In the ever-evolving landscape of business, enterprises face the challenge of charting a clear path towards success and sustainable growth. For instance, when the retail giant, Walmart, faced stalling sales due to stiff competition from e-commerce platforms, it was challenging to formulate a roadmap into the future. Navigating through uncertainty and making strategic decisions requires a […]
Author: Jason Oh
In the previous article, we looked at how banks make money and how they must meet capital requirements. In this article, we will explore the importance of profitability ratios and valuation metrics that are crucial when analyzing banks. There are seven key profitability ratios and two valuation metrics that it is important to understand. We […]
How do banks make money? Where does this money ultimately go? What is a bank really worth? In this 2-part series, we will address these questions. Firstly, by outlining the major items on a bank’s income statement, and then by discussing key ratios that are commonly used to measure profitability and to estimate the market […]
The financial services industry comprises firms that operate across a range of sectors: Asset & Wealth Management, Banking & Capital Markets, and Insurance. Business conducted by each firm varies but the scope of financial services generally includes the following: Asset Management: managing assets and investments for retail and institutional clients such as stocks and bonds, […]
The hypothesis-based problem solving (HBPS) approach is a method employed by consultants to develop actionable recommendations for clients using a structured, evidence-based process. As we saw in the previous article, the HBPS process has five key steps: Define the problem Define drivers and generate/refine hypotheses Determine information needs Gather and analyze the data Draw conclusions […]
There are generally two main approaches to solving problems in consulting, namely the: Investigative / data-based approach, and Hypothesis-based approach. The investigative approach is appropriate when the opportunity is well-defined, repetitive, and standardized, or where the solution is clear from the beginning. Progress is made by employing technical and subject matter expertise to drive towards […]
Recently, I had the opportunity to run an “Impact Workshop” that aimed to reflect on our role as advisors (“consultants”), explore our individual motivations, and agree on behaviors that reflect our role. Surprisingly, one of the biggest revelations was how much we underestimated the importance of facilitating and how much of a central role it […]
As consultants, we are required and recommended to take notes for the meetings we attend. This seems like a simple task because formal education has forced us, at one time or another, to take notes. The world of formal education, however, is typically parsed out so an individual only needs to focus on one subject […]
As part of a consulting engagement or broader enterprise strategy alignment, you can expect to plan and run an offsite at one point of your career. While an offsite can provide a great environment for team building and alignment, planning and running one could be stressful and time-consuming as it involves multiple executive-level stakeholders and […]
This article continues on from Part 1, in which I shared some of my experiences of working with an internal strategy team at a large financial institution, and some of the main projects and activities I undertook. In this article, we will explore the 7 main differences between internal strategy and management consulting. Note that […]
I initially started out my career in management consulting, exited to an internal strategy team in industry, and pivoted back to consulting. This two part article series will provide valuable perspective for those who are considering internal strategy teams as their next career option as I unveil my personal thoughts and experiences. In this article, […]
Experienced hire recruitment can be a puzzling, confusing environment. Compared to on-campus recruits (undergraduates and MBA students), experienced hires confront much more irregular processes, prolonged timelines, and unclear standards. As the number of experienced hires have increased during the pandemic and I personally made this transition twice during my career, below I’ll share my thoughts […]
As a corporate strategy professional, I execute and coordinate all of the key activities of the firm that span multiple business units and functions. This involves orchestrating company-wide planning for the Board of Directors and executive leadership team on the firm’s long-term strategic direction, annual operating plan, budgets, capital investment strategy, as well as informing […]
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The Slide Writing Bible
In management consulting and many other sectors, people spend a lot of time creating PowerPoint slides as it has become the basis for communicating, both internally and externally. However, slide writing is often very challenging. It forces you to structure your thinking and the slide deck needs to include the right content as well as […]
Many candidates spend numerous hours perfecting their resumes, preparing for case and technical interviews, and crafting their fit story. However, they often forget to research the company itself. Conducting due diligence on the company you are interviewing for will help you build rapport with the interviewer, learn the firm’s culture and values, and showcase that […]
As I’ve progressed further along in my career, the importance of being able to manage upward has become clearer to me. If you think your relationship with your manager is a one-way street with the manager doing all the delegating and you doing all the following, think again. At its core, managing up isn’t just […]
Many management consultants hardly complete two or three years in their jobs before they realize that there’s more to life than consulting. Consultants are called upon to do problem-solving on behalf of their clients, but they are forced to move on and find solutions to the next client’s difficulties before being able to see what […]
