CASEBOOK
15 advanced-level
cases inspired by real
McKinsey interviews
with detailed answers from a
professional case prep coach
RECRUITING CYCLE OF 2023
© 2023 Peter K. More at Peter-K.org
|
Peter K Casebook 2023. McKinsey style advanced-level cases
© 2023 Peter K. More at Peter-K.org
01
Top-notch quality frameworks for 15 hard
cases meticulously crafted based on real
McKinsey interviews
02
Dozens of challenging brainstorming
questions to push your ideation skills to a
new level
03
Only real data based on in-depth research.
No made-up numbers or fake industry facts
04
A lot of 2nd/3rd layer insights in each case to
boost your business acumen
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Only for McKinsey interviews and for advanced candidates
Only for McKinsey interviews
This casebook is designed to facilitate the preparation for McKinsey
interviews only. All the cases provided are representative of real
McKinsey interviews. Other leading consulting firms don’t use “wild
card” cases or other McKinsey-style hard cases.
Only for advanced candidates
These are hard cases. If you are at the beginning of your case
preparation journey, please make sure you’ve done at least 10 cases
first and then come back to this casebook.
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Wild card
Contents
Inspired by
Year
01 McKinsey
2023
Lasio virus
Healthcare
Hard
02 McKinsey
2023
Women’s equality
Overall economy
Hard
23
03 McKinsey
2022
Climate change
Overall economy
Hard
39
04 McKinsey
2023
K-12 teachers
Education
Hard
55
05 McKinsey
2022
Presence at Amazon
Pet supplies
Hard
72
06 McKinsey
2023
Customer engagement
Retail chain
Hard
89
07 McKinsey
2022
Sustainability
Home supplies
Hard
-
105
08 McKinsey
2022
Differentiation
Sport shoes
Hard
-
120
09 McKinsey
2023
Reputation
Education
Hard
© 2023 Peter K. More at Peter-K.org
Name
Industry
Level
Math
Charts
Page
-
8
135
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Implementation
Impact of trend
Contents
Inspired by
Year
Name
Industry
10 McKinsey
2023
Plant-based meat
Fast food chain
Hard
11 McKinsey
2023
Digital fitness
Gym chain
Hard
167
12 McKinsey
2023
AI
Recruitment
Hard
186
13 McKinsey
2023
Distribution strategy
Fast food chain
Hard
204
14 McKinsey
2023
Digital transformation
Pharma
Hard
-
220
15 McKinsey
2022
Online training
Asset management
Hard
-
235
© 2023 Peter K. More at Peter-K.org
Level
Math
Charts
Page
-
151
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Case
#
1
Inspired by
McKinsey
Lasio virus
2023
© 2023 Peter K. More at Peter-K.org
| 8
Case #1. Inspired by McKinsey. 2023. Lasio virus
Wild card
Case #1. Inspired by McKinsey. 2023. Lasio virus
Prompt
Additional
information
A major African country has been facing a rapidly increasing number of child
infections with Lasio, a deadly virus. Lasio spreads from person to person and can
invade an infected person’s brain and spinal cord, causing paralysis. Most countries
eradicated Lasio through vaccination, but this African country has been struggling
of reaching 90% vaccination level needed to stop the virus. Currently only 50% of
children are fully vaccinated against Lasio. The World Health Organization (WHO)
has brought your team to design a plan to vaccinate 90% of children in the country
and stop the virus in 2 years.
Please provide this information only upon request
• Lasio mainly affects children under 5 years of age
• There are 5M children in the country
• Children should receive two doses of vaccine orally (by drops in the mouth)
•
•
•
•
Case type
© 2023 Peter K. More at Peter-K.org
The vaccine is stored at low temperatures (2°C/35°F)
There are no known side-effect of the vaccine
Anti-oral vaccine videos have been circulating in the high-risk communities
The country has been struggling to ensure a reliable supply of vaccines to
vaccination providers
Wild card
Hard level
Interviewerdriven case
15-20 minutes
to solve
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Case #1. Inspired by McKinsey. 2023. Lasio virus
Wild card
Opening. Make sure the candidate follows these steps
01
02
03
Restate the Typically the candidates are expected to restate the prompt to make sure they are on the
prompt
same page with the interviewer
Add colors
(optional)
Ask 2-3
questions
Candidates can react to the prompt by providing some quick thoughts which will
demonstrate candidates’ business acumen, e.g.:
• “Having a deadly virus uncontrollably spreading in a large country might represent
substantial risks for neighbour countries and for the rest of the world in general”
• ”Mass vaccination is operationally complicated and requires smooth collaboration between
multiple stakeholders like vaccine suppliers, vaccination providers, governments of
different levels, public opinion leaders, etc.”
• “There might be different attitudes among parents towards children vaccination fuelled by
disinformation and intimidation, so active marketing campaigns might be essential for
success”
Candidates often ask 2-3 questions before designing their framework. However, there is no
“that very right” question that candidates should ask. Questions for this case might be:
• What age groups of children are affected by the virus?
• How is the vaccine administered? Is it a one-shot or multi-shot vaccine?
• How large is this African country population-wise?
Candidates don’t always get answers to their questions. In fact, McKinsey interviewers often
say that they don’t have any additional information.
04
Ask for a
moment to
structure
• Typically candidates ask for a couple of minutes to structure their approach
• Sometimes McKinsey interviewers ask the first question and then the candidate takes
time to build their framework
© 2023 Peter K. More at Peter-K.org
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Wild card
Case #1. Inspired by McKinsey. 2023. Lasio virus
Case questions
01
What factors would you consider to help this country boost
the Lasio vaccination rate to 90% in 2 years?
02
How to ensure the reliable supply chain of Lasio vaccines to
vaccination providers?
03
What suggestions do you have to increase the number of
children vaccinated against Lasio in this country? (Assuming
reliable supply of vaccines and no costs for patients)
04
What is the minimum number of vaccines required for the
country to achieve a vaccination rate of 90%?
© 2023 Peter K. More at Peter-K.org
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Case #1. Inspired by McKinsey. 2023. Lasio virus
Wild card
Q1. Framework
1
What factors would you consider to help this country boost the Lasio vaccination rate to
90% in 2 years?
Vaccination
providers
Vaccination
• % vaccinated,
growth rate
• Break-down by age
groups and regions
• Vaccine efficacy
• Vaccination
providers (e.g.
hospitals, mobile
clinics)
• Availability of
vaccines and
equipment
Patient
population
• Awareness
• Accessibility (e.g. in
rural areas)
• Trust and
misconceptions
Government
• Vaccination funding
(available budget)
• Accountability levels
(e.g. local, state,
federal)
• Capacity (# of
nurses, storage)
• Vaccination progress
monitoring (e.g.
frequency,
granularity)
• Geographical
footprint
• Engagement and
coordination
Note: This is just one of many potential ways to structure your approach. Please treat this example only as a reference point and develop your own style.
© 2023 Peter K. More at Peter-K.org
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Case #1. Inspired by McKinsey. 2023. Lasio virus
Wild card
Q1. Make sure the candidate follows these steps
01
02
The best practice is to start with a 15-second big-picture overview, e.g. “I’d like to assess
Do
horizontal
this problem through the lens of four areas – first, vaccination; secondly, vaccination
presentation providers; thirdly, patient population; and finally, government”
Hit key
points
Wild card cases don’t usually require including any specific key points in a framework.
However, the candidate might think through the following dimensions when designing their
structure:
1. Indicator (e.g. definition, current level, historical data, break-down by…, impact)
2. Indicator components, drivers, stakeholders, supply/demand
The offered framework in this case covers the indicator (vaccination) and stakeholders
(vaccination providers, patient population, and government)
03
Add stories
(optional)
To avoid cookie-cutter/generic approach, the candidates can incorporate 2-3 stories into
their structure presentation, e.g.:
• “In order to almost double the vaccination rate from 50% to 90%, the government might
need high-scale operations, aggressive marketing, and lots of funding”
• “Given accomplished 50% vaccination rate, I’d imagine the healthcare system has
necessary capabilities and talent, but might lack accessibility in some regions”
• “Given WHO’s support, we can rely on international vaccine supply as well”
04
Finish with
a question
McKinsey interviewers don’t usually expect it, but at the end of the structure presentation, it
is helpful for the candidate to show that they can drive team forward and prioritize, e.g. “If
this approach sounds reasonable, I’d like to start by digging into vaccination providers. Do
we have data on their number and geographical footprint?”
© 2023 Peter K. More at Peter-K.org
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Case #1. Inspired by McKinsey. 2023. Lasio virus
Wild card
Q2. Reliable supply factors
2
How to ensure the reliable supply chain of Lasio vaccines to vaccination providers?
Production
Warehousing
Transportation
[Given the large size of the
country, I anticipate strong
need in domestic vaccine
production capacity]
• Maximize utilization rate
of existing vaccine
manufacturers (e.g. add
new shifts)
• Expand domestic
production capacity (e.g.
invest in new production
lines and factories)
• Partner with foreign
vaccine manufacturers
[Vaccine storage might
require specific microclimate. So not any
warehouse facilities might
be eligible for our
purposes]
• Ensure storage quality
(e.g. microclimate) and
minimize waste
• Minimize idle capacity
• Expand existing
warehouses
• Invest in new storage
facilities
[Long-distance shipping
might be costly as trucks
require refrigerating
capabilities which are
energy-consuming]
• Upgrade the existing
fleet of refrigerated
trucks
• Expand the fleet
• Ensure high-quality
maintenance services
(e.g. build supplies of
spare parts, hire and
train more mechanics)
• Strengthen the truck
driver force (e.g. hire
more, train, incentivize)
Storage at clinics
[Clinics might lack required
cold storage capabilities and
capacity which might limit
vaccine accessibility]
• Modify the design of
vaccine packaging to ensure
longer shelf-life and storage
time
• Equip clinics with necessary
refrigeration capabilities
• Train staff to minimize
vaccine waste due to
improper storage and
vaccine administration
• Improve demand
forecasting models to better
predict required amount of
vaccines
Note: This is just one of many potential ways to brainstorm. Please treat this example only as a reference point and develop your own style. [The candidate is usually
expected to generate at least 4 ideas. The best practice is 7-8 ideas, structured approach, and on-the-fly delivery without taking notes]
© 2023 Peter K. More at Peter-K.org
| 14
Case #1. Inspired by McKinsey. 2023. Lasio virus
Wild card
Q2. Make sure the candidate follows these steps
01
• 80% of interviewers feel comfortable when candidates take 30-40 seconds to
Take time or
think and write down their ideas before walking the interviewer through them
do on-the-go
• The best practice is to ideate on-the-fly
02
Do horizontal
presentation
(optional)
03
• The best practice is to structure brainstorming and offer a 10-second top-down
overview, e.g. “Great question! I’d structure it as a process flow of four steps
and see what can be improved at each step. First, vaccine production. Secondly,
warehousing. Thirdly, transportation. And finally, storage at clinics”
• Regular feedback from consulting firms is that candidates offer only three ideas
which is a bit on the lower end
Provide at
least 4 ideas • Push the candidate to provide at least 4 ideas
• Top-5% of candidates can usually suggest 7-8 ideas
04
Add colors
(optional)
• To impress the interviewer, the candidates can contextualize some of their ideas
• Examples are given in [] brackets on the previous slide
© 2023 Peter K. More at Peter-K.org
| 15
Case #1. Inspired by McKinsey. 2023. Lasio virus
Wild card
Q3. Vaccination growth ideas
3
What suggestions do you have to increase the number of children vaccinated against
Lasio in this country? (Assuming reliable supply of vaccines and no costs for patients)
Increase awareness and
address misconceptions
Improve access
[A lack of trust in the
safety of vaccines and a
belief that Lasio threat is
exaggerated might
contribute to the vaccine
hesitancy]
• Launch a top-notch
vaccination web-portal
• Offer 24/7 hotline
• Run educational ads
• Recruit celebrities and
other vaccine
advocates
• Partner with
community leaders to
promote Lasio
vaccination
• Send out reminders for
next vaccine dose (e.g.
text messages, emails)
[Potentially low
urbanization rate might
suggest low population
density and thus lead to
accessibility issues]
• Maximize participation
of healthcare providers
in vaccination efforts
• Offer Lasio vaccination
at pharmacies
• Launch a network of
mobile clinics to offer
Lasio vaccination
• Increase the capacity
of existing vaccination
providers (e.g. dispatch
more nurses)
• Offer transportation in
remote regions to
vaccination sites
Improve vaccination
experience
[Great patient experience
might drive word of
mouth]
• Expand working hours
and days
• Ensure no lines
• Accommodate walk-ins
• Invest in training staff
to be knowledgeable
and friendly
Offer additional benefits
[Although not gamechanging, some additional
benefits might increase
attractiveness of
vaccination to low-income
families]
• Offer candies for kids
• Offer small gifts (e.g.
toys)
• Offer food for families
• Offer other healthcare
services (e.g. physical
checkups)
Note: This is just one of many potential ways to brainstorm. Please treat this example only as a reference point and develop your own style. [The candidate is usually
expected to generate at least 4 ideas. The best practice is 7-8 ideas, structured approach, and on-the-fly delivery without taking notes]
© 2023 Peter K. More at Peter-K.org
| 16
Case #1. Inspired by McKinsey. 2023. Lasio virus
Wild card
Q3. Make sure the candidate follows these steps
01
• 80% of interviewers feel comfortable when candidates take 30-40 seconds to
Take time or
think and write down their ideas before walking the interviewer through them
do on-the-go
• The best practice is to ideate on-the-fly
02
Do horizontal
presentation
(optional)
03
• The best practice is to structure brainstorming and offer a 10-second top-down
overview, e.g. “Sure. Some vaccination growth ideas that come to mind might
fall into four categories: awareness, access, patient experience, and additional
benefits. In order to increase awareness they could…”
• Regular feedback from consulting firms is that candidates offer only three ideas
which is a bit on the lower end
Provide at
least 4 ideas • Push the candidate to provide at least 4 ideas
• Top-5% of candidates can usually suggest 7-8 ideas
04
Add colors
(optional)
• To impress the interviewer, the candidates can contextualize some of their ideas
• Examples are given in [] brackets on the previous slide
© 2023 Peter K. More at Peter-K.org
| 17
Wild card
Case #1. Inspired by McKinsey. 2023. Lasio virus
Q4. Math exercise – prompt
4
What is the minimum number of vaccines required for the country to achieve a
vaccination rate of 90%?
Please share with the candidate the
following information
Please provide this additional
information only upon request
• Current vaccination results:
• Due to poor storage conditions
and inadequate vaccine demand
forecasting, 25% of vaccines go to
waste
– 50% of children are fully
vaccinated (received 2 doses)
– 20% of children received 1 dose
– 30% of children didn’t receive
any doses
• Children of all age groups are
subject to vaccination
© 2023 Peter K. More at Peter-K.org
• The children population is 5M in
this country
• The children population growth
rate can be neglected [for the
purposes of this calculation]
| 18
Case #1. Inspired by McKinsey. 2023. Lasio virus
Wild card
Q4. Math exercise – calculations
4
What is the minimum number of vaccines required for the country to achieve a
vaccination rate of 90%?
# of vaccines
needed for
children with
1 dose
5M
20%
1 dose
1M
# of vaccines
needed for
children who
didn’t get any
5M
(90%-50%20%)
2 doses
2M
Total #of
vaccines
needed (incl.
waste)
(1M+2M)
(1-25%)
4M4M
In order to reach a vaccination rate of 90% the country needs at least 4M vaccines
© 2023 Peter K. More at Peter-K.org
| 19
Case #1. Inspired by McKinsey. 2023. Lasio virus
Wild card
Q4. Math exercise – contextualization of the answer
4
What is the minimum number of vaccines required for the country to achieve a
vaccination rate of 90%?
Basic comments
(expected from
everyone)
At least 4M vaccines will be required to bridge the vaccination
gap and vaccinate 90% of the children
More adequate vaccine demand forecasts and additional
investment in refrigerating equipment might allow to reduce the
vaccine waste and thus decrease number of required vaccines
Advanced
comments (for
outstanding
candidates)
The birth rate in African countries is likely far higher than in the
developed world, so a substantial number of additional vaccines
might be required for newborns (that aren’t considered in the
calculation)
New distribution methods (e.g. mobile clinics, health camps)
might boost the vaccination but also increase the waste rate
leading to a higher required number of vaccines
Note: The candidate is not expected to mention all the advanced comments, but adding some of them will demonstrate that the candidate can connect the dots, see the
depth, add colors and bring some insights even if the candidate is not that familiar with the industry/topic
© 2023 Peter K. More at Peter-K.org
| 20
Case #1. Inspired by McKinsey. 2023. Lasio virus
Wild card
Q4. Make sure the candidate follows these steps
01
02
03
04
Structure
approach
• Providing a big-picture approach of how to calculate the answer might help the
candidate gain more points and help the interviewer follow the candidate’s
thought process
Clarify
• Often interviewers don’t provide all the information
missing data
• The candidate needs to proactively ask for missing pieces
points
• Ideally the candidate shouldn’t make any mistakes
Calculate
accurately
Add colors
(optional)
• It is okay to ask for some time to run numbers and then walk the interviewer
through the calculations (some interviewers though might push back and ask
you to do your Math on the fly)
• The interviewers highly appreciate it when the candidate not only calculates the
answer correctly, but also contextualizes it
• For examples of contextualization, please refer to the advanced comments on
the previous slide
© 2023 Peter K. More at Peter-K.org
| 21
Recommendation
McKinsey typically doesn’t require
recommendation for their cases
© 2023 Peter K. More at Peter-K.org
| 22
Case
#
2
Inspired by
McKinsey
Women’s equality
2023
© 2023 Peter K. More at Peter-K.org
| 23
Case #2. Inspired by McKinsey. 2023. Women’s equality
Wild card
Case #2. Inspired by McKinsey. 2023. Women’s equality
Prompt
You’re working on an internal project for McKinsey Global Institute (MGI).
Your team is preparing a report on advancing women’s equality in Africa. Due
to the lack in gender diversity, Africa’s social and economic progress can’t
reach its full potential. At the current rate of progress, Africa could take more
than 140 years to achieve gender parity. What factors would you consider to
advance women’s equality and reach gender parity?
Additional
information
Please provide this information only upon request
• Africa population is 1.4B (2023), 50% of whom are female
• According to experts’ estimates, Africa could add $300B-$1T (10%-35%)
to its GDP in 5 years by advancing women’s equality
• Africa has not made much progress in promoting women’s equality since
2015
• Progress towards gender parity varies significantly among African
countries
Case type
© 2023 Peter K. More at Peter-K.org
Wild card
Hard level
Interviewerdriven case
15-20 minutes
to solve
| 24
Case #2. Inspired by McKinsey. 2023. Women’s equality
Wild card
Opening. Make sure the candidate follows these steps
01
02
03
04
Restate the Typically the candidates are expected to restate the prompt to make sure they are on the
prompt
same page with the interviewer
Add colors
(optional)
Ask 2-3
questions
Ask for a
moment to
structure
Candidates can react to the prompt by providing some quick thoughts which will
demonstrate candidates’ business acumen, e.g.:
• “Diversity and inclusion is a hot topic today, and not only for political reasons, but also for
pure economic benefits. So, I understand the importance of the report”
• “Reaching gender parity might unlock huge potential in labor force, business leadership,
entrepreneurship, as well as bring social well-being to millions”
• “One of the major roadblocks on the path to women’s equality is likely traditional
attitudes and culture. The governments will need to address people’s stereotypes
regarding women’s role in a family, a society and an economy in general”
Candidates often ask 2-3 questions before designing their framework. However, there is no
“that very right” question that candidates should ask. Questions for this case might be:
• What components are usually included in the definition of women’s equality?
• What African country is a leader in promoting gender equality and why?
• How large is the gap in women’s equality between Europe and Africa and what equality
metrics are most behind?
Candidates don’t always get answers to their questions. In fact, McKinsey interviewers often
say that they don’t have any additional information.
• Typically candidates ask for a couple of minutes to structure their approach
• Sometimes McKinsey interviewers ask the first question and then the candidate takes
time to build their framework
© 2023 Peter K. More at Peter-K.org
| 25
Wild card
Case #2. Inspired by McKinsey. 2023. Women’s equality
Case questions
01
What factors would you consider to advance women’s
equality and reach gender parity?
02
What would you tell African leaders on tangible next steps
to advance women’s equality?
03
In 2022 female entrepreneurs contributed $350B to Africa’s
economy (13% of GDP). Women represent only 20% of
African entrepreneurs. How can the African governments
empower women’s entrepreneurship?
04
How many women should join labor force in Africa to reach
the gender parity?
© 2023 Peter K. More at Peter-K.org
| 26
Case #2. Inspired by McKinsey. 2023. Women’s equality
Wild card
Q1. Framework
1
What factors would you consider to advance women’s equality and reach gender parity?
Women’s equality
• Definition (e.g.
social, political,
financial, career)
• Current level and
growth rate
Impact of gender
inequality
Gender inequality
at work
Gender inequality
in society
• Social impact
• Employment rate
• Education level
• Economic impact
• Professional &
technical jobs
• Political
representation
• Unpaid care work
• Digital inclusion
(e.g. mobile phone
ownership)
• Political impact
• Break-down by
African countries
• Leadership positions
• Legal protection
Note: This is just one of many potential ways to structure your approach. Please treat this example only as a reference point and develop your own style.
© 2023 Peter K. More at Peter-K.org
| 27
Case #2. Inspired by McKinsey. 2023. Women’s equality
Wild card
Q1. Make sure the candidate follows these steps
01
02
The best practice is to start with a 15-second big-picture overview, e.g. ”I’d like to look at
Do
horizontal
this problem through four dimensions: first, definition of women’s equality; secondly, its
presentation impact; thirdly, inequality at work, and finally inequality in society”
Hit key
points
Wild card cases don’t usually require including any specific key points in a framework.
However, the candidate might think through the following dimensions when designing their
structure:
1. Indicator (e.g. definition, current level, historical data, break-down by…, impact)
2. Indicator components, drivers, stakeholders, supply/demand
The offered framework in this case covers the indicator (women’s equality) and components
(inequality at work and inequality in society)
03
Add stories
(optional)
To avoid cookie-cutter/generic approach, the candidates can incorporate 2-3 stories into
their structure presentation, e.g.:
• “The lack of equal legal rights and freedoms is a crucial part of the problem of gender
inequality, however social and economic aspects might be as important”
• “Given African countries are mostly developing, I’d imagine that gender disparities are far
deeper in this region in comparison with the developed world”
• “Political, economic and social inequalities are highly interconnected so making progress
will require systematic action across a range of initiatives”
04
Finish with
a question
McKinsey interviewers don’t usually expect it, but at the end of the structure presentation, it
is helpful for the candidate to show that they can drive team forward and prioritize, e.g. “If
this approach resonates with you, I’d like to get aligned on the definition first. Do we know
how women’s equality is defined?”
© 2023 Peter K. More at Peter-K.org
| 28
Case #2. Inspired by McKinsey. 2023. Women’s equality
Wild card
Q2. Solutions to advance women’s equality
2
What would you tell African leaders on tangible next steps to advance women’s
equality?
