What are case studies?

A critical component of the interview process. Case studies are descriptions of real or hypothetical business problems. Candidates are expected to understand, analyze, and recommend solutions to these problems.

Why do consulting firms use case studies?

Because doing well in cases requires the same skills that consultants use:

• Understanding of basic business concepts (eg, revenues and costs, suppliers and customers, market structure, etc)
• Analytical, structured-thinking
• Business-oriented creativity and insight
• Communication and presentation

A case study mirrors the work that consultants do day-to-day

What should I do to prepare myself for case studies?

• Practice as much as possible – with friends, colleagues, contacts within consulting firms. Even practice in front of a mirror to assess your communication style, body language, etc
• Review case study-specific resources – from the Vault Guides to Cosentino’s Case in Point. Don’t go overboard (in particular, Cosentino’s guide is helpful but not a must-have)
• Review general business problems – get your hands on as many case studies as possible. Most consulting firms post a few online, such as McKinsey here. The more exposure you have, the more familiar each question will seem. Even when you’re reading the Wall Street Journal, Fortune, etc – put yourself into the CEO’s shoes at every opportunity

Further reading: 2 smartest case study techniques

I released a guide on case studies and consulting interview questions. Click here to check it out!

I’m not that good at case studies. Can I get an offer by conquering the “fit questions” and my resume?

No. Your performance on case studies accounts for at least 50% (and usually more) of your “score” in determining offers. It is the most underprepared area for candidates, but something the best applicants excel at. If you want an offer, you’ll practice, practice, practice.

I’ve heard that some companies/interviewers don’t ask standard case studies. Instead, they ask questions like “How many golf balls would fit into a 747?” or “How would you rescue the auto industry today?”

That will happen, particularly in later rounds and with more senior interviewers. They may not be prepared to run you through a standard case, or they may want to see how you handle the unexpected. One question I faced (not at McKinsey but another firm) was the following:

Can you explain why Starbucks actively promotes the construction of locations that are so close to each other that they cannibalize sales?

If this happens, don’t panic. The interviewer is still looking for the same things – how crisp and logical is your thinking; how well do you communicate those thoughts; and how much do you understand of the basic business underpinnings.

Further reading: 10 steps to solving any sizing question

Thanks for reading! For more background info and if you’re new to Management Consulted, here are some recommended posts: Management Consulting and the Consulting Industry 101; Investment Banking vs Management Consulting; Day in the life of a Management Consultant; Overview of the management consulting recruiting process

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I offer resume editing and interview prep. Through one-on-one sessions, I’ll help you stand out from 1000’s of other applicants and land consulting jobs

Liberal arts and humanities majors are often criticized for being “soft majors” – with unchallenging classes and lack of “real world” skill development leaving them unable to land competitive business jobs. Fortunately for all the budding English and Philosophy majors out there, that’s simply not true.

This is the second of my series on entering consulting from “non-business” backgrounds

It’s very common for those from a liberal arts/humanities background to be interested in management consulting. It’s a great introduction to business and opens many doors – from non-profit to government service, from corporate management to further schooling (eg, MBA, grad school, etc).

I’ve been receiving some feedback that much of this advice is tailored towards current and recent undergraduate students. I believe much of the advice to be broadly applicable but it’s most useful for this group because their career tracks are less restricted. If you’ve been a journalist for 10 years or a geneticist for 8 years, it’s tough to break into management consulting unless you shoot for an MBA or are in the top 1% of your field

As a liberal arts and humanities major, you may have the following concerns about your suitability for a consulting career:

• You don’t have enough business experience on your resume
• You don’t understand the consulting industry sufficiently
• Recruiters won’t give you a fair shot since they assume you have insufficient analytical/quantitative preparation
• You are nervous about the interview process, in particular, how to conquer those tough, complex case studies

In this post, I’ll address each of the above concerns, discuss what strengths you should market and develop, and share tips that will serve you well during the management consulting recruiting process.

What options are available as a liberal arts major?

