Professional Documents
Culture Documents
Consulting Cases
January /February 2016
Nina Lukin
Assoc. Director of Consulting Career Management, EMBA Programs
Who am I?
Nina Lukin
Education:
B.A., Brandeis University
MBA., Johnson at Cornell University, 2003
Work experience:
Deloitte Consulting (Experienced Hire)
M&T Bank
Consulting
Fisher-Price Strategy & Finance
Johnson Career Services
Personal:
Skiing, hiking, biking, swimming and reading
with my three sons
Novice knitter
Agenda
Successful Consultant Framework and
Attributes
What are case interviews and why are
they used?
Case approach
Case structuring tools
Sample cases
Practice
Giving Cases
Resources
Randy L. Allen 2015
People
Leadership
Attributes
Core
Capabilities
Functional
Knowledge
Industry
Knowledge
Consulting Attributes
Consulting Attributes
Self
Personal Attributes
Intrinsic Values
Consulting Capabilities
and Thought Leadership
Integrity
Issue Identification
Hypothesis Formation
Teamwork
Intensity/Drive/Ener and
Problem
Structuring
gy
Analytics
Reliability
Synthesis and
Professionalism
Creativity
Respects Diversity
Creativity/Innovatio Oral and written
communication
n
Attention to detail
Flexibility
Willingness to see it
Initiative
to the end
Seeks Personal
Growth
Perseverance
Randy L. Allen 2015
People
Leadership Attributes
Engagement
Management
Client Management
People
Relationship
Development
Management
People Leadership Advising Skills
Coaching/Feedback Business Culture
Sensitivity
Productive
Timelines/deadlines are critical; document and multi-task;
discipline; skill transfer
Teamwork
New team every 3, 7, 15 months; divide and conquer; team-based
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problem solving
Consulting Attributes
Self
Personal Attributes
Consulting Capabilities
and Thought Leadership
Issue Identification
Hypothesis Formation
Problem Structuring
Analytics
Synthesis
Creativity
Oral and written communication
Attention to detail
Willingness to see it to the end
Key Takeaways
The consulting capabilities
and thought leadership are
being tested in case
interviews
You will7 likely not be a
successful consultant
without these attributes
Behavioral interviews,
covers letters, resumes and
networking test the rest
Case Overview:
What is a case?
Case Overview
What is a case interview
and why is it used?
Case Overview
Case Overview
Overview
What are interviewers Case
looking
for?
Structured Thinking
Analytical Skills
Practicality
It is not about a 100% correct answer, but focusing
on relevant points and doing so in a logical manner.
Randy L. Allen 2015
12
Case Approach:
How do I solve a case?
13
Case Approach
Analysis
Collect data
Common
analysis/calculati
ons
Combining
quantitative and
qualitative
Conclusio
n
Presenting your
recommendation
Explaining your
problem solving
approach
Addressing
rebuttals/concern
s
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Case Approach
Approach: 5 steps
Structure
Define
the
problem
Interviewer
presents the
question
Structure
the
analysis
Break the
problem
into parts
create a
problem
tree/
pyramid
Conclusi
on
Analysis
Determin
e the key
issues
Eliminate
any non-key
issues that
you find
before diving
into details
Conduct
Analysis
Conclusio
n
Make
Create your
questions
you are
Support with
assumptions
issues/subeliminating
Paraphrase
facts
Combine
issues
and
Focus on
to make sure
quantitative
Be confident
hypotheses
you have it
whats
and qualitative
Address
Talk through
right
important
information
rebuttals/concer
your
but make
Be hypothesis
Compose
ns
structure
sure you
and end
your
havent
product
Be sure you
thoughts
What
about Frameworks?
Frameworks
are
just
tools
to help analyze the problem.
missed
focused
(take
a frameworks
have and
an your structure to present the case to the interviewer
15
Combine
anything
minute
or
so) hypothesis
Randy L. Allen
2015
Case Approach
Case Approach
Set up structure
You can ask a few
high-level questions
17
Case Approach
18
Case Approach
Progress through
structure
Show the interviewer
the data you would
like to know
19
Case Approach
Case Approach
Analysis: Combining quantitative and qualitative
Case Approach
Conclusion
22
23
Frameworks
Help identify sub-issues in the case approach
structure
Math formulas
Governing Thought
States the answer to the
question raised in the
readers mind
Key Line
Major points which,
taken together prove
the answer
Support
Data and facts
which support
lineThe Minto Pyramid Principle Logic in Writing, Thinking and Problem Solving (Minto International, Inc.,
Source:the
Minto,key
Barbara:
1996)
25
Vertical Logic
Creates a question
and answer dialogue
that responds to the
governing thought
Key Line
Continues raising
and answering
questions until there
are no more logical
questions to ask
Support
Horizontal Logic
Relies on inductive and deductive logic to answer the questions at each level
Source: Minto, Barbara: The Minto Pyramid Principle Logic in Writing, Thinking and Problem Solving (Minto International, Inc.,
1996) Randy L. Allen 2015
26
Questions to answer
Question one?
