Well for this part, since there is so much to say, let’s get straight into it.
To start with, a short definition of the case interview is “a simulation of the beginning of a consulting project”. Its purpose is to test candidates for three capabilities: Structured Thinking, Analytical Ability, and Communication Skills. Each of these three capabilities are mainly associated with Problem Solving. (Remember that the three characteristics firms are looking for are Achiever, Leader, and Problem Solver).
The case interview is usually 25 to 40 minutes in length. Do not expect to solve every detail of the case during this short time, rather focus on the most critical parts. Also, don’t expect to find the “one right answer” to the case. There isn’t one! There are dozens of feasible solutions which are all reasonable ways to address the situation presented to you in the case.
The important points of the case interview are:
- how you structure the problem,
- how you analyse the most important parts to find the main source of the problem and ways to address it, and
- the way you communicate your responses and probing questions.
Next, let’s talk about the five main parts of a case interview. Just for the record, this is a normal standard flow of a case, which means there could be exceptions.
- Define the problem. The beginning of a case interview is where candidates are prompted with a business or sometimes a non-business problem/issue/question. For example, the interviewer might tell you ‘Corporate A faced a 20% decline in profit last year. And they want you to find out the reasons.’ At this stage, your goal is to ask probing questions to define the scope of the questions related to When, Where, Who, How many/much. It is also the right time to ask questions to understand the broader business situation such as the industry, the macro-economy, and whether there are any other concerns/goals from the client.
- Structure the approach. This is usually called ‘setting up a framework’. I will share some useful frameworks in a later post. In short, this part is where candidates should think very logically and break down the problem defined in the first step.
- Interpret exhibits. In most cases, candidates will be giving at least one exhibit such as a flow chart, histogram, or pie chart. The interviewer’s intention is two fold. Firstly, to see how well you can derive information logically by comparing and analysing data from exhibits. Secondly, to see how well you can use the data to validate or invalidate your hypothesis.
- Perform calculations. This part is just maths, which means you should probably review some simple algebra before the interview. Importantly, you should practice oral math. Oral math means that you should say the formula before you do the calculation so that the interviewer can follow your steps clearly. When you finish the calculation, double check whether your results make sense or not. For example, if you come up with an annual sales volume of bikes in the United States of 300 million then you should realize it does not make sense as it almost equals America’s total population. Finally, round your answer only after getting permission from the interviewer. You can simply ask, ‘Do you mind if I round it to the nearest 10 here?’
- Synthesise key takeaways. At the final stage of the case interview, it is crucial to synthesise all the information, validate your hypothesis, and suggest next steps. Synthesis is imperative as it focuses the client’s attention on the most important information. Usually, candidates are expected to synthesise in a concise way such as summarise all findings in three bullet points. Another part of your synthesis is to suggest next steps. Although not many case interview trainers will say so, it is a big differentiator. If a candidate can suggest the next step based on the synthesis, it makes him or her look like a real consultant in daily work, as the usual consulting project ends by starting a new engagement with clients for the next project. For example, you may say “Well, based on our three key findings, I would suggest to look into how we can increase the sales channel efficiency as a next step because it is a key driver for sales growth.”
In most cases, the above five parts will follow in sequence. Especially the beginning will be defining the problem and the closing will involve synthesis and giving key takeaways. Setting up a framework, explaining exhibits, and performing calculations can come in iterations while you dig into details during an interview.
Now you should be able to calm down a little bit because no matter how hard the case interview seems, it is just these 5 parts that you need to practise and become good at.
In the next post, I will introduce several different formats of case interview. See you soon!
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Mike Ni believes that technology is the engine of the future, while business capability is the wheel!
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