CONFIDENTIAL

McKinsey Case Interview Workshop

FUQUA SCHOOL OF BUSINESS

October 1999

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This report is solely for the use of client personnel. No part of it may be circulated, quoted, or reproduced for distribution outside the client organization without prior written approval from McKinsey & Company. This material was used by McKinsey & Company during an oral presentation; it is not a complete record of the discussion.

TOPICS

Case interview overview

Purpose Types Suggested approach

Suggested problem-solving process

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RESUME AND CASE INTERVIEWS WHAT FIRMS ARE LOOKING FOR

From your resume Work experience Advancement faster than norm Selection by superiors to lead important projects/special recognition Evidence of leadership and teamwork Education Academic excellence Significant leadership roles Personal initiative Outside interests Athletic/cultural achievements Community activities Drive/perseverance From the case Approach Genuine interest in solving complex problems Structured, logical approach Curiosity, creativity Logical, probing questions Synthesis and conclusions Skills Comfort with ambiguity/poise under pressure Broad functional skills Analytical rigor Quantitative, numerical agility Practicality Judgment, common sense Business acumen/instinct Clear, logical communication

Evidence of excellence
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Problem-solving ability
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TYPES OF CASES

Business cases What will the impact of industry consolidation be on company X? Should company X enter/exit a new/old market? How should company X react to a new entrant? Should company X add capacity?

Responses should demonstrate Big picture perspective Ability to structure Broad functional skills Comfort with details, analysis

Estimation cases How big would the Ivy Gardens apartment complex have to be for everyone on Earth to live there? What is the size of the skateboard market in the U.S.? What do you think annual residential real estate commissions are in Atlanta?

Responses should demonstrate Comfort with ambiguity Ability to structure Facility with numbers Poise

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WHAT TO REMEMBER WHEN APPROACHING A CASE

. . . but there are wrong answers

Ignoring or forgetting important facts Not recognizing that some material

There is no right answer

may be extraneous Defending impractical solutions Force fitting a framework that just does not work

The goal is to demonstrate how you think

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SUGGESTED APPROACH FOR CASES

What to do What not to do

Listen to introduction do not think ahead to your

answers

Play 20 questions Assume 1 framework fits all

Ask 1-2 clarifying questions, if necessary; take a few

notes if you like; do not expect every piece of data to be available

Cover 1 issue without mentioning

and prioritizing all key issues

Organize your thoughts and structure the problem Pick one branch to probe, develop hypotheses, ask
for a few relevant facts, defend/refine hypotheses based on new information, probe further, and describe implications you see

Dig your heels in Hide from the details (or the

numbers)

Get frustrated Conduct a postmortem in the

interview

Pick another branch and continue (Make sure you

are prioritizing your responses)

Put it all together: try to answer the overall question

(big picture) with a reasonable, actionable conclusion Review what you know Clarify what you do not understand Solidify and tender recommendation
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FIVE EASY STEPS TO BULLET-PROOF PROBLEM SOLVING

Step 1 State the problem Step 2 Disaggregate the issues Step 3 Eliminate all non-key issues

?
Step 4 Conduct critical analyses, porpoise between data and hypotheses Step 5 Synthesize findings and build argument

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STEP 1: STATE THE PROBLEMLEM

You must clearly understand the problem Characteristics of a good problem statement Clear statement of problem to be solved or issue to be resolved

A leading question or firm hypothesis Specific not general Not a statement of fact or non-disputable assertion Actionable Focuses on what the decision maker needs to move forward

You are responsible for ensuring the clarity of the problem Problem has been clearly stated, and you understand it Problem has NOT been clearly stated, or you dont understand it Paraphrase the problem to make sure you have it right

Interviewer states the problem

Ask questions to clarify the issue

Step 2
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STEP 2: DISAGGREGATE THE ISSUES

Why use logic trees?
Issues/hypothesis No. 1 Subissue Subissue

Problem statement

Issues/hypothesis No. 2

Subissue Subissue

1. To break a problem into component parts so that Problem-solving work can be divided into intellectually manageable pieces Priorities can be set among the parts Responsibilities can be allocated to individuals 2. To ensure that the integrity of the problem solving is maintained Solving the parts will really solve the problem The parts are mutually exclusive and collectively exhaustive (i.e., no overlaps, no gaps)