• Global management consulting firms – while the industry is increasingly quantitative and analytical, the cornerstone of success is simply logical thinking. Plus, there’s a definite premium for creative insight. Some firms (eg, BCG) have a reputation for innovation in “out of the box” thinking
• Boutique consulting firms – the choices here are plenty, from industry specialists like Kurt Salmon in retail to functional specialists like Katzenbach in strategy and organizational issues

What are your strengths as a liberal arts major?

• Extra time outside of classes (assuming they’re less time-consuming) – hopefully you’ve leveraged this to tackle more extracurricular work, part-time jobs, and leadership opportunities
• Creative “out of the box” thinking – always tough to test/measure, but can be highlighted by showcasing your entrepreneurial initiatives, significant academic and professional risk-taking, etc
• Strong written and presentation skills – skillset #1 for consultants; opportunities to showcase these include in your cover letter, resume, and interview process

How do you mitigate perceived weaknesses as a liberal arts major?

In the order listed above, and this does not differ much from my post on engineers:

• Business experience – if you’re still in college, find business-related summer internships and part-time jobs during the school year (provided you can manage the workload). If you’re not, tailor your resume to focus on skills and experiences that consultants look for, such as people-leadership, quantitative impact, and entrepreneurial initiative
• Insufficient understanding of management consulting – its your responsibility to learn as much as you can. Check out Management Consulted; email me with questions; read the Vault Guide to Management Consulting; network with contacts in the industry
• Recruiting biases against liberal arts majors – a good GPA will go a long way towards addressing doubts about your analytical chops as it shows you can work hard and work smart; highlight analytical/quantitative jobs and experiences in your resume; become an expert at case studies so you can dominate them during the interviews. I will be writing posts about case studies in the future
• Insufficient recruiting preparation – like the second point, it’s dependent on the time and effort you invest; I offer a coaching service that you can look into; read this article and follow its advice

Stay connected:

I offer resume editing and interview prep. I’ll help you stand out from 1000’s of other applicants and land consulting jobs

This is the first of my series on entering consulting from “non-business” backgrounds – future posts include entering from liberal arts/humanities degrees and non-MBA grad schools

It’s very common for engineers to be interested in consulting – a professionally demanding, well-compensated job which opens many doors in business and beyond.

Another popular field is finance. Read more on the differences between consulting and finance here

As an engineer – whether thats electrical engineering, computer science, civil engineering, or any of the other quantitative and analytical fields – you may have the following concerns:

• You don’t have enough business experience on your resume
• You don’t understand the consulting industry sufficiently
• Recruiters won’t give you a fair shot since they assume you have no people-skills – preferring numbers and analytics
• You don’t have any recruiting preparation – in particular, how to tackle consulting interviews and case studies

In this post, I’ll address each of the above concerns, discuss what strengths you should market and develop, and share tips that will serve you well during the management consulting recruiting process.

What options are available as an engineer?

• Global management consulting firms – increasingly quantitative, increasingly analytical, and some of them (eg, McKinsey) have a reputation for hiring engineers, particularly in regions that serve high-tech clients
• Boutique consulting firms – especially those with technology-focused industry specializations (eg, semiconductors, telecom)
• Technology consulting firms – firms such as Accenture and IBM Business Consulting provide technology-heavy support and solutions to clients

What are your strengths as an engineer?

• Quantitative/analytical skills – applicants that have strong analytical capabilities are at an advantage. These skills are helpful with modeling (financial, operational), statistical analysis, and just basic analytical reasoning
• Success in a “tough” undergraduate major – generally speaking, engineering majors are tougher to complete – there’s more work involved and the academic content is more complex. Having a strong GPA in an engineering major shows recruiters that you work hard to accomplish your goals

How do you mitigate perceived weaknesses as an engineer?

In the order listed above:

• Business experience – if you’re still in college, find business-related summer internships and part-time jobs during the school year (provided you can manage the workload). If you’re not, tailor your resume to focus on skills and experiences that consultants look for, such as people-leadership, quantitative impact, and entrepreneurial initiative
• Insufficient understanding of management consulting – its your responsibility to learn as much as you can. Check out Management Consulted; email me with questions; read the Vault Guide to Management Consulting; network with contacts in the industry
• Recruiting biases against engineers – you can counter this by focusing on the following: presentation skills (practice interviews as much as you can); have a strong story about why you want to enter the industry; show a clear understanding of business news and current events; highlight your people-skills and teamwork/leadership experiences in resume and interviews
• Insufficient recruiting preparation – like the second point, it’s dependent on the time and effort you invest; I offer a coaching service that you can look into; read this article and follow its advice

Like what you’re reading? Subscribe to my RSS feed here. Read my guide for consulting interview questions.

