Conducting Case Interviews

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Conducting Case Interviews

• Boston College
• August 22, 2007

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Agenda
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Case Interview Overview
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Types of Case Interviews
Market Sizing Determine how big a particular
problem is, or how many of X products are used

• How many golf balls are made in the US each year?
• How many cans of paint are needed to paint the
  Delta fleet?

Brainteasers Use puzzles or questions that
challenge a candidates ability to think
creatively

• Why are manhole covers round?
• Why do fashions change every year or two?

General Business Analyze business issues that
mimic real-world situations

• To which site should we relocate?
• Why are our profits falling in Division ABC?

Deloitte Mostly Conducts General Business Cases
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What are Business Case Interviews?

• Real world situations, sometimes taken from
  actual client engagements
• Topics covered in the case are usually reflective
  of the type of work the candidate would be doing
• Interviewer provides the candidate with a set of
  facts about a problem often business or
  technology related
• Interviewer assess the candidates ability to
  synthesize many different situational elements
  into a cohesive understanding of the problem at
  hand
• Candidates draw upon their analytical abilities,
  business experience, and deductive reasoning to
  solve the case

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Business Case Interview Examples

• Interviewing for Business Technology Analyst
  Position
• A major health insurance company has just bought
  out a slightly smaller competitor. What are some
  considerations that the companies might have in
  merging the billing systems, and what are some
  strategies that you might use to combat the most
  important of these problems?
• Interviewing for Business Analyst Position
• A major North American drug/convenience store
  has been losing market share for three years.
  They have asked us to determine the cause for
  this trend and to recommend solutions to regain
  market share.
• Interviewing for Human Capital Analyst Position
• A small manufacturing company has just announced
  its merger with a competitor of equal size. The
  two companies have different benefits and
  compensation packages for employees at the same
  level. They have asked for recommendations about
  how to merge the packages successfully and
  cost-effectively while causing minimal confusion
  and disruption for the employees.

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Benefits of Case Interviews

• Benefits to the candidate
• Provides the candidate with a sample of the kinds
  of business problems that we solve
• Provides the candidate with the opportunity to
  showcase his/her skills in a non-personal
  situation
• Benefits to the employer
• Offers more objective evaluation than other
  interview formats
• Provides a gauge of key attributes required to be
  successful at the company

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The Interviewers Perspective
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Interviewers Set the Tone Drive the Interview

• The focus in a case interview should be the
  candidates approach to the question and
  plausibility of the solution.
• The candidates background and level of
  experience will play a large role in his/her
  performance with regard to creativity and
  recommending solutions
• It is important to stay within the timeframe and
  scope of the question when the candidate gets
  sidetracked, interviewers should reel them back
  in
• The interview should not be one-sided
  interviewers should respond with additional
  information and follow-up questions as
  appropriate
• As with behavioral, case interviewers should
  demonstrate consistency, fairness, preparedness,
  effective listening skills

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Attributes we look for during a Case Interview

• Your goal as an Interviewer is to determine if a
  candidate has the attributes needed to be
  successful in a given position.

Problem Solving

• Understands business problem
• Identifies and prioritizes key issues
• Asks relevant questions
• Makes justifiable assumptions
• Demonstrates logical structure
• Thinks creatively
• Demonstrates technical awareness

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Case Interview Phases

• It is helpful for interviewers to structure their
  case interview into five phases and spend the
  appropriate amount of time on each phase.

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Case Interview Phases
Introductions
State the objective of the interview
Present the case to the candidate
Candidate presents solution/approach
Wrap-up

• Take a moment to introduce yourself and break the
  ice with the candidate
• Be informative, yet brief

• Tell them what to expect during the interview
• Explain that you are most interested in their
  approach and thought process there is not one
  right answer

• Usually verbal
• Assess listening skills ability to dissect
  complex ideas
• Suggest they take a few minutes to collect their
  thoughts
• Be responsive to questions
• Consider asking candidate to summarize the case
  for you to ensure they understand what is being
  asked

• If the candidate struggles with their approach,
  guide them by providing hints
• Divulge addl info you have when the candidate
  asks if they dont ask, divulge it as
  appropriate
• Ask probing questions where information seems
  unclear or incomplete
• If the case seems to easy for them, throw in a
  wrench!

