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Skills, Tips, and Tactics

Required Consulting Skills

The consulting industry provides many services and covers many industry sectors, and so the domain knowledge and expertise that a consultant needs will vary depending on the industry focus and services that the consultant actually provides. That being said, there are some generic skills that every consultant will need to have. As a starting point, […]

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Frameworks

9 M’s Resource Audit Checklist

An organisation’s approach to strategy will always depend on the circumstances. Who are the organisation’s competitors? There will be existing competitors, and outsiders who might threaten to compete in future. And who are the organisation’s customers? There will be existing customers, and larger groups that the organisation wants to target. By understanding the external environment, an organisation will then be […]

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Career Advice

What Do Consultants Do Each Day?

Consultants work on projects of varying lengths, and are often required to travel to work on site with the client. The specific tasks that a consultant undertakes will depend on which firm she works for, the project requirements, as well as her level of seniority and experience. Projects typically follow a predictable cycle which involves […]

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Career Advice

Types of Consulting

There are many different types of consulting. As an aspiring consultant, you would be well advised to understand your options so that you can make an informed decision about which kind of consulting is right for you. Here are five (5) of the main types of consulting that might interest you: Strategy: Think BCG, McKinsey and Bain […]

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Innovation Strategy

5 Reasons It’s Okay To Say “No”

If you are using your talents in a way that interests you for the benefit of other people, then that’s a good thing. Charities, non-profits and religions may come to you for aid, but it’s valid to refuse if your gifts to them would detract from the good work you are already doing Giving more than you […]

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Career Advice

What is Consulting?

“Consulting” is a pretty general term, and doesn’t really give you a clear idea of what consultants actually do. The Oxford dictionary indicates that “to consult” means to “seek information or advice from someone (especially an expert)”. In other words, consultants are people who provide expert advice. We are interested mainly in the consultants who provide advice […]

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Career Advice

A Career In Management Consulting

Consulting is an appealing career choice for many graduates. Consultants have the potential to travel with work, network with Fortune 500 executives, earn six figure salaries, develop high-level transferable business skills, and benefit from lucrative exit opportunities. What’s not to like? Well, for all its benefits, the life of a consultant is not necessarily a bed of […]

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Strategy

False Dilemma – Value, Cost or Focus

Harvard Business School Professor Michael Porter argued back in 1985 that there are three generic strategies that an organisation can follow to achieve above average performance. You can operate at low cost, provide distinct value to customers, or focus on doing one of these things while targeting a specific niche in the market. The unfortunate fallacy that Porter introduced is […]

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Career Advice

How To Deal With Rejection

If you have gone through the consulting interview process and are not offered a position with your target firm, then you should find out why. There are two reasons this is important. Firstly, getting specific feedback on your performance is the only way you can learn and improve. Secondly, you may discover that the firm has […]

Categories
Economics

The sky is falling

Back in September last year, the Wall Street Journal wrote an article about how low oil prices could lead to a global recession. An article by the Guardian last Friday repeated the sentiment with a suggestion that low oil prices could hurt the stock market. Look out, Chicken Little, the sky is falling! The doom and gloom argument appears […]

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Career Advice

Negotiating An Offer Of Employment

If you have received an offer of employment from the consulting firm of your choice, you may still want to negotiate the terms of the offer. How should you go about doing this? Use your bargaining power Your ability to negotiate the terms of your offer depends on how much bargaining power you have. The consulting […]

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Strategy

Bricks and Mortar

Builders intuitively know that if you are building a house then you need both bricks and mortar, and they need to be arranged in a certain way in order to construct a safe, functional and attractive residence. The bricks provide strength, the mortar holds it all together, and the architect’s plan ensures that they are arranged in […]

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Career Advice

Accepting An Offer Of Employment

If you are offered a position with a consulting firm (and are happy with the terms of the offer) then feel free to accept it. You can talk to the recruitment management to let them know your decision, and you will also need to sign, date, and return a copy of the offer letter. Be sure to […]

Categories
Strategy

Antidote to Fixed Thinking

Many people are afraid to fail. Terrified of flunking a test, getting fired, having their heart broken, or being laughed at. Loss is painful, yes, it truly can be. The problem with this way of experiencing life, though, is that it represents fixed thinking. A belief that things can stay the same and a desire to preserve the way things were. […]

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Career Advice

After The Interview

(Source: Flickr) We have talked at length all year about consulting interviews, and in this post we provide three (3) thoughts on what to do after the interview comes to an end. Confirming the next step: To find out about the next step in the recruitment process, talk to the recruitment manager (this will probably be someone other […]

Categories
Interviews

Practice Case Questions

(Source: Flickr) If you want to practice case questions, I highly recommend Marc Cosentino’s book Case in Point. You can also access sample case questions from various consulting clubs here, and from the following consulting firm websites: McKinsey & Company; Bain & Company; Oliver Wyman; Deloitte; A.T. Kearney; Accenture; and L.E.K. Consulting. [For more information on consulting […]

Categories
Innovation

4 Financial Innovations to Make Business Easier

Overview The competitive nature of business today is stronger than it has ever been, and so it is important for companies to use all of the tools at their disposal. There are many new innovations that allow companies to finance purchases creatively in order to meet their goals over the long term. Here are four (4) examples […]