Education
[Investment in human
capital will not only
bridge the education gap
for women but also open
more career
opportunities and
improve financial and
legal literacy]
• Strengthen education
for girls
• Create/boost
professional programs
for women
• Scale up educational
programs for women
on financial and digital
literacy
Business
[Equal economic
opportunities will enable
African countries to
substantially accelerate
GDP growth]
• Encourage business
leaders to include
gender equality in their
corporate goals
• Promote women
friendly corporate
cultures
• Empower women’s
entrepreneurship
• Encourage
corporations to launch
mentorship programs
for women
Culture
[One of the major
challenges to accomplish
gender parity is deeply
routed stereotypes about
women’s role in the
family, society, and
economy]
• Run campaigns to
promote gender parity
at work and in society
• Recruit celebrities and
opinion leaders to
promote women’s
equality
• Hold large-scale
events promoting
women’s equality
Laws
[Equal legal rights are
fundamental for gender
parity. Laws should be
not only adopted but
reenforced by
authorities]
• Strengthen women’s
rights at work and in
society
• Adopt regulations to
reenforce gender
equality
Note: This is just one of many potential ways to brainstorm. Please treat this example only as a reference point and develop your own style. [The candidate is usually
expected to generate at least 4 ideas. The best practice is 7-8 ideas, structured approach, and on-the-fly delivery without taking notes]
© 2023 Peter K. More at Peter-K.org
| 29
Case #2. Inspired by McKinsey. 2023. Women’s equality
Wild card
Q2. Make sure the candidate follows these steps
01
• 80% of interviewers feel comfortable when candidates take 30-40 seconds to
Take time or
think and write down their ideas before walking the interviewer through them
do on-the-go
• The best practice is to ideate on-the-fly
02
Do horizontal • The best practice is to structure brainstorming and offer a 10-second top-down
presentation
overview, e.g. “Sure. Let me break it down into four areas: education, business,
(optional)
culture, and law. In terms of education…”
03
• Regular feedback from consulting firms is that candidates offer only three ideas
which is a bit on the lower end
Provide at
least 4 ideas • Push the candidate to provide at least 4 ideas
• Top-5% of candidates can usually suggest 7-8 ideas
04
Add colors
(optional)
• To impress the interviewer, the candidates can contextualize some of their ideas
• Examples are given in [] brackets on the previous slide
© 2023 Peter K. More at Peter-K.org
| 30
Case #2. Inspired by McKinsey. 2023. Women’s equality
Wild card
Q3. Ways to empower women’s entrepreneurship
3
In 2022 female entrepreneurs contributed $350B to Africa’s economy (13% of GDP).
Women represent only 20% of African entrepreneurs. How can the African
governments empower women’s entrepreneurship?
Business education
Business opportunities
Access to finance
[To help women jumpstart
their companies, mitigate
potential business risks,
and see opportunities, the
government should invest
in business education]
• Create/support startup
incubators and
accelerators for women
• Promote mentorship
programs for
businesswomen
• Launch/strengthen
entrepreneurship
programs for women
[Facilitating business
opportunities will offer a
boost to women-owned
companies]
• Organize/sponsor more
tradeshows and business
conferences for women
• Support women’s business
associations
• Set targets for
government contracts to
purchase from womenowned businesses
• Promote women-owned
businesses
[Women might be at
disadvantage to raise funds
or get loans for their
businesses due to genderbased biases]
• Launch/encourage loans
for women-owned
businesses
• Offer grant/subsidies for
women-owned
businesses
• Create/support
investment funds that
are focused on investing
in women-owned
businesses
Note: This is just one of many potential ways to brainstorm. Please treat this example only as a reference point and develop your own style. [The candidate is usually
expected to generate at least 4 ideas. The best practice is 7-8 ideas, structured approach, and on-the-fly delivery without taking notes]
© 2023 Peter K. More at Peter-K.org
| 31
Case #2. Inspired by McKinsey. 2023. Women’s equality
Wild card
Q3. Make sure the candidate follows these steps
01
• 80% of interviewers feel comfortable when candidates take 30-40 seconds to
Take time or
think and write down their ideas before walking the interviewer through them
do on-the-go
• The best practice is to ideate on-the-fly
02
Do horizontal
presentation
(optional)
03
• The best practice is to structure brainstorming and offer a 10-second top-down
overview, e.g. “Great question! The way I’m thinking about it is through three
lenses: business education, business opportunities, and access to finance. In
terms of business education…”
• Regular feedback from consulting firms is that candidates offer only three ideas
which is a bit on the lower end
Provide at
least 4 ideas • Push the candidate to provide at least 4 ideas
• Top-5% of candidates can usually suggest 7-8 ideas
04
Add colors
(optional)
• To impress the interviewer, the candidates can contextualize some of their ideas
• Examples are given in [] brackets on the previous slide
© 2023 Peter K. More at Peter-K.org
| 32
Wild card
Case #2. Inspired by McKinsey. 2023. Women’s equality
Q4. Math exercise – prompt
4
How many women should join labor force in Africa to reach the gender parity?
Please share with the candidate the
following information
Please provide this additional
information only upon request
• See Appendix 1.
• Currently 30% of females in Africa
participate in labor force
• Africa’s population is 1.4B, half of
whom are females
© 2023 Peter K. More at Peter-K.org
| 33
Case #2. Inspired by McKinsey. 2023. Women’s equality
Wild card
Q4. Math exercise – calculations
4
How many women should join labor force in Africa to reach the gender parity?
# women that
are part of
labor force
1.4B
50%
30%
# women
needed to
reach gender
parity
210M
0.75
(See App. 1)
280M
Additional #
women
needed
280M
210M
70M
210M
70M more women should join the labor force in Africa to reach the gender parity (match
the size of male labor force)
© 2023 Peter K. More at Peter-K.org
| 34
Case #2. Inspired by McKinsey. 2023. Women’s equality
Wild card
Q4. Math exercise – contextualization of the answer
4
How many women should join labor force in Africa to reach the gender parity?
Basic comments
(expected from
everyone)
70M women should join the labor force to match the number of
employed men in Africa
This sounds challenging not only because 70M is sizeable
population, but also because Africa demonstrates far higher
labor-force-participation rate than the world average of 0.64
(see Appendix 1)
Advanced
comments (for
outstanding
candidates)
I’d imagine that a good amount (~50% if not more) of the
female population are girls and elderly, who aren’t able to join
the labor force. That might explain the seemingly low number of
30% of females who participate in the labor force
Boosting the number of women in the labor force is crucial as
it’ll have a multiplier effect on other gender parity metrics. For
example, it’ll improve formal employment of women and number
of female managers/leaders
Note: The candidate is not expected to mention all the advanced comments, but adding some of them will demonstrate that the candidate can connect the dots, see the
depth, add colors and bring some insights even if the candidate is not that familiar with the industry/topic
© 2023 Peter K. More at Peter-K.org
| 35
Case #2. Inspired by McKinsey. 2023. Women’s equality
Wild card
Q4. Make sure the candidate follows these steps
01
02
03
04
Structure
approach
• Providing a big-picture approach of how to calculate the answer might help the
candidate gain more points and help the interviewer follow the candidate’s
thought process
Clarify
• Often interviewers don’t provide all the information
missing data
• The candidate needs to proactively ask for missing pieces
points
• Ideally the candidate shouldn’t make any mistakes
Calculate
accurately
Add colors
(optional)
• It is okay to ask for some time to run numbers and then walk the interviewer
through the calculations (some interviewers though might push back and ask
you to do your Math on the fly)
• The interviewers highly appreciate it when the candidate not only calculates the
answer correctly, but also contextualizes it
• For examples of contextualization, please refer to the advanced comments on
the previous slide
© 2023 Peter K. More at Peter-K.org
| 36
Recommendation
McKinsey typically doesn’t require
recommendation for their cases
© 2023 Peter K. More at Peter-K.org
| 37
Case #2. Inspired by McKinsey. 2023. Women’s equality
Wild card
Appendix 1. Gender inequality at work in Africa, 2019
Real data
Female/Male ratio (# of women to # of men)
0.75
Labor-force-participation rate
0.64
0.68
Formal employment
0.86
0.68
0.73
Professional and technical jobs
Unpaid care work
0.39
0.33
Leadership positions
0.33
0.37
0
0.2
0.4
0.6
0.8
Africa
World average
1
Gender parity
© 2023 Peter K. More at Peter-K.org
| 38
Case
#
3
Inspired by
McKinsey
Climate change
2022
© 2023 Peter K. More at Peter-K.org
| 39
Case #3. Inspired by McKinsey. 2022. Climate change
Wild card
Case #3. Inspired by McKinsey. 2022. Climate change
Prompt
The government of a West European country Franland has been under international
pressure recently to accelerate the decarbonization of its economy. According to
scientists, to reverse the odds of the most dangerous and irreversible effects of
climate change, the countries should cooperate to limit global warming to 1.5
degrees Celsius by 2030. In particular, Franland should reduce its greenhouse gas
(GHG) emissions by 20% by 2030. They have hired your team to help them out.
What factors would you consider in building a plan to reduce GHG emissions?
Additional
information
Please provide this information only upon request
• Franland is a developed country with 60M people
• Franland enjoys multiple strong sectors - industries, agriculture, power/energy,
transportation, etc.
• Franland’s GHG emissions were ~360 metric tons of carbon dioxide equivalent
(MtCO2e) in 2021
• Franland’s GHG emissions are expected to keep declining, but not fast enough to
meet its national mitigation targets by 2030
Case type
© 2023 Peter K. More at Peter-K.org
Wild card
Hard level
Interviewerdriven case
15-20 minutes
to solve
| 40
Case #3. Inspired by McKinsey. 2022. Climate change
Wild card
Opening. Make sure the candidate follows these steps
01
02
03
Restate the Typically the candidates are expected to restate the prompt to make sure they are on the
prompt
same page with the interviewer
Add colors
(optional)
Ask 2-3
questions
Candidates can react to the prompt by providing some quick thoughts which will
demonstrate candidates’ business acumen, e.g.:
• “The climate change is on agendas of most countries as its catastrophic consequences
have been becoming more obvious recently”
• “Given our client is a West European country, I’d imagine they have access to financial
resources and latest technology to decarbonize their economy”
• “The biggest challenge to accomplish such a radical decline in GHG emissions is to lead a
cross-sector transformation which might be a multi-year project and take a lot of will
power and political capital”
Candidates often ask 2-3 questions before designing their framework. However, there is no
“that very right” question that candidates should ask. Questions for this case might be:
• What types of gases are included in GHG?
• What’s the structure of the Franland’s economy? Is it a developed country?
• What sectors are the largest contributors to GHG emissions in Franland?
Candidates don’t always get answers to their questions. In fact, McKinsey interviewers often
say that they don’t have any additional information.
04
Ask for a
moment to
structure
• Typically candidates ask for a couple of minutes to structure their approach
• Sometimes McKinsey interviewers ask the first question and then the candidate takes
time to build their framework
© 2023 Peter K. More at Peter-K.org
| 41
Wild card
Case #3. Inspired by McKinsey. 2022. Climate change
Case questions
01
What factors would you consider in building a plan to
reduce GHG emissions in Franland?
02
What solutions can you come up with to reduce Franland’s
GHG emissions?
03
By how much (percentage-wise) will Franland be able to
decrease GHG emissions from 2021 to 2030?
04
In case of ongoing high GHG emissions, Franland would like
to be ready for the adverse effects of climate change. What
initiatives to foster climate resilience can you suggest?
© 2023 Peter K. More at Peter-K.org
| 42
Case #3. Inspired by McKinsey. 2022. Climate change
Wild card
Q1. Framework
1
What factors would you consider in building a plan to reduce GHG emissions in
Franland?
GHG emissions in
Franland
Sectors that burn
fossil fuels
• Types of gases
• Industry
• Current level and
historical data
• Power generation
• Break-down by
region
• Transportation
• Benchmarking vs
other European
countries
Other sectors,
emitting GHG
Potential action
areas
• Agriculture/
livestock
• Legislation &
taxation
• Waste management
• Investment in
technology
• Deforestation
• Awareness &
education
Note: This is just one of many potential ways to structure your approach. Please treat this example only as a reference point and develop your own style.
© 2023 Peter K. More at Peter-K.org
| 43
Case #3. Inspired by McKinsey. 2022. Climate change
Wild card
Q1. Make sure the candidate follows these steps
01
02
The best practice is to start with a 15-second big-picture overview, e.g. ”There are four
Do
areas I’d like to double-click on. First, analyze the status quo with GHG emissions in
horizontal
Franland. Secondly, explore sectors that burn fuel. Thirdly, get a better understanding of
presentation
other sectors emitting GHG. And finally, build an action plan.”
Hit key
points
Wild card cases don’t usually require including any specific key points in a framework.
However, the candidate might think through the following dimensions when designing their
structure:
1. Indicator (e.g. definition, current level, historical data, break-down by…, impact)
2. Indicator components, drivers, stakeholders, supply/demand
The offered framework in this case covers the indicator (GHG emission level) and drivers
(sectors that burn and don’t burn fossil fuel)
03
04
Add stories
(optional)
To avoid cookie-cutter/generic approach, the candidates can incorporate 2-3 stories into
their structure presentation, e.g.:
• “Given Franland is a developed country, its economy is likely focused on services and
large portion of manufacturing facilities has been moved to low-cost countries by now.
So, industry might not be the biggest contributor to GHG emissions”
• “I’d think Franland enjoys solid GDP per capita, and thus the number of cars per
household is fairly high. So, transportation should drive a major part of GHG emission”
Finish with
a question
McKinsey interviewers don’t usually expect it, but at the end of the structure presentation, it
is helpful for the candidate to show that they can drive team forward and prioritize, e.g.
“That’s my plan of attack. If it makes sense to you, I’d like to explore the current status of
GHG emissions in Franland. Do we know the current level of…”
© 2023 Peter K. More at Peter-K.org
| 44
Case #3. Inspired by McKinsey. 2022. Climate change
Wild card
Q2. Solutions to reduce GHG emissions
2
What solutions can you come up with to reduce Franland’s GHG emissions?
Industry
[Generally speaking, the
approach might be fourfold: substitute current
energy sources with nonfuel-based alternatives,
improve efficiency, reduce
energy waste, and
consume less carbonbased products]
• Promote electrification
of operations (that
require heating, e.g. in
construction)
• Encourage industrial
efficiency (e.g.
implement less energyconsuming tech)
• Eliminate energy waste
• Set targets for
recycling (e.g. plastics)
Power generation
[Coal-, gas-, and oil-based
power generation is likely
one of the major
contributors to GHG
emissions. Abating or even
abandoning this outdated
tech might be vital to
reaching 20% reduction in
GHG emissions]
• Invest in renewables
(wind/solar)
• Prioritize hydroelectric
power plants
Transportation
Agriculture and food
consumption
[The car emission
standards have been
tightened over the last 20
years. Further reduction in
GHG emission in
transportation might be
driven by high tech]
• Promote electric
vehicles (e.g. subsidies)
• Invest in self-driving
technology (e.g. to
ensure more energyefficient driving)
• Consider advancing
“uberization” (to reduce
personal use of cars)
[The biggest driver of GHG
emission reduction in the
agriculture might be a
change in dietary habits. In
particular, dramatically
cutting down on the
consumption of meat]
• Reduce livestock (to cut
down on methane)
o Promote plant-based/
cultivated meat
o Inspire vegetarian
diets
• Upgrade cultivation
methods
• Minimize food waste
Note: This is just one of many potential ways to brainstorm. Please treat this example only as a reference point and develop your own style. [The candidate is usually
expected to generate at least 4 ideas. The best practice is 7-8 ideas, structured approach, and on-the-fly delivery without taking notes]
© 2023 Peter K. More at Peter-K.org
| 45
Case #3. Inspired by McKinsey. 2022. Climate change
Wild card
Q2. Make sure the candidate follows these steps
01
• 80% of interviewers feel comfortable when candidates take 30-40 seconds to
Take time or
think and write down their ideas before walking the interviewer through them
do on-the-go
• The best practice is to ideate on-the-fly
02
Do horizontal
presentation
(optional)
03
• The best practice is to structure brainstorming and offer a 10-second top-down
overview, e.g. “I’d like to generate some ideas for specific sectors that contribute
to the GHG emission the most. First, industries; secondly, power generation;
thirdly, transportation; and finally, agriculture”
• Regular feedback from consulting firms is that candidates offer only three ideas
which is a bit on the lower end
Provide at
least 4 ideas • Push the candidate to provide at least 4 ideas
• Top-5% of candidates can usually suggest 7-8 ideas
04
Add colors
(optional)
• To impress the interviewer, the candidates can contextualize some of their ideas
• Examples are given in [] brackets on the previous slide
© 2023 Peter K. More at Peter-K.org
| 46
Wild card
Case #3. Inspired by McKinsey. 2022. Climate change
Q3. Math exercise – prompt
3
By how much (percentage-wise) will Franland be able to decrease GHG emissions from
2021 to 2030?
Please share with the candidate the
following information
Please provide this additional
information only upon request
We expect the following decline in
GHG emissions across sectors by
2030 (2021 as a base year):
• Appendix 1
• Agriculture - 10%
• Industry - 20%
• Buildings - 30%
• Transport - 40%
• The rest - negligeable change
© 2023 Peter K. More at Peter-K.org
| 47
Case #3. Inspired by McKinsey. 2022. Climate change
Wild card
Q3. Math exercise – calculations
3
By how much (percentage-wise) will Franland be able to decrease GHG emissions from
2021 to 2030?
Expected reduction
in GHG emissions
(MtCO2e) in…
…Agriculture
47
10%
5
…Industry
69
20%
14
…Buildings
63
30%
19
…Transport
120
40%
48
Overall
reduction by
2030
5+14+19+48
357
24%
Franland will be able to reduce its GHG emissions by 24% by 2030 according to the
current estimates
© 2023 Peter K. More at Peter-K.org
| 48
Case #3. Inspired by McKinsey. 2022. Climate change
Wild card
Q3. Math exercise – contextualization of the answer
3
By how much (percentage-wise) will Franland be able to decrease GHG emissions from
2021 to 2030?
Basic comments
(expected from
everyone)
Based on the current estimates, Franland will be able to decrease
its GHG emissions by 24% and meet its target of 20% by 2030
More than half of the reduction is supposed to come from
greener transport, which makes sense given rapid growth of
electric vehicles and high oil prices over the last ten years
Advanced
comments (for
outstanding
candidates)
I’d imagine that buildings emissions come from burning gas for
heating and cooking. Switching gas stoves and gas heaters to
electric ones might be incredibly capex intensive, so 30%
emission reduction seems a bit aggressive target
It’s surprising to see that Franland doesn’t expect a lot of
reduction from agriculture. With strong trends of healthier
nutrition, rapidly expanding number of vegetarians and skyrocketing demand for plant-based meats, I’d expect to see a
more encouraging decline in GHG than 10%
Note: The candidate is not expected to mention all the advanced comments, but adding some of them will demonstrate that the candidate can connect the dots, see the
depth, add colors and bring some insights even if the candidate is not that familiar with the industry/topic
© 2023 Peter K. More at Peter-K.org
| 49
Case #3. Inspired by McKinsey. 2022. Climate change
Wild card
Q3. Make sure the candidate follows these steps
01
02
03
04
Structure
approach
• Providing a big-picture approach of how to calculate the answer might help the
candidate gain more points and help the interviewer follow the candidate’s
thought process
Clarify
• Often interviewers don’t provide all the information
missing data
• The candidate needs to proactively ask for missing pieces
points
• Ideally the candidate shouldn’t make any mistakes
Calculate
accurately
Add colors
(optional)
• It is okay to ask for some time to run numbers and then walk the interviewer
through the calculations (some interviewers though might push back and ask
you to do your Math on the fly)
• The interviewers highly appreciate it when the candidate not only calculates the
answer correctly, but also contextualizes it
• For examples of contextualization, please refer to the advanced comments on
the previous slide
© 2023 Peter K. More at Peter-K.org
| 50
Case #3. Inspired by McKinsey. 2022. Climate change
Wild card
Q4. Climate resilience initiatives
4
In case of ongoing high GHG emissions, Franland would like to be ready for the adverse
effects of climate change. What initiatives to foster climate resilience can you suggest?
Hazard mitigation
[Rising global temperatures cause more frequent and
more severe heatwaves, wildfires, and rainfall-driven
floods. Those represent economic and life threats to
communities of Franland]
General
• Create early-warning systems
• Build climate risk insurance schemes
Heatwaves
• Invest in urban greening
• Increase covered public areas with AC and water
stations
Wildfires
• Invest in emergency services (e.g. fire-fighting
equipment)
• Improve forest management
Floods
• Build flood protection infrastructure (e.g. dams)
• Floodproof buildings and drains in high-risk areas
• Limit new construction in high-risk areas
Agriculture
resilience
Fresh water
availability
[Rising temperatures affect
agricultural yields and life
conditions of livestock]
• Increase strategic supplies of
food and seeds
• Encourage crop and livestock
diversification
• Invest in R&D of crop and
breed genetics to develop
heat-tolerant varieties
• Expand farmlands to low-risk
areas
[As temperatures rise,
snowpack and glaciers are
expected to decrease, reducing
the amount of water available
in rivers]
• Expand water storage
capacity
• Upgrade the water filtration
systems
• Diversify water supply
sources
• Promote water conservation
measures among population
Note: This is just one of many potential ways to brainstorm. Please treat this example only as a reference point and develop your own style. [The candidate is usually
expected to generate at least 4 ideas. The best practice is 7-8 ideas, structured approach, and on-the-fly delivery without taking notes]
© 2023 Peter K. More at Peter-K.org
| 51
Case #3. Inspired by McKinsey. 2022. Climate change
Wild card
Q4. Make sure the candidate follows these steps
01
• 80% of interviewers feel comfortable when candidates take 30-40 seconds to
Take time or
think and write down their ideas before walking the interviewer through them
do on-the-go
• The best practice is to ideate on-the-fly
02
Do horizontal • The best practice is to structure brainstorming and offer a 10-second top-down
presentation
overview, e.g. “That’s right. I’d like to focus on three areas with most evident
(optional)
climate change impact - hazards, agriculture, and fresh water supply”
03
• Regular feedback from consulting firms is that candidates offer only three ideas
which is a bit on the lower end
Provide at
least 4 ideas • Push the candidate to provide at least 4 ideas
• Top-5% of candidates can usually suggest 7-8 ideas
04
Add colors
(optional)
• To impress the interviewer, the candidates can contextualize some of their ideas
• Examples are given in [] brackets on the previous slide
© 2023 Peter K. More at Peter-K.org
| 52
Recommendation
McKinsey typically doesn’t require
recommendation for their cases
© 2023 Peter K. More at Peter-K.org
| 53
Case #3. Inspired by McKinsey. 2022. Climate change
Wild card
Appendix 1. Franland’s GHG emissions* by sector,
MtCO2e/year (Metric tons of carbon dioxide equivalent)
400
378
350
17
23
24
300
250
367
17
22
21
49
47
65
65
200
150
314
15
20
17
357
100%
17
18
23
5%
5%
6%
47
13%
35
63
18%
55
70
68
65
Waste
Power
Energy
(own use)
Agriculture
69
19%
100
50
Real data
Buildings
Industry
130
127
107
120
2020
2021
34%
Transport
0
2018
2019
2021
Note: *Include energy-related CO2 emissions and methane emissions (~80% of all GHG emissions)
© 2023 Peter K. More at Peter-K.org
| 54
Case
#
4
Inspired by
McKinsey
K-12 teachers
2023
© 2023 Peter K. More at Peter-K.org
| 55
Case #4. Inspired by McKinsey. 2023. K-12 teachers
Wild card
Case #4. Inspired by McKinsey. 2023. K-12* teachers
Prompt
Around a quarter of U.S. K-12* teachers are thinking of leaving their jobs (~900k
educators). 9% of teachers left the profession in 2022 (e.g. switched to other
industry) which is more than double that of countries with high-performing K-12
systems (e.g. Finland and Singapore). The nation’s education talent challenges are
on the top of the agenda of the U.S. Education Secretary. They have hired your
team to suggest a plan on how to dramatically lower the teacher attrition rate and
get the situation under control. What areas would you like to explore to help the
client turn things around and decrease the number of quitting K-12 teachers?
