Crack The Case Workshop 2010

Crack the Case 2010
David Ohrvall, Founder MBACASE
Crack the Case agenda g
Overview & Core Skills Practice

8 75 minutes 8 Overview 8 CLASSIC skills 8 Market sizing cases
Structures & Techniques
Practice Integrated Thinking
8 45 minutes 8 60 minutes 8 Video highlights 8 1 mini-business case 8 Case Path structure 8 1 full business case 8 FRAME & MVM
15 min.
David Ohrvall
participate i i
think big picture

be serious serious, have fun
4
CASES are EVERYWHERE

Consulting
i Strategy/ IT/ Operations i Market entry i Profit maximization i Declining market i Organizational g redesign g
Finance
i M&A transactions i Private equity buy-outs i Business sell-offs sell offs i Time value of money
Marketing
i New product i Lagging product i New industry i Branding remedies
Industry
i Airlines i Health care i Internet / telecomm i Internal strategy
What the world sees
What you are made of
What do cases really test?
C
Communication
L
Logic
A
Analytical
SS
Social Skills
IC
Integration & Creativity
Which skills matter?
Pre & Post Interview
Behavioral Questions
Market Sizing g & Estimation
Mini Business Case
Full Business Case
C
Communication
L
Logic
A
Analytical
SS
Social Skills
IC
Be answer first!
Answer First
C
Communication
L
Logic
A
Analytical
SS
Social Skills
IC
Show breadth and depth
Breadth
Depth
C
Communication
L
Logic
A
Analytical
SS
Social Skills
IC
Our client wants to open p a chocolate store.

Time
Short Term Mid id Term Long Term
Financial Goals
Break Even ROI O Profit Margin
Competitors
Boutiques Gif Sh Gift Shops Ice Cream
Product Quality
Organic C Cocoa Consistency
Distribution
Central Regional i l
Does our client have a deadline ?
What is our ROI goal?
Do you have data on competitors?
What are the product standards?
Will we make on site or distribute it?
11
Build a data foundation
Comfort Scale Accuracy y Estimating
C
Communication
L
Logic
A
Analytical
SS
Social Skills
IC
Estimate first
$# %
Candidates must be able to manipulate simple numbers. b
Towels Unlimited Inc.

Sales are $.5B. Profit margin is 30%. Profit may have fallen 30%. Total Rev $500M 100% Total Costs $350M 70% Total Profit $150M 30% $ Goals
Stop the Bleeding!
$45M ~10% Rev
When asked, they should be ready to go into detail.
simple equations break even analysis reading charts and data

13
Be client ready
Work toward toward, consistent normal pre and post p p interview skills
C
Communication
L
Logic
A
Analytical
SS
Social Skills
IC
Save your creativity
Pull together facts and data quickly
Develop interesting g and applicable solutions Creativity!
C
Communication
L
Logic
A
Analytical
SS
Social Skills
IC
1 Breadth and depth should be 1. your highest practice priorities 2. Analytical skills pick-up quickly 3. Frequent practice and wide exposure are most important for integration and creativity
16
2
Homework
1 Read Business Week 1. (or other business magazine) 2. Assess a story: - whats the main issue? - write down issues to consider - write out questions you have - list data you need to solve
17
Lets do a case!
Pre & Post Interview
Behavioral Questions
Market Sizing g & Estimation
Mini Business Case
Full Business Case
C
Communication
L
Logic
A
Analytical
SS
Social Skills
IC
You need to SPEAK

M k t Sizing/ Market Si i / Estimation E ti ti Cases C Counting # of toothbrushes sold regularly g y Measuring How many square feet of windows are in Seattle Usage How fast do consumers go g through a bottle of hair spray?
Communicate your comfort with numbers, ambiguity and logic