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Frameworks

Product Market Expansion Matrix

The product-market expansion matrix may prove useful in the consulting case interview and is relevant when considering growth strategies. It might be used on a standalone basis or as part of a larger profitability framework. There are four ways that a company can pursue growth: Market penetration: A strategy to increase sales to existing customers […]

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Frameworks

Outsourcing Matrix

The outsourcing matrix may prove useful in the consulting case interview, either as a standalone framework or as part of a larger profitability framework. With the view to reducing costs, there are three questions that a firm would do well to consider: How long will it take to reduce major cost drivers? Are the activities strategically […]

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Frameworks

McKinsey 7 S Model

While you may not directly use the 7 S Model in the consulting case interview, it will give you a deeper understanding of how to examine the inner workings of an organisation, identify strengths and sources of competitive advantage, as well as weaknesses and reasons why an organisation may not be operating effectively. The 7 […]

Categories
Innovation

Creation vs Appropriation

(Source: Flickr) What do the painter, the author and the tech entrepreneur all have in common? They are all in the business of creation; producing new works for the benefit of their target audience. And what about the professional gambler or the Wall Street prop trader? They are both in the business of appropriation; placing calculated […]

Categories
Frameworks

BCG Growth/Share Matrix

While it may not be a core framework for solving consulting case questions, the BCG Growth Share Matrix can help to broaden your understanding of how a company might want to allocate cash between products and business units. The framework is based on the idea that the amount of cash a product uses is proportional […]

Categories
Economics

Trust Based Business

I recently bought a coffee from Quarter Horse Coffee, my new favorite Oxford coffee house. Not having exactly the right change, I asked the friendly bearded hipster behind the counter whether they accept card payments. He told me that they accept payment by card, but they charge a 20P surcharge for amounts under five pounds. I […]

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Frameworks

Value Chain Analysis

Value Chain Analysis is another tool that may prove useful during the consulting case interview. It can be used to analyse the cost structure of a company as part of a declining profitability case, or to analyse the supply chain as part of an operations case. To understand which activities provide a company with a competitive […]

Categories
Frameworks

Four P’s Analysis

Four P’s Analysis is a framework that may prove useful for solving consulting case questions. It can be used to evaluate the marketing strategy for a product. 1. Price The pricing strategy that a company employs will affect its market share and profitability. There are three key pricing strategies to consider. Competitive pricing: How do prices compare with […]

Categories
Strategy

When, Where and How Do you Sell Your Own Business

One of the great things about starting your own company is that you may be able to sell it in the future for a massive profit. Depending on how much you sell it for, you may never have to work again to secure your financial future. This could allow you to spend more time with […]

Categories
Skills, Tips, and Tactics

Rewarding Your Most Valuable Clients

(Source: reynermedia) This is a guest post from Archie Ward. Many business people do not know how to bond with their clients. This is because the majority of such individuals struggle to find time to enjoy themselves. If you are such an individual, then there are things you can do to help you bond with […]

Categories
Innovation

Navigating Business Partnerships

(Source: 드림포유) Business partnerships can be an integral part of start-up success and growth of a new venture. If properly implemented and executed, partnerships can be an effective way to grow your enterprise without having to implement time consuming and difficult changes or having to make costly investments. Each partner brings expertise and assets which […]

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Frameworks

Porter’s Five Forces

The Porter’s Five Forces framework is used to determine the competitive intensity and attractiveness of an industry, and is relevant in the context of entering a new market, M&A, or starting a new business. The intensity of competition will depend on the strength of the five competitive forces, however the significance of the forces will vary by […]

Categories
Frameworks

Three C’s Framework

The Three C’s Framework may prove extremely valuable for consulting case questions. It can help to assess the business situation in the context of entering a new market, M&A, product development, and starting a new business. It involves examining customers, competition, and the company. 1. Customers Eight (8) factors to consider when examining the customer. 1. Customer […]

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Frameworks

Profitability Framework

The profitability framework is probably the most important framework for solving consulting case questions Profit equals revenue minus cost. 1. Revenue Revenue is normally thought of as being a function of price per unit and units sold. Declining revenue can derive from a fall in prices or a reduction in units sold, and can be […]

Categories
Innovation

Overseas Business Expansion: The Promise and the Pitfalls

For most business owners, the dream is to one day expand beyond the original market. Whether a large corporation or an SME, many look for ways to scale and develop additional revenue streams. One of the most popular options is to expand overseas, where they can tap into additional groups of consumers that want their […]

Categories
Interviews

Case Math

(Source: Flickr) In this post we outline some mathematical concepts that may prove useful for solving consulting case questions. 1. Break Even Analysis: Relevant when trying to decide whether to launch a new product or invest in a project with high fixed costs. 2. Customer Lifetime Value: Customer lifetime value is a prediction of the entire future […]

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Consulting Industry

Conversation with North Highland

I was grateful for the recent opportunity to communicate with Jennifer Marsh, Global Head of Public Relations Strategy, and Cheryl Coulthurst, Global Head of Talent Acquisition, at North Highland. Founded in 1992, North Highland is an employee-owned global management consulting firm that has been named as a Best Firm to Work For every year since 2007 […]

Categories
Strategy

Monopolies on the Internet

(Source: Flickr) When the Internet was still a toy a decade or so ago, many business leaders and strategists didn’t believe that it would be possible to create a profitable business online. The reasons given to support this belief were many and various. Some argued that business on the Internet would never work because it is impossible […]

Categories
Economics Strategy

What is an “asset”?