Additional
information
Please provide this information only upon request
• There were 3.5M K-12 teachers (full- and part-time) in the U.S. in 2022
• The number of K-12 teachers grew by 2% annually in 2013-19, but then
declined by 5% over 2019-22 due to the pandemic-induced layoffs
• 2M K-12 teachers quit their jobs in 2022 (e.g. to switch to another school), out
of which 315k left the profession entirely (e.g. joined another sector)
• In 2010-18 the number of people completing a teacher-education program
declined by a quarter (from 220k to 160k per year)
• The number of K-12 students in the U.S. was flat in 2013-19 at ~51M and
decreased by 2-3% during the pandemic in 2020-21
Case type
© 2023 Peter K. More at Peter-K.org
Wild card
Hard level
Interviewerdriven case
15-20 minutes
to solve
*K-12 - kindergarten through grade 12 (incl. elementary and secondary school grades)
| 56
Case #4. Inspired by McKinsey. 2023. K-12 teachers
Wild card
Opening. Make sure the candidate follows these steps
01
02
03
Restate the Typically the candidates are expected to restate the prompt to make sure they are on the
prompt
same page with the interviewer
Add colors
(optional)
Ask 2-3
questions
Candidates can react to the prompt by providing some quick thoughts which will
demonstrate candidates’ business acumen, e.g.:
• “The covid-induced burn-out and stress related to the radical shift from in-person to
online education might have pushed a lot of K-12 teachers to reconsider their careers and
prioritize their mental health”
• “I’d expect the teachers’ attrition rate to slow down in the short-term given the ongoing
recession, as the labor market conditions right now might not be too welcoming.
However, once the economy starts improving, we might see a jump in teacher quitting”
• “The rapid development in online learning, AI tech like chatGPT, and teaching software
might increase the expectations from schools and put additional pressure on teachers”
Candidates often ask 2-3 questions before designing their framework. However, there is no
“that very right” question that candidates should ask. Questions for this case might be:
• How many K-12 teachers are in the U.S. and is their number increasing?
• What are the major drivers of teachers’ attrition rate?
• How homogenous the attrition rate is across the U.S.? Or is it highly state-specific?
Candidates don’t always get answers to their questions. In fact, McKinsey interviewers often
say that they don’t have any additional information.
04
Ask for a
moment to
structure
• Typically candidates ask for a couple of minutes to structure their approach
• Sometimes McKinsey interviewers ask the first question and then the candidate takes
time to build their framework
© 2023 Peter K. More at Peter-K.org
| 57
Wild card
Case #4. Inspired by McKinsey. 2023. K-12 teachers
Case questions
01
What areas would you like to explore to help the client turn
things around and decrease the number of quitting K-12
teachers?
02
What are the major reasons driving K-12 teachers to leave?
03
Your team has led a survey of 2k K-12 teachers on the key
attrition factors (Appendix 1). The inadequate compensation
is the top problem. What can you suggest to address it?
04
By how much did the number of employed education
workers change in 2018-22 in the U.S.?
© 2023 Peter K. More at Peter-K.org
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Case #4. Inspired by McKinsey. 2023. K-12 teachers
Wild card
Q1. Framework
1
What areas would you like to explore to help the client turn things around and decrease
the number of quitting K-12 teachers?
Teacher attrition
Impact of teacher
turnover
• Current level and
historical data
• Changes in
education level
• Break-down by
region/tenure/
subject
• Financial
assessment
• Benchmarking
against top K-12
systems (e.g.
Finland, Singapore)
• Analysis of
perception/morale
of teachers and
students
Attrition drivers
Retention factors
• Career opportunities
• Community factors
• Compensation
• Meaningful work
• Workload & worklife balance
• Non-financial perks
(e.g. proximity)
• Leadership quality
Note: This is just one of many potential ways to structure your approach. Please treat this example only as a reference point and develop your own style.
© 2023 Peter K. More at Peter-K.org
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Case #4. Inspired by McKinsey. 2023. K-12 teachers
Wild card
Q1. Make sure the candidate follows these steps
01
02
The best practice is to start with a 15-second big-picture overview, e.g. “It’s my pleasure to
Do
work on this problem. I’d like to consider four workstreams. First, educate myself on the
horizontal
current data of attrition rate. Secondly, evaluate the impact of teacher turnover. Thirdly,
presentation
assess attrition drivers. And finally, explore retention factors”
Hit key
points
Wild card cases don’t usually require including any specific key points in a framework.
However, the candidate might think through the following dimensions when designing their
structure:
1. Indicator (e.g. definition, current level, historical data, break-down by…, impact)
2. Indicator components, drivers, stakeholders, supply/demand
The offered framework in this case covers the indicator (teacher attrition) and drivers
(attrition drivers and retention factors)
To avoid cookie-cutter/generic approach, the candidates can incorporate 2-3 stories into
their structure presentation, e.g.:
03
Add stories
(optional)
• “I’d imagine that teacher labor markets are fairly local as teachers won’t likely move to a
new city for a job. So, the attrition rate and drivers might be quite region-specific”
• “My understanding is that teaching is a low-paid occupation, and compensation and perks
might be among top turnover reasons along with the rise of tech industry that might steal
STEM professionals”
• “Education has become more politicized lately with growing restrictions on what to teach
and limits on teachers’ autonomy which might take away from attractiveness of this job”
04
Finish with
a question
McKinsey interviewers don’t usually expect it, but at the end of the structure presentation, it
is helpful for the candidate to show that they can drive team forward and prioritize, e.g.
“Does it sound like a fair plan of attack? If so, do we have historical data on the teacher
attrition?”
© 2023 Peter K. More at Peter-K.org
| 60
Case #4. Inspired by McKinsey. 2023. K-12 teachers
Wild card
Q2. Major attrition drivers
2
What are the major reasons driving K-12 teachers to leave?
Compensation and
benefits
[K-12 teachers are likely
far less paid than their
colleagues at colleges or
other bachelor-degree
professionals while they
still need to pay similar
amount of student loans]
• Low salary and bonuses
• Poor perks (e.g. health
insurance, retirement
plan, childcare)
• Large student loan
payments (for their
teacher education
programs)
• Weak or no labor union
to ensure a fair pay
Work conditions
Development
Culture
[Given that most K-12
schools are public, teachers
might face a lot of
bureaucracy and reporting
that may negatively impact
their job satisfaction]
• Unsustainable work-life
balance (e.g. hefty
workload, incl. high
student-to-teacher ratio)
• Lack of necessary
equipment and materials
for adequate teaching
• Covid-induced burnout
• Restricted teaching
method flexibility
• Limited work schedule
flexibility
• Unsafe workplace
[Teaching is both science
and art and there might be
a lot of potential to master
it. Poor results and no path
to improve might
demoralize teachers]
• Limited career growth
opportunities
• No meaningful
professional
development
• No skills transferable to
other industries/roles
• Lack of professional
satisfaction (no
meaningful results)
[Teaching involves a wide
variety of stakeholders like
parents, school leaders,
peers, and students.
Inability to build and
navigate these social
connections might hurt
teachers’ morale]
• Poor school leadership
(lack of administrative
support)
• Inadequate colleague
support
• Lack of or toxic parentteacher-student
community (e.g. low
respect)
• Overall feeling of being
undervalued
Note: This is just one of many potential ways to brainstorm. Please treat this example only as a reference point and develop your own style. [The candidate is usually
expected to generate at least 4 ideas. The best practice is 7-8 ideas, structured approach, and on-the-fly delivery without taking notes]
© 2023 Peter K. More at Peter-K.org
| 61
Case #4. Inspired by McKinsey. 2023. K-12 teachers
Wild card
Q2. Make sure the candidate follows these steps
01
• 80% of interviewers feel comfortable when candidates take 30-40 seconds to
Take time or
think and write down their ideas before walking the interviewer through them
do on-the-go
• The best practice is to ideate on-the-fly
02
Do horizontal • The best practice is to structure brainstorming and offer a 10-second top-down
presentation
overview, e.g. “Thank you for the question! I’d like to explore four areas:
(optional)
compensation, work conditions, development, and culture”
03
• Regular feedback from consulting firms is that candidates offer only three ideas
which is a bit on the lower end
Provide at
least 4 ideas • Push the candidate to provide at least 4 ideas
• Top-5% of candidates can usually suggest 7-8 ideas
04
Add colors
(optional)
• To impress the interviewer, the candidates can contextualize some of their ideas
• Examples are given in [] brackets on the previous slide
© 2023 Peter K. More at Peter-K.org
| 62
Case #4. Inspired by McKinsey. 2023. K-12 teachers
Wild card
Q3. Compensation increase ideas
3
Your team has led a survey of 2k K-12 teachers on the key attrition factors (Appendix 1).
The inadequate compensation is the top problem. What can you suggest to address it?
Increase compensation
[Given teacher shortage and attrition
are likely localized, blanket
compensation increase might be too
costly for the government and not
the most efficient]
• Increase salaries for specific
subjects (e.g. STEM) and tenure
• Consider launching pay-forperformance programs (e.g. to
reward best teachers)
• Increase size of classes (in case of
per-student funding)
• Pay for extra responsibilities taken
by teachers
• Offer more lucrative retirement
plans
Reduce teachers’ living
costs
[Monetary benefits for teachers might also
come from covering living costs, where the
government can enjoy more levers]
General costs
• Offer free/subsidized childcare
• Offer free/reduced-price public
transportation
• Offer more affordable healthcare plan
• Engage NGOs that provide classroom
supplies for free
Professional development costs
• Introduce student loan forgiveness
programs (e.g. for teaching majors)
• Subsidize upskilling programs
• Offer tax dedications for professional
development costs
Administer tarCulture in
geted interventions
high-need schools
[Increasing compensation for
schools with the most acute
teacher turnover might be the
most efficient fund utilization
to improve teacher retention]
• Offer bonuses for teachers
in high-need schools
• Introduce cash awards for
best results in high-need
schools
Note: This is just one of many potential ways to brainstorm. Please treat this example only as a reference point and develop your own style. [The candidate is usually
expected to generate at least 4 ideas. The best practice is 7-8 ideas, structured approach, and on-the-fly delivery without taking notes]
© 2023 Peter K. More at Peter-K.org
| 63
Case #4. Inspired by McKinsey. 2023. K-12 teachers
Wild card
Q3. Make sure the candidate follows these steps
01
• 80% of interviewers feel comfortable when candidates take 30-40 seconds to
Take time or
think and write down their ideas before walking the interviewer through them
do on-the-go
• The best practice is to ideate on-the-fly
02
Do horizontal
presentation
(optional)
03
• The best practice is to structure brainstorming and offer a 10-second top-down
overview, e.g. “That resonates with me a lot. The way I’d look at it is through
three lenses: increase compensation, decrease teachers’ living costs, and
administer targeted interventions in high-need schools”
• Regular feedback from consulting firms is that candidates offer only three ideas
which is a bit on the lower end
Provide at
least 4 ideas • Push the candidate to provide at least 4 ideas
• Top-5% of candidates can usually suggest 7-8 ideas
04
Add colors
(optional)
• To impress the interviewer, the candidates can contextualize some of their ideas
• Examples are given in [] brackets on the previous slide
© 2023 Peter K. More at Peter-K.org
| 64
Wild card
Case #4. Inspired by McKinsey. 2023. K-12 teachers
Q4. Math exercise – prompt
4
By how much did the number of employed education workers change in 2018-22 in the
U.S.?
Please share with the candidate the
following information
Please provide this additional
information only upon request
• Appendix 2.
• 10M education workers were hired
during 2018-22 (incl. doublecounting as same teachers, for
example, might have changed
schools)
• The number of education workers
job openings almost doubled from
160k (Jan’18) to 280k (Jan’23).
© 2023 Peter K. More at Peter-K.org
| 65
Case #4. Inspired by McKinsey. 2023. K-12 teachers
Wild card
Q4. Math exercise – calculations
4
By how much did the number of employed education workers change in 2018-22 in the
U.S.?
Total number
of separations
in 2018-22
Change in the
number of
education
workers in
2018-22
161k + 162k + 203k + 136k + 166k
10M
10M
12 months
10M
0
The number of employed education workers didn’t change over the last five years in the
U.S.
© 2023 Peter K. More at Peter-K.org
| 66
Case #4. Inspired by McKinsey. 2023. K-12 teachers
Wild card
Q4. Math exercise – contextualization of the answer
4
By how much did the number of employed education workers change in 2018-22 in the
U.S.?
Basic comments
(expected from
everyone)
The number of education workers hasn’t changed since 2018 as
new hired staff offsets existing attrition
The education worker shortage has likely become more acute
over the last five years given the flat dynamic of the education
worker number and almost doubled amount of education worker
job openings
Advanced
comments (for
outstanding
candidates)
This zero increase might be misleading as the teacher labor
markets are hyper-localized. So, the change in the teacher number
might be very uneven across the country resulting in regions with
high need in teachers and regions with teacher abundance
High attrition rate might be very costly due to hiring and onboarding
expenses. Lower turnover will enable schools to capture cost
savings and potentially channel these additional funds to increase
teacher compensation which will improve retention rate even more
Note: The candidate is not expected to mention all the advanced comments, but adding some of them will demonstrate that the candidate can connect the dots, see the
depth, add colors and bring some insights even if the candidate is not that familiar with the industry/topic
© 2023 Peter K. More at Peter-K.org
| 67
Case #4. Inspired by McKinsey. 2023. K-12 teachers
Wild card
Q4. Make sure the candidate follows these steps
01
02
03
04
Structure
approach
• Providing a big-picture approach of how to calculate the answer might help the
candidate gain more points and help the interviewer follow the candidate’s
thought process
Clarify
• Often interviewers don’t provide all the information
missing data
• The candidate needs to proactively ask for missing pieces
points
• Ideally the candidate shouldn’t make any mistakes
Calculate
accurately
Add colors
(optional)
• It is okay to ask for some time to run numbers and then walk the interviewer
through the calculations (some interviewers though might push back and ask
you to do your Math on the fly)
• The interviewers highly appreciate it when the candidate not only calculates the
answer correctly, but also contextualizes it
• For examples of contextualization, please refer to the advanced comments on
the previous slide
© 2023 Peter K. More at Peter-K.org
| 68
Recommendation
McKinsey typically doesn’t require
recommendation for their cases
© 2023 Peter K. More at Peter-K.org
| 69
Case #4. Inspired by McKinsey. 2023. K-12 teachers
Wild card
Appendix 1. Top reasons that drove U.S. K-12 teachers Real data
to leave or plan to leave, % of respondents (n=2,000), 2022
42%
Compensation
48%
31%
33%
Expectations
23%
Well-being
Left
Plan to leave
31%
31%
30%
Leadership
21%
Workplace
flexibility
26%
0%
© 2023 Peter K. More at Peter-K.org
10%
20%
30%
40%
50%
| 70
Case #4. Inspired by McKinsey. 2023. K-12 teachers
Wild card
Appendix 2. Average monthly separations of workers*
in state and local government education in the U.S., k
Real data
Other separations
Layoffs and discharges
203
200
Quits
17%
147
150
135
134
18%
20%
126
35%
33%
149
16%
16%
18%
100
32%
16%
151
33%
161
162
166
15%
15%
16%
34%
31%
136
15%
29%
32%
21%
23%
32%
50
50%
47%
50%
2012
2013
2014
49%
51%
52%
2015
2016
2017
54%
56%
49%
2018
2019
2020
63%
62%
0
2021
2022
*Includes teachers, instructional aides, administrators, professional staff, support staff, maintenance personnel, cafeteria workers, and transportation workers
© 2023 Peter K. More at Peter-K.org
| 71
Case
#
5
Inspired by
McKinsey
Presence at Amazon
2022
© 2023 Peter K. More at Peter-K.org
| 72
Case #5. Inspired by McKinsey. 2022. Presence at Amazon
Wild card
Case #5. Inspired by McKinsey. 2022. Presence at Amazon
Prompt
Paw Pet Products (PPP) is a U.S. major premium dog toy manufacturer with
$50M in revenue (2022). With over 300 items, they offer many puzzle toys and
interactive dog toys – from squeak toys to tug ropes – for all breeds and sizes.
As part of their positioning strategy PPP would like to strengthen their presence
at Amazon, a large distribution channel and an important marketing platform for
them. The CEO has invited you to look into this and design a strategy on how to
boost PPP’s presence at Amazon. What factors would you consider?
Additional
information
Please provide this information only upon request
• Amazon is the most visited e-commerce platform in the U.S., with ~3B visits
a month, 200M global Amazon Prime members, and ~$400B in revenue/year
• Two-thirds of U.S. consumers start their product search on Amazon
• PPP sells through offline and online channels, incl. Amazon
• PPP doesn’t plan to go internationally and would like to focus on the U.S.
• PPP doesn’t have their own page/store at amazon.com, their product pages
aren’t that developed, and their rankings aren’t the highest in comparison
with other dog toy brands
Case type
© 2023 Peter K. More at Peter-K.org
Wild card
Hard level
Interviewerdriven case
15-20 minutes
to solve
| 73
Case #5. Inspired by McKinsey. 2022. Presence at Amazon
Wild card
Opening. Make sure the candidate follows these steps
01
02
03
Restate the Typically the candidates are expected to restate the prompt to make sure they are on the
prompt
same page with the interviewer
Add colors
(optional)
Ask 2-3
questions
Candidates can react to the prompt by providing some quick thoughts which will
demonstrate candidates’ business acumen, e.g.:
• “Amazon is a great distribution channel given its nation-wide customer reach and
outstanding customer experience. PPP is a small business with only $50M in revenue, so
Amazon might help the client dramatically increase brand awareness and geo footprint”
• “Amazon makes products look commoditized as customers are pigeonholed to choose
offerings mostly based on price. For a premium brand like PPP, that’s an obvious risk”
• “During the pandemic the dog adoption sky-rocketed as people were locked down and
felt isolated. The e-commerce grew explosively too as offline retail was closed so
customers developed new habits of online shopping. So, I’d imagine the dog toy market
got a boost and it makes sense for PPP to strengthen online channels in their distribution”
Candidates often ask 2-3 questions before designing their framework. However, there is no
“that very right” question that candidates should ask. Questions for this case might be:
• What portion of PPP’s sales comes from Amazon?
• Does PPP have any budget they’re ready to invest to boost their presence at Amazon?
• Does PPP have any plans to go internationally (as Amazon is an international platform)?
Candidates don’t always get answers to their questions. In fact, McKinsey interviewers often
say that they don’t have any additional information.
04
Ask for a
moment to
structure
• Typically candidates ask for a couple of minutes to structure their approach
• Sometimes McKinsey interviewers ask the first question and then the candidate takes
time to build their framework
© 2023 Peter K. More at Peter-K.org
| 74
Wild card
Case #5. Inspired by McKinsey. 2022. Presence at Amazon
Case questions
01
What factors would you consider to strengthen PPP’s
presence at Amazon?
02
As part of the pilot, the team would like to upgrade product
images, infographics, compelling titles, and reviews for a
best-selling PPP’s product RopeBiter. By how much will it
increase its annual sales?
03
A quick benchmarking analysis revealed that PPP gets far
fewer reviews than its peers at Amazon. What can PPP do
in order to increase the number of reviews?
04
Some high-end pet supply brands aren’t present at Amazon
at all (e.g. The Foggy Dog, Kanine, Tuft & Paw) which
seems like a thought through strategy. What downsides
might Amazon presence have for PPP?
© 2023 Peter K. More at Peter-K.org
| 75
Case #5. Inspired by McKinsey. 2022. Presence at Amazon
Wild card
Q1. Framework
1
What factors would you consider to strengthen PPP’s presence at Amazon?
Presence at
Amazon
• Definition of
presence (e.g.
strategic, financial)
• PPP’s revenue from
Amazon (e.g.
historical data and
% of total)
• Any recent changes
to PPP’s presence at
Amazon
Product
• Breadth (# listings)
and depth (# SKUs)
of PPP’s offerings at
Amazon
• Product availability
(e.g. % sold-out)
• Latest additions to
Amazon and
innovation pace
Customer
experience
Brand and
marketing
• Product page design
(e.g. clear overview,
intuitive lay-out)
• PPP’s own page at
Amazon
• Customer journey
(e.g. conversion
rates at different
steps)
• Major pain points
• Rankings/reviews
• SEO (search engine
optimization) at
Amazon
• Promotions/ads at
Amazon
• Community
development (e.g.
community-driven
Q&As)
Note: This is just one of many potential ways to structure your approach. Please treat this example only as a reference point and develop your own style.
© 2023 Peter K. More at Peter-K.org
| 76
Case #5. Inspired by McKinsey. 2022. Presence at Amazon
Wild card
Q1. Make sure the candidate follows these steps
01
02
The best practice is to start with a 15-second big-picture overview, e.g. “Thank you for
Do
horizontal
having me on this project. The way I’d like to attack this problem is by looking into four
presentation areas: presence at Amazon, product, customer experience, and finally brand and marketing”
Hit key
points
Wild card cases don’t usually require including any specific key points in a framework.
However, the candidate might think through the following dimensions when designing their
structure:
1. Indicator (e.g. definition, current level, historical data, break-down by…, impact)
2. Indicator components, drivers, stakeholders, supply/demand
The offered framework in this case covers the indicator (presence at Amazon) and
components (product, customer experience, brand and marketing)
To avoid cookie-cutter/generic approach, the candidates can incorporate 2-3 stories into
their structure presentation, e.g.:
03
• “Given the customers can’t touch and feel the product, the product page should be
visually appealing, offer a holistic description, top-notch pictures, and ideally videos”
Add stories
(optional)
• “Dogs are perceived as family members, so customers choose products for their dogs
with diligence and care. That’s why customers might be less resilient to potential flaws in
PPP’s brand perception and customer journey at Amazon”
• “Dog owners are often part of local communities that they connect to when they use dog
parks or go for a walk. That’s why community feeling might be crucial for PPP’s presence
at Amazon and can be offered through posts, Q&As, followship, ads, etc.”
04
Finish with
a question
McKinsey interviewers don’t usually expect it, but at the end of the structure presentation, it
is helpful for the candidate to show that they can drive team forward and prioritize, e.g. “If
this framework makes sense, I’d like to start by getting more data on the current PPP’s
presence at Amazon. Do you know…”
© 2023 Peter K. More at Peter-K.org
| 77
Wild card
Case #5. Inspired by McKinsey. 2022. Presence at Amazon
Q2. Math exercise – prompt
2
As part of the pilot, the team would like to upgrade product images, infographics,
compelling titles, and reviews for a best-selling PPP’s product RopeBiter. By how much
will it increase its annual sales?
Please share with the candidate the
following information
Please provide this additional
information only upon request
• Appendix 1.
• The conversion rate to PPP’s
RopeBiter page is expected to
grow from 5% to 7%
• According to the base scenario,
the conversion rate from unique
RopeBiter page visitors to
purchases should increase from
10% to 11%
• The unit price for RopeBiter is $25
© 2023 Peter K. More at Peter-K.org
| 78
Case #5. Inspired by McKinsey. 2022. Presence at Amazon
Wild card
Q2. Math exercise – calculations
2
As part of the pilot, the team would like to upgrade product images, infographics,
compelling titles, and reviews for a best-selling PPP’s product RopeBiter. By how much
will it increase its annual sales?