Question two?
Sub-Issue two?
Situation
Problem
Question three?
Major Issues
Sub-Issue three?
Sub-Issue four?
27
28
Randy
L. Allen 2015
Frameworks
These are some of the frameworks that can help
structure thinking.
Profit Equation
Porters 5 Forces
Four Ps
Four Cs
Profit Equation
Profit
Revenue
Price
Quantity
Costs
Variable
Fixed
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Quantity
Market size
Growth rate
Market share vs.
market demand
Capacity
constraints
Cannibalization
Seasonality of
product
31
SG&A
COGS
Taxes
Suppliers
(consolidate?)
Cost control
mechanisms
Incentives
Outsourcing
alternatives
Impact of
backward/forward
Fixed Costs
Capacity utilization
Avg output rate/Maximum
capacity
B/E Volume (& Price)
Fixed cost/unit contribution
Economies of scope and
scale
Marginal costs < Average
costs implies economies of
scale
Marginal costs = Average
costs implies constant
returns of scale
NPV of cost investment with
sensitivity analysis
33
Porters 5 Forces
Suppliers
Customers
Competitive
Potential
Entrants
Dynamics
Regulatory
Issues
Substitutes
5 Forces + Complementors
Govt.
Substitutors
(Rivalry, entry)
Macro
forces.
Buyers
Firm
Complementors
Suppliers
Value:
Creation
Capture
Prevent destruction
Four Ps
Product
Demand
Customer willingness to
pay
Fit with strategy
Competitor pricing
Randy L. Allen 2015
Promotion
Analyze segments
Estimate
potential/segment
Consider
advertising/promotions
issues
Place (Distribution)
Structure
Suitability given
objectives
Tradeoffs
eg JIT vs. Inventory
36
Revenue
or Profit
Growth
Maturity
Decline
Total Industry
Revenues
+
0
37
Four Cs
Customers
Cost
Market segmentation
Purchase criteria
Economies of scale
Experience curve
Will increased production
lower cost?
Competition
Capabilities
Market share
Market position
Strategy
Cost position
Competitor market
advantages
Resources available
Organizational structure
Production system
38
R&D/
Engineering
Manufacturing
& Assembly
Inventory
& QC
Sales &
Marketing
Distribution
& Service
Construct value chain for the firm and the customer and identify drivers of
uniqueness in each activity
Select attributes that promise high differentiation between cost and price premium
39
2x2 Matrix
Price high
My action
Price low
High price
= high margin?
Worst case
for me?
Best case
for me?
Price war
Price high
Price low
Competitor action
Used when 2 factors combine to yield different outcomes
40
Revenues
Cost levels/
Margins
Future
Cash Flow
Investments
41
Value
Business
Unit Value
Cash Flow
from
Operations
Cash Profit
Revenues
Market size
Market
share
Sales mix
Getting
from cash to
value
Investment
Required
Operating
Margins
Taxes
Retail prices
Staffing
levels
Wage rates
Raw
material
prices
Effective tax
structure
Working
Capital
Debtors
Creditors
Contract
terms
Discount
Rate
Capital
Expenditure
Cost of
Capital
Plant life
Replacemen
t
equipment
Maintenanc
e
Scale of
operations
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Cost of
equity
Cost of debt
Gearing
External Issues
5 forces + complementors to
understand landscape i.e
Customers, Suppliers, Substitutors
(entrants, subsitutes, rivals),
Complementors
4Ps (price, promotion, place,
product) if case is on reaching
customers/channel decisions
Product lifecycle to understand
landscape
Randy L. Allen 2015
Internal Issues
Valuechain to understand innards
and capabilities: sourcing, R&R, mfg,
inventory, sales/marketing,
distribution.
Note critically that the external is
connected to the internal. E.g.
