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Case Interview Basics

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Overview

Whether you are a recent college graduate considering a career in the management consulting industry, or a seasoned subject matter expert deliberating a move into this exciting industry, at some point in the job interview process you will be expected to undertake a case interview.

The case interview is often used by management consulting firms to evaluate not only an applicant’s analytical and problem-solving skills, but also their creativity, business acumen, professional demeanor and powers of persuasion. It is no surprise then that this unique interview method is being employed by companies in other industries as well where these employee traits are desirable, such as Consumer Product Management, Marketing and Investment Banking.

Case interviews are generally built around a “problem” that: (i) needs to be identified, and (ii) for which possible options and a recommended solution is to be proposed. It is important to note that the purpose of a case interview isn’t necessarily to arrive at the “right” answer (in fact, there may be multiple possible solutions based on the analysis and decision criteria chosen), but instead to demonstrate your ability to dissect a problem into manageable components, to show how well you think under pressure, and to provide evidence of your ability to communicate clearly and effectively.

Types of Case Interviews

Case interviews generally fall into one of two categories:

1. Estimation (including numerical questions, guesstimates and market sizing), and
2. Business cases

Estimation:

Estimation cases are generally smaller in size and can be provided by the interview verbally. As stated earlier, these questions do not have a “right” answer (unless it is a specific question based on calculation alone). Your objective when it comes to estimation questions is to demonstrate your ability to dissect the problem into manageable pieces and tackle each component in a logical manner. Some examples of estimation questions are:

• How many street lights are there in the city of Toronto?
• Estimate the size of the 1-hour dry-cleaning service in New York
• Estimate the volume percentage of disposable diapers in the total UK household garbage

Before you start getting too worried, the interviewer does not expect you to be an expert in city planning or to know how often babies need “to go” in a day (its more than 6 times, just in case you’re wondering). The interviewer does, however, expect you to “talk through” your thought process and the approach you are planning to take to arrive at the eventual solution.

Business case:

Business cases take the form of a client problem case, probing case, business strategy case, business opportunities case, or a resume case (a case based on a company at which you have worked). These cases are generally more detailed than the estimation case, in that more information is provided about the client situation or problem; as such, these cases may be presented in a written or verbal format. In some forms of this case interview, information is kept from the applicant until the right probing question is asked, at which time more information is volunteered by the interviewer - an attempt at imitating a real client engagement. However, in many ways, the concept behind the business case and estimation are similar. The idea behind both forms of cases is to demonstrate a clear problem solving approach, to clearly articulate your thought process and to arrive at a solution that is supportable given the information provided and any assumptions that have been made. Some examples of business cases are:

• McDonald’s is looking at ways to reduce costs at its fast-food outlets by 10%. How would you suggest they do this?
• A manufacturer of golf clubs is considering acquiring a small local manufacturer of golf balls. What factors should be considered? Would you recommend the acquisition?
• A large canned tuna company has been steadily losing market share over the past two years, from a high of 28% to the current level of 20%. Profits as a percent of sales, however, have been growing. What could be causing this?

Crack the Case:

The following key steps highlight the approach that should be followed in a case interview - adapted from an article at Grinnell College. While variations to these steps are possible (based on whether you are solving an estimation or business case), the general underlying approach is the same.

1. Pay careful attention to the facts stated in the case, noting items of importance - identify issues and attempt to establish causality. Ask clarifying questions if the need arises, keeping in mind that the interviewer is expecting you to walk them through your thought process.
2. Clearly articulate the issues and problems, as you understand them, so the interviewer is aware of the area of focus you have chosen.
3. Analyze the issue by identifying frameworks to structure the data gathered from the case materials, recognizing that several approaches may be suitable to accomplish this (”Approach the problem first in terms of breadth, then depth”).
4. Formulate options and develop selection criteria: Discuss findings of your analysis, present alternatives and identify selection criteria to evaluate options (market share, revenue, profitability,strategic fit, etc.)
5. Make recommendation and summarize the case: Based on the selection criteria, state your recommended solution and how it will address the issues identified in the case (item 2). Conclude your recommendation by briefly summarizing the case, giving the interviewer confidence in your issue identification method, analysis and problem-solving approach, and final recommendation.

Practical Tips:

Aside from the general guidelines you must follow when interviewing for any professional position (punctuality, dress sense, knowledge about the firm, etc.), the tips below specifically relate to preparing for the case interview.

Preparation:

1. Practice case interview questions: Just like high-school Chemistry, your chances of success in the case interview increase significantly based on the number and types of questions you practice. A quick Google search will provide you with a variety of sample case interview questions, or you may want to consider purchasing a book on case interviews and questions from your favorite online bookstore. However way you choose to do it, make sure you get plenty of practice.
2. Familiarize yourself with management frameworks and techniques.
3. Become a voracious reader of the Wall Street Journal or your daily business section.
4. Research the management consulting firm paying careful attention to its niche or area of focus to gain insight into likely case questions (e.g. strategy, market research, etc.)
5. Participate in a simulated interview at your local college career center, or if you do not have access to one, a friend or acquaintance familiar with the case interview process.

During the Interview:

1. Listen to the question carefully and take ample notes: Ask questions to clarify any point that may be unclear (see item 2 below).
2. Clearly state any assumptions that you are making about the information or situation described in the case.
3. Control the interview, don’t let the interview control you: Keep track of the time and don’t worry about “awkward silences” as you work through the case material
4. If required, request guidance: “I’d like some help with this” sounds better and takes more courage than “I don’t know”.

Conclusion:

Although a lot of emphasis is placed on case interviews, it is important to recognize that this is essentially a fit interview. The interviewer wants to know if you will make a good impression on clients i.e. how you will react when put on the spot and faced with an unfamiliar topic. The interview is an attempt to even the playing field among applicants with varying academic and professional backgrounds so that the variable being tested is your thought process and ability to logically break down a problem - skills that can typically be applied to any client problem. Consequently, no two case interviews are the same - not even those based on the same case - and your final answer isn’t as important as the path taken to arrive at the solution.

A final thought: Remain calm and maintain composure throughout the interview. If you are stuck, politely ask for more information or direction. Practice your interviewing skills in front of a mirror, pretending you are sitting across from the CEO - always maintain your professionalism and be concise with your answers. And most of all, try to enjoy the case interview process; it’s meant to be challenging, but there’s no reason why it can’t be a fun learning exercise as well.

Case Interview Resources and Article References:

Other case interview resources that you may find useful include:

• A Primer on Management Frameworks & Techniques
• Vault - What is a Case Interview?
• Bain & Company - Online Practice Cases
• McKinsey & Company - Case Interview

Information and references from the following sources were used to write this article:

• How to Ace the Case Interview
• Mastering the Case Interview
• Consulting Frameworks (PowerPoint file)

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