I offer resume/CV editing and interview preparation to help people break into management consulting. We’ll help you stand out from 1000’s of other applicants and land consulting job offers

The decision was easier for me than for most people. The cons of investment banking – the long hours, the repetitive and unengaging nature of the work, the lack of non-finance exit opportunities – mattered far more to me than a 6-figure salary. I seriously considered sales & trading (in fact, I spent a summer at Credit Suisse First Boston in NY), and was tempted to continue in that line of work post-graduation.

Instead of defining the basic characteristics of each job (there are plenty of resources out there for that, including the Vault and Wetfeet Guides), I will address a laundry list of defining differences between the two professions.

Let me caveat by saying THESE ARE NOT YOUR ONLY OPTIONS. People get carried away into thinking that’s all there is.

#1 SALARY

This is the biggest superficial difference. That’s not to imply that salary doesn’t matter. Banking salaries average 50-100% higher than consulting salaries, with the difference increasingly significant as your seniority increases. Consulting compensates with perks that banking does not offer – from better travel allowances to more generous health and retirement packages.

Consultants always like to say this:

“I know investment bankers make more money. But from a cashflow perspective, it’s exactly the same!”

This simply means that consultants and bankers make comparable base salaries, and at the end of the year, bankers are awarded a bonus which can comprise more than 50% of their total annual compensation. Cashflow or not, the extra money is substantial and a defining driver of why many people do investment banking. This is also a difficult issue for consulting firms with respect to employee retention. In my time at McKinsey, easily half the people who left the firm went into the financial world (from hedge funds to PE), and salary was undoubtedly a major factor in the decision.

My advice is this – if after considering all 5 factors I’ve listed here, you still think the pay difference (for 1st yr analysts, averaging between $30-60K/year) would mean a substantial difference in your personal and professional job satisfaction, choose banking.

Further reading: Consulting salaries from analyst to partner

#2 LIFESTYLE

The key differences here are:

-Hours. Bankers work brutal hours, no surprise. They can average 14-16 hours/day but it can get FAR WORSE.

My roommates in New York (both investment bankers at Goldman Sachs) would sometimes go several weeks before we’d even exchange a word. Which meant not only were they getting in after I went to sleep (around 2am), but going back to the office before I woke up (around 7am).

Your second year as an investment banker gets better – in the 10-14 hours/day range but also with unpredictably tough periods.

Consultants average 12 hours/day, with the typical variations depending on client, team goals, etc

-Travel. Bankers do some for roadshows, due diligence, etc but spend 90% of their time in one office until you’re partner-level (this is investment banking; you can expect more travel in private equity and investment management). Consultants – depending on firm – travel anywhere from 25-75% of their time. At the Big 3 (Bain, Boston Consulting Group, McKinsey), you can expect travel 50-75% of the time. I’ve heard of boutiques

-Relationship with coworkers, managers, and firm. This is less discussed but equally important. Consulting firms have a very collegial atmosphere, where the focus is on getting the work done but also ensuring your professional success. This attitude permeates all interactions. Managers rarely yell, coworkers try to help each other out whenever possible, and companies are organized to provide consultants support with training, expertise, etc. Finally, networking is important at consulting firms, and social events are focused on helping consultants build contacts and relationships throughout the firm.

Investment banks, on the other hand, have a more competitive, hierarchical setup. You can expect more tense relationships with your bosses, you’ll probably be yelled at from time to time for mistakes, and coworkers are much less willing to help each other out (they’ve got enough on their plates, and your success means theres more competition for the biggest bonuses). In addition, you’ll have limited exposure across the company to other groups, departments, etc – less ability to network across the company.