Supplier power might affect cost of
sourcing
If youre changing pricing,
inventory will be affected
Early in the product lifecyle, you
might have fewer choices in
valuechain
43
What to Do
44
What Not to
Play 20 questions
Do
Frameworks
Get frustrated
45
Practice
46
Case Practice
47
Case Practice
48
Structure
Case Practice
49
Structure
Case Practice
Understand our
staffing and their
productivity
Understand the
drivers of calls and
can anything be done
to reduce the volume
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Structure
Case Practice
Understand our
staffing and their
productivity
Understand the
drivers of calls and
can anything be done
to reduce the volume
51
Structure
Case Practice
Understand our
staffing and their
productivity
Shift schedule of call
handling staff
Level of automation in use
and the functions
performed
Match of staffing to time of
day call volume
Flexibility of the staff to
handle different types of
calls
Productivity distribution
and best practices
Incentives in place
Understand the
drivers of calls and
can anything be done
to reduce the volume
52
Structure
Case Practice
Understand our
staffing and their
productivity
Shift schedule of call
handling staff
Level of automation in use
and the functions
performed
Match of staffing to time of
day call volume
Flexibility of the staff to
handle different types of
calls
Productivity distribution
and best practices
Incentives in place
Understand the
drivers of calls and
can anything be done
to reduce the volume
Case Practice
Example:
You have 200,000 repair calls a year
You estimate with changes in software you
will save 5% of the calls in the first year
and an additional 2% in the second year.
Each call costs $200
How much will you save over two years?
54
Randy L. Allen 2015
Case Practice
Year One
5% of 200,000 = 10,000 fewer calls
Savings is $2 million
55
Randy L. Allen 2015
Case Practice
Year One
5% of 200,000 = 10,000 fewer calls
Savings is $2 million
Year Two
Additional savings is 2% of 190,000 = 3,800
fewer calls
Incremental savings is $760,000
Total year two savings = $2,760,000
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Randy L. Allen 2015
Case Practice
Year One
5% of 200,000 = 10,000 fewer calls
Savings is $2 million
Year Two
Additional savings is 2% of 190,000 = 3,800
fewer calls
Incremental savings is $760,000
Total year two savings = $2,760,000
Total savings for two years is $4,760,000
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Randy L. Allen 2015
Case Practice
Case Practice
Data Sheets
59
Case Practice
Data Sheets
60
Case Practice
Country Data1
US
England
Japan
313
63
126
0.96%
$14.7
2.7%
$47,400
0.56%
$2.2
1.6%
$35,100
-0.28%
$4.3
3.0%
$34,200
Population (MM)
Population Growth (%)
GDP ($Tr)
GDP Growth (%)
GDP per Capita (USD)
Data Sheets
Buses Data
NYC
London
Tokyo
11.5
8.5
14.3
$12
$13
$45
2012
2012
Probability of winning
contract 2
90%
70%
NYC
London
Tokyo
3.0
4.5
5.8
$2.8
$5.5
$4.4
2015
2013
2013
2015
20%
Probability of winning
contract 2
90%
70%
20%
Notes:
1 Data from CIA World Factbook, extracted April 2011. GDP figures at purchasing power parity.
2 Probability of winning contract is based on estimates from the PayCo Business Development team, and can be used to determine the potential revenue
opportunity for PayCo
61
Giving Cases
62
Consider how
alternate frameworks
or structures could be
used to solve the
case
Think of a few outof-the-box solutions
Determine Your
Style
Evaluate Presence
Test Engagement
What is the
candidates attitude?
Is the candidate
professional and
poised?
Providing Feedback
Feedback should be concrete and include
both recognition of strengths and
weaknesses
Example Strengths
Structure and
Strategy
Quantitative
Skills
Presentation
Example Weaknesses
Interpreted charts
accurately
Tied numbers to problem
Showed facility with
numbers
Showed presence and
engagement
Kept cool under fire
Articulated rationale
clearly
Stayed focused on core
question
Relied on generic
frameworks
Did not adhere to
structure
Structure was not logical
Struggled with
calculations
Did not explain purpose
of calculations
Lost track of units
Showed nervousness
Did not articulate
reasons for asking for
data
Seemed arrogant or
disengaged
Resources
66
Resources
Victor Cheng offers a free online tool that gives you random
questions and gives you a percentile report based on timing and
accuracy (https://www.caseinterview.com/math/home.php)
Each other
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Cornell Resources
JConnect
Groups->Career Management Center-EMBA-Consulting
Resources->Career resources->Executive MBA-Consulting
Cases
Consulting Case Interview Guide
Big Red Case Book (CMC $60 plus shipping)
68
You should have both given and received 75 cases prior to an interview
Schedule case practice with faculty, alum, second year 2-yr MBAs and career
services after completing 20+ cases
69
Questions
Nina Lukin
(716)345-0095
nel5@cornell.edu
Consulting Career Management, Part-Time
Remote Office in Western NY
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