Basics of Consulting

1
Basics of Consulting

• Gu Xinyi (???)
• 8/22/2008
• UMCSSA Seminar

2
Topics of Discussion

• Overview
• Application Process (McKinsey)
• Interview Process
• Recommended reading

3
Overview

• What are consultants???
• Consultants are hired by companies to solve
  their problems while creating sustainable value

Specific work done Increasing market
share Increasing profitability Evaluate/introduce
new products/services Marketing/sales Logistics Me
rger/acquisition
Industries Served (Example companies) Automobile
assembly (GM) Chemicals (Dupont) Consumer
packaged good (PG) Electric power natural gas
(DTE) Financial services (Washington
Mutual) Marketing sales Metal mining
(ArcelorMittal) Petroleum (Exxon
Mobile) Pharmaceuticals (Pfizer) Social/government
(WHO) Telecommunications (ATT)
4
Major Consulting Firms

• Top tier
• McKinsey Company
• Boston Consulting Group (BCG)
• Bain Company
• Booz Allen Hamilton
• Others
• Monitor Group
• A.T. Kearney
• Mercer Management/Human Resource Consulting
• Accenture (technology consulting)
• Mercer Oliver Wyman
• ZS Associates (medical consulting)

For more details, go to http//www.vault.com/nr/co
nsulting_rankings/consulting_rankings.jsp?consulti
ng20082ch_id252
5
Applicant Background

• Ph.D. and Masters in all fields could and should
  apply
• McKinsey and BCG most suitable for Ph.D.
  applicants

6
Application Process

• Summer programs
• Designed for applicants receiving advance degree
  in 1 year
• McKinsey Insight program
• Engineering and science
• Healthcare
• BCG Bridge to BCG
• 3 day summer program
• Practice case
• Interact with consultants
• Application deadline early May of each year

7
Application Process

• Full-time
• Apply within 1 1.5 years before actual
  graduation
• Different interview periods throughout year for
  APD
• Campus recruitment presentations
• Engineering school
• Business school
• Online submission requirements
• CV (McKinsey format online)
• Coverletter
• Short essay (recent problem and how you resolved
  it)
• Work experience and extracurricular experiences
  (list before)
• Unofficial transcript

8
Interview Process - McKinsey

• 3 rounds (after pre-screening)
• 1. On-Campus (Advanced Problem Solving Test)
• - Practice version online
• - 1 hour, multiple choice, 26-30 questions
• 2. Regional (Chicago office)
• - 3 interviewers
• - Chat (2-4 min)
• - Experience interview (8-12 min)
• - Case study (30-35 min)
• 3. Final (office of choice)
• - Same as round 2

9
Interview Process - McKinsey

• Experience Interview
• Recent experiences in
• Leadership
• Teamwork
• Initiative
• Overcoming a challenge/obstacle
• Persuasion
• Preparation tips
• Prepare stories ahead of time (4-7)
• Look over your CV/resume (they can ask anything)
• Answer the question asked (modify stories)
• Let them know what YOU did

10
Interview Process - McKinsey

• Case Study
• 1-on-1 interactive business exercise with
  interviewer based on real-life situation
• Types (categories) of business cases
• Improving profitability (almost all cases)
• Increasing market share
• Introducing a new product
• Entering new market
• Entering new geographical region
• Mergers acquisition
• Competitive response
• Practice cases from recommended reading list

11
Interview Process - McKinsey

• Actual interview
• Interviewer states the background information and
  defines problem(s)
• Interviewee writes outline to solve problem and
  describe it to the interviewer
• Potential sources for problem (logic tree)
• Discuss potential sources with interviewer to
  pinpoint the source(s) of problem
• Give conclusion/summary (1-2 minutes)
• Restate problem
• What caused the problem
• Proposed solution to the problem
• Preparation tips
• Listen carefully to interviewer, he/she wants to
  help
• Interactive process, engage the interviewer

12
Interview Process - McKinsey

• Things they look for
• 1. Problem-solving skills
• 2. Leadership ability
• 3. Achievements doing a great job!
• 4. Personal impact influence those around you!

13
Practice and Recommended Readings

• General practice tips
• Practice with different partners to feel
  different styles (form groups of 4 people)
• Make every practice count (try to be perfect each
  time)
• Practice every kind of case, especially ones you
  are weak at
• Join Ross School of Business Consulting club
• Informative seminars and lectures
• Many practice books
• Recommended readings
• Basic
• Vault guide
• Wetfeet guide
• Advanced
• Case in point (McKinsey style)
• Crack the case (Bain style)