The question of when to leave your first or second job is intimate and messy. Especially if your first job is management consulting as you will be presented with many opportunities to jump into industry. But no matter what the circumstance is, it requires you to consider an endless number of factors, ride through a […]
Due to COVID-19 and the lack of physical interaction the “virtual coffee chat” has become a thing. I receive 2-3 LinkedIn messages per day asking to schedule a call so that I can share my personal experience in consulting, answer recruiting-related questions, and sometimes even review a resume on the spot. However, due my busy […]
You can generally tell whether you did well in an interview based on the connection you built with the interviewer. You have probably been in situations where an interview felt uneasy and awkward because of a lack of chemistry with the interviewer. Have you ever thought, “I just couldn’t click with the interviewer” following a […]
It’s been a while since we were distanced from the office, and it’s not looking to end anytime soon. Many tech companies such as Microsoft have announced that they plan to let employees work remote permanently. Working from home is the new normal. As much as people are tolerant of interruptions from a weak internet […]
With virtual internships emerging as the new normal for the foreseeable future, it may be best to examine how to successfully stay on top of your virtual internship and complete it as if you were doing it physically. To make the most out of your virtual internship, it matters what you put in. Aspects such […]
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Creating a Dashboard
At the most basic level a consulting engagement (or any strategic project) will typically contain three-phases: Structure and propose a strategy Implement and execute on the strategy Track the performance of the strategy Phase 1 and 2 are where the consultants spend most of their time, but phase 3 is also an essential part of […]
MMM assists marketers in optimizing future spends and maximizing effectiveness (i.e. it establishes which mediums are working better than others). Then, budget allocation is done, by shifting money from low ROI mediums to high ROI mediums, thus maximizing sales while keeping the budget constant. Types of MMM MMM can be built using regression methods and […]
What is essential for successful marketing mix modeling? Regardless of method, MMM can be successful only if accurate and highly specific data are available upon which the modeling can be based. The greatest barrier to successful modeling is always a lack of relevant, specific, accurate data. So, the first step in any modeling effort is […]
It’s a great challenge to accurately measure the effects of advertising, packaging, distribution channels, media expenditures, social media Likes and Tweets, and sales organizational structure on brand share or sales revenue. Is marketing solely a game of chance, or might there be a way to bring scientific methods to the table? Let’s draw a distinction […]
There’s a lot more to being a great intern than being intelligent and producing high-quality work. It can be summed up in one word — professionalism. Professionalism is an ambiguous concept. It was only a few years ago that I began to realize its importance. To have a decent chance of receiving a return offer, […]
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A Note to University Seniors
Dear university seniors, I really sympathize with the senior year recruiting grind. It’s not easy, and I would argue that for many of you this will be one of the most challenging points in your career. Why? I’m going to painfully lay out your situation. You have no full-time work experience except university, which has […]
This is a continuation of Part 1 where different types and benefits of customer segmentation were introduced. In this article we will focus on three customer segmentation methods that use statistical techniques: cluster analysis (K-Means), cluster analysis (Latent Class Analysis), and Tree analysis (CHAID). Let’s first define a problem and see how each method approaches it. […]
Customer segmentation is the practice of segmenting customers based on common characteristics. It is a critical step towards identifying growth opportunities in business and should be carried out before undertaking any of the following actions: Developing customized marketing programs (e.g. campaign optimization) Designing an optimal channel distribution strategy (e.g. brick-and-mortar vs online) Determining appropriate product […]
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The Intern Guide
Insights from 2 years of Successes and Failures in Internships During university I had the opportunity to do five different 4-month co-ops (internships) in capital markets, management consulting, and strategy. Let me begin by saying that I was not a superstar intern. I made mistakes and always had room for improvement. I was constantly learning, […]
During COVID-19, working from home has become the new norm. This is a new experience for many of us, and poses new challenges and distractions that can make it difficult to stay focused and productive. I’ve been getting asked a lot lately about productivity, and so I thought I should dedicate an article to it. […]
Companies sell products to a broad variety of industries and customer segments, and it’s often hard to know where to focus the sales, marketing and product development efforts. Who should you listen to and who should you be chasing? Within your target market, there will be customers that are “ideal” you. They buy quickly, […]
It is said that to really understand somebody you have to walk a mile in their shoes. Analysing a customer journey, from prospect to buyer, allows the business to step into the customer’s shoes and experience the whole process from their perspective. Professor Bernd Schmitt of Columbia Business School is credited with creating the concept […]