Issues/hypothesis No. 3

Subissue Subissue

Suggestions - Describe your approach to the interviewer as you proceed. Do not assume they know what you are thinking! - State your hypotheses as crisply as possible - Only use frameworks if they are appropriate - do not force fit - The ideas are important, not the framework. I think we should look at the power of buyers and industry competitiveness is better than Id like to apply part of the Porter Five Forces framework
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STEP 3: ELIMINATE ALL NON-KEY ISSUES

Issue 1

Why First step in constant, interactive refinement process

Issue 2 Problem statement Issue 3

Focuses your effort on what is

most important Dos & Donts

Always ask yourself so what . . .

but also ask yourself what you might have missed

Tell the interviewer what you are

Issue 4

cutting and why

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STEP 4: CONDUCT CRITICAL ANALYSIS

Dos

Donts

Be hypothesis-driven and end productsoriented

Do not just run the numbers ask

yourself what question am I trying to answer?

Porpoise frequently between hypothesis

and data

Do not chase your tail Do you really need to calculate the

WACC?

Keep the analyses as simple as

you can. Be suspicious of huge linear programs and their ilk.

Dont miss the forest for the trees Do order of magnitude estimates before
you start detailed analyses

Beware of polishing dirt Look for breakthrough thinking

Use 80/20 and back-of-envelope thinking Do not be afraid to be creative

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STEP 5: SYNTHESIZE FINDINGS AND BUILD ARGUMENT

Use situation, complication, resolution format Pyramid structure or decision tree Main assertion Situation State the conditions at point of problem

and / or

Sub-assertion

Sub-assertion

Complication

Flesh out barriers to improving situation

Supporting Supporting Supporting Supporting data data data data Yes Action 1 Action 2 Action 3 Action 4

Resolution

Lay out possible solution path Question

Question No Yes Question No

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INTERVIEWING STYLES FOR CASES

From one extreme . . . Detailed introduction Specific problem to be solved A few starter facts Lots more facts available, if asked Conversational feel throughout the interview

. . . to the other Brief introduction Very broad description of problem (e.g. poor performance) Few, if any, facts available What do you think responses to most questions

Why? Test analytical ability Test ability to sort out key facts and stay focussed

Why? Test overall problem structuring, hypothesis generating ability Test for creativity and business instinct Look for comfort with ambiguity

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IMPROVING CASE PERFORMANCE

Indirectly through classes Policy Strategic frameworks Business instinct Industry structure Economics/finance Variable vs. fixed cost structures Evaluating investment opportunities (ROI, Cost of Capital, ) Income Statement/Balance Sheet/ Cash Flow Statement thinking Value chain thinking Marketing Customer segmentation Channel management Brand management Operations Quality Lead time competition Having the right kind of flexibility
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Directly through practice cases Student to Student Class cases Cases from pre-B school or summer experience Cases from news stories Fictional cases Company sponsored workshops Consulting Club case prep guide Other case prep guides On your own with paper and pen

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INTERVIEWING WITH McKINSEY

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WHAT WE ARE LOOKING FOR

Problem solving Intellectual capacity Creativity Practical approach and business judgment Quantitative comfort McKinsey profile

Leadership Personal initiative Entrepreneurship

Personal impact Presence Empathy

Drive/aspiration Drive for excellence Energy level/ perseverance

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RESUME RELATED QUESTIONS

Focused Questions Describe a situation in which youve led a project to success? What strengths and weaknesses would your teammates recognize in your work abilities? Describe a situation in which youve had to overcome obstacles to reach a desired outcome.

Open Ended Questions Tell me about yourself. Why did you choose Fuqua?

Why? Evidence of excellence Personal growth plan Logical career plan Depth of preparation for interview

Why? Clear understanding of personal selling points Ability to clearly communicate in a structured way

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CLASS OF 2000 INTERVIEWS

Office All Round 1 Date October 27 Location On campus

Southeast (or) All other

October 29

Off campus at the Sienna Hotel At office

Varies by office

Recruiting coordinator: Carol Fisher 100 North Tryon St., Suite 5300 Charlotte, NC 28202 704.954.5050 Additional information and resources: www.mckinsey.com

Invitations to interview reflect our best initial effort to find the right people for McKinsey. Recognizing the limitations of this process, interviewers will consider students who bid for open slots no differently than those who were invited. If you have a strong interest in McKinsey and are not included on the closed list, bid for the slot!
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