• Ask candidate to summarize their
  solution/approach if they didnt
• Give candidate the opportunity to ask questions
  related (or unrelated) to the case
• Do not provide feedback on the candidates
  performance
• Do not provide additional thoughts or alternative
  responses they might tell other candidates

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Thoughtful Interactions and Responses

• Interaction between an interviewer and a
  candidate is critical to a successful case
  interview

Veers off track
Change direction and ask questions that will
force the candidate to refocus
Goes into too much detail about one aspect of the
case
Indicate that you have enough information about a
particular area and encourage the candidate to
move on to other aspects of the case
Gets stuck
Divulge information you have that may be helpful,
ask questions with increasing specificity and
focus, or help the candidate along and ask
questions in other areas
Gives answers that are wrong, canned, or vague
Ask the candidate for his/her reasoning. (If the
candidate is wrong, this gives an opportunity to
rethink. If the candidate is vague, this requires
the candidate to provide deeper analysis)
Starts running out of time
Ask the candidate to wrap up. This demonstrates
the candidates ability to draw strong
conclusions and summarize issues succinctly
You should always aim to have the candidate
finish up the case. Push the candidate when
necessary.
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Evaluating a Candidates Performance

• Interviewers can best evaluate a candidates
  performance in different areas by asking
  him/herself several questions

Problem Solving

• Did the candidate ask appropriate questions?
• Did the candidate define the problem and identify
  relevant facts?
• Did the candidate state his/her assumptions?
• Is the solution set pragmatic and plausible?
• Does the candidate demonstrate logic in his/her
  analysis?
• Does the candidate focus on key issues or
  problems, hypothesize on his/her root causes, and
  then present viable recommendations?

Communication Skills

• Does the candidate listen and take cues from the
  interviewer?
• Is the candidate articulate and confident?
• How well does the candidate structure his/her
  response?
• Are you able to follow the candidates logic?

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Evaluating a Candidates Performance

• Interviewers can best evaluate a candidates
  performance in different areas by asking
  him/herself several questions

Composure

• How well does the candidate handle questions from
  the interviewer?
• Is the candidate thrown off?
• Does he/she respond convincingly and think well
  on his/her feet?
• Does the candidate maintain a professional
  demeanor throughout the interview?

General Case Performance

• Does the candidates work experience or
  coursework relate to the case?
• Evaluate the candidates overall response and
  incorporate relevant observations into your
  recommendation.

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Sample Poor Evaluation Form

• All form sections are not completed
• Comments under the communication section are too
  brief, subjective, and do not provide enough
  detail
• Final rating not completed
• Pursuit team recommendations not completed

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Sample Good Evaluation Form

• Heading complete
• All sections complete with ratings and comments
  are detailed, not subjective, and paint a picture
  of what happened in the interview
• Offer summary complete with offer recommendation
  and recommended pursuit team

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The Candidates Perspective
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Follow A Structured Approach and Timeline
Understand The Case, Clarify, And Confirm (5
Minutes)
Develop A Logical Framework and Establish
Hypotheses (10 Minutes)
Make Assumptions And Test Hypotheses (10 Minutes)
Drive To Conclusions (5 Minutes)
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Lets Practice With A Real World Example
You are a consultant for a German luxury car
manufacturer interested in entering the sports
utility vehicle (SUV) market after noticing the
market has grown dramatically worldwide in the
past two years. The client currently has no
experience with manufacturing these types of
vehicles. How would you advise the CEO about
what his company should do?
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Understand, Clarify and Confirm Interview Tips

• Write it down
• As the interviewer presents the case, write down
  key facts. You will need to recall these facts
  later on in the case study
• Restate the problem and establish the objective
• Vocalize to your interviewer the issues you plan
  to evaluate
• Dont be thrown by terms youre not familiar
  with- if you dont know what it means, ASK!
• Start with one of your identified points and
  drill down
• Think about what information youve been given,
  and what areas you would like to explore even
  further
• Begin to focus your thought process on one or two
  lines
• Ask applicable questions
• The interviewer expects you to ask for more
  information