19
SPEAK is a guide
S P E A K
tate your assumptions ick your metrics stimate ti t quickly i kl with ith round d #s # ssess your approach h and d answer eep exceptions and next steps in mind
20
How much shampoo do people use in a downtown hotel each day?
tate your assumptions

i We are counting hotel supplied shampoo only i Downtown hotels have 20 floors i Shampoo bottles from the hotel are 1 ounce i 15 rooms per floor i 75% average occupancy i Customers open 1 bottle per day
21
ick your metrics

i Ounces or units of product used i Others include: i Population Dont use this one every time i Observation (people entering a store) i Time i Distance i Geography
22
stimate quickly and with round #s

i 20 floors x 15 rooms = 300 rooms i 300 rooms x 75% occupancy = 225 i 225 x 1 oz bottles = 225 ounces per day
23
ssess your approach and answer

i 225 ounces = 28, 8 oz bottles (visually makes sense) i Very V simple i l approach h i How else could you have approached it?
24
eep exceptions and next steps in mind

i 60% of people use hotel shampoo i 225 x 60% = 135 ounces (divide for bottles) i Some people take extra bottles from hotel i Floor lay-out may vary i Next steps: i Look into wall mounted pumps (no waste) i Survey customers to understand needs i Consider 2 sizes of bottles
25
Market Sizing Practice

iPractice with a partner i1 person gives the case using the answer key y i1 person receives the case using white paper iTake about 10 minutes for each case iTrack areas where you need to improve
26
1 Market sizing cases will test your 1. communication and analytics 2. Use SPEAK as a guideline at first 3. Be ready to analyze the problem with different approaches
27
3
Homework
1 Find some market sizing cases 1. 2. Practice using SPEAK to get yourself warmed up 3. Speak out loud for all your work 4. Try your own style over time and practice solving the same case diff different t ways
28
Todays y workplan p

15 min.
29
Business cases are the most common

Strategy
Merge, g , Acquire, q , JV
Ops & Org
External Forces
Competitor p Attack

Maximize Profit Change Price New Processes
Growth Strategy
Market Shift
New Product/ Bus
New Market (Geo)
Restructure Team
Most cases follow a similar pattern

30
MBACASE Path: Most any case you receive will follow this flow
Qualitative
Integration I t ti & Creativity Start Logic & Breadth So what?
Warm-up Warmth & Client Ready
Data End
Quantitative
Depth & A l i l Analytical C a t/ Chart/ Table Data Dump
Insight!
E ti Estimate t Solve for X

31
Equations
Meet Shari & Sameer

Interviewer Shari Rogge-Fidler, ex-BCG MBACASE coach (calm, pointed, analytical)
To watch this video go to www.mbacase.com. Click on the image of David holding the slide. Go to Video 3.
Candidate Sameer (eager, analytical, suffers from some SSdisorders)
1 - Transition
Qualitative
Integration I t ti & Creativity Start Logic & Breadth
4 5
So what? Data End
1
Quantitative
2 3
Depth & A l ti Analytics C a t/ Chart/ Table Data Dump
Insight!
Equations
1 - Transition
2 & 3 Question & Recap

Qualitative
4 5
So what? Data End
1
Quantitative
2 3
Insight!
Equations
2 Question
3 - Recap
4 & 5 Initial data & plan

Qualitative
4 5
So what? Data End
1
Quantitative
2 3
Insight!
Equations
4 Initial data
5 - Plan
6,7 & 8 Shari pushback

Qualitative
4 5
So what? Data End
1
Quantitative
2 3
Insight!
Equations
6 Data?
7 Plan?
8 What do you mean?
9 Diving into data

Qualitative
4 5
So what? Data End
1
Quantitative
2 3
Insight!
Equations
9 Diving into data
10, 11, 12 Integration

Qualitative
4 5
So what? Data End
1
Quantitative
2 3
Insight!
Equations
10 Integrate & End
11 Wrap up
12 Get practical
13 Wrap up
Qualitative
4 5
So what? Data End
1
Quantitative
2 3
Insight!
Equations
13 Wrap up
1 Expect to be put on 1. the spot and challenged 2. Use the interviewers questions ti as a way to t show h confidence 3. Structure and data are used at every step
53
4
Homework
1 Make a list of the worst 1. questions an interviewer could ask you 2. Lay y out answers 3. Lay out tactics. Where would you move the discussion? What data would you ask for?
54
MBACASE Path: Most any case you receive will follow this flow
Qualitative
F R A
Start Logic & Breadth
Integration I t ti & Creativity
So what?
Quantitative
Data End
Depth & A l i l Analytical Data Dump
Insight!
C a t/ Chart/ Table

