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LON_Recruiting_Booklet_Nov2010.indd 1 16/11/2010 14:40:17

The Interview Process

Interviewer’s Perspective

Why We Use Case Studies and How to Prepare

Sample Case

Practice Advice and Logistics

CONTENTS

LON_Recruiting_Booklet_Nov2010.indd 2-3 16/11/2010 14:40:22

Congratulations on being o ered an interview with The Boston Consulting Group (BCG). To make it this far, you are already an outstanding candidate with the education, background and experience we value.

This document is designed to help you prepare for your upcoming interviews and to help answer some of the questions you may have at this stage.

About The Boston Consulting GroupBCG is a global management consulting rm and the world’s leading advisor on business strategy. We partner with clients in all sectors and regions to identify their highest-value opportunities, address their most critical challenges, and transform their businesses.

Our customised approach combines deep insight into the dynamics of companies and markets with close collabo-ration at all levels of the client organisation. This ensures that our clients achieve sustainable competitive advantage, build more capable organisations, and secure lasting results. Founded in 1963, BCG is a private company with more than 65 o ces in over 40 countries and around 4,500 consultants worldwide

WELCOME TO BCG


The interview process consists of three rounds ofinterviews, with six individual interviews in total.

During your rst round of interviews we will also askyou to sit a maths test and an online case.

The Maths TestThis is a test of numeracy and arithmetic and is non calculator based. To prepare, you may wish to review thequestions in the maths section of the ‘GMAT’ test.

The Online CaseThis online case study will give you the opportunityto show how you would work by yourself on areal case.

The InterviewsEach interview will be conducted by a senior BCGconsultant, o en a Principal or Partner, and will lastabout 45 minutes: 10-25 mins: The personal interview – an opendiscussion on your prior experiences,accomplishments and motivations

20-25 mins: The case study – work through a typical business problem that you would confront at BCG

5-10 mins: Q&A – your chance to ask questions

How You Will be EvaluatedEach interviewer will try to develop a comprehensiveunderstanding of your potential at BCG. They will try toanswer questions along a broad set of criteria throughoutthe interview.

How E ective and Impactful are You?We are looking for self-motivated and tenacious individuals who can demonstrate being both a leader and team player. We will test that your answers have substance and that you can back up your claims. Do you actively pursue selfdevelopment and drive to deliver results?

Can You Solve Complex Problemsand Generate Insight?Consulting requires you to structure problems and resolve ambiguity. You need to show business judgment and the ability to prioritise. You need to be rigorous, accurate and quantitatively sound. We are looking for individuals who are curious and creative, who go beyond the obvious. Finally you need to be able to synthesise and develop conclusions.

Do You Have the Communication Skillsand Presence Needed for Consulting?Do you project self-assurance and credibility? You shouldcommunicate concisely and e ectively. Remember toactively listen and show that you can build relationshipsand trust.

INTERVIEWPROCESS


Name: PaddyRole: Principal, UK University Recruiting DirectorEducation: MEng in Engineering Science, Oxford UniversityPrior Experience: Deloitte Consulting (formerly Andersen) for four yearsBCG Experience: Paddy has worked in the Sydney and London o ces at BCG with a focus on nancial services and healthcare

INTERVIEWER’S PERSPECTIVE

While we evaluate candidates across variouscriteria, I am ultimately trying to answer twoquestions: Can I send you alone to the client?Would I like to have you on my case?

You don’t need to ‘crack the case’. Sometimesyou won’t get to the answer to the case because you missed something small. This is not such a big deal so long as I can see that your approach was well structured, hypothesis driven, and that you exercised sound judgement and remained composed throughout.

Listen to your interviewer. If I o er advice onwhere to go with your analysis, take it.

““

“

Picture of Paddy


determination to succeed at BCG. Even if it feels a little unnatural, be sure to sell yourself (many other candidates will!). I spoke to my interviewer a er the rst round regarding this point and made sure that I acted on the feedback given.

I did Teach First a er university and was worried thatI might not be the type of person BCG was looking for.However, many people come from a diverse range ofbackgrounds (PhDs, medical students etc). Try to usethis to your advantage. In particular think about how theskills you’ve acquired are transferable to consulting.

Whilst showing con dence and enthusiasm during theinterview process, it is important to be yourself as muchas possible. I also used the interview as a two-way process, to nd out more about BCG and whether I would enjoy working with them.