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Demonstrate Your Understanding by Identifying The
Key Issues Involved In The Case
Business Issues
Example
Profitability
What impact will the clients entry have on sales
and pricing of SUVs?
Investment
Should your client invest funds in developing a
new vehicle? Should the client invest in the
infrastructure necessary to make SUVs? Are there
additional costs with training the line staff to
make these vehicles?
Business Operations
Does the client currently posses sales channels
and infrastructure adequate to compete with
incumbents? What are the impact on the
organization of establishing this new line?
Market Impacts
How much market share would the client stand to
gain if it enters the market? What competitive
response can it expect from incumbents? Is there
another way to enter the market without alerting
the incumbents?
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Utilize Frameworks To Develop Hypotheses
Framework
Hypothesis
SWOT Analysis
The clients reputation for high quality in
luxury vehicles will continue to be a competitive
advantage therefore, the client should leverage
their brand image. The current fuel crisis may
pose a threat to the SUV market, thus fuel
efficiency would be key
Kotlers Four Ps
There is little position in the high-end market
for SUVs therefore the client should consider
creating a lower-end model for every day users
pricing would have to be amenable to the
price-sensitive consumer
BCGs Growth Share Matrix
The SUV market is growing slowly and the clients
current position will support a new line of
vehicles
Porters Five Forces
Incumbents will vigorously defend their market
share additional analysis is required
significant investment to modify the factory
will be required to make SUVs
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Develop Establish Hypotheses Interview Tips

• Look at the numbers (if any) in the case
• Dont be afraid to round the numbers
• Talk the interviewer through your calculations
• If you draw a blank in making calculations, dont
  panic. Estimate wherever possible
• Make preliminary conclusions
• Explain any assumptions and preliminary
  conclusions you have made about the facts of that
  case
• Use your preliminary conclusions as a springboard
  for more questions

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Test Your Dominant Hypotheses

• Establish assumptions
• Resources and production elements will remain
  constant
• PPE investment is a one time fee
• There are significant ongoing costs to bringing
  line workers along the learning curve and
  cross-training in making SUVs and luxury cars
• Examine the pertinent questions
• What are the costs of entering this market?
• Will the introduction of a new SUV impact the
  sales of current SUVs?
• What are revenue probabilities?
• How does timing affect decision and/or action?
• Develop a test to verify if the hypothesis is
  correct
• The client should enter the market if the
  potential profits demonstrate a higher
• return on investment than remaining out of the
  market
• Conduct analysis to determine the outcome of the
  test
• Refine hypotheses and examine alternatives

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Your Analysis Will Form the Basis of Your Final
Recommendation

• Summarize hypotheses based on analysis
• Investing in the necessary infrastructure will
  not be profitable
• Describe areas for further examination
• Market based studies should be conducted to
  determine the impact of brand promotion and
  advertising on sales and customer retention
• Make a recommendation
• The client should enter the market, but the
  client should leverage its key strength - its
  brand - to attract consumers
• Further analysis will be required to determine
  the most effective method for branding
• It may also be worthwhile to undertake scenario
  planning based on various ways in which the
  Global Oil and Gas economics could play out

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Drive to Conclusions Interview Tips

• Wrap it up!
• Be prepared to wrap it up even if you run out
  of time
• Communicate your conclusion (and how you reached
  it) to the interviewer
• Restate the objective
• What was it you were seeking to find
• Review your preliminary analyses
• What were the conclusions you reached along the
  way
• Present your final conclusion(s)
• There is NO RIGHT ANSWER!!!
• Your interviewer cares much more about your
• thought processes than your final answer

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Things NOT to do in a Case Interview

• Panic or become emotional
• Guess
• Say I have no idea
• Change the subject or lose focus
• Make the problem more complicated
• Jump to conclusions

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Eleven Things To Remember

• Practice
• Take notes as needed
• Confirm, clarify, and question
• Find facts
• Utilize the tools you know
• Find a framework and stick with it
• Focus first, broaden later
• Dont jump to an answer explain how you arrived
  at your conclusion
• Theres no right answer (usually)
• Dont Circle
• Relax and have fun