55
Equations
The FRAME Method consists co s s s of o 5 skills s s you need eed to o build u d
orm a Plan
ead Your Audience
A nchor a Hypothesis M ine for Data E

nd the Case!
56
orm a Plan
Listen & take notes Group your thoughts Think holistically y Present your plan
57
Listen & take notes
iUse only 2 2-3 3 loose pieces of paper iWrite the bare minimum think white board Prepare to show your work Develop a consistent system youll use every time Use your notes!
58
Develop your own consistent approach
Facts
Plan
Data
59
Whats your objective with every case?
Maximize M i i the th Value V l of the Company p y
60
Develop an integrated mental map Maximum a u Value a ue Model ode ( (MVM) ) C I
Z Zone 5
T
Zone 4
Finance
Zone 3
Organization
Zone 2 Zone 1
Strategy Operations
Customer
Volume People Mix Price Systems Fixed Variable
CA$H
Measure
D/E
Processes
61
Waterfall each zone adds value
Zone 4 Zone 3 Zone 2 Zone 1
62
Strategy increase, change, shrink

Strategy
63
Operations revenue and cost

Strategy Operations
Volume Mix Price

Customer
Fixed Variable
64
Organization people, systems, processes p o esses and a d measurement easu e e
Zone 4 Zone 3
Organization
Zone 2 Zone 1
Strategy Operations
Customer
Measure
Processes
65
Finance cash, debt, equity
Zone 4 Zone 3
Organization Finance
Zone 2 Zone 1
Strategy Operations
Customer
CA$H
Measure
D/E
Processes
66
External Forces
Z Zone 5
Suppliers Public Economy Competitors
Technology Legal g Auditing Industry
67
Maximum Value Model (MVM)
Z Zone 5
T
Zone 4
Finance
Zone 3
Organization
Zone 2 Zone 1
Strategy Operations
Customer
CA$H
Measure
D/E
Processes
68
orm a Plan
Listen & take notes Group your thoughts y Think holistically

Present your plan
69
Use your plan to connect and explain
Plan Facts
Group A
Why? Data? ? Questions?
Main Idea
Group B
Group C
Group D
Data
70
Use your plan to connect and explain
Plan Facts R T T Data C
P V VC FC
issue driver
71
Always Fresh (www.mbacase.com)
i Subsidiary y of $30B $ consumer products p conglomerate g i Successful line of deodorant/anti-perspirant spray, roll-on and stick i Team is ready to go abroad and you youre re the team leader i Is international expansion a good idea? Which countries are best?
How do I start in a simple p and common sense way?
72
Move through your mental map
Z Zone 5
C
3
T
Zone 4
Finance
Zone 3
Organization
Zone 2 Zone 1
Strategy Operations
4 1 2
C R Volume People Mix Price Systems Fixed Variable .
CA$H
Measure
Customer
D/E
Processes
73
Lay out your notes and be ready to share
Always Fresh Go international stick/spray/roll-on which market? Go/ No Go Strategic
Go international?
Revenue
Wheres
Compet
Response? Presence
Organiz
history?
R C T T
$30B conglom
Why? Goals? l?
demand?
Other prod V & P
Estimate by country
launches?
place by country?
org in i
Goals
74
Read your audience at all times

iNote his or her style
- Chatty Charlie vs. Data Maam vs. Silent Partner
iExpect changes in style throughout the interview