Role: ConsultantEducation: BA, Philosophy, Politics and Economics, Oxford UniversityBCG Experience: Since joining in August 2007, Lisa has worked within the Financial Services, Retail and Telcommunications practice areas.

Dress professionally, preferably in a suit, andaim to get to the interview early. Ten to eenminutes beforehand gives me enough time torelax and alleviate any stress.Lisa, Consultant

Present yourself in a con dent and professional manner,speak slowly and clearly. Think about eye contact andbody language and try not to dget (you might even want to remove any distracting items). I always nd thatsmiling and adopting a positive outlook throughout aninterview creates a favourable impression.

During the interview, be enthusiastic about your personal experiences so that the interviewer can see your passion coming through. Remember, this is your chance to show that you have the drive and

GIVING A GOOD IMPRESSION

“


The Personal InterviewThe personal interview is an open discussion on your prior experiences, accomplishments and motivations. While we recommend that you prepare for some of the more obvious questions, try to be yourself and let your own personality shine through. Be ready to think on your feet for any unexpected questions.

Some typical questions that you should be ready to answer include

Why strategy consulting? Why BCG? What attributes do you have which would make you a valuable addition to BCG?

What is your greatest strength? Your greatest weakness? When have you demonstrated leadership?

The interviewer will spend time talking to you aboutyour application, so you should know it inside-out.

It might be helpful to prepare the following to ensure you communicate your ‘story’ e ectively in one minute, two minute, ve minute versions: What you did at each job, what you learned, how you got the next position - tie your experiences into a career. What sets you apart? Be prepared to guide the conversation if appropriate.

The interviewer will also try to determine what you would be like to work with and whether you will t in with the BCG culture which is open and collaborative. Keep it conversational and fun. Show energy and con dence – smile and engage the interviewer.

THE PERSONALINTERVIEW


Know your CV inside-out. You should be prepared toanswer any questions related to your experiences andachievements. However, your interviewer will not knowyour CV bullet-by-bullet so make sure you highlight anyrelevant points which re ect well on you.

Don’t be put o if an interviewer asks you a question youhaven’t prepared for – be ready to think on your feet andtake a moment before responding. I helped start a football league while at university; one of my interviewers was a football fan and asked me what three things I would do to raise the pro le of women’s football in the UK. Of course I had not prepared for this question, but could come up with some sensible answers a er taking a few seconds to think and gather my thoughts. Just be natural and try not to panic!

Role: ConsultantEducation: PhD, History, Cambridge UniversityBCG Experience: Gavin has worked on banking,industrial goods as well as healthcare

Have a well-prepared answer for key questions,for example, “Why strategy consulting? WhyBCG? What attributes do you have which wouldmake you a valuable BCG consultant?” I madesure that I had strong and compelling answersto these questions.Gavin, Consultant

Think about questions regarding personal qualities and practice some example answers. The types of questions you might expect are: What is your greatest strength? When have you demonstrated leadership? – but these do vary quite a bit. I found that it was important to listen to the question asked rather than just recite a rehearsed answer. Be yourself and try to treat it like a conversation rather than an interview.

THE PERSONAL INTERVIEW

“


Why We Use Case StudiesCase studies help us gain insight into how you might approach and analyse a typical business issue. We want to assess your problem-solving capabilities, analytics and business judgment. We nd that case studies are the best way of evaluating this.

Case studies also give you a perspective of what consultants do. The case studies are representative of our work. Our interview cases are generally taken from real BCG case work.

Similar to a case study, as a consultant at BCG, you would be trusted to lead case team knowledge and thinking on a speci c module. You would encounter complex problems and be expected to gather and synthesise data and nd innovative solutions. Above all you are expected to think strategically and go beyond the obvious.

However, keep in mind that in the interview there are not always clear ‘right’ or ‘wrong’ answers. To do well on the case, the interviewer is looking for you to

Provide a clear structure for your analysis Prioritise the components of the problem Listen and use relevant information to develop a clear recommendation

Case performance is not the only metric BCG uses to evaluate candidates; others include education, work and life experiences as well as interpersonal and communication skills.

WHY WE USECASE STUDIES


HOW TO PREPARE FOR THE CASE

How to Prepare for and Approach the CaseGenerally, the case interview will follow 5 broad stages. Below we have identi ed some typical areas that may be covered in each, but be aware that case studies are a discussion rather than of a set format.