A vast portion of a management consultant’s career is spent analyzing data, summarizing information, extracting insights, and helping to convert knowledge to action. So, a few minutes into your case interview, the recruiter slides a chart across the table and asks what you can tell from that particular exhibit. The objective of the chart is […]
Before reading this article, check out “Due Diligence by Management Consulting Firms”. What is due diligence? Due diligence is one of the most overused and understated terms in business. Due diligence is the process of being able to evaluate and understand a prospective investment, such as an acquisition, by gathering as much information as possible. […]
The question of how to join a management consulting firm as an experienced hire from another industry or another consulting firm is one that is often asked. The traditional route is to apply and go through the standard interview process as an MBA summer intern or post-MBA consultant. However, there aren’t a lot of sources […]
Consulting-style case interviews are highly effective, and the same format is being adopted more and more widely. The major consultancies have converged on a largely identical interview style, precisely because it excels in picking out the most genuinely capable candidates from the huge pools of applications received. However, consultancies are not the only oversubscribed employers […]
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Banks – Industry Overview
The Business of Banking Banks are intermediaries for capital and hold the risk when supply and demand is not perfectly balanced. Historically, commercial banking and investment banking functions have been separated by law – these restrictions have since been repealed and larger banks tend to take on capital markets operations due to the complimentary nature […]
Many consulting, corporate strategy, and corporate development roles require the interviewee to go through an M&A case study. Depending on the firm and specific role this case could be very strategic and operational like doing a market entry/growth-type case or very technical (i.e. building financial models like DCF, accretion/dilution, LBO, etc.). But before we dive […]
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Breaking down the M&A Case Study
M&A case framework Now that you have a high-level understanding of why companies buy each other in the first place (refer to M&A deals – benefits and drawbacks), let’s discuss the framework you should use to analyze the transaction. Firms typically look at four areas when working on M&A cases. Let’s step through them one […]
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Cracking Pricing Strategy Case Studies
Pricing strategy is one of the easiest levers CEOs can pull to increase revenues in their company. For instance, retail banks can raise interest rates (the price they pay customers for depositing funds at the bank) to quickly attract new balances and acquire new customers. They can then lend out this money at even higher […]
This question comes up often. It is typically asked when you are thrown multiple data sources, running up to millions of rows. Sometimes you are lucky — you may be asked to solve a very specific and well-studied problem (e.g. predict which customer is likely to cancel their subscription within the next month). But often […]
As with most other competitive professions, breaking into consulting roles has a lot to do with networking. Unfortunately, candidates get one chance to make a first impression. Meeting people early before you are polished will end up burning a lot of bridges. For example, after a very disorganized meeting the consultant will come back and […]
Simple linear regression is an important tool for understanding relationships between quantitative data, but it has its limitations. One obvious deficiency is the constraint of having only one independent variable, limiting models to one factor, such as the effect of the systematic risk of a stock on its expected returns. Real relationships are often much more […]
Statistical inference helps us understand the data, and hypothesis testing helps us understand if the data is different from another set of data. These techniques are important when exploring data sets, as they help guide our analysis. However, these techniques are not enough. Most times, we are looking to understand the relationship between two sets of […]
As a generalist consultant you are unlikely to need any statistics for day-to-day project work (there are specialists to call on for situations where it’s needed). The workaday numerical tool is Excel which, with the “Analysis Toolpak”, gives most consultants more than enough of what they need. However, you are likely to build a lot […]
Asset management as an industry is becoming increasingly important for a variety of reasons: The world is getting wealthier, driven by growth in emerging markets. The growing middle class in China and India means that millions of people are purchasing wealth products, while new millionaires and billionaires are looking for high net worth wealth solutions […]
Management consulting is a professional service offered to organisations which aims to help internal management improve operating performance. Consultancies are brought in to tackle individual problems (falling revenue, rising costs, geographical expansion, product launch, M&A) or to evaluate the company through a deep dive analysis. The management consulting value chain encompasses strategy (idea origination, analysis […]
Retail Wealth Management Retail investors are everyday investors without much buyer power. Generally, retail investors are individual investors with liquid investable assets of less than $1 million – although the allure of a more bespoke investment counsel is not compelling until $5 million. The retail business comes with the highest fees, so at least on […]