New volume
sold
800k
7%
11%
6.2k
Current
annual sales
4k
$25
12 months
$1.2M
New annual
sales
6.2k
$25
12 months
$1.86M
4M
Annual sales
increase
$1.86M
$1.2M
$0.66M
The annual sales of RopeBiter should increase by $0.66M
© 2023 Peter K. More at Peter-K.org
| 79
Case #5. Inspired by McKinsey. 2022. Presence at Amazon
Wild card
Q2. Math exercise – contextualization of the answer
2
As part of the pilot, the team would like to upgrade product images, infographics,
compelling titles, and reviews for a best-selling PPP’s product RopeBiter. By how much
will it increase its annual sales?
Basic comments
(expected from
everyone)
The expected annual revenue will increase by more than 50% to
$1.86M
Double-digit conversion rate to purchase might be a bit aggressive.
However, it might make sense as customers often come to Amazon
specifically to make a purchase, and Amazon enjoys strong
customers’ trust which might boost the conversion rate
Advanced
comments (for
outstanding
candidates)
While expected 50% jump in sales is outstanding, it isn’t
reasonable to extrapolate this result to the overall PPP’s business.
RopeBiter is just ~2% of PPP’s revenue ($1.2M/$50M) and given
it’s a best-seller, it might not be representative for other products
$25 per unit makes sense as PPP is a premium brand, so they
target customers with low price sensitivity and high willingness
to pay
Note: The candidate is not expected to mention all the advanced comments, but adding some of them will demonstrate that the candidate can connect the dots, see the
depth, add colors and bring some insights even if the candidate is not that familiar with the industry/topic
© 2023 Peter K. More at Peter-K.org
| 80
Case #5. Inspired by McKinsey. 2022. Presence at Amazon
Wild card
Q2. Make sure the candidate follows these steps
01
02
03
04
Structure
approach
• Providing a big-picture approach of how to calculate the answer might help the
candidate gain more points and help the interviewer follow the candidate’s
thought process
Clarify
• Often interviewers don’t provide all the information
missing data
• The candidate needs to proactively ask for missing pieces
points
• Ideally the candidate shouldn’t make any mistakes
Calculate
accurately
Add colors
(optional)
• It is okay to ask for some time to run numbers and then walk the interviewer
through the calculations (some interviewers though might push back and ask
you to do your Math on the fly)
• The interviewers highly appreciate it when the candidate not only calculates the
answer correctly, but also contextualizes it
• For examples of contextualization, please refer to the advanced comments on
the previous slide
© 2023 Peter K. More at Peter-K.org
| 81
Case #5. Inspired by McKinsey. 2022. Presence at Amazon
Wild card
Q3. Actions to increase number of reviews
3
A quick benchmarking analysis revealed that PPP gets far fewer reviews than its peers
at Amazon. What can PPP do in order to increase the number of reviews*?
Existing buyers
[PPP can use every touch-point
with customers to request a
review]
• Use product inserts (a card in
the packaging) to ask for a
review
• Ask for reviews through
Amazon’s review requests
• Contact customers with poor
reviews to address their
problem (and hopefully
they’ll update their review)
• Reach customers after
customer service calls/emails
to ask for product reviews
Professional
reviewers
New buyers
[Improving the quality of customers’
interactions with PPP’s brand and
products will naturally lead to more
reviews]
Marketing
• Invest in aggressive online marketing
to attract more buyers
• Encourage reviews through ads, offline
events, newsletters, etc.
• Create visually appealing packaging
Pricing
• Offer limited-time steep discounts
[great deals usually encourage reviews]
Customer experience
• Ensure quick lead times (e.g. join
Amazon Fulfillment)
• Offer 24/7 Customer Support Service
• Launch 100% satisfaction guaranteed
• Upgrade product images, include
infographics, create compelling titles
[Professional reviewers are likely
to provide more balanced and
objective reviews as they have
tried a lot of similar products
already, know the industry
standards and best practices]
• Partner with influencers to
review PPP’s products
• Contact top Amazon reviewers
in dog toy category and ask
for reviews
*According to Amazon’s rules, sellers can’t directly incentivize positive reviews (e.g. discounts or free products for positive reviews)
Note: This is just one of many potential ways to brainstorm. Please treat this example only as a reference point and develop your own style. [The candidate is usually
expected to generate at least 4 ideas. The best practice is 7-8 ideas, structured approach, and on-the-fly delivery without taking notes]
© 2023 Peter K. More at Peter-K.org
| 82
Case #5. Inspired by McKinsey. 2022. Presence at Amazon
Wild card
Q3. Make sure the candidate follows these steps
01
• 80% of interviewers feel comfortable when candidates take 30-40 seconds to
Take time or
think and write down their ideas before walking the interviewer through them
do on-the-go
• The best practice is to ideate on-the-fly
02
Do horizontal
presentation
(optional)
03
• The best practice is to structure brainstorming and offer a 10-second top-down
overview, e.g. “I’d like to generate some ideas by thinking about types of
potential reviewers. First, existing buyers. Secondly, new buyers. Thirdly,
professional reviewers”
• Regular feedback from consulting firms is that candidates offer only three ideas
which is a bit on the lower end
Provide at
least 4 ideas • Push the candidate to provide at least 4 ideas
• Top-5% of candidates can usually suggest 7-8 ideas
04
Add colors
(optional)
• To impress the interviewer, the candidates can contextualize some of their ideas
• Examples are given in [] brackets on the previous slide
© 2023 Peter K. More at Peter-K.org
| 83
Case #5. Inspired by McKinsey. 2022. Presence at Amazon
Wild card
Q4. Disadvantages of presence at Amazon
4
Some high-end pet supply brands aren’t present at Amazon at all (e.g. The Foggy Dog,
Kanine, Tuft & Paw) which seems like a thought through strategy. What downsides
might Amazon presence have for PPP?
Financial
Marketing
Product
[Partnership with any big-name
distributor might substantially
change the economics of the
business and affect both revenue
and cost structures]
Revenue
• Cannibalization of sales from
other channels (both offline
and online)
• Potential Amazon’s restrictions
on pricing
Costs
• High sales commissions
charged by Amazon
• Additional opex to meet
Amazon’s requirements on
delivery time and packaging
[Distribution channels usually don’t
offer a lot of potential for
marketing and sometimes might be
detrimental to brand perception]
Brand
• Inability to tell a brand’s story
• Commoditization of PPP’s
premium brand (as customers
compare products mostly based
on price)
Customers
• No access to customer’s data
(thus, no newsletters,
personalized offerings, customer
segmentation)
• Loss of control on customer
experience
[Amazon product pages dramatically
increase the transparency of PPP’s
business with other players. Detailed
product descriptions, number and
content of reviews, traffic volume,
etc. offer robust revenue proxies
and disclose key competitive
advantages]
Product flexibility
• Inability to personalize/ customize
dog toys
• Limited information for product
innovation given no access to
customers and their feedback
Unethical competition
• Elevated risks of rise in
counterfeit and copycats
• Risks of Amazon launching
their own dog toys based
on PPP’s sales data
Note: This is just one of many potential ways to brainstorm. Please treat this example only as a reference point and develop your own style. [The candidate is usually
expected to generate at least 4 ideas. The best practice is 7-8 ideas, structured approach, and on-the-fly delivery without taking notes]
© 2023 Peter K. More at Peter-K.org
| 84
Case #5. Inspired by McKinsey. 2022. Presence at Amazon
Wild card
Q4. Make sure the candidate follows these steps
01
• 80% of interviewers feel comfortable when candidates take 30-40 seconds to
Take time or
think and write down their ideas before walking the interviewer through them
do on-the-go
• The best practice is to ideate on-the-fly
02
Do horizontal • The best practice is to structure brainstorming and offer a 10-second top-down
presentation
overview, e.g. “To suggest potential disadvantages, I’d like to look into three
(optional)
areas - financial assessment, marketing, and product”
03
• Regular feedback from consulting firms is that candidates offer only three ideas
which is a bit on the lower end
Provide at
least 4 ideas • Push the candidate to provide at least 4 ideas
• Top-5% of candidates can usually suggest 7-8 ideas
04
Add colors
(optional)
• To impress the interviewer, the candidates can contextualize some of their ideas
• Examples are given in [] brackets on the previous slide
© 2023 Peter K. More at Peter-K.org
| 85
Recommendation
McKinsey typically doesn’t require
recommendation for their cases
© 2023 Peter K. More at Peter-K.org
| 86
Case #5. Inspired by McKinsey. 2022. Presence at Amazon
Wild card
Appendix 1. RopeBiter’s monthly sales funnel at Amazon,
2021
Number of unique
visitors of dog toy
pages
800k
5%
Number of unique
visitors of PPP’s
RopeBiter page
40k
10%
Volume of RopeBiter purchased,
units
© 2023 Peter K. More at Peter-K.org
4k
| 87
More at
Peter-K.org
© 2023 Peter K. More at Peter-K.org
| 88
Case
#
6
Inspired by
McKinsey
Customer
engagement
2023
© 2023 Peter K. More at Peter-K.org
| 89
Case #6. Inspired by McKinsey. 2023. Customer engagement
Wild card
Case #6. Inspired by McKinsey. 2023. Customer engagement
Prompt
Texas-based supermarket chain Y-E-S saw a drop in their customer engagement
in 2020-21 driven by the pandemic. The customer engagement didn’t improve in
2022 after most pandemic-related restrictions were lifted. The decreased
customer engagement hurts Y-E-S’ brand perception, marketing efficiency, and
financial results. They have approached your team to build a robust actionable
strategy to boost their customer engagement. What areas would you investigate
to help the client?
Additional
information
Please provide this information only upon request
• Supermarket chain Y-E-S has 400 stores in Texas and Mexico and generates
$22B in annual sales (2022)
• Y-E-S offers groceries and products across a wide variety of needs: beauty,
pets, kids, health, home, and others
• Y-E-S is known for affordable prices, high quality, and convenient locations
• Y-E-S doesn’t enjoy a developed digital footprint (incl. online store, social
media, online news)
• Y-E-S is perceived as local chain and Texans are proud of shopping at Y-E-S
Case type
© 2023 Peter K. More at Peter-K.org
Wild card
Hard level
Interviewerdriven case
15-20 minutes
to solve
| 90
Case #6. Inspired by McKinsey. 2023. Customer engagement
Wild card
Opening. Make sure the candidate follows these steps
01
02
03
Restate the Typically the candidates are expected to restate the prompt to make sure they are on the
prompt
same page with the interviewer
Add colors
(optional)
Ask 2-3
questions
Candidates can react to the prompt by providing some quick thoughts which will
demonstrate candidates’ business acumen, e.g.:
• “During the pandemic the customer behaviour changed as people got used to online
shopping and got exposed to far more digital marketing, which might have affected Y-E-S’
customer engagement”
• “Decreased customer engagement might be crucial for the client’s business, as it might
lead to lower retention, less frequent purchases, and thus hurt customers’ life-time-value”
• “Supermarket chains operate in a highly commoditized market where differentiation is
challenging but might provide strong competitive advantage. Customers’ excitement
about the brand and overall high customer engagement might be that competitive edge”
Candidates often ask 2-3 questions before designing their framework. However, there is no
“that very right” question that candidates should ask. Questions for this case might be:
• How does the client define customer engagement?
• How large is this supermarket chain in terms of number of stores and sales?
• What is the typical profile of Y-E-S’ customers (e.g. demographics, income level)?
Candidates don’t always get answers to their questions. In fact, McKinsey interviewers often
say that they don’t have any additional information.
04
Ask for a
moment to
structure
• Typically candidates ask for a couple of minutes to structure their approach
• Sometimes McKinsey interviewers ask the first question and then the candidate takes
time to build their framework
© 2023 Peter K. More at Peter-K.org
| 91
Wild card
Case #6. Inspired by McKinsey. 2023. Customer engagement
Case questions
01
What factors would you consider to help the client boost
their customer engagement?
02
The client would like to embrace livestream commerce as a
way to build consumer engagement and present a modern,
innovative image to customers. What sales will a series of
livestreaming events generate for the client over 2023-24?
03
Some regional supermarket chains have already piloted
livestreaming events (LEs), for example, with virtual cooking
classes, where they feature local chefs. Each event racks up
200k-500k views. Why are customers so attracted to LEs?
04
What are some advantages that Y-E-S will enjoy if they
succeed in building out a regular series of livestreaming
events?
© 2023 Peter K. More at Peter-K.org
| 92
Case #6. Inspired by McKinsey. 2023. Customer engagement
Wild card
Q1. Framework
1
What factors would you consider to help the client boost their customer engagement?
Customer
engagement
• Target audience,
key customer
groups
• Customer
engagement metrics
adopted by Y-E-S
Impact of low
customer engagement
• Financial
implications
• Brand equity
• Marketing efficiency
• Employees’ morale
• Current level and
historical data
Offline/online
shopping
Marketing
channels
• Overall experience
(e.g. NPS, customer
satisfaction rate)
• Social media (e.g. #
comments/likes)
• Customer
purchasing behavior
(e.g. # visits, time
spent in-store,
average purchase)
• Customer flow (e.g.
churn/retention, %
new)
• Emails/newsletters
(e.g. open rate, click
rate)
• Loyalty program
(e.g. # members,
point redemptions)
• Marketing
events/promotions
Note: This is just one of many potential ways to structure your approach. Please treat this example only as a reference point and develop your own style.
© 2023 Peter K. More at Peter-K.org
| 93
Case #6. Inspired by McKinsey. 2023. Customer engagement
Wild card
Q1. Make sure the candidate follows these steps
01
02
The best practice is to start with a 15-second big-picture overview, e.g. “Four workstreams
Do
horizontal
that I’d dig deeper in are: first, customer engagement; secondly, impact; thirdly,
presentation offline/online shopping; and finally, engagement at marketing channels”
Hit key
points
Wild card cases don’t usually require including any specific key points in a framework.
However, the candidate might think through the following dimensions when designing their
structure:
1. Indicator (e.g. definition, current level, historical data, break-down by…, impact)
2. Indicator components, drivers, stakeholders, supply/demand
The offered framework in this case covers the indicator (customer engagement) and
components (customer engagement at shopping and at marketing)
03
04
Add stories
(optional)
Finish with
a question
To avoid cookie-cutter/generic approach, the candidates can incorporate 2-3 stories into
their structure presentation, e.g.:
• “Customer engagement is multi-faceted and can be assessed across various dimensions,
but the most vital dimensions are likely shopping experience and customer interactions in
different marketing channels as they directly affect the bottom-line”
• “Supermarkets are an old-fashioned and tech-light industry which doesn’t offer a lot of
levers to engage with customers, so the client should be creative to solve this problem”
• “Customer engagement differs drastically between generations, and if elderly and gen X
would be responsive to typical marketing technics, gen Z needs almost 100% digital”
McKinsey interviewers don’t usually expect it, but at the end of the structure presentation, it
is helpful for the candidate to show that they can drive team forward and prioritize, e.g.
“This is how I’m thinking about this problem. Does it resonate with you? If so, let me
double-click on the customer engagement metrics. What does Y-E-S use for that today?”
© 2023 Peter K. More at Peter-K.org
| 94
Wild card
Case #6. Inspired by McKinsey. 2023. Customer engagement
Q2. Math exercise – prompt
2
The client would like to embrace livestream commerce as a way to build consumer
engagement and present a modern, innovative image to customers. What sales will a
series of livestreaming events generate for the client over 2023-24?
Please share with the candidate the
following information
Please provide this additional
information only upon request
• Appendix 1.
• We can use Walmart’s event
volume as a benchmark for Y-E-S
and plan 30 livestreaming events
in 2023 and 100 events in 2024
• The expected average sales per
event is $30k in 2023 and $50k in
2024
© 2023 Peter K. More at Peter-K.org
| 95
Case #6. Inspired by McKinsey. 2023. Customer engagement
Wild card
Q2. Math exercise – calculations
2
The client would like to embrace livestream commerce as a way to build consumer
engagement and present a modern, innovative image to customers. What sales will a
series of livestreaming events generate for the client over 2023-24?
Expected
revenue in
2023
$30k
30 events
$900k
Expected
revenue in
2024
$50k
100 events
$5M
Total
expected
revenue in
2023-24
$900k
$5M
$5.9M
4M
Y-E-S should expect additional revenue of ~$6M in 2023-24 generated from
livestreaming events
© 2023 Peter K. More at Peter-K.org
| 96
Case #6. Inspired by McKinsey. 2023. Customer engagement
Wild card
Q2. Math exercise – contextualization of the answer
2
The client would like to embrace livestream commerce as a way to build consumer
engagement and present a modern, innovative image to customers. What sales will a
series of livestreaming events generate for the client over 2023-24?
Basic comments
(expected from
everyone)
Based on current assumptions, Y-E-S should expect $6M in
additional revenue from livestreaming events
Livestreaming events do enable Y-E-S to reach out to a larger
audience, however they might also cause some cannibalization as
price-sensitive customers might hold off purchasing at the Y-E-S
stores hoping to get promotional discounts during the events
Advanced
comments (for
outstanding
candidates)
$6M in additional revenue is negligeable for such a multi-billiondollar supermarket chain as Y-E-S. However, livestreaming
events might create a lot of buzz, strengthen the feeling of
community, and boost the excitement about the brand
$30k-$50k in sales per event isn’t exaggerated and sounds
reasonable as U.S. consumers have grown up watching QVC and
other shopping channels on TV, so the concept of shopping as a
form of entertainment isn’t entirely new
Note: The candidate is not expected to mention all the advanced comments, but adding some of them will demonstrate that the candidate can connect the dots, see the
depth, add colors and bring some insights even if the candidate is not that familiar with the industry/topic
© 2023 Peter K. More at Peter-K.org
| 97
Case #6. Inspired by McKinsey. 2023. Customer engagement
Wild card
Q2. Make sure the candidate follows these steps
01
02
03
04
Structure
approach
• Providing a big-picture approach of how to calculate the answer might help the
candidate gain more points and help the interviewer follow the candidate’s
thought process
Clarify
• Often interviewers don’t provide all the information
missing data
• The candidate needs to proactively ask for missing pieces
points
• Ideally the candidate shouldn’t make any mistakes
Calculate
accurately
Add colors
(optional)
• It is okay to ask for some time to run numbers and then walk the interviewer
through the calculations (some interviewers though might push back and ask
you to do your Math on the fly)
• The interviewers highly appreciate it when the candidate not only calculates the
answer correctly, but also contextualizes it
• For examples of contextualization, please refer to the advanced comments on
the previous slide
© 2023 Peter K. More at Peter-K.org
| 98
Case #6. Inspired by McKinsey. 2023. Customer engagement
Wild card
Q3. Key participation drivers
3
Some regional supermarket chains have already piloted livestreaming events (LEs), for
example, with virtual cooking classes, where they feature local chefs. Each event racks
up 200k-500k views. Why are customers so attracted to LEs?
Consumer habits
Social value
Exclusive benefits
Marketing
[Y-E-S shouldn’t invest a
lot in consumer education
as livestreaming events
aren’t an entirely new
shopping concept]
Shopping
• Consumers are
accustomed with live
shopping on TV
• Online shopping skills
got a boost during the
pandemic
Content consumption
• Gen Z and Millennials
crave interactive
experiences
• During the pandemic
people got used to
consume live videos
(e.g. zoom meetings)
[Given the global epidemy of
loneliness, aggravated by the
pandemic, people are more
inclined to look for social
opportunities]
Community
• LEs create community
feeling, sense of belonging
to like-minded people
• Consumers get elevated
shopping experience social shopping (vs solitary
traditional online shopping)
• Consumers get social
affirmation (e.g. likes,
hearts) for their purchases
Friendship
• LEs offer a new way of
hanging out with friends
• LEs might spark new
friendships with other
participants
[Livestreaming events
offer a clear practical
value that more utilitarian
customers likely
appreciate]
• Participants get access
to new or limitededition products
• Supermarket chains
might offer discounts/
coupons for
participants
• Consumers might
develop new skills (e.g.
cooking)
[Typical marketing technics
are likely at play to
encourage consumers to
join livestreaming events]
• Early adopters might
appreciate the sense of
novelty of LEs
• LEs are a form of
entertainment and might
feature celebrities and
product experts
Note: This is just one of many potential ways to brainstorm. Please treat this example only as a reference point and develop your own style. [The candidate is usually
expected to generate at least 4 ideas. The best practice is 7-8 ideas, structured approach, and on-the-fly delivery without taking notes]
© 2023 Peter K. More at Peter-K.org
| 99
Case #6. Inspired by McKinsey. 2023. Customer engagement
Wild card
Q3. Make sure the candidate follows these steps
01
• 80% of interviewers feel comfortable when candidates take 30-40 seconds to
Take time or
think and write down their ideas before walking the interviewer through them
do on-the-go
• The best practice is to ideate on-the-fly
02
Do horizontal
presentation
(optional)
03
• The best practice is to structure brainstorming and offer a 10-second top-down
overview, e.g. “Great question! The way I’d like to approach it is through four
lenses: first, consumer habits; secondly, social value; thirdly, exclusive benefits;
and finally, marketing”
• Regular feedback from consulting firms is that candidates offer only three ideas
which is a bit on the lower end
Provide at
least 4 ideas • Push the candidate to provide at least 4 ideas
• Top-5% of candidates can usually suggest 7-8 ideas
04
Add colors
(optional)
• To impress the interviewer, the candidates can contextualize some of their ideas
• Examples are given in [] brackets on the previous slide
© 2023 Peter K. More at Peter-K.org
| 100
Case #6. Inspired by McKinsey. 2023. Customer engagement
Wild card
Q4. Advantages of livestreaming events
4
What are some advantages that Y-E-S will enjoy if they succeed in building out a
regular series of livestreaming events?
Financials
Marketing
Brand
[Given its nascent nature as
a marketing channel,
livestreaming events might
not generate high sales
today but likely offer strong
long-term revenue potential]
• Immediate sales
• Postponed sales due to
increased brand
recognition
• Reach out to new
consumer segments
(especially gen Z and
young Millennials)
• Low opex sales channel
[Livestreaming events provide
a new marketing platform that
might complement other
marketing channels]
• A buzz among customers
• Boosted Y-E-S’ followship at
social networks
• Customer data (e.g.
excitement about new
products, price-sensitivity)
• Customer education about
products/brand
• Ability to test new products
and get market feedback
• Word-of-mouth marketing
after LEs
[Novelty, uniqueness, and
high-tech nature of
livestreaming events might
contribute to the brand
personality of Y-E-S]
• Stronger brand awareness
• Higher brand relevance (as
modern and up-to-date)
• More robust community
around brand
Note: This is just one of many potential ways to brainstorm. Please treat this example only as a reference point and develop your own style. [The candidate is usually
expected to generate at least 4 ideas. The best practice is 7-8 ideas, structured approach, and on-the-fly delivery without taking notes]
© 2023 Peter K. More at Peter-K.org
| 101
Case #6. Inspired by McKinsey. 2023. Customer engagement
Wild card
Q4. Make sure the candidate follows these steps
01
• 80% of interviewers feel comfortable when candidates take 30-40 seconds to
Take time or
think and write down their ideas before walking the interviewer through them
do on-the-go
• The best practice is to ideate on-the-fly
02
Do horizontal • The best practice is to structure brainstorming and offer a 10-second top-down
presentation
overview, e.g. “There are three types of benefits I’d like to talk about. First,
(optional)
financials; secondly, marketing; and finally, brand”
03
• Regular feedback from consulting firms is that candidates offer only three ideas
which is a bit on the lower end
Provide at
least 4 ideas • Push the candidate to provide at least 4 ideas
• Top-5% of candidates can usually suggest 7-8 ideas
04
Add colors
(optional)
• To impress the interviewer, the candidates can contextualize some of their ideas
• Examples are given in [] brackets on the previous slide
© 2023 Peter K. More at Peter-K.org
| 102
Recommendation
McKinsey typically doesn’t require
recommendation for their cases
© 2023 Peter K. More at Peter-K.org
| 103
Case #6. Inspired by McKinsey. 2023. Customer engagement
Wild card
Appendix 1. Livestream commerce
Livestream commerce* in
the U.S., B USD
Real data
Number of livestream events
conducted by Walmart in the U.S.
