Gerade Ziegel Ziegeln Eckziegel Beton Haus Grundmauern Mrtel Zuschlagstoffe Wasser

Fenster Anbauteile Tren Tische Mbel Sthle .......

Einbauteile Badezimmer Innenrume Einbauteile Einbauteile Kche Einbauteile Keller Holzbden Bden Spannteppichbden Flieenbden

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The most important framework

The profit equation

Profit

Revenue

Quantity variable

Cost

Price

fix

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2x2 Matrix

high

low

low

high

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Porters Five Forces

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Break Even analysis

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Consultants LOVE charts

30% 24%

Zielsegment!

2.000

900

25%

20% 15% 11% 10% 5% 6%

400

15%

200 500

5%

0% Hills Wal-Mart Kmart Target Ames

Kosten

R&D

Produktion

Vertrieb

Logistik

1) Balken: Vergleich von Variablen

2) Waterfall: Aufteilung von Kosten

x 3) Linien: Entwicklung ber die Zeit 4) Funktionale Zusammenhnge

Firma A Firma B Firma C Firma D

Grne FDP SPD

CDU Bekanntheit 5) Bubble-Chart: Relative Positionen 6) Pie-Chart: Anteile

Lease Nutz Kauf KFZ Lease Privat Kauf 7) Logikbaum: Zusammensetzung 8) Flussdiagramm: Prozesse Produkt Prozess R&D Launch Serie

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How to tackle the case interview

Dos

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

Dos

Dont 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

Donts

Dont be too spontaneous Dont guess Dont go into unimportant details be 80/20 Dont be arrogant

Dont come late

Dont lose your calm and maturity imagine you are presenting to your client

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Market sizing
Examples Market size / potential of a product or service for a country, region, city 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

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?

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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?

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Brainteaser

Examples How many seconds from now until New Years 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 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

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Questions

Do you have any further questions?

Are you really interested in consulting and this firm in particular?

Do you have the right communicative skills?

Dos

Donts

Prepare a few questions, that are not too obvious are related to your background are about experiences of the interviewer

Dont have no further questions Dont ask stupid 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

1 2

Introduction / small talk Personal fit / experience Case Interview Questions

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 payas-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.
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Recommended reading (in German)

www.squeaker.net/insider www.consulting-insider.com
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Stay in touch!

www.facebook.com/squeaker www.twitter.com/squeakernet

OFW World Business Dialogue 2009