IntroductionUnderstand the situation and question. Organise the facts and ensure they are current. Ask questions to clarify any details of which you are unsure.

ApproachTake some time to think and structure how you want to tackle the case. Use what makes sense to you - not necessarily a traditional framework. Develop some working hypotheses and prioritise!

AnalyticsInvestigate the case and focus on the question posed. Follow a fact-based approach. Ground any assumptions in logic. Summarise your thinking at regular intervals and outline explicitly the direction of your argument. Remember to sense check your results.

RecommendationSummarise your ndings and drive to conclusions.

Next StepsIf appropriate, outline any gaps in the approach/analytics. What else should be considered?

Some Tips for Practising Case StudiesWe recommend that when practising the case studies, you make it as realistic as possible (eg timing, write down ideas/approach, talk out loud). If practising with friends, playing the interviewer role may help to see things from the “other side”.

Ask friends who have experience with case interviews for advice or for mock interviews.

For further problem solving practice, you could investigate Publications such as Vault, Wet Feet Interview workshops and mock interviews Student peers, current and former BCG-ers

Practising this approach through the example cases in this brochure and online at www.bcg.com, should help you familiarise yourself with case studies and perform to the best of your ability on the day.

Introduction Approach Analytics Recommendations Next Steps

• Pose problem to be solved

• Provide basic facts (will vary in detail)

• Provide guidance and steer discus-sion

• Ask questions to check logic and rationale

• Provide data and context

• Prompt for recom-mendation

• Test and validate recommendations

• May prompt with “is there anything else that should be considered?”

• Logical, structured thinking

• Accuracy and effici-ency of computations

• Able to translate into meaning

• Clarity and succinct-ness of recommenda-tions

• Creativity, broader thinking, ability to translate into actionable steps

• N/A

• Clarify details as necessary to make sure you under-stand the problem

• Take some time to develop an ap-proach

• Explain approach• State and prioriti-

se hypotheses• Identify which ana-

lyses you think you need and why

• Ask for relevant data; explain any assumptions

• Execute computa-tions

• Explain the impact

• Conclude analyses with actionable recommendations

• Tie back to initial hypotheses

• Identify next steps for investigation, assumptions to verify

• Possible imple-mentation steps

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have general knowledge, not expert knowledge! If you don’t have information on the size of a market or theprice of a product, use common sense to suggest anumber. One of my case studies was on a retail company.I have never had any experience with the business sideof retail, but I have been a shopper. So, I just made someassumptions and checked with the interviewer that theywere logical. The interviewer later gave me positivefeedback about being proactive, rather than just saying “Idon’t know”.

Case studies will usually involve some numbers. Interviewers are looking to see if you have a good grasp of mental arithmetic. Use the pen and paper to help, anduse reasonable simpli cation and rounding to make yourcalculations easier. A quick check at the end is goodcommon practice – does your answer make sense?

Role: Project LeaderEducation: BSc, Neuroscience & Medicine, Bristol UniversityBCG Experience: Alexander has worked on a range of casesfrom healthcare to private equity, and has recently beenfocusing on organisational design within the energy industry

Practice case studies either with a friend, online or at the careers centre. Be sure to pretend it is a real interview – you won’t get much out of it if you keep looking at the answer!Alex, Project Leader

Try not to speak too soon or jump to conclusions tooquickly. Listen properly to a question and take time tothink about what you’re being asked. When I interviewed,I asked for two minutes to get my thoughts together,which is completely acceptable. I then told the interviewers what I thought the case was asking to check that I was answering the right question.

Ask questions to clarify if any points are unclear andmake sensible assumptions. You are only expected to

ANSWERING THE CASE STUDY

“


Also remember to be exible with the structure as interviewers may lead you down a di erent path.

Talk through the case with the interviewer, telling them what you are doing and why at every stage. Use them as a discussion partner. You and the interviewer can catch mistakes if they are made and so correct them quickly.

Remember it is how you think, not the speci c answer, that the interviewer wants to know. While practicing, I had built very simple keyword diagrams such as Cost = Variable + Fixed Costs. I did use some of these in the case interviews, but no case ever stuck to them completely. Interviewers want to see how you think through a problem, rather than reciting frameworks which you’ve learnt.