30
120
25
100
20
80
15
60
26
10
40
18
11
5
100
20
6
0
30
0
2020
2021
2022
2023F
2021
2022
Note: Livestream commerce is an online streaming video that offers the ability to purchase in real time
© 2023 Peter K. More at Peter-K.org
| 104
Case
#
7
Inspired by
McKinsey
Sustainability
2022
© 2023 Peter K. More at Peter-K.org
| 105
Case #7. Inspired by McKinsey. 2022. Sustainability
Wild card
Case #7. Inspired by McKinsey. 2022. Sustainability
Prompt
Additional
information
Curex, one of top-5 laundry detergent brands in the U.S., has been experiencing
pressure from their parent company to push the sustainability of their business to a
new level. Curex enjoys $400M in annual revenue and healthy margins (2021). The
company is proud of top-notch quality of their detergent products and high brand
recognition they have developed over decades. The CEO has invited your team to
help them navigate this new strategic challenge and achieve best-in-class
sustainability in the industry. What factors would you consider to design a strategy
to boost sustainability?
Please provide this information only upon request
• Curex operates only in the U.S. and doesn’t plan to go internationally
• Curex doesn’t have a specific approach to think about sustainability (one of the
reasons they have hired you)
• Curex is focused on mass market and offers all common types of detergent at
affordable prices: liquid, single-dose pacs, and powder
• Curex is part of several collective sustainability efforts (e.g. to reduce waste)
•
Case type
© 2023 Peter K. More at Peter-K.org
Curex donates regularly to nonprofits that are on a mission to preserve the
environment
Wild card
Hard level
Interviewerdriven case
15-20 minutes
to solve
| 106
Case #7. Inspired by McKinsey. 2022. Sustainability
Wild card
Opening. Make sure the candidate follows these steps
01
02
03
04
Restate the Typically the candidates are expected to restate the prompt to make sure they are on the
prompt
same page with the interviewer
Add colors
(optional)
Candidates can react to the prompt by providing some quick thoughts which will
demonstrate candidates’ business acumen, e.g.:
• “Sustainability has become one of the strategic pillars for most countries and big-name
companies. Saving the planet is a strengthening standard across industries and is the
promise that customers often expect from brands nowadays”
• “Great to know that Curex is a financially strong company which suggests they might
enjoy deep pockets to fund a potentially expensive sustainability strategy”
• “It seems like Curex has cultivated a loyal customer base which is great as the company
can leverage it to change customer behavior and improve sustainability of its detergent
usage”
Ask 2-3
questions
Candidates often ask 2-3 questions before designing their framework. However, there is no
“that very right” question that candidates should ask. Questions for this case might be:
• What are the major sustainability initiatives or projects that Curex is engaged in?
• Does Curex expect a comprehensive sustainability strategy covering its entire value chain
from suppliers to customers or does Curex want to focus on some specific aspect?
• How does Curex define sustainability and do they track any sustainability metrics?
Candidates don’t always get answers to their questions. In fact, McKinsey interviewers often
say that they don’t have any additional information.
Ask for a
moment to
structure
• Typically candidates ask for a couple of minutes to structure their approach
• Sometimes McKinsey interviewers ask the first question and then the candidate takes
time to build their framework
© 2023 Peter K. More at Peter-K.org
| 107
Wild card
Case #7. Inspired by McKinsey. 2022. Sustainability
Case questions
01
What factors should your team consider to design a sustainability
strategy for Curex?
02
Curex’s supply chain might do a lot of harm to the environment and
cause high social costs. It creates long-term risks for Curex as
Curex might lose suppliers due to potential new laws. What can
Curex do to increase sustainability of its supply chain?
03
The partner got intrigued by your sustainability ideas for product
design. They’d like to hear more thoughts on how to boost Curex’s
sustainability via altering detergent design.
04
Inspired by the findings of the team, Curex would like to invest
$50M to reach four sustainability goals by 2025. By how much will
it increase Curex’s annual profits?
© 2023 Peter K. More at Peter-K.org
| 108
Case #7. Inspired by McKinsey. 2022. Sustainability
Wild card
Q1. Framework
1
What factors should your team consider to design a sustainability strategy for Curex?
Sustainability
definition
• Social
o Fair trade
o Fair working
conditions
o Inequalities
• Environmental
o Carbon footprint
o Deforestation
o Pollution (soil,
water)
Supply chain
• Supplier selection
process (incl.
sustainability
requirements)
• Transparency in
suppliers’
sustainability (e.g.
inspections)
• Sustainability goals,
support and
incentives for
suppliers
Production and
logistics
Customers
• Product design (e.g.
materials,
packaging)
• Key customer
groups (e.g.
B2C/B2B)
• Energy usage (e.g.
electricity vs fuel)
• Typical laundry cycle
and its sustainability
assessment
• Waste management
• Working conditions
(e.g. hours, rest,
discrimination)
• Required changes in
customer behavior
(e.g. recycling)
Note: This is just one of many potential ways to structure your approach. Please treat this example only as a reference point and develop your own style.
© 2023 Peter K. More at Peter-K.org
| 109
Case #7. Inspired by McKinsey. 2022. Sustainability
Wild card
Q1. Make sure the candidate follows these steps
01
02
03
04
The best practice is to start with a 15-second big-picture overview, e.g. “Great to be here.
Do
horizontal
I’d like to break it down into four workstreams. First, sustainability definition; secondly,
presentation supply chain; thirdly, production and logistics; and finally, customers”
Hit key
points
Wild card cases don’t usually require including any specific key points in a framework.
However, the candidate might think through the following dimensions when designing their
structure:
1. Indicator (e.g. definition, current level, historical data, break-down by…, impact)
2. Indicator components, drivers, stakeholders, supply/demand
The offered framework in this case covers the indicator (sustainability) and value chain
stages (supply chain, production, and customers)
Add stories
(optional)
To avoid cookie-cutter/generic approach, the candidates can incorporate 2-3 stories into
their structure presentation, e.g.:
• “Poor sustainability performance of the supply chains can jeopardize the Curex’s growth
as the environmental and social impact demands from consumers, investors, and
regulators have been tightening at an exponential pace”
• “To decrease the natural and social costs of Curex’s production, the company might opt
for tactical changes like investing in clean manufacturing processes as well as strategic
shifts like upgrading its detergent product line through heavy R&D”
• “Curex’s sustainability gains also depend on customers’ adoption of key usage behaviors
like running a washing machine on “eco” rather than the regular cycle”
Finish with
a question
McKinsey interviewers don’t usually expect it, but at the end of the structure presentation, it
is helpful for the candidate to show that they can drive team forward and prioritize, e.g.
“Does it come across as a reasonable structure? Do we have any data on the current
sustainability metrics that Curex monitors?”
© 2023 Peter K. More at Peter-K.org
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Case #7. Inspired by McKinsey. 2022. Sustainability
Wild card
Q2. Sustainability plan for supply chain
2
Curex’s supply chain might do a lot of harm to the environment and cause high social
costs. It creates long-term risks for Curex as Curex might lose suppliers due to potential
new laws. What can Curex do to increase sustainability of its supply chain?
New suppliers
Existing suppliers
Product design
[The shift to sustainability
champions among potential
suppliers might propel
Curex’s sustainability
agenda]
• Include sustainability
requirements in the
supplier selection criteria
• Expand database of
suppliers to add vendors
with high sustainability
level
• Add sustainability goals
to SLAs (service level
agreements)
• Move supply chains to
low-cost countries with
stricter sustainability
legislation
[Encouraging sustainability efforts among existing
suppliers might deepen the business relationship and
improve cooperation between Curex and its vendors on
other fronts]
Assess
• Do regular inspections/audits of suppliers
• Offer digital tools to suppliers for free to track
sustainability metrics
Incentivize
• Offer awards for reaching sustainability goals
• Provide endorsements to highly sustainable suppliers
Develop
• Provide trainings on sustainability strategies
• Help suppliers design and implement sustainability
programs
• Offer low-interest loans to suppliers for sustainability
initiatives
• Conduct regular conferences for suppliers on
sustainability
[Alterations in detergent
design might result in shift
in supply chains and
increase the sustainability
appeal for customers]
• Change the detergent
formulation to minimize
ingredients with poor
sustainability footprint
(e.g. high-pollution
manufacturing)
• Change packaging to
avoid ingredients similar
to above
Note: This is just one of many potential ways to brainstorm. Please treat this example only as a reference point and develop your own style. [The candidate is usually
expected to generate at least 4 ideas. The best practice is 7-8 ideas, structured approach, and on-the-fly delivery without taking notes]
© 2023 Peter K. More at Peter-K.org
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Case #7. Inspired by McKinsey. 2022. Sustainability
Wild card
Q2. Make sure the candidate follows these steps
01
• 80% of interviewers feel comfortable when candidates take 30-40 seconds to
Take time or
think and write down their ideas before walking the interviewer through them
do on-the-go
• The best practice is to ideate on-the-fly
02
Do horizontal • The best practice is to structure brainstorming and offer a 10-second top-down
presentation
overview, e.g. “The way I’m thinking about it is through three lenses: first, new
(optional)
suppliers; secondly, existing suppliers; and finally, product design”
03
• Regular feedback from consulting firms is that candidates offer only three ideas
which is a bit on the lower end
Provide at
least 4 ideas • Push the candidate to provide at least 4 ideas
• Top-5% of candidates can usually suggest 7-8 ideas
04
Add colors
(optional)
• To impress the interviewer, the candidates can contextualize some of their ideas
• Examples are given in [] brackets on the previous slide
© 2023 Peter K. More at Peter-K.org
| 112
Case #7. Inspired by McKinsey. 2022. Sustainability
Wild card
Q3. Product design ideas
3
The partner got intrigued by your sustainability ideas for product design. They’d like to
hear more thoughts on how to boost Curex’s sustainability via altering detergent design.
Offering
[As a highly chemical product,
detergent is inherently harmful to
the environment. Investing in new
product formulation and packaging
design might limit waste, reduce
water pollution, and save energy]
Product
• Make the detergent’s composition
eco-friendly, without toxic
chemicals
• Increase the shelf-life of
detergent (to reduce waste)
Packaging
• Create detergent without
packaging (e.g. refilling stations
at supermarkets)
• Offer water-soluble packaging
• Limit paper in packaging (to
reduce deforestation)
• Limit plastics in packaging
• Offer recyclable/reusable
containers
Consumers’
behavior
Companies’
behavior
[Consumers are a crucial stakeholder
in sustainability efforts. Educating
detergent users on and promoting
environmentally responsible ways to
do laundry should be part of Curex’s
sustainability strategy]
• Design a new detergent formulation
that offers high quality laundry in:
o low temperature (avoiding hot
washing saves energy)
o shorter cycles (saves water and
energy)
• Design a new detergent formulation
that increases lifespan of clothes
(thus, reduces waste and
consumption of new clothes)
• Partner with laundry chains to offer
a new Curex’s detergent and
promote the messages above to
encourage more environmentally
conscious behavior
[I’d imagine large-scale commercial
laundry users might apply
aggressive detergent solutions due
to sanitary norms. It might be a
great opportunity for Curex: both
financially and sustainability wise]
• Create detergents for B2B clients
(e.g. hotels, hospitals, gyms, and
other large-scale laundry users) to
offer solutions for:
o low temperature laundry (e.g.
hotels do very hightemperature laundry due to
sanitary norms)
o Shorter laundry cycles
o Lower water use
• Create strategic partnerships with
hotels, gyms and other consumerfacing companies (heavy laundry
users) to encourage more
sustainable clothes washing (see
above)
Note: This is just one of many potential ways to brainstorm. Please treat this example only as a reference point and develop your own style. [The candidate is usually
expected to generate at least 4 ideas. The best practice is 7-8 ideas, structured approach, and on-the-fly delivery without taking notes]
© 2023 Peter K. More at Peter-K.org
| 113
Case #7. Inspired by McKinsey. 2022. Sustainability
Wild card
Q3. Make sure the candidate follows these steps
01
• 80% of interviewers feel comfortable when candidates take 30-40 seconds to
Take time or
think and write down their ideas before walking the interviewer through them
do on-the-go
• The best practice is to ideate on-the-fly
02
Do horizontal • The best practice is to structure brainstorming and offer a 10-second top-down
presentation
overview, e.g. “Absolutely. I’d like to break my ideation down into three
(optional)
dimensions: offering, consumers’ behavior, and companies’ behavior”
03
• Regular feedback from consulting firms is that candidates offer only three ideas
which is a bit on the lower end
Provide at
least 4 ideas • Push the candidate to provide at least 4 ideas
• Top-5% of candidates can usually suggest 7-8 ideas
04
Add colors
(optional)
• To impress the interviewer, the candidates can contextualize some of their ideas
• Examples are given in [] brackets on the previous slide
© 2023 Peter K. More at Peter-K.org
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Wild card
Case #7. Inspired by McKinsey. 2022. Sustainability
Q4. Math exercise – prompt
4
Inspired by the findings of the team, Curex would like to invest $50M to reach four
sustainability goals by 2025. By how much will it increase Curex’s annual profits?
Please share with the candidate the
following information
Please provide this additional
information only upon request
• Sustainability goals:
• Due to improved brand image, Curex’s
detergent sales are expected to grow
by 5%
– All the factories are powered with
100% renewable energy
– All the detergent packaging is 100%
recyclable
– All the detergent products are 100%
phosphate free*
– Zero waste to landfill for all the
factories
• Changes in raw materials and energy
sources are estimated to boost Curex’s
profit margin by 2 percentage points
• The current Curex’s margin is 10%
• As specified in the prompt, Curex’s
annual revenue is $400M
Note: Phosphates are used to soften hard water and are considered harmful to the environment. They get into waterways where they cause eutrophication (huge algae
blooms) which suck up all the oxygen and suffocate fish and aquatic life.
© 2023 Peter K. More at Peter-K.org
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Case #7. Inspired by McKinsey. 2022. Sustainability
Wild card
Q4. Math exercise – calculations
4
Inspired by the findings of the team, Curex would like to invest $50M to reach four
sustainability goals by 2025. By how much will it increase Curex’s annual profits?
Current
annual profit
$400M
10%
40M
New annual
revenue
$400M
(1+5%)
$420M
New annual
profits
$420M
(10%+2%)
$50M
Annual profit
increase
$50M
$40M
$10M
Based on the current assumptions, the annual profits will increase by $10M
© 2023 Peter K. More at Peter-K.org
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Case #7. Inspired by McKinsey. 2022. Sustainability
Wild card
Q4. Math exercise – contextualization of the answer
4
Inspired by the findings of the team, Curex would like to invest $50M to reach four
sustainability goals by 2025. By how much will it increase Curex’s annual profits?
Basic comments
(expected from
everyone)
We expect the annual profits to jump by 25% driven by financial
implications of the sustainability gains
$10M in additional profits means 5 years of payback period for
$50M investment, which isn’t too lucrative but coupled with the
sustainability gains seems like an attractive project
Advanced
comments (for
outstanding
candidates)
10% profit margin for such a highly commoditized product as
detergent seems on the higher end which makes me believe that
Curex might be perceived as a premium brand. Alternatively, Curex
might benefit from the economies of scope of its parent company
$50M investment over 3-4 years is a large project for a $400M
company. It’ll send a clear signal to the market that Curex isn’t
greenwashing but actually takes serious steps to create
meaningful environmental and social benefits
Note: The candidate is not expected to mention all the advanced comments, but adding some of them will demonstrate that the candidate can connect the dots, see the
depth, add colors and bring some insights even if the candidate is not that familiar with the industry/topic
© 2023 Peter K. More at Peter-K.org
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Case #7. Inspired by McKinsey. 2022. Sustainability
Wild card
Q4. Make sure the candidate follows these steps
01
02
03
04
Structure
approach
• Providing a big-picture approach of how to calculate the answer might help the
candidate gain more points and help the interviewer follow the candidate’s
thought process
Clarify
• Often interviewers don’t provide all the information
missing data
• The candidate needs to proactively ask for missing pieces
points
• Ideally the candidate shouldn’t make any mistakes
Calculate
accurately
Add colors
(optional)
• It is okay to ask for some time to run numbers and then walk the interviewer
through the calculations (some interviewers though might push back and ask
you to do your Math on the fly)
• The interviewers highly appreciate it when the candidate not only calculates the
answer correctly, but also contextualizes it
• For examples of contextualization, please refer to the advanced comments on
the previous slide
© 2023 Peter K. More at Peter-K.org
| 118
Recommendation
McKinsey typically doesn’t require
recommendation for their cases
© 2023 Peter K. More at Peter-K.org
| 119
Case
#8
Inspired by
McKinsey
Differentiation
2022
© 2023 Peter K. More at Peter-K.org
| 120
Case #8. Inspired by McKinsey. 2022. Differentiation
Wild card
Case #8. Inspired by McKinsey. 2022. Differentiation
Prompt
Additional
information
Our client is a privately-held Boston-based sport shoe company New Equilibrium
with $6B in sales. New Equilibrium is a beloved brand among sneakerheads, and it
also gains traction among the general consumers. With fierce competition from
Nike, Puma, and other players, New Equilibrium is rapidly becoming a
commoditized, generic brand of sneakers. They have asked your team to put
together an aggressive strategy to reinforce the differentiation of the company
without changing their pricing strategy. What factors do you want to consider to
help the client?
Please provide this information only upon request
• New Equilibrium sells their sneakers through an offline chain of sport shoe
stores, own online store and a network of offline and online distributors
• New Equilibrium’s online store generates 5% of the company’s revenue
• New Equilibrium operates only in the U.S. and doesn’t plan to go internationally
•
•
Case type
© 2023 Peter K. More at Peter-K.org
New Equilibrium doesn’t have any specific goals for this project
New Equilibrium uses traditional marketing like sponsorships, TV ads, marketing
events, but they stay away from ambassadors and key cultural tastemakers as
competitors’ influencer strategies brought mixed results in the past
Wild card
Hard level
Interviewerdriven case
15-20 minutes
to solve
| 121
Case #8. Inspired by McKinsey. 2022. Differentiation
Wild card
Opening. Make sure the candidate follows these steps
01
02
03
Restate the Typically the candidates are expected to restate the prompt to make sure they are on the
prompt
same page with the interviewer
Add colors
(optional)
Ask 2-3
questions
Candidates can react to the prompt by providing some quick thoughts which will
demonstrate candidates’ business acumen, e.g.:
• “I’d imagine sneakers are an incredibly commoditized market as for the vast majority of
customers it’s a single-function product. So, differentiation would not likely come from
product design”
• “I’d think that the key purchasing decision making criteria might include the overall look
of sneakers, but will most likely be heavy on brand perception. So, how customers feel
about New Equilibrium should be one of our major focuses”
• “It’s great to know that our client is a multi-billion-dollar player as it suggests they enjoy
deep pockets to go aggressive on marketing and other differentiation strategies we’ll
come up with”
Candidates often ask 2-3 questions before designing their framework. However, there is no
“that very right” question that candidates should ask. Questions for this case might be:
• What goals does New Equilibrium have in mind for this differentiation strategy?
• What major differentiation points did they use in the past?
• What unique features does New Equilibrium’s sneakers offer?
Candidates don’t always get answers to their questions. In fact, McKinsey interviewers often
say that they don’t have any additional information.
04
Ask for a
moment to
structure
• Typically candidates ask for a couple of minutes to structure their approach
• Sometimes McKinsey interviewers ask the first question and then the candidate takes
time to build their framework
© 2023 Peter K. More at Peter-K.org
| 122
Wild card
Case #8. Inspired by McKinsey. 2022. Differentiation
Case questions
01
What areas do you plan to explore to develop a differentiation
strategy for New Equilibrium if pricing is off the table?
02
After stage 1 of the project, New Equilibrium considers converting
their online store into a brand flagship platform to expand their
core offering and establish a direct connection with consumers.
What new products/services can they offer at the platform?
03
If New Equilibrium decides to proceed and launch a brand flagship
platform, what key success metrics should they consider?
04
Once New Equilibrium launches a flagship platform, they’d like to
boost their marketing and invest in collaboration models, public
endorsers, ambassadors, as well as ads and promotions. What
revenue from the platform should the client expect in two years?
© 2023 Peter K. More at Peter-K.org
| 123
Case #8. Inspired by McKinsey. 2022. Differentiation
Wild card
Q1. Framework
1
What areas do you plan to explore to develop a differentiation strategy for New
Equilibrium if pricing is off the table?
Customer
experience
Shoe portfolio
Brand and
marketing
Distribution
channels
• Brand awareness
among different
customer groups
• Online and offline
channels
• Breadth (# lines,
types)
• Key customer
segments
• Depth (# SKUs per
line)
• Customer
satisfaction
• Quality and unique
features
• Major pain points
• Brand loyalty
• Typical purchasing
decision making
criteria
• Marketing strategy
(e.g. channels, key
messages)
• Innovation cycle
• Brand perception
• Geographical
footprint
• Capacity and
product availability
per channel
Note: This is just one of many potential ways to structure your approach. Please treat this example only as a reference point and develop your own style.
© 2023 Peter K. More at Peter-K.org
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Case #8. Inspired by McKinsey. 2022. Differentiation
Wild card
Q1. Make sure the candidate follows these steps
01
02
The best practice is to start with a 15-second big-picture overview, e.g. “I plan to doubleDo
click on four buckets. First, understand the shoe portfolio of New Equilibrium. Secondly, get
horizontal
a better sense of their customers. Thirdly, explore brand and marketing. And finally, look
presentation
into the distribution strategy”
Hit key
points
Wild card cases don’t usually require including any specific key points in a framework.
However, the candidate might think through the following dimensions when designing their
structure:
1. Indicator (e.g. definition, current level, historical data, break-down by…, impact)
2. Indicator components, drivers, stakeholders, supply/demand
The offered framework in this case is focused on drivers (4Ps - product, marketing,
distribution, without pricing) and stakeholders (customers)
03
04
Add stories
(optional)
To avoid cookie-cutter/generic approach, the candidates can incorporate 2-3 stories into
their structure presentation, e.g.:
• “Given the large size of U.S. sneakers market (as sneakers are one of the most popular
footwear), I’d imagine there are plenty of niches and subsegments that New Equilibrium
can cover to differentiate”
• “Brand recognition and loyalty are major sales drivers in commoditized markets, as price
pressure is high and products don’t differentiate much”
• “Mass market customers usually appreciate accessibility, so it’s important to be close to
them and offer best-in-class distribution channels”
Finish with
a question
McKinsey interviewers don’t usually expect it, but at the end of the structure presentation, it
is helpful for the candidate to show that they can drive team forward and prioritize, e.g. “If
this comes across as a feasible framework, I’d like to start by analyzing the shoe portfolio
first. Do we know the current unique features of their sneakers?”
© 2023 Peter K. More at Peter-K.org
| 125
Case #8. Inspired by McKinsey. 2022. Differentiation
Wild card
Q2. New product/service ideas
2
After stage 1 of the project, New Equilibrium considers converting their online store into
a brand flagship platform to expand their core offering and establish a direct connection
with consumers. What new products/services can they offer at the platform?