Further reading: Consulting travel; Day in the life of a consultant

#3 SKILL DEVELOPMENT

Call me biased, but I received the best years of business training possible in my time at McKinsey. Thorough and at times intense exposure to textbook business principles and practices. In addition, the project team model leads to mentorship opportunities with managers, partners, and coworkers. Finally, you have constant client interaction which develops “client skills” – from managing client teams to running meetings to learning how to navigate different corporate environments.

That being said, here’s a quick list of what you can expect to learn in both fields:

By “hard skills”, I mostly mean software (ie Microsoft Office Suite), analytics (ie financial valuation). By “soft skills”, I mean the interpersonal, qualitative interactions that you have with coworkers, the broader firm, clients, etc

CONSULTING

Hard skills:
1) Microsoft Powerpoint – you will (and have to) become a master at this, and will eventually have the ability to produce presentations quickly, concisely, and meaningfully
2) Microsoft Excel – less exposure than investment banking. Still, “modeling” is a meaningful component of a consultant’s work, and something every consultant is expected to have significant exposure to. Note -firmsodeling” done in case work may not be directly comparable to the financial modeling more common at investment banks
3) Business knowledge – typically broad exposure across different topics like strategy, operations, organization and several areas where you’ll have expertise. This expertise may be as broad as “operations turnaround” and as specific as “benchmarking for insurance companies”.

Soft skills:
1) Client interaction (explained above)
2) Heavy team interaction
3) Presentation skills – this is a cornerstone of consulting work. After all, findings don’t mean anything if you can’t convince the client to believe in and adopt them
4) Project/workflow planning and execution – this is subtle but important. Much of the time at investment banks, you are given incremental work – eg, add these updated numbers to the model, bind these presentations, insert a graph on chart 11. Consulting is focused on you OWNING a piece of the entire project, setting your own deliverables and timeline, and executing against that framework. This helps you develop the ability to be “standalone” in consulting lingo.

INVESTMENT BANKING

Hard skills:
1) Microsoft Excel – clearly you will become a master at this, and is a mandatory for success. You’ll know the ins-and-outs, every keyboard shortcut known to man (and then some), and so forth
2) Microsoft Powerpoint – much less exposure here depending on the focus of your work (for instance, more in Corporate Finance, less in Mergers & Acquisitions). Very little experience in building a presentation from scratch.
3) Financial valuation – self-explanatory. Differs based on group/focus, but at the very least you’ll understand financial statements inside and out, and have strong knowledge of how companies are financed

Soft skills:
1) Work endurance – this is the upside to those 100+ hour weeks, which is the ability to work incredibly long and incredibly hard. Basically, every job you take post investment banking will feel somewhat like a vacation. It’s a great trait to have
2) Seeing deals get done – investment bankers have, at times, better access to the leading business leaders of the day. As a junior banker, you may not have direct interaction but will be exposed through countless meetings, conference calls, etc to these people and see how deals are done and groundbreaking changes in business emerge day-to-day.

Further reading: 5 big mistakes that will get you fired

The last 2 points in this post are shorter, because I plan to write separate entries on each of them in the future

#4 NETWORKING

Less discussed but important. Consultants move on to a vast array of fields – from industry to academia, government to non-profit. Investment bankers do so less – most continue within the financial world. Your professional network and future career opportunities will be heavily influenced by your colleagues and your firm alumni.

In addition – my perspective is that consulting firms (similar to point #2) facilitate more interactions between alumni and current employees as well as future networking between alumni than investment banks. However, bulge-bracket investment banks have a much larger alumni base, and it certainly isn’t impossible for you to build strong connections provided you are proactive and innovative enough.

Further reading: How to get a consulting job in a tough economy; Networking 101

#5 EXIT OPPORTUNITIES

Corollary to point #4, this is influenced by your firm’s alumni and also the following:

-the different recruiters/headhunters that reach out to you
-the different paths your “hiring class” takes and the knowledge and opportunities you share with each other
-the relationships you’ve built with more senior colleagues and the doors they can open for you

When it comes down to it, the conclusion is similar: if you want maximum career flexibility, consulting provides that in spades. If you want maximum career flexibility WITHIN finance (and corporate financial roles), investment banking provides that.

Further reading: Management consulting exit options part 1 and part 2

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I offer resume editing and interview prep. I’ll help you stand out from 1000’s of other applicants and land consulting jobs