Don’t let yourself be limited by frameworks and don’t panic if the case goes in a di erent direction than the one you had prepared for.

Role: AssociateEducation: MEng, Chemical Engineering, Imperial College LondonBCG Experience: Since joining, Sarah has worked on strategyand due diligence projects in the energy, retail and media industries, as well as a not-for-pro t case for a UK charity.

Don’t expect to know all the answers! If you are unsure of the answer, explain an approach on how to get thereSarah, Associate

In one interview, I was asked a question about merging two companies. A er a while thinking “what do I do?”, I explained three key aspects you would need to look at. My interviewer then provided guidance and hints on how to expand further. Structure, structure, structure! It’s very easy to jump into a problem but structure allows you to break up the question and be more concise. I personally try to start by explicitly laying out the structure, for example by saying “There are three important aspects: Firstly,...” This has the added advantage that if one of the aspects is not essential, the interviewer can suggest you focus on only a subset of the issues.

ANSWERING THE CASE STUDY

“


CASE EXAMPLE

Our client is a leading UK mobile phone network operator with slowing revenue growth and falling pro ts. They want our help to increase the pro tability of their core business (ie phone calls and SMS) in the UK. On which factors do you think they should focus?

Interviewee Question/ResponseAsk clarifying questions if necessary“Do we want to focus only on phone calls and SMS - is exploring new revenue streams part of the case?”

Interviewer’s Thoughts and ResponsesCandidate is ensuring he/she understands case and asking for clari cation before answering question“Yes, that is a good point but the client only wants us to focus on phone and SMS revenues. Also consider that the case is UK speci c.”

Interviewee Question/ResponseTake some time to digest the information and come up with some quick hypotheses“Increasing pro tability means increasing revenue and/or decreasing costs. Some things I’d like to look into are: Growing the number of customers Increasing the amount each customer spends Reducing costs”

Interviewer’s Thoughts and ResponsesStructures the problem. A good start with some clear hypotheses but could go into a little more depth“OK. We have some basic market data in Exhibit 1. Have a look – does this change your thinking?”

Interviewee Question/Response“It seems the number of active users is attening o , but only two thirds of the 60m people in the UK are active users. So the client could try to win non-users as customers or poach customers from other networks.”

Interviewer’s Thoughts and ResponsesShows creativity in thinking about the problem.Identi es two sources of new customers.“Good point. I can tell you that there’s little room to cut costs and winning non-users has proved tough. So let’s take this idea of poaching customers forward.”Interviewer is steering conversation towards one particular hypothesis. If this happens, go with it!“Where would you start with this idea?”

1217 20 23 24 25 25 25 26

2

9

15

26

3234 35 36 36 37 37 38

7

1998 1999

20

40

2000 2001 2002 2003 2004 2005 2006 2007 2008

1114 14 12 12 12 12 12 1215

4

Subscription

Pre-paid

Active Users (M)

Exhibit 1: UK Mobile Phone Market


Interviewee Question/ResponseFeel free to take some time to think about this – you don’t need to jump in straight away!“The client could do a number of things including: Reducing pricing to get more customers Better marketing and advertising”

Interviewer’s Thoughts and Responses“That sounds logical and the client is keen to do both. Do you think there are di erences between customers which need to be thought about?”

Interviewee Question/Response“The client should target the most pro table customers. One place to start might be looking at pre-paid vs subscription customers. Do we know anything about the pro tability of these customers?”

Interviewer’s Thoughts and ResponsesShows business judgement. Excellent. Honed in on the key issue of pro tability of di erent customer types“Great. Pre-paid customers are on the average less pro table than subscription customers. Have a look at Exhibit 2 which shows di erent subscription customer types for the client. We call these ‘segments’. Can you tell anything about the pro tability of di erent types of customers here?”

Interviewee Question/ResponseTake a moment to look at this carefully“Yes – there’s a column with revenue contribution from the client segment and also segment share for client. That tells you how much revenue you get from a typical customer in each segment.”

Interviewer’s Thoughts and Responses“Good. So to get to pro tability by customer type you’re assuming each customer type costs the same to serve, which is a fair assumption.”Candidate made this implicit assumption – a strong candidate would point this out“Can you rank how pro table these customer types are?”

Interviewee Question/Response“Yes, that’s the assumption. Give me a moment.”Divide revenue contribution by client customers by segment to get revenue per customer. Explain your answer (shown on next page).