Brand shop
[Given sneakers have been
around for decades, I would
expect limited innovation in
product design and
materials. However, there
might be some marginal
differentiation based on look
and fashion]
• New shoe designs (incl.
exclusive to online
purchases only)
• Collaboration models
(with sport celebrities)
• Sport apparel
• Brand merchandise
Self-led
practice
Coaching Culture
Culture
Community
[A wide variety of fitness
smartphone apps might
enhance customer
experience and become a
strong differentiation point.
It will also provide valuable
customer data and increase
retention rate]
• Running app
• Training app
• Hiking app
[New Equilibrium might
become a marketplace for
3rd party vendors and
offer high-touch
experiences for sport
enthusiasts]
• Guided group runs and
workouts
• Training, nutrition and
wellness advice from
professional trainers
• Individual 1-on-1
training
[New Equilibrium might
stand out by building a
strong community around
its services. It’ll allow to
boost brand value for
customers and increase
brand loyalty]
• Local social events
• Networking tools to
connect with fellow sport
enthusiasts
• Work-out groups
• Q&As with crowdsourced answers
Note: This is just one of many potential ways to brainstorm. Please treat this example only as a reference point and develop your own style. [The candidate is usually
expected to generate at least 4 ideas. The best practice is 7-8 ideas, structured approach, and on-the-fly delivery without taking notes]
© 2023 Peter K. More at Peter-K.org
| 126
Case #8. Inspired by McKinsey. 2022. Differentiation
Wild card
Q2. Make sure the candidate follows these steps
01
• 80% of interviewers feel comfortable when candidates take 30-40 seconds to
Take time or
think and write down their ideas before walking the interviewer through them
do on-the-go
• The best practice is to ideate on-the-fly
02
Do horizontal
presentation
(optional)
03
• The best practice is to structure brainstorming and offer a 10-second top-down
overview, e.g. “Let me think about new products as ways to differentiate through
four lenses: first, brand shop; secondly, self-led practice; thirdly, coaching; and
finally, community”
• Regular feedback from consulting firms is that candidates offer only three ideas
which is a bit on the lower end
Provide at
least 4 ideas • Push the candidate to provide at least 4 ideas
• Top-5% of candidates can usually suggest 7-8 ideas
04
Add colors
(optional)
• To impress the interviewer, the candidates can contextualize some of their ideas
• Examples are given in [] brackets on the previous slide
© 2023 Peter K. More at Peter-K.org
| 127
Case #8. Inspired by McKinsey. 2022. Differentiation
Wild card
Q3. Key success metrics
3
If New Equilibrium decides to proceed and launch a brand flagship platform, what key
success metrics should they consider?
New Equilibrium
[Stronger differentiation should
primarily lead to financial
results. Financial success
metrics can be assessed
through stages of customer
journey]
Aggregated metrics
• Overall traffic (# unique
leads)
• # page views
• Conversion rates (e.g. to
product page, purchase)
• # purchases
• Revenue generated
Customer data
• # unique customers (who
purchased products)
• Visit/purchase frequency
• Time spent per visit
• Life-time value
Customers
[Measuring and tracking customer gains
might be powerful success metrics that
could uncover problem areas and show
progress in strengthening the client’s
brand]
Customer satisfaction
• Overall customer satisfaction or NPS
• Willingness to recommend to a friend
• Rankings of apps and products
Social activities
• # followers, comments, likes, reactions,
etc.
• # participants at the company’s events
• Amount of crowd-sourced content (e.g.
answers to questions)
3rd party vendors
[Ensuring 3rd party partners are
a success might not only bring
stable revenue stream from sales
commissions but also unlock new
business opportunities]
• Revenue for 3rd party vendors
(e.g. trainers, workout tracker
apps)
• # customers
• Average purchase per
customer
• Retention rate
Note: This is just one of many potential ways to brainstorm. Please treat this example only as a reference point and develop your own style. [The candidate is usually
expected to generate at least 4 ideas. The best practice is 7-8 ideas, structured approach, and on-the-fly delivery without taking notes]
© 2023 Peter K. More at Peter-K.org
| 128
Case #8. Inspired by McKinsey. 2022. Differentiation
Wild card
Q3. Make sure the candidate follows these steps
01
• 80% of interviewers feel comfortable when candidates take 30-40 seconds to
Take time or
think and write down their ideas before walking the interviewer through them
do on-the-go
• The best practice is to ideate on-the-fly
02
Do horizontal
presentation
(optional)
03
• The best practice is to structure brainstorming and offer a 10-second top-down
overview, e.g. “I’d suggest to think about success metrics based on
stakeholders. First, the client itself. Secondly, customers. And thirdly, 3rd party
vendors”
• Regular feedback from consulting firms is that candidates offer only three ideas
which is a bit on the lower end
Provide at
least 4 ideas • Push the candidate to provide at least 4 ideas
• Top-5% of candidates can usually suggest 7-8 ideas
04
Add colors
(optional)
• To impress the interviewer, the candidates can contextualize some of their ideas
• Examples are given in [] brackets on the previous slide
© 2023 Peter K. More at Peter-K.org
| 129
Wild card
Case #8. Inspired by McKinsey. 2022. Differentiation
Q4. Math exercise – prompt
4
Once New Equilibrium launches a flagship platform, they’d like to boost their marketing
and invest in collaboration models, public endorsers, ambassadors, as well as ads and
promotions. What revenue from the platform should the client expect in two years?
Please share with the candidate the
following information
Please provide this additional
information only upon request
• New Equilibrium’s online store
generates 5% of the company’s
revenue
• Each pair of sneakers is sold at $150
on average
• We expect the volume sold through
the platform to quadruple in two
years
• Due to aggressive marketing, the
average price per pair of sneakers is
expected to decrease by 10%
© 2023 Peter K. More at Peter-K.org
| 130
Case #8. Inspired by McKinsey. 2022. Differentiation
Wild card
Q4. Math exercise – calculations
4
Once New Equilibrium launches a flagship platform, they’d like to boost their marketing
and invest in collaboration models, public endorsers, ambassadors, as well as ads and
promotions. What revenue from the platform should the client expect in two years?
Current volume
sold through
online store
$6B
5%
$150
New average
selling price
$150
(1-10%)
$135
New expected
revenue
2M
4 times
$135
2M
$1.08B
4M
According to the current scenario, the platform’s revenue should reach $1.08B in 2 years
© 2023 Peter K. More at Peter-K.org
| 131
Case #8. Inspired by McKinsey. 2022. Differentiation
Wild card
Q4. Math exercise – contextualization of the answer
4
Once New Equilibrium launches a flagship platform, they’d like to boost their marketing
and invest in collaboration models, public endorsers, ambassadors, as well as ads and
promotions. What revenue from the platform should the client expect in two years?
Basic comments
(expected from
everyone)
Based on our assumptions, the revenue from own online channel
is going to more than triple from $300M to $1.08B in two years
The development of a brand flagship platform seems like a
large-scale and time-demanding project that might take up to
several years. By that time a lot of assumptions might become
less reasonable
Advanced
comments (for
outstanding
candidates)
Given pandemic-induced spike in online shopping and large
marketing resources that New Equilibrium can put behind this
project, quadrupling volume sounds ambitious but feasible
With such promising revenue jump, we should expect other bigname sport shoe brands to launch their own brand flagship
platforms, so we need to move fast to benefit from this
competitive advantage before fast-followers catch up with us
Note: The candidate is not expected to mention all the advanced comments, but adding some of them will demonstrate that the candidate can connect the dots, see the
depth, add colors and bring some insights even if the candidate is not that familiar with the industry/topic
© 2023 Peter K. More at Peter-K.org
| 132
Case #8. Inspired by McKinsey. 2022. Differentiation
Wild card
Q4. Make sure the candidate follows these steps
01
02
03
04
Structure
approach
• Providing a big-picture approach of how to calculate the answer might help the
candidate gain more points and help the interviewer follow the candidate’s
thought process
Clarify
• Often interviewers don’t provide all the information
missing data
• The candidate needs to proactively ask for missing pieces
points
• Ideally the candidate shouldn’t make any mistakes
Calculate
accurately
Add colors
(optional)
• It is okay to ask for some time to run numbers and then walk the interviewer
through the calculations (some interviewers though might push back and ask
you to do your Math on the fly)
• The interviewers highly appreciate it when the candidate not only calculates the
answer correctly, but also contextualizes it
• For examples of contextualization, please refer to the advanced comments on
the previous slide
© 2023 Peter K. More at Peter-K.org
| 133
Recommendation
McKinsey typically doesn’t require
recommendation for their cases
© 2023 Peter K. More at Peter-K.org
| 134
Case
#
9
Inspired by
McKinsey
Reputation
2023
© 2023 Peter K. More at Peter-K.org
| 135
Case #9. Inspired by McKinsey. 2023. Reputation
Wild card
Case #9. Inspired by McKinsey. 2023. Reputation
Prompt
Additional
information
Robert Sandler School of Drama (RSSD), an internationally recognized top U.S.
acting school, would like to retain their standing as a reputable and one of the best
colleges with acting programs in the world. RSSD offers students a four-year,
sequence-based program leading to a Bachelor of Fine Arts in Drama. Students
take extensive core curriculum classes of acting, voice and speech, and movement.
Classes are small and an emphasis is placed on highly individualized, personal
attention, as well as developing a sense of collaboration and working in an
ensemble. What factors should we consider to help the client with their reputation?
Please provide this information only upon request
• RSSD was founded in 1914
• RSSD alumni have received 13 Oscar Academy Awards (motion picture), 142
Emmy Awards (television industry), 52 Tony Awards (theater)
• RSSD has one of the smallest class sizes among top drama schools in the world
•
•
•
Case type
© 2023 Peter K. More at Peter-K.org
The acceptance rate to the RSSD’s acting program is only 0.4%
The RSSD’s faculty consists of working theater and movie professionals
committed to teaching the highest standards of quality and professional ethics
Due to the recent generous donation, the RSSD’s programs are free for students
Wild card
Hard level
Interviewerdriven case
15-20 minutes
to solve
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Case #9. Inspired by McKinsey. 2023. Reputation
Wild card
Opening. Make sure the candidate follows these steps
01
02
03
04
Restate the Typically the candidates are expected to restate the prompt to make sure they are on the
prompt
same page with the interviewer
Add colors
(optional)
Candidates can react to the prompt by providing some quick thoughts which will demonstrate
candidates’ business acumen, e.g.:
• “To keep their sky-rocketing success, TV streaming platforms have been aggressively
investing in new movies and shows which creates strong demand for high-caliber actors”
• “The generational shift towards digital content puts downward pressure on conventional
theaters and broadway shows which might make an acting career less attractive”
• “Covid-propelled demand for entertainment, constant innovation of social networks, and
growing appeal of influencers offer favorable environment for millions of people to express
themselves through digital content creation. Arguably, that has boosted appetite for acting
and cultivated a large pool of raw acting talent for drama schools’ talent scouts”
Ask 2-3
questions
Candidates often ask 2-3 questions before designing their framework. However, there is no
“that very right” question that candidates should ask. Questions for this case might be:
• How selective is RSSD? What’s their acceptance rate to the acting program?
• How distinguished is the faculty of RSSD? What’s their background?
• What’s the overall brand perception of RSSD? Are there any PR issues?
Candidates don’t always get answers to their questions. In fact, McKinsey interviewers often
say that they don’t have any additional information.
Ask for a
moment to
structure
• Typically candidates ask for a couple of minutes to structure their approach
• Sometimes McKinsey interviewers ask the first question and then the candidate takes
time to build their framework
© 2023 Peter K. More at Peter-K.org
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Wild card
Case #9. Inspired by McKinsey. 2023. Reputation
Case questions
01
What factors should we consider to help RSSD retain their topnotch reputation of one of the best colleges with acting
programs in the world?
02
RSSD plans to expand its faculty which will enable the school to
serve more students. How many more applicants should RSSD
attract to expand the class size if the school wants to ensure
the same student-to-faculty ratio and acceptance rate?
03
RSSD would like to hire five high-caliber professors in acting to
strengthen their faculty and increase the class size. What
factors would matter for new professors to join RSSD?
04
As a top acting school, RSSD is vulnerable to potential
reputational risks. What might cause issues to RSSD’s
reputation in future?
© 2023 Peter K. More at Peter-K.org
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Case #9. Inspired by McKinsey. 2023. Reputation
Wild card
Q1. Framework
1
What factors should we consider to help RSSD retain their top-notch reputation of one
of the best colleges with acting programs in the world?
Robert Sandler
School of Drama
Faculty
Students
• Rankings/ratings
• Talent management
• Class size
• Brand perception
• Research &
publications
• Quality of students
(e.g. acceptance
rate, grades)
• Marketing and PR
strategy
• Student-to-faculty
ratio
• Employment prep
Alums
• Size of alum
community
• Reputation of alum
(e.g. awards, roles)
• Current employment
• Curriculum and
performances
Note: This is just one of many potential ways to structure your approach. Please treat this example only as a reference point and develop your own style.
© 2023 Peter K. More at Peter-K.org
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Case #9. Inspired by McKinsey. 2023. Reputation
Wild card
Q1. Make sure the candidate follows these steps
01
02
The best practice is to start with a 15-second big-picture overview, e.g. “It’s a very
Do
horizontal
interesting problem to solve. I’d like to dissect it into four workstreams - the client, faculty,
presentation students, and alums”
Hit key
points
Wild card cases don’t usually require including any specific key points in a framework.
However, the candidate might think through the following dimensions when designing their
structure:
1. Indicator (e.g. definition, current level, historical data, break-down by…, impact)
2. Indicator components, drivers, stakeholders, supply/demand
The offered framework in this case covers the stakeholders (client, faculty, students, and
alums)
03
04
Add stories
(optional)
To avoid cookie-cutter/generic approach, the candidates can incorporate 2-3 stories into
their structure presentation, e.g.:
• “I’d imagine that the choice for drama majors is just partly driven by future income but
more so by passion and strong perspectives of becoming a great actor. Thus, the
outstanding faculty is key for the client’s reputation”
• “To my best knowledge, employment is a challenge for most actors, and often they need
side jobs to stay afloat. Robust employment records of fresh-of-college grads is likely an
important factor for the drama school’s reputation”
• “I’d think that artists feed inspiration and learn from each other, so diverse and
exceptionally talented community of peers is crucial for the learning process. That’s why
being highly selective and allowing low acceptance rate might be a sign of high quality”
Finish with
a question
McKinsey interviewers don’t usually expect it, but at the end of the structure presentation, it
is helpful for the candidate to show that they can drive team forward and prioritize, e.g. “If
this resonates with you, I’d like to look into the client first. Do we have any data on their
current rankings/ratings?”
© 2023 Peter K. More at Peter-K.org
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Wild card
Case #9. Inspired by McKinsey. 2023. Reputation
Q2. Math exercise – prompt
2
RSSD plans to expand its faculty which will enable the school to serve more students.
How many more applicants should RSSD attract to expand the class size if the school
wants to ensure the same student-to-faculty ratio and acceptance rate?
Please share with the candidate the
following information
Please provide this additional
information only upon request
• Appendix 1.
• RSSD offers a four-year acting
program leading to a Bachelor of
Fine Arts in Drama
• RSSD plans to hire five more
lecturers/professors in acting
© 2023 Peter K. More at Peter-K.org
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Case #9. Inspired by McKinsey. 2023. Reputation
Wild card
Q2. Math exercise – calculations
2
RSSD plans to expand its faculty which will enable the school to serve more students.
How many more applicants should RSSD attract to expand the class size if the school
wants to ensure the same student-to-faculty ratio and acceptance rate?
New class size
(23+5)
2 [student-tofaculty ratio]
4 years
Number of
additional
applicants
(14-12)
0.4%
500
14
The client should attract 500 more applicants to yield 2 more students
© 2023 Peter K. More at Peter-K.org
| 142
Case #9. Inspired by McKinsey. 2023. Reputation
Wild card
Q2. Math exercise – contextualization of the answer
2
RSSD plans to expand its faculty which will enable the school to serve more students.
How many more applicants should RSSD attract to expand the class size if the school
wants to ensure the same student-to-faculty ratio and acceptance rate?
Basic comments
(expected from
everyone)
RSSD should increase their marketing efforts to attract
additional 500 applicants in order to get 2 more students to
ensure the same student-to-faculty ratio
Such a rapid dramatic increase in applicant pool (by ~20%)
might result in poorer candidate quality and drop in the
acceptance rate or new students’ level which will hurt the
school’s reputation
Advanced
comments (for
outstanding
candidates)
Despite the increase in the class size, it’ll remain the smallest
among top-10 acting schools and thus shouldn’t negatively
affect the program’s quality and the school’s reputation
The class size increase should create a buzz among
candidates and correspondent media and strengthen brand
awareness of RSSD
Note: The candidate is not expected to mention all the advanced comments, but adding some of them will demonstrate that the candidate can connect the dots, see the
depth, add colors and bring some insights even if the candidate is not that familiar with the industry/topic
© 2023 Peter K. More at Peter-K.org
| 143
Case #9. Inspired by McKinsey. 2023. Reputation
Wild card
Q2. Make sure the candidate follows these steps
01
02
03
04
Structure
approach
• Providing a big-picture approach of how to calculate the answer might help the
candidate gain more points and help the interviewer follow the candidate’s
thought process
Clarify
• Often interviewers don’t provide all the information
missing data
• The candidate needs to proactively ask for missing pieces
points
• Ideally the candidate shouldn’t make any mistakes
Calculate
accurately
Add colors
(optional)
• It is okay to ask for some time to run numbers and then walk the interviewer
through the calculations (some interviewers though might push back and ask
you to do your Math on the fly)
• The interviewers highly appreciate it when the candidate not only calculates the
answer correctly, but also contextualizes it
• For examples of contextualization, please refer to the advanced comments on
the previous slide
© 2023 Peter K. More at Peter-K.org
| 144
Case #9. Inspired by McKinsey. 2023. Reputation
Wild card
Q3. Attractiveness factors for new professors in acting
3
RSSD would like to hire five high-caliber professors in acting to strengthen their faculty
and increase the class size. What factors would matter for new professors to join RSSD?
Spiritual perks
Compensation
Work conditions
Culture
[New professors might cherish
the opportunity to be part of
the reputable school as well
as outstanding student and
faculty communities]
[Acting doesn’t offer
predictable income so stable
and competitive
compensation package should
be solid value proposition for
professors]
[I’d imagine art professionals
often seek for self-expression
and professional satisfaction.
So, work conditions might be
a crucial decision-making
factor for new professors]
[I’d think that acting is a very
social profession, so healthy
communities are key for
professional growth and
success for actors]
• Attractive salaries
• Strong healthcare plan
• Creative freedom in
teaching (ability to
promote their own acting
techniques)
• Top-notch equipment
• Honor to be part of such a
reputable school (e.g.
famous alums)
• Honor to work side-by-side
with distinguished acting
professionals from faculty
(e.g. Oscar award winners)
• Pride of teaching a new
generation of actors
• Ability to pay back to their
school (if they are RSSD’s
alums)
• Ability to direct a
production (and satisfy
professional ambitions)
• Appealing retirement plan
• High-quality childcare
• Annual bonuses
• Strong labor union
• Subsidized apartment rent
• Small teaching groups
• Outstanding hand-picked
students (due to strict
selection process and low
acceptance rate)
• Strong leadership of
current administration
• Healthy culture and
community of faculty
• Personal connections to
existing faculty (e.g. from
previous work experience)
• Plenty of school events
• Proximity to school
• Proximity to cultural hubs
(e.g. NYC, LA, Chicago)
Note: This is just one of many potential ways to brainstorm. Please treat this example only as a reference point and develop your own style. [The candidate is usually
expected to generate at least 4 ideas. The best practice is 7-8 ideas, structured approach, and on-the-fly delivery without taking notes]
© 2023 Peter K. More at Peter-K.org
| 145
Case #9. Inspired by McKinsey. 2023. Reputation
Wild card
Q3. Make sure the candidate follows these steps
01
• 80% of interviewers feel comfortable when candidates take 30-40 seconds to
Take time or
think and write down their ideas before walking the interviewer through them
do on-the-go
• The best practice is to ideate on-the-fly
02
Do horizontal • The best practice is to structure brainstorming and offer a 10-second top-down
presentation
overview, e.g. “Sure. The way I’m thinking about it is through four lenses:
(optional)
spiritual perks, compensation, work conditions, and culture”
03
• Regular feedback from consulting firms is that candidates offer only three ideas
which is a bit on the lower end
Provide at
least 4 ideas • Push the candidate to provide at least 4 ideas
• Top-5% of candidates can usually suggest 7-8 ideas
04
Add colors
(optional)
• To impress the interviewer, the candidates can contextualize some of their ideas
• Examples are given in [] brackets on the previous slide
© 2023 Peter K. More at Peter-K.org
| 146
Case #9. Inspired by McKinsey. 2023. Reputation
Wild card
Q4. Reputational risks
4
As a top acting school, RSSD is vulnerable to potential reputational risks. What might
cause issues to RSSD’s reputation in future?
RSSD’s
administration
[Brand image and reputation
management are at the core
of the school’s overall
strategy. Poor business
leadership might stimulate
reputational risks]
Business risks
• Drop in RSSD’s rankings
• Inadequate marketing
(e.g. inefficient messages,
channels, low volume)
• Lack of investment in upto-date tech and
equipment
Legal risks
• Nepotism
• Bribery
• Legal issues with
accreditation
• Lawsuits against RSSD
Faculty
Students
Alums
[Faculty is the key asset of any drama
school. Any challenges with faculty
selection, quality, development, or
culture might cause irreparable
reputational damage. Especially when
the class size is so small]
Culture risks
• Toxic culture and questionable role
modelling
• Low morale
Instructional risks
• Poor quality of teaching
• Too experimental curriculum
• Creativity crisis
Unprofessional behavior
• Sexual harassment of students
• PR (e.g. unethical statements in
social media)
Talent management risks
• Unusually high drop out rate
• Strikes
[Any education system is a
two-way road. School and
faculty can provide needed
curriculum and conditions,
but students’ success often
depends on students’ hard
work. Low quality student
body and inadequate
learning outcomes could
jeopardize the school’s
reputation]
• Poor performances (e.g.
harsh critics’ reviews of
end-of-semester public
performances)
• Unusually high drop out
rate
• PR (e.g. unethical
statements in social media)
[Alums represent the
school during their entire
careers, and reputational
issues with their
professional lives might
damage RSSD’s
reputation]
• Low employment rate
right after graduation
• Limited successes (e.g.
no big roles, no awards,
especially in recent
graduation classes)
• PR (e.g. unethical
statements in social
media)
Note: This is just one of many potential ways to brainstorm. Please treat this example only as a reference point and develop your own style. [The candidate is usually
expected to generate at least 4 ideas. The best practice is 7-8 ideas, structured approach, and on-the-fly delivery without taking notes]
© 2023 Peter K. More at Peter-K.org
| 147
Case #9. Inspired by McKinsey. 2023. Reputation
Wild card
Q4. Make sure the candidate follows these steps
01
• 80% of interviewers feel comfortable when candidates take 30-40 seconds to
Take time or
think and write down their ideas before walking the interviewer through them
do on-the-go
• The best practice is to ideate on-the-fly
02
Do horizontal • The best practice is to structure brainstorming and offer a 10-second top-down
presentation
overview, e.g. “Absolutely. I’d like to suggest reputational risks that might be
(optional)
associated with four actors - school itself, faculty, students, and alums”
03
• Regular feedback from consulting firms is that candidates offer only three ideas
which is a bit on the lower end
Provide at
least 4 ideas • Push the candidate to provide at least 4 ideas
• Top-5% of candidates can usually suggest 7-8 ideas
04
Add colors
(optional)
• To impress the interviewer, the candidates can contextualize some of their ideas
• Examples are given in [] brackets on the previous slide
© 2023 Peter K. More at Peter-K.org
| 148
Recommendation
McKinsey typically doesn’t require
recommendation for their cases
© 2023 Peter K. More at Peter-K.org
| 149
Case #9. Inspired by McKinsey. 2023. Reputation
Wild card
Appendix 1. Top-10 acting schools in the world, 2022
SCHOOL
Real data
Region
Class size
Number of
applicants
Faculty size
Student-tofaculty ratio**
Acceptance
rate
1
Juilliard School
US
18
1,500
18
4
1.2%
2
NYU: Tisch School of the Arts
US
300*
3,000*
N/A
N/A
10.0%
3
David Geffen School of
Drama at Yale
US
16
~1,000
34
2
1.6%
4
London Academy of Music
and Dramatic Arts
UK
30
3,500
20
6
0.9%
5
Robert Sandler School of
Drama
US
12
3,000
23
2
0.4%
6
Royal Academy of Dramatic
Art
UK
28
3,500
42
2
0.8%
7
UCLA: School of Theatre,
Film and Television
US
50*
600*
30
5
8.3%
8
USC School of Dramatic Arts
(BFA in Acting program)
US
32
516
N/A
N/A
6.2%
9
Guildhall School of Music &
Drama
UK
26
2,610
31
2
1.0%
Australia
26
1,000
N/A
N/A
2.6%
National Institute of
10 Dramatic Art
Note: *Estimated; **Student-to-faculty ratio equals the total number of students in acting majors across years of studying divided by the faculty size
© 2023 Peter K. More at Peter-K.org
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Case
#
10
Inspired by
McKinsey
Plant-based meat
2023
© 2023 Peter K. More at Peter-K.org
| 151
Case #10. Inspired by McKinsey. 2023. Plant-based meat
Impact of trend
Case #10. Inspired by McKinsey. 2023. Plant-based meat
Prompt
The CEO of a $1B regional fast-food chain Up-N-Down Burger (UDB) has asked
your team to help her prepare for the annual strategy meeting with the executives.