- Relaxed to intense to relaxed again is common
iRespond!
- Stay nimble: speed up, up slow down, down listen intently - Track with the interviewer at all times
75
Anchor a hypothesis
iThis approach speeds up your thinking iPut a mental stake in the ground on what you think solve to p prove or disprove p it iYou do not have to state your hypothesis!
Main Question A
Why? y Data? Questions? Q ti ? C FC
76
P R V T VC
issue driver
Where would you like to go first?
Always Fresh Go international stick/spray/roll-on which market? Go/ No Go Strategic
Go international?
Previous experience with team and distribution is vital
Revenue
Wheres
Compet
Response?
Organiz
history?
R C T T
$30B conglom
Why?
Goals
Presence Goals? l? High demand is by country the keyOther to prod Estimate V&P finding g launches? the P d ti Product is right market differentiable; can take competitors competitors share
demand?
place by country?
org in i
77
Mine for an answer (find data!)

Demand exists and can be estimated ti t d
iDo p people p want this product? iDemand by country? iPrice? iWhere is there growth?
Product is differentiable
Team support is vital

iIs the team in place? Do we have experience? iHow will we sell and distribute the product? iFinancing i i in i place?
iWhat is unique about product? iHow can we differentiate? iHistorical competitor response?
Find specific answers to your questions

78
Mine for an answer (continued)
Big markets: Brazil Brazil, Japan and Germany
Price differentiation: Spray is higher Brazil B il and d Japan J are fragmented, f t d share h gains i are possible No deodorant type is dominant by country
Entering all three countries will bring in annual revenue of $183M

79
End the case!
iPlan the end long before the time is up iBe concise and answer the main question q iTie data to your recommendations dont answer just from your gut!
80
The FRAME Method
orm a Plan
ead Your Audience
A nchor a Hypothesis M ine for Data E

nd the Case!
81
1 FRAME will help you pinpoint 1. your weaknesses 2. Anchoring a hypothesis helps you focus and speed y p up. p You dont have to say it. 3. Mining for data and answers requires you to own the problem. bl
82
6
Homework
1 Practice a few cases and then 1. assess your performance using the FRAME structure. Where did you have trouble? 2. Download Always Fresh and do the full case with a partner (2x).
83
Todays y workplan p

15 min.
84
Crack the Case 2010

David Ohrvall, Founder MBACASE

Crack The Case Workshop 2010

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Crack The Case Workshop 2010

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Crack the Case 2010

David Ohrvall, Founder MBACASE

Crack the Case agenda g

Overview & Core Skills Practice

Structures & Techniques

Practice Integrated Thinking

think big picture

CASES are EVERYWHERE

What the world sees

What you are made of

What do cases really test?

Which skills matter?

Pre & Post Interview

Market Sizing g & Estimation

Mini Business Case

Full Business Case

Show breadth and depth

Our client wants to open p a chocolate store.

Does our client have a deadline ?

What is our ROI goal?

Do you have data on competitors?

What are the product standards?

Will we make on site or distribute it?

Build a data foundation

Comfort Scale Accuracy y Estimating

Towels Unlimited Inc.

$45M ~10% Rev

When asked, they should be ready to go into detail.

simple equations break even analysis reading charts and data

Save your creativity

Pull together facts and data quickly

Develop interesting g and applicable solutions Creativity!

Pre & Post Interview

Market Sizing g & Estimation

Mini Business Case

Full Business Case

You need to SPEAK

Communicate your comfort with numbers, ambiguity and logic

How much shampoo do people use in a downtown hotel each day?

tate your assumptions

ick your metrics

stimate quickly and with round #s

ssess your approach and answer

eep exceptions and next steps in mind

Market Sizing Practice

Overview & Core Skills Practice

Structures & Techniques

Practice Integrated Thinking

Business cases are the most common

Ops & Org

Maximize Profit Change Price New Processes

New Product/ Bus

New Market (Geo)

Most cases follow a similar pattern

Integration I t ti & Creativity Start Logic & Breadth So what?

Warm-up Warmth & Client Ready

Depth & A l i l Analytical C a t/ Chart/ Table Data Dump

E ti Estimate t Solve for X

Meet Shari & Sameer