(Source: Flickr) When can you consider something that you have to be an asset? This may sound like a funny question, but it is particularly important for the success of organisations and your success as an individual. The answer turns out to be largely a matter of perspective. If you are an accountant, then your goal is to categorise resources into groups: assets, liabilities, and […]

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Strategy

Emulate vs Imitate

(Source: Flickr) When we imitate someone the goal is to copy what we see; to replicate; to produce more of the same. Think Rocket Internet or cheap Japanese electronics from the 70’s. When we emulate, on the other hand, we take inspiration from a role model, a hero. And with effort we might one day hope […]

Categories
Interviews

Sample Consulting Case Questions

(Source: Flickr) Below we provide a selection of sample consulting case questions. The questions are broken down into seven (7) question types to make them easier to digest. 1. Declining Profitability Our client is eBay. Its share price fell from $310 to $200 per share on reports of declining profits. What’s going on and how […]

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Interviews

Concluding A Consulting Case Question

(Source: Flickr) At the end of a case question it is important to provide a summary of the problem and a set of actionable recommendations that answer the question. Recommendations should be justified with the key findings that you had been noting down as you progressed through the case. For example, you might say something like […]

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Interviews

Tackling A Consulting Case Question

(Source: Flickr) The second stage of a consulting case question, after setting it up, is to solve the problem. Here are six (6) tips for successfully tackling a case question: Find the source of the problem – You might get asked a question such as “Profits have declined, what should we do?” Before diving head long […]

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Interviews

Setting Up A Case Question

(Source: Flickr) When it comes to answering a consulting case question, there are three stages to the answer: setting it up, solving it, and providing a recommendation. The first stage is setting it up, and below we provide five (5) steps to setting up a case question: 1. Summarize the question Give yourself time to think by writing down […]

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Interviews

Playing For Time In The Case Interview

(Source: Flickr) If you get stuck during a case question then there are four (4) things you can do to regain momentum. If the interviewer has just given you some information then you can say something like “let me take a second to consider that information”. You can safely stay silent for up to 90 seconds […]

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Interviews

Purpose of the Consulting Case Question

(Source: Flickr) The business case question is the cornerstone of the consulting interview, and consulting firms use it to assess a candidate for a number of qualities: Structured thinking; Numerical ability; Communication skills; Comfort with ambiguity; Speed of thought; Knowledge of key business concepts; Enthusiasm for consulting; Calm resolve under pressure; and Ability to represent […]

Categories
Interviews

Factors Questions

(Source: Flickr) Factor questions are a type of question that you may come across in consulting interviews. They are designed to help the interviewer see how you think, and you might be asked a question such as “What factors influence X, Y, Z?” or “What factors would you consider when A, B, C?”. An example […]

Categories
Interviews

Answers to Sample Brainteasers

(Source: Flickr) Last week we provided a list of ten (10) sample brainteasers that you might come across in consulting interviews. If you didn’t read the post, you might want to read it before taking a look at the answers below (to read last week’s post, click here). Answers to Sample Brainteasers A round manhole cover cannot fall […]

Categories
Consulting Industry

Conversation with L.E.K. Consulting

I recently had the opportunity to communicate with Janine Clifford, Recruitment & HR Manager at L.E.K. Consulting. L.E.K. Consulting is a global management consulting firm that uses deep industry expertise and analytical rigor to help clients solve their most critical business problems. Please read my discussion with Janine below. This will be of particular interest […]

Categories
Interviews

Brainteasers

(Source: Flickr) Brainteasers are another kind of question that you might confront in consulting interviews. They are likely to be tricky and to require “out of the box” thinking. Why do interviewers ask brainteasers? Well, since clients can sometimes ask questions which have no immediate or obvious answer, the goal of the brainteaser is to assess […]

Categories
Interviews

Math Questions

(Source: Flickr) In consulting interviews, the interviewer may quiz you on your quantitative skills with one or two short maths questions. Below we outline six (6) sample math questions to give you an idea of what to expect: What is 13 x 13? What percentage is 5 of 42? The total smart phone market is $900 […]

Categories
Interviews

Sample Guesstimate Questions

(Source: Flickr) The guesstimate question (market sizing or other) is one of the types of question you are likely to encounter in consulting interviews. Below we list twenty three (23) sample guesstimate questions broken down by question type. Population Questions How many births are there in America each day? How many petrol stations are there […]

Categories
Interviews

Approaching the Guesstimate Question

(Source: Flickr) A guesstimate question can be approached by breaking a question down into smaller pieces by asking the interviewer questions and making a series of narrowing assumptions. You can break a question down either by starting big (e.g. making an assumption about the total population) or starting small (e.g. making assumptions about the average household […]