Specifically, she is concerned about the rapidly growing popularity of plant-based
meat and the implications of this major innovation for UDB over the next 5 years.
The chain hasn’t baked this new trend in its strategy yet, but a lot of other fastfood players have already started adjusting to this new reality. How should UDB
think about the quickly expanding segment of “meatless” meat?
Additional
information
Please provide this information only upon request
• UDB’s chain has 400 locations in five states with a major focus on California
• UDB doesn’t offer “impossible” burger or any other plant-based meat offerings
• In the U.S. eight fast-food chains offer vegan burgers, incl. giant Burger King
with Impossible Whopper
• After a trial run in 2021-22, McDonald’s discontinued its vegan burger (McPlant)
due to low sales (especially in rural areas) with no plans to re-introduce it
• While only 8% of the U.S. population consider themselves vegetarians or
vegans, more than 40% describe themselves as flexitarians (semi-vegetarians
who follow a primarily vegetarian diet but occasionally eat meat or fish)
Case type
Impact of trend
© 2023 Peter K. More at Peter-K.org
Hard level
Interviewerdriven case
15-20 minutes
to solve
| 152
Case #10. Inspired by McKinsey. 2023. Plant-based meat
Impact of trend
Opening. Make sure the candidate follows these steps
01
02
03
Restate the Typically the candidates are expected to restate the prompt to make sure they are on the
prompt
same page with the interviewer
Add colors
(optional)
Ask 2-3
questions
Candidates can react to the prompt by providing some quick thoughts which will
demonstrate candidates’ business acumen, e.g.:
• “I’d think that vegan burgers aren’t a brand-new offering with a lot of unknowns, but
they are rapidly becoming a new mainstream with proven demand. Given a lot of players
have already adopted plant-based burgers in their regular menus, it seems that UDB
should be able to benefit from integrating this alternative burger into their model”
• “Sustainability and health consciousness are major decision-making purchasing factors for
lots of consumers and likely cause constant downward pressure on the fast-food industry”
• “Offering vegan and vegetarian menu items might expand sizeable addressable market
for UDB and improve brand perception”
Candidates often ask 2-3 questions before designing their framework. However, there is no
“that very right” question that candidates should ask. Questions for this case might be:
• Does UDB have any alternative meat offerings?
• What’s geographical footprint of UDB?
• What’s the size and growth rate of plant-based meat market in the U.S.?
Candidates don’t always get answers to their questions. In fact, McKinsey interviewers often
say that they don’t have any additional information.
04
Ask for a
moment to
structure
• Typically candidates ask for a couple of minutes to structure their approach
• Sometimes McKinsey interviewers ask the first question and then the candidate takes
time to build their framework
© 2023 Peter K. More at Peter-K.org
| 153
Impact of trend
Case #10. Inspired by McKinsey. 2023. Plant-based meat
Case questions
01
What factors should UDB consider in assessing the impact of the
rapidly growing popularity of plant-based meat on UDB over the
next five years?
02
If UDB decides to launch a plant-based burger across its chain,
what impact on the company’s operations will this launch have?
03
How will this decision of introducing a vegan burger impact UDB
financially? What drivers would you consider in assessing financial
implications of this new menu item?
04
UDB would like to launch a plant-based burger to capitalize on the
boom of alternative meats and success stories of other players like
Carl’s Jr, Burger King, Shake Shack, etc. What additional annual
gross profits should UDB expect from this new burger?
© 2023 Peter K. More at Peter-K.org
| 154
Case #10. Inspired by McKinsey. 2023. Plant-based meat
Impact of trend
Q1. Framework
1
What factors should UDB consider in assessing the impact of the rapidly growing
popularity of plant-based meat on UDB over the next five years?
Competitive
landscape
UDB’s menu
UDB’s marketing
• New fast-food
chains with focus on
plant-based meat
• Brand-new menu
items (e.g. plantbased ostrich meat)
• Brand implications
• First movers and
fast followers
among existing
players
• Vegan alternatives
for existing menu
items
Customers
• Customer mix
o Vegans and
vegetarians
o Sustainability
supporters
• Regional differences
in diets
• Adoption cycle (e.g.
early adopters, early
majority)
• New industry
standards and
expectations
• Market education
• New drivers (e.g.
sustainability,
health)
• Wider range of
plant-based meat
(e.g. frozen/fresh/
ambient)
Note: This is just one of many potential ways to structure your approach. Please treat this example only as a reference point and develop your own style.
© 2023 Peter K. More at Peter-K.org
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Case #10. Inspired by McKinsey. 2023. Plant-based meat
Impact of trend
Q1. Make sure the candidate follows these steps
01
02
03
04
The best practice is to start with a 15-second big-picture overview, e.g. “The way I plan to
Do
attack this problem is through four dimensions. First, I’d like to explore implications for
horizontal
customers. Secondly, for competitive landscape. Thirdly, for our menu. And finally for our
presentation
marketing”
Check if the candidate covers all key points typical for an impact-of-trend case structure:
Impact on
Impact on
Impact on
Impact on
customers
competition
operating model*
business model
• Change in
• Newcomers
• People
• Product portfolio
Hit key
customer segments • Major players and • Marketing strategy
• Processes
points
• Change in
their reaction to
• Distribution channels* • Systems
customer behavior
the trend
• Pricing strategy*
* - less important in this case as these areas won’t likely be affected
Add stories
(optional)
Finish with
a question
To avoid cookie-cutter/generic approach, the candidates can incorporate 2-3 stories into their
structure presentation, e.g.:
• “It’s great to see that our client is a large chain and likely enjoys deep marketing pockets,
high brand awareness, and economies of scale. These capabilities will help UDB adjust to
the new trend”
• “The rise of plant-based meat might be similar to the increase in popularity of plant-based
milk which triggered a lot of product innovation and changes in menus of food chains”
• “Given that red meat isn’t sustainable and countries try to reduce the beef production to
fight the climate change, it should propel the demand for plant-based meat in future”
McKinsey interviewers don’t usually expect it, but at the end of the structure presentation, it
is helpful for the candidate to show that they can drive team forward and prioritize, e.g. “If
this comes across like a reasonable plan of attack, let’s dive into customers. Do we see
changes in our customer segments?”
© 2023 Peter K. More at Peter-K.org
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Case #10. Inspired by McKinsey. 2023. Plant-based meat
Impact of trend
Q2. Operational implications
2
If UDB decides to launch a plant-based burger across its chain, what impact on the
company’s operations will this launch have?
Storage and
logistics
Supply chain
[The limited number of plantbased meat suppliers in the
U.S. might constrain UDB’s
flexibility in building
operationally efficient supply
chains]
• Find and build new
supplier relationships
• Likely hire new account
managers for plant-based
meat suppliers
• Develop new routes to
deliver new raw materials
to UDB’s warehouses
[Storage and transportation of
perishable food products are
always operationally challenging]
• Potentially invest in storage
facility expansion
• Build in additional safety
measures in warehouses to
avoid contamination of plantbased meat from animal meat
• Consider expanding fleet of
refrigerated trucks to transport
“meatless” patties to UDB’s
stores
• Ensure strategic supply buffer
of plant-based meat to
mitigate potential supply chain
disruptions [in case limited
number of suppliers fail to
accommodate explosive
market demand in future]
Stores
[A new menu item might impact the entire operational flow
of stores from storage to cooking to serving. The changes
might appear at the level of people, processes, and systems]
New operational processes
• Develop new cooking methods for new patties (e.g. to
ensure flavors and safety)
• Update storage processes (as shelf-life is likely shorter)
• Elaborate and implement new quality control procedures
(e.g. to ensure consistency in prep, storage, taste)
New/enhanced capabilities
• Potentially invest in new cooking equipment and fridges
(incl. to avoid cross-contamination with animal meat)
• Train personnel
• Update software systems with new menu items, new
reports, etc.
• Ensure enough capacity (e.g. seats, staff, equipment) to
accommodate potential spike in demand at a launch
Note: This is just one of many potential ways to brainstorm. Please treat this example only as a reference point and develop your own style. [The candidate is usually
expected to generate at least 4 ideas. The best practice is 7-8 ideas, structured approach, and on-the-fly delivery without taking notes]
© 2023 Peter K. More at Peter-K.org
| 157
Case #10. Inspired by McKinsey. 2023. Plant-based meat
Impact of trend
Q2. Make sure the candidate follows these steps
01
• 80% of interviewers feel comfortable when candidates take 30-40 seconds to
Take time or
think and write down their ideas before walking the interviewer through them
do on-the-go
• The best practice is to ideate on-the-fly
02
Do horizontal
presentation
(optional)
03
• The best practice is to structure brainstorming and offer a 10-second top-down
overview, e.g. “Great question! Let’s think about operational implications along
the value chain starting from suppliers, then storage and logistics, and finally at
the level of UDB’s stores”
• Regular feedback from consulting firms is that candidates offer only three ideas
which is a bit on the lower end
Provide at
least 4 ideas • Push the candidate to provide at least 4 ideas
• Top-5% of candidates can usually suggest 7-8 ideas
04
Add colors
(optional)
• To impress the interviewer, the candidates can contextualize some of their ideas
• Examples are given in [] brackets on the previous slide
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Case #10. Inspired by McKinsey. 2023. Plant-based meat
Impact of trend
Q3. Financial impact
3
How will this decision of introducing a vegan burger impact UDB financially? What
drivers would you consider in assessing financial implications of this new menu item?
Revenue implications
Opex implications
Capex implications
[Given sky-rocketing demand
for plant-based burgers, UDB
should expect a healthy boost
to their sales from this menu
expansion]
Revenue increase
• Sales increase due to more
menu options
• Novelty-driven spike in sales
at the launch
• Long-term sales increase
due to appeal to new
customer segments (e.g.
vegans)
Revenue decline
• Potential cannibalization
• Hypothetical brand damage
resulting in sales drop (e.g.
if brand essence is tied up
with meat)
[Given still a fairly low scale of
alternative meat suppliers and
their ongoing high R&D, their cost
structure isn’t as optimized as
conventional meat producers.
Thus, UDB should expect higher
raw material costs]
Change in variable costs
• New raw materials
• New packaging
• Additional transportation
expenses
• Potentially higher food waste
(e.g. in case of shorter shelf-life)
• Likely additional bonuses to
store crew members to
incentivize sales of plant-based
burgers
Change in fixed costs
• New marketing campaigns
• Crew member trainings
[Depending on expected sales
volume of new burgers and
safety requirements, UDB might
need to make investments to
expand capacity of its operations
and minimize potential crosscontamination with animal meat]
• Potential investment in new
refrigerated trucks
• Potential storage facility
expansion
• Potential new cooking
equipment and fridges for
stores
• R&D to develop a new menu
item based on plant-based
meat patties supplied by
UDB’s partners
Note: This is just one of many potential ways to brainstorm. Please treat this example only as a reference point and develop your own style. [The candidate is usually
expected to generate at least 4 ideas. The best practice is 7-8 ideas, structured approach, and on-the-fly delivery without taking notes]
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Case #10. Inspired by McKinsey. 2023. Plant-based meat
Impact of trend
Q3. Make sure the candidate follows these steps
01
• 80% of interviewers feel comfortable when candidates take 30-40 seconds to
Take time or
think and write down their ideas before walking the interviewer through them
do on-the-go
• The best practice is to ideate on-the-fly
02
Do horizontal • The best practice is to structure brainstorming and offer a 10-second top-down
presentation
overview, e.g. “The intuitive way of assessing financial impact is through three
(optional)
areas - revenue, operational expenses (opex) and capital expenditures (capex)”
03
• Regular feedback from consulting firms is that candidates offer only three ideas
which is a bit on the lower end
Provide at
least 4 ideas • Push the candidate to provide at least 4 ideas
• Top-5% of candidates can usually suggest 7-8 ideas
04
Add colors
(optional)
• To impress the interviewer, the candidates can contextualize some of their ideas
• Examples are given in [] brackets on the previous slide
© 2023 Peter K. More at Peter-K.org
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Impact of trend
Case #10. Inspired by McKinsey. 2023. Plant-based meat
Q4. Math exercise – prompt
4
UDB would like to launch a plant-based burger to capitalize on the boom of alternative
meats and success stories of other players like Carl’s Jr, Burger King, Shake Shack, etc.
What additional annual gross profits should UDB expect from this new burger?
Please share with the candidate the
following information
Please provide this additional
information only upon request
• UDB charges $5 for its signature burger
• In 2022 McDonald’s expected 40-60
McPlants (plant-based burgers) sold per
location daily. We can project 50
burgers sold per store every day for
UDB
• Given plant-based burger is a premium
product UDB plans to charge a 20%
premium over its signature burger
• UDB enjoys a large chain of 400 stores
• Gross profit margin for new
burgers is estimated at 70%
• Please assume 360 days/year
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Case #10. Inspired by McKinsey. 2023. Plant-based meat
Impact of trend
Q4. Math exercise – calculations
4
UDB would like to launch a plant-based burger to capitalize on the boom of alternative
meats and success stories of other players like Carl’s Jr, Burger King, Shake Shack, etc.
What additional annual gross profits should UDB expect from this new burger?
Price for
plant-based
burger
$5
(1+20%)
$6
Expected
annual sales
$6 * 50
360 days
400 stores
Expected
annual gross
profits
$43M
70%
$30M
$43M
UDB should expect additional annual gross profits of $30M from launching plant-based
burgers
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Case #10. Inspired by McKinsey. 2023. Plant-based meat
Impact of trend
Q4. Math exercise – contextualization of the answer
4
UDB would like to launch a plant-based burger to capitalize on the boom of alternative
meats and success stories of other players like Carl’s Jr, Burger King, Shake Shack, etc.
What additional annual gross profits should UDB expect from this new burger?
Basic comments
(expected from
everyone)
Given our assumptions, a plant-based burger is going to
generate $30M in additional annual gross profit
We haven’t considered cannibalization though, as plant-based
burgers will likely eat into the sales of conventional burgers.
Thus, the overall impact on profits is likely to be lower
Advanced
comments (for
outstanding
candidates)
Gross profit margin doesn’t tell the whole story. UDB will need to
invest in R&D to develop a new menu item based on plant-based
meat patties it’ll get from its suppliers. The chain might also
need to run a marketing campaign and incur other fixed costs.
So, even with such a lucrative gross margin, the net margin
might turn out to be slim.
$43M is only 4% of revenue increase which makes sense to test
the water, but UDB might want to expand its alternative meat
offerings as vegans, vegetarians, and general sustainability
supporters represent far larger portion of the population than 4%
Note: The candidate is not expected to mention all the advanced comments, but adding some of them will demonstrate that the candidate can connect the dots, see the
depth, add colors and bring some insights even if the candidate is not that familiar with the industry/topic
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Case #10. Inspired by McKinsey. 2023. Plant-based meat
Impact of trend
Q4. Make sure the candidate follows these steps
01
02
03
04
Structure
approach
• Providing a big-picture approach of how to calculate the answer might help the
candidate gain more points and help the interviewer follow the candidate’s
thought process
Clarify
• Often interviewers don’t provide all the information
missing data
• The candidate needs to proactively ask for missing pieces
points
• Ideally the candidate shouldn’t make any mistakes
Calculate
accurately
Add colors
(optional)
• It is okay to ask for some time to run numbers and then walk the interviewer
through the calculations (some interviewers though might push back and ask
you to do your Math on the fly)
• The interviewers highly appreciate it when the candidate not only calculates the
answer correctly, but also contextualizes it
• For examples of contextualization, please refer to the advanced comments on
the previous slide
© 2023 Peter K. More at Peter-K.org
| 164
Recommendation
McKinsey typically doesn’t require
recommendation for their cases
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More at
Peter-K.org
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| 166
Case
#
11
Inspired by
McKinsey
Digital fitness
2023
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Case #11. Inspired by McKinsey. 2023. Digital fitness
Impact of trend
Case #11. Inspired by McKinsey. 2023. Digital fitness
Prompt
Additional
information
Case type
DoubleSweat is a national low-end gym chain with 2,400 clubs across the U.S.
They’re concerned about the sky-rocketed demand for digital fitness (e.g. livestreamed, on-demand, and pre-recorded online fitness content) fuelled by the
pandemic. Their target audience - first-time and casual gym goers (primarily
Millennials and Gen Z) - are among the most interested in digital fitness options.
DoubleSweat’s CEO has hired your team to assess how digital fitness will affect
their business over the next five years and what the chain should do about it.
Please provide this information only upon request
• The global digital fitness market is to grow from $11B to $79B in 2021-28
• In 2020 71k health-and-fitness smartphone apps were launched globally
• The U.S. market of gym and health clubs fell off the cliff from $43B to $31B in
2019-22 due to the pandemic with 28% of the clubs shutting down permanently
•
•
•
DoubleSweat doesn’t offer any digital fitness solutions
10% of the client’s clubs are corporate-owned and the rest is franchisees
DoubleSweat has 17M members (2022) and offers one of the cheapest
memberships in the market - $10/month (and $25/month for premium plan)
Impact of trend
© 2023 Peter K. More at Peter-K.org
Hard level
Interviewerdriven case
20-25 minutes
to solve
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Case #11. Inspired by McKinsey. 2023. Digital fitness
Impact of trend
Opening. Make sure the candidate follows these steps
01
02
03
04
Restate the Typically the candidates are expected to restate the prompt to make sure they are on the
prompt
same page with the interviewer
Add colors
(optional)
Candidates can react to the prompt by providing some quick thoughts which will
demonstrate candidates’ business acumen, e.g.:
• “During the pandemic people were forced to form new habits incl. adjusting their workout routines to in-home set-up. Also, due to the high unemployment rate at the time, a
lot of people had time to spare and might have started exercising regularly. The digital
fitness solutions likely became a go-to work-out tool for many”
• “I’d imagine that digital fitness solutions are priced low as they are in a high-capex and
volume-driven business. Thus, they likely directly compete with low-end brick-and-mortar
gym chains like our client. So, I can see why DoubleSweat is so concerned”
• “Explosive growth of sport wearables, live-streaming, and fitness influencers likely propel
digital fitness trend substantially”
Ask 2-3
questions
Candidates often ask 2-3 questions before designing their framework. However, there is no
“that very right” question that candidates should ask. Questions for this case might be:
• What digital fitness solutions does DoubleSweat offer currently (e.g. live-streaming workout group sessions, smartphone app with pre-recorded work-out routines)?
• Do we consider fitness trackers and fitness apps as parts of the digital fitness market?
• What companies are the major players in the digital fitness market in the U.S.?
Candidates don’t always get answers to their questions. In fact, McKinsey interviewers often
say that they don’t have any additional information.
Ask for a
moment to
structure
• Typically candidates ask for a couple of minutes to structure their approach
• Sometimes McKinsey interviewers ask the first question and then the candidate takes
time to build their framework
© 2023 Peter K. More at Peter-K.org
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Case #11. Inspired by McKinsey. 2023. Digital fitness
Impact of trend
Case questions
01
What factors would you consider in assessing the potential impact of the
rapidly growing digital fitness market in the U.S. on DoubleSweat’s business
over the next five years?
02
The digital fitness attracts a lot of first-time and casual gym-goers and is
expected to grow exponentially (see Appendix 1). What are the major
differentiation points of the digital fitness vs conventional gyms that attract
sport enthusiasts?
03
The analyst has just emailed you these charts with some market and client’s
data (Appendix 2 and 3). What do these charts tell you? What insights can
you derive?
04
DoubleSweat was able to capitalize on the drop in number of gym clubs and
rapidly expanded its own chain. This is a short-term success, but how can
the client stay competitive long-term and fight against digital fitness?
05
DoubleSweat considers building a mobile app to provide work-out routines,
live-streamed group classes and other fitness content. What payback period
should they expect?
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Case #11. Inspired by McKinsey. 2023. Digital fitness
Impact of trend
Q1. Framework
1
What factors would you consider in assessing the potential impact of the rapidly growing
digital fitness market in the U.S. on DoubleSweat’s business over the next five years?
Fitness
enthusiasts
Competitive
landscape
DoubleSweat’s
product innovation
DoubleSweat’s
marketing
• Adoption cycle for
digital fitness (e.g.
early adopter,
laggards)
• Digital fitness
players (e.g. apps,
fitness mirrors, ecourses)
• Own online content
options and best
practices
• Brand implications
• Customer mix (e.g.
fitness fanatics,
routine-focused,
casuals)
• Legacy gym chains
with hybrid model
• Purchasing decisionmaking criteria /
preferences
• Pure offline gym
clubs
• Trends in digital
fitness
• Partnerships (e.g.
with fitness
trackers, fitness
influencer)
• Market education
• New drivers (e.g.
convenience,
personalization)
• Pain points and
unmet needs in
existing offline
services
Note: This is just one of many potential ways to structure your approach. Please treat this example only as a reference point and develop your own style.