Interviewer’s Thoughts and ResponsesDemonstrates rigour in analysis“Good. So you now know how pro table these customer types are. What should the client do then?”

Exhibit 2: Subscription Customer Segmentation

Customer Segments

Older Sleepers

Hyperactives

Incomers

Moderns

Careful

Young Movers

Total Customers

AverageAge in

Segment

50

35

45

35

40

22

39

–

MarketShare by

Segment in %

20

5

10

30

15

20

100

12M

ClientCustomers by Segment in %

25

10

10

30

15

10

100

4M

Revenue Contribution

by Segment in %

25

30

10

15

5

15

100

£1.5Bn

Customers Leaving Each

Year in %

20

20

20

30

30

50

28

CASE EXAMPLE


Interviewee Question/Response“Go a er the most pro table customers – Hyperactives and Young Movers are the top two.”

Interviewer’s Thoughts and ResponsesAble to digest the information to prioritise the customer segments. A strong candidate would also have proactively considered the di erences in retention between customer segments.“This sounds fair. We had some information earlier in Exhibit 2. Can you use that to recommend what the client could do to go a er these customer segments?”

Interviewee Question/Response“The client’s doing well with Hyperactives with a higher than market share of these customers and below average percent leaving each year. On the contrary, the client has

below average penetration with Young Movers with a very high percentage leaving each year. The client should assess what it is doing well with Hyperactives and further consolidate these customers and also look more closely at what Young Movers want and address the high percentage leaving each year.”

Interviewer’s Thoughts and ResponsesSynthesises and able to develop conclusionAccurately described the issues with these two customer segments“Excellent. Now have a think of what could be done to improve the client’s share of Young Movers and how to retain these customers. And if the CEO of the client walksin and asks you for a 15 second summary of your latest thinking, what would you say?”Interviewer wants to close o the interview and push towards a concise recommendation

Interviewee Question/Response“I’d say, the client needs to focus on the highly pro table Hyperactives and Young Movers segments. Consolidate with Hyperactives and improve penetration and loyalty of Young Movers”.

Interviewer’s Thoughts and ResponsesConcise and to the point. A strong candidate would have also proactively described ways to improve loyalty of Young Movers, such as loyalty rewards and/or upgraded handsets.

Profitability of the Customer Segments

Customer Segments

Older Sleepers

Hyperactives

Incomers

Moderns

Careful

Young Movers

Client CustomerShare in %

25

10

10

30

15

10

Client RevenueContribution in %

25

30

10

15

5

15

Estimated Revenueper Customer in £

375

1,125

375

187.5

125

562.5

Estimated Pro tability Rank

3rd

1st

3rd

5th

6th

2nd

CASE EXAMPLE


SOME FINAL TIPS

Practical Advice and LogisticsIf staying overnight before the interview, familiarise yourself with the route and time from your hotel to the o ce/interview location.

Aim to arrive ten to een minutes before the interview. You’ll be given short biographies of your interviewers when you arrive; in addition to presenting a good impression and allowing you time to relax, arriving early will give you a chance to familiarise yourself with your interviewers’ backgrounds.

BCG consultants may be in the interview waiting area and if so, are happy to discuss any aspect of BCG or the interview. Do let them know if you would prefer some peace and quiet however!

General Do’s ... Listen to the interviewer and interact with him/her Structure the problem by developing a customised framework

Focus on issues where most impact can be brought Explore a variety of options with creative thinking Demonstrate business judgment Make quick and accurate calculations Synthesise your thoughts and conclude your analysis

... and Don’ts Jump immediately into the analysis withoutthe proper level of understanding

Panic if the answer isn’t readily apparent Defend your own solution at all cost Internalise your thought process Stick to an arti cial framework (3 C’s, 4 P’s, ...) Circulate cases or use advance knowledge

Finally – be con dent in yourself. We are o en unableto o er excellent candidates an interview due to thevery competitive process. Getting this far is already very impressive. We hope that together with the information presented here, you will be able to enjoy the experience and perform to the best of your ability.

Good luck, and we look forward tomeeting you soon.


Any further questions?If you would like to nd out more about BCG London, please visit our website www.bcg.com or contact the London recruiting team.Phone: +44 207 753 5353

BCG is an equal opportunity employer.© The Boston Consulting Group, Inc. 2008. All rights reserved.


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