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Impact of trend
Case #11. Inspired by McKinsey. 2023. Digital fitness
Q1. Make sure the candidate follows these steps
01
02
03
04
The best practice is to start with a 15-second big-picture overview, e.g. “Pleasure to help
Do
our client! Let’s break it down into four workstreams. First, impact on customers. Secondly,
horizontal
impact on competition. Thirdly, impact on DoubleSweat’s offerings. And finally, impact on
presentation
DoubleSweat’s marketing strategy”
Check if the candidate covers all key points typical for an impact-of-trend case structure:
Impact on
Impact on
Impact on
Impact on
customers
competition
operating model*
business model
• Change in
• Newcomers
• People
• Product portfolio
Hit key
customer segments • Major players and • Marketing strategy
• Processes
points
• Change in
their reaction to
• Distribution channels* • Systems
customer behavior
the trend
• Pricing strategy*
* - less important in this case as these areas won’t likely be affected
Not to sound generic, candidates can bake 2-3 stories into their structure presentation, e.g.:
• “Digital fitness is likely a generational trend and might appeal mostly to Millennials and
Gen Z who consume information through screens”
• “Time works against brick-and-mortar gyms and digitalization might soon become
inevitable for them similar to how it became a mainstream for movies, shopping, even
Add stories
hanging out with friends, and other experiences. I’d expect a lot of offline gym players
(optional)
have already started adopting a hybrid model launching online fitness content and apps”
• “I’d think that digital fitness offers a lot of value like convenience, accessibility, even
personalization and much more. But gyms provide equipment and community feeling. So,
fundamentally DoubleSweat enjoys some strong competitive advantages against online
fitness, but might need to expand its value proposition not to lose some customer groups”
McKinsey interviewers don’t usually expect it, but at the end of the structure presentation, it
Finish with is helpful for the candidate to show that they can drive team forward and prioritize, e.g. “If
this works for you, I’d suggest double-clicking on customers first. Do we have any data on
a question
their major decision-making criteria when they opt for digital fitness options?”
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Case #11. Inspired by McKinsey. 2023. Digital fitness
Impact of trend
Q2. Key differentiation points
2
The digital fitness attracts a lot of first-time and casual gym-goers and is expected to
grow exponentially (see Appendix 1). What are the major differentiation points of the
digital fitness vs conventional gyms that attract sport enthusiasts?
Convenience
Perceived efficiency
Enhanced motivation
Low budget
[Nowadays consumers have
busier schedules than ever.
So, they increasingly value
convenience when purchasing
goods or services]
[First-time and casual gym-goers
likely appreciate professional
guidance and structured workout routines that they can’t build
themselves due to lack of
expertise]
[Consistent work out
requires strong intrinsic and
extrinsic motivation]
[Given fitness services are
commoditized, customers
are likely highly pricesensitive. So, low-price or
even free fitness options
should stand out for them]
General
• No lines
• 24/7 accessibility
• No commute needed
• Distraction free
• Easy to set up
Endorsed habits
• Aligned with strong habits
of digital consumption
• Endorses pandemicinduced habits to work out
at home
General
• A wide variety of content (e.g.
workout routines, online
group classes) to choose for
specific purpose
• High quality content as
created by professional
athletes and coaches
Potential features
• Integration with fitness
trackers to track progress and
consolidate results
• Personalization of workout
routines
General
• Cheers from coaches (e.g.
pre-recorded, live)
• No intimidation, shame, or
social pressure of working
out at gyms
• Privacy of working out
from home
• Typically low prices or
free
• Typically no locked
periods (e.g. annual
membership) - stop at
any time
Potential features
• Gamification (e.g.
rewards, milestones)
• Cheers from online
community (incl. sharing
progress, comments)
Note: This is just one of many potential ways to brainstorm. Please treat this example only as a reference point and develop your own style. [The candidate is usually
expected to generate at least 4 ideas. The best practice is 7-8 ideas, structured approach, and on-the-fly delivery without taking notes]
© 2023 Peter K. More at Peter-K.org
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Case #11. Inspired by McKinsey. 2023. Digital fitness
Impact of trend
Q2. Make sure the candidate follows these steps
01
• 80% of interviewers feel comfortable when candidates take 30-40 seconds to
Take time or
think and write down their ideas before walking the interviewer through them
do on-the-go
• The best practice is to ideate on-the-fly
02
Do horizontal • The best practice is to structure brainstorming and offer a 10-second top-down
presentation
overview, e.g. “The differentiation points can be split into four categories (optional)
convenience, efficiency, motivation, and prices”
03
• Regular feedback from consulting firms is that candidates offer only three ideas
which is a bit on the lower end
Provide at
least 4 ideas • Push the candidate to provide at least 4 ideas
• Top-5% of candidates can usually suggest 7-8 ideas
04
Add colors
(optional)
• To impress the interviewer, the candidates can contextualize some of their ideas
• Examples are given in [] brackets on the previous slide
© 2023 Peter K. More at Peter-K.org
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Impact of trend
Case #11. Inspired by McKinsey. 2023. Digital fitness
Q3. Chart-reading
3
The analyst has just emailed you these charts with some market and client’s data
(Appendix 2 and 3). What do these charts tell you? What insights can you derive?
Appendix 2
Appendix 3
Chart 1. Number of health and gym clubs in the U.S. (2018-22), k
Chart 1. DoubleSweat’s revenue (2018-22), M USD
• During 2018-19 the industry experienced low-single-digit growth rate which is
expected as conventional gyms are a mature market
• The pandemic was devastating for gyms as they depend on foot traffic which was
wiped out by the mandatory isolation. I’d imagine that small-scale chains and clubs
in low foot-traffic areas (e.g. towns) were hit the most and closed down permanently
• I’d imagine that in 2022 and onwards we should witness short-term exponential
growth. Survived players likely aggressively expanded to fill the void after 10k+
health clubs shut down
• DoubleSweat is a large player with almost $1B in
revenue which suggests the company enjoys high
brand awareness, deep marketing pockets, and
economies of scale
• Not surprisingly it was hit hard by the pandemic in 2020
• Before the pandemic DoubleSweat grew explosively
(~20% in 2018-19 vs single digits for the market)
mostly driven by aggressive chain expansion
Chart 2. Number of health and gym clubs of DoubleSweat (2018-22), units
• It seems like DoubleSweat captures 7-8% of the market which confirms that it’s a
major player
• The client’s market share jumped in 2020 as DoubleSweat managed to keep all their
clubs running and even expand their chain whereas the entire market fell off the
cliff. Saying that the revenue per DoubleSweat’s location should have plummeted
driven by the pandemic restrictions
• DoubleSweat relies heavily on the franchising model as the vast majority of their
locations are franchisees’. That is one of the key drivers for its rapid growth, but also
might cause service quality issues as it’s challenging to control so many partners
• DoubleSweat doubled the number of their own stores in 2022 which is unusual for
the company and might be inorganic (through M&A). It seems like the client took
advantage of decreased competitive pressure as 10k+ gym clubs went out of
business
• In 2022 DoubleSweat’s revenue went through the roof
as the company doubled the number of their own
stores and the number of members per location likely
went up given so many clubs shut down after the
pandemic
• I anticipate that the client’s growth will slow down
dramatically in the upcoming years. First, the market
will soon get back to the pre-pandemic level. Secondly,
the landscape will become more consolidated as
survived large chains will expand quickly taking space
of those clubs that left the market
Chart 2. DoubleSweat’s system-wide sales
(2018-22), M USD
• The sales dynamics mimics the revenue data so all the
insights from the chart above are applicable here too
Note: Typically candidates are expected to generate at least 1 insight per chart. More insights will demonstrate your business acumen. Insights don’t include purposeless
Math (e.g. it grew by 5%), obvious observations (e.g. the client has three revenue streams; the market dropped), and questions/next steps/new analyses (e.g. I’d want
to know drivers behind this)
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Case #11. Inspired by McKinsey. 2023. Digital fitness
Impact of trend
Q4. New competitive advantages
4
DoubleSweat was able to capitalize on the drop in number of gym clubs and rapidly
expanded its own chain. This is a short-term success, but how can the client stay
competitive long-term and fight against digital fitness?
Adjust
marketing
[I’d imagine that switching costs
between conventional gyms and
digital fitness are negligeable for
customers. And the perceived value
of both options is often similar. So,
marketing might be a major driver of
competitiveness for DoubleSweat]
• Focus messaging on what digital
fitness can’t offer: equipment,
face-to-face interaction with
coaches and peers, etc.
• Attack downsides of digital
fitness: less safe, less
accountable, etc.
• Promote DoubleSweat’s
convenience (to fight the key
differentiation point of digital
fitness)
Strengthen current
differentiation points
[Reinforcing DoubleSweat’s benefits that digital fitness
can’t offer will help become more competitive, increase
gym-goers’ loyalty and potentially deepen customer
segmentation]
Upgrade equipment
• Add new types of equipment
• Minimize outdated/worn-out equipment
• Revisit lay-out if needed (e.g. add more treadmills if
higher demand for cardio)
Boost community
• Plan networking events (e.g. happy hours, holiday
parties)
• Do charitable events (e.g. blood drives with the Red
Cross)
• Offer monthly challenges and competitions
• Create clubs (e.g. run club, dance club)
Increase convenience
• Expand working hours
• Reduce lines (e.g. add more equipment in demand)
• Add more parking spots
Go digital
[DoubleSweat should adopt a
hybrid approach and develop
some digital fitness options to
appeal to its broad target
audience - Millennials and Gen Z]
• Live-stream group classes
• Launch an app with work-outs
• Offer online courses on
wellness, diet, and exercises
• Offer virtual training sessions
• Integrate gym machines (e.g.
cardio) with major fitness
trackers
Note: This is just one of many potential ways to brainstorm. Please treat this example only as a reference point and develop your own style. [The candidate is usually
expected to generate at least 4 ideas. The best practice is 7-8 ideas, structured approach, and on-the-fly delivery without taking notes]
© 2023 Peter K. More at Peter-K.org
| 176
Case #11. Inspired by McKinsey. 2023. Digital fitness
Impact of trend
Q4. Make sure the candidate follows these steps
01
• 80% of interviewers feel comfortable when candidates take 30-40 seconds to
Take time or
think and write down their ideas before walking the interviewer through them
do on-the-go
• The best practice is to ideate on-the-fly
02
Do horizontal
presentation
(optional)
03
• The best practice is to structure brainstorming and offer a 10-second top-down
overview, e.g. “Great question! That’s exactly where I wanted to go next. In order
to ensure the client’s competitiveness, I’d provide ideas through three lenses: first,
marketing; secondly, enhancing existing value prop; and finally, going digital ”
• Regular feedback from consulting firms is that candidates offer only three ideas
which is a bit on the lower end
Provide at
least 4 ideas • Push the candidate to provide at least 4 ideas
• Top-5% of candidates can usually suggest 7-8 ideas
04
Add colors
(optional)
• To impress the interviewer, the candidates can contextualize some of their ideas
• Examples are given in [] brackets on the previous slide
© 2023 Peter K. More at Peter-K.org
| 177
Impact of trend
Case #11. Inspired by McKinsey. 2023. Digital fitness
Q5. Math exercise – prompt
5
DoubleSweat considers building a mobile app to provide work-out routines, live-streamed
group classes and other fitness content. What payback period should they expect?
Please share with the candidate the
following information
Please provide this additional
information only upon request
• DoubleSweat plans to invest $3M in
the smartphone app development
• Additional opex (e.g. bug fixing,
software updates) is expected to be
$0.4M/year
• Based on the current scenario, the
app will increase membership by 2%
• Current profit margin from clubs
[equipment sales excluded] is 10%
• Revenue data is in Appendix 3
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Case #11. Inspired by McKinsey. 2023. Digital fitness
Impact of trend
Q5. Math exercise – calculations
5
DoubleSweat considers building a mobile app to provide work-out routines, live-streamed
group classes and other fitness content. What payback period should they expect?
Expected
revenue
increase
(379+330)M
[Append. 3]
2%
14M
Expected
profit increase
14M
10%
0.4M
Payback
period
3M
1M
3 years
1M
It’ll take 3 years to pay back the initial investment of $3M
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Case #11. Inspired by McKinsey. 2023. Digital fitness
Impact of trend
Q5. Math exercise – contextualization of the answer
5
DoubleSweat considers building a mobile app to provide work-out routines, live-streamed
group classes and other fitness content. What payback period should they expect?
Basic comments
(expected from
everyone)
All else being equal, DoubleSweat will need 3 years to cover the
initial investment after the smartphone app launch
The payback period doesn’t consider the development cycle
which might take from months to 2-3 years given the potential
complexity of the app’s features (e.g. booking, streaming,
messaging) and likely its large scale of millions of users
Advanced
comments (for
outstanding
candidates)
Given the magnitude of expenses of $3M, I’d imagine
DoubleSweat envisions a top-notch smartphone app with bestin-class features and intuitive design. So, such a substantial 2%
app-driven increase in membership sounds reasonable
The high investment might increase the barriers for entry for
other fitness players as it will be challenging for them to
replicate such a capex-heavy app. This strategic move might
help DoubleSweat build a strong competitive edge over peers
Note: The candidate is not expected to mention all the advanced comments, but adding some of them will demonstrate that the candidate can connect the dots, see the
depth, add colors and bring some insights even if the candidate is not that familiar with the industry/topic
© 2023 Peter K. More at Peter-K.org
| 180
Case #11. Inspired by McKinsey. 2023. Digital fitness
Impact of trend
Q5. Make sure the candidate follows these steps
01
02
03
04
Structure
approach
• Providing a big-picture approach of how to calculate the answer might help the
candidate gain more points and help the interviewer follow the candidate’s
thought process
Clarify
• Often interviewers don’t provide all the information
missing data
• The candidate needs to proactively ask for missing pieces
points
• Ideally the candidate shouldn’t make any mistakes
Calculate
accurately
Add colors
(optional)
• It is okay to ask for some time to run numbers and then walk the interviewer
through the calculations (some interviewers though might push back and ask
you to do your Math on the fly)
• The interviewers highly appreciate it when the candidate not only calculates the
answer correctly, but also contextualizes it
• For examples of contextualization, please refer to the advanced comments on
the previous slide
© 2023 Peter K. More at Peter-K.org
| 181
Recommendation
McKinsey typically doesn’t require
recommendation for their cases
© 2023 Peter K. More at Peter-K.org
| 182
Case #11. Inspired by McKinsey. 2023. Digital fitness
Impact of trend
Appendix 1. Global market size data
Real data
Global market size of selected fitness industry segments
(2019-2021, 2028F), B USD
Digital/online
fitness
CAGR
(2021-28), %
100
79.3
50
6.1
8.0
10.7
2019
2020
2021
33%
0
2028F
100
Fitness apps
50
0
100
Gym & health
clubs
2.9
3.6
4.7
2019
2020
2021
20.8
2028F
132
97
81
41
50
24%
7%
0
2019
© 2023 Peter K. More at Peter-K.org
2020
2021
2028F
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Case #11. Inspired by McKinsey. 2023. Digital fitness
Impact of trend
Appendix 2. Number of health and gym clubs
Number of
health and
gym clubs in
the U.S.
(2018-22), k
Real data
50
40
30
20
41
43
2018
2019
34
31
N/A
2020
2021
2022
10
0
Number of
health and
gym clubs of
DoubleSweat
(2018-22),
units
Corporate-owned clubs
2,500
2,000
76
98
Franchisee clubs
103
112
234
1,500
1,000
500
1,666
1,903
2,021
2,142
2,176
2018
2019
2020
2021
2022
1,742
2,001
2,124
2,254
2,410
0
Total
© 2023 Peter K. More at Peter-K.org
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Case #11. Inspired by McKinsey. 2023. Digital fitness
Impact of trend
Appendix 3. DoubleSweat’s revenue data
Real data
DoubleSweat’s revenue (2018-22), M USD
937
1000
800
600
400
200
0
573
688
252
224
278
139
160
406
83
206
117
2018
2019
2020
210
587
129
291
167
228
330
Gym equipment*
379
Corporate-owned clubs
2021
2022
3,367
3,879
Franchise fees
DoubleSweat’s system-wide sales (2018-22), M USD
Total
2,739
3,260
2,417
5,000
4,000
3,000
139
2,000
1,000
167
160
379
117
2,600
3,100
2018
2019
2,300
Corporate-owned clubs
3,200
3,500
2021
2022
Franchisee clubs**
0
2020
Note: *DoubleSweat’s franchisees are obligated to buy fitness gym equipment from the parent company and to replace this equipment approximately every 5-7 years.
**Franchisee clubs pay 8-9% of their sales in royalties to DoubleSweat
© 2023 Peter K. More at Peter-K.org
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Case
#
12
Inspired by
McKinsey
AI
2023
© 2023 Peter K. More at Peter-K.org
| 186
Case #12. Inspired by McKinsey. 2023. AI
Impact of trend
Case #12. Inspired by McKinsey. 2023. AI
Prompt
Our client, JobJedi, is a major job board in the Philippines that began operating in
2019 and has experienced rapid growth. Currently, the platform has over 700,000
registered job seekers and features more than 73,000 job postings from over 100
companies. Despite its success, the investors of JobJedi recognize that the job
board industry is on the cusp of significant changes due to the rapid development
of artificial intelligence and technologies, such as ChatGPT. They have enlisted the
aid of your firm to help JobJedi assess how AI will impact their business over the
next five years.
Additional
information
Please provide this information only upon request
• JobJedi operates only in the Philippines
• The competitive landscape of job boards in the Philippines is crowded
• The Philippines’ population is 117M and unemployment rate is ~5% (2023)
• Some job boards have started offering AI-enabled value-add services like chatbots to screen candidates, artificial voice calls for reference-checking, etc.
• AI has potential to automate a lot of jobs but it can also create new jobs. 25%
of current work tasks could be automated by AI in the U.S. and Europe
• Backed by big-tech, AI will keep its explosive growth (in 2023 Microsoft invested
$10B in ChatGPT maker OpenAI; Google released ChatGPT rival AI “Bard”; etc.)
Case type
Impact of trend
© 2023 Peter K. More at Peter-K.org
Hard level
Interviewerdriven case
15-20 minutes
to solve
| 187
Case #12. Inspired by McKinsey. 2023. AI
Impact of trend
Opening. Make sure the candidate follows these steps
01
02
03
Restate the Typically the candidates are expected to restate the prompt to make sure they are on the
prompt
same page with the interviewer
Add colors
(optional)
Ask 2-3
questions
Candidates can react to the prompt by providing some quick thoughts which will
demonstrate candidates’ business acumen, e.g.:
• “Job boards are highly commoditized as they offer a seemingly standard service. The AIenabled uplift in service quality as well as new AI-based offerings might provide strong
competitive advantages and thus reshape the competitive landscape considerably”
• “It’s great to see that our client is one of the major players as AI-technologies might be
expensive and only affordable for those with deep pockets”
• “Being a relatively new entrant to the market, JobJedi may enjoy the necessary agility
and entrepreneurial spirit to pivot their business model if required. In contrast, legacy
players may be more prone to inertia and lose the market momentum”
Candidates often ask 2-3 questions before designing their framework. However, there is no
“that very right” question that candidates should ask. Questions for this case might be:
• Have we seen AI-driven changes in the job board market already? What are they?
• Is JobJedi focused on white-collar or blue-collar jobs? (more or less tech savvy candidates)
• How consolidated is the competitive landscape in this space?
Candidates don’t always get answers to their questions. In fact, McKinsey interviewers often
say that they don’t have any additional information.
04
Ask for a
moment to
structure
• Typically candidates ask for a couple of minutes to structure their approach
• Sometimes McKinsey interviewers ask the first question and then the candidate takes
time to build their framework
© 2023 Peter K. More at Peter-K.org
| 188
Impact of trend
Case #12. Inspired by McKinsey. 2023. AI
Case questions
01
What factors would you consider in assessing how rapid
development of AI technologies is going to affect JobJedi’s
business over the next five years?
02
What implications will explosive growth of AI likely have for
JobJedi’s workforce over the next five years?
03
What will be the overall change in the headcount at JobJedi
as a result of the rapid development of AI?
04
Based on the initial assessment (see Appendix 2 and 3), the
competition has already started adopting new AI-enabled
services. What AI-powered offerings can JobJedi build?
© 2023 Peter K. More at Peter-K.org
| 189
Case #12. Inspired by McKinsey. 2023. AI
Impact of trend
Q1. Framework
1
What factors would you consider in assessing how rapid development of AI technologies
is going to affect JobJedi’s business over the next five years?
Change in
competition
• Newcomers with AI-enabled
offerings
• Legacy players with
enhanced AI capabilities
• Trends in AI-enforced
competencies
Impact on
business model
• Product innovation
o New value-add services
o Upgraded existing
offerings
• Marketing strategy (e.g. new
messages around matching
quality, speed,
personalization)
Adjustments to
operational model
• New talent requirements
(e.g. higher-skilled, new
roles)
• Shift in processes (e.g.
towards less labor intensive)
• New hard- and software
systems
Note: This is just one of many potential ways to structure your approach. Please treat this example only as a reference point and develop your own style.
© 2023 Peter K. More at Peter-K.org
| 190
Case #12. Inspired by McKinsey. 2023. AI
Impact of trend
Q1. Make sure the candidate follows these steps
01
02
03
04
The best practice is to start with a 15-second big-picture overview, e.g. “After thinking
Do
about how to attack this problem, I’d like to deep-dive into three areas. First, changes to
horizontal
the competitive landscape. Secondly, impact on our business model. And finally,
presentation
adjustments to our operational model”
Check if the candidate covers all key points typical for an impact-of-trend case structure:
Impact on
Impact on
Impact on
Impact on
customers*
competition
operating model
business model
• Change in
• Newcomers
• People
• Product portfolio
Hit key
customer segments • Major players and • Marketing strategy
• Processes
points
• Change in
their reaction to
• Distribution channels* • Systems
customer behavior
the trend
• Pricing strategy*
* - less important in this case as these areas won’t likely be affected
Add stories
(optional)
Not to sound generic, candidates can bake 2-3 stories into their structure presentation, e.g.:
• “I’d expect consolidation in this market as AI is typically capex heavy and only large
players can afford it”
• “Bare-bones job boards will likely become a thing of the past. I’d anticipate a lot of value
chain expansion among existing players. The job boards will expand their business
models both upstream and downstream. And the key differentiation for job boards will
become how many AI-enabled services they offer to both job seekers and employers”
• “I’d imagine that with AI becoming part of the industry’s DNA in the near future, JobJedi
will likely need to go through operational transformation - for example, bring new higherskilled talent, streamline or automatize processes though AI, and invest in R&D”
Finish with
a question
McKinsey interviewers don’t usually expect it, but at the end of the structure presentation, it
is helpful for the candidate to show that they can drive team forward and prioritize, e.g. “If
this approach sounds reasonable, I’d like to kick things off by exploring the impact on our
business model. Does JobJedi plan to develop any AI-enabled services?”
© 2023 Peter K. More at Peter-K.org
| 191
Case #12. Inspired by McKinsey. 2023. AI
Impact of trend
Q2. Impact on workforce
2
What implications will explosive growth of AI likely have for JobJedi’s workforce over
the next five years?
Downsize
Hire
Upskill
• Account managers
[with AI-driven streamlined
operations account managers will
increase their capacity and thus
be able to support more
employers]
• Software engineers
(e.g. in AI and machine learning)
• Existing salespeople
and account managers [educate
them on new AI-enabled
offerings and how AI works
high-level]
• Central services [AI will likely
automatize basic tasks of
accounting, finance, and HR]
• Product managers for new AIenabled services
• Current software engineers [in
case they’ll need to cooperate
with AI engineers]
• Data analysts [new offerings will
increase number of touch points
for job seekers and employers
with JobJedi and thus generate a
lot of additional data to analyze]
xxx
• Marketing function [today
ChatGPT already does
copywriting, basic analytics and
market research; in 5 years AI
will likely perfect execution of
these tasks]
• Salespeople [inevitable expansion
of AI-enabled offerings and
intensified competition will likely
require more aggressive sales]
Note: This is just one of many potential ways to brainstorm. Please treat this example only as a reference point and develop your own style. [The candidate is usually
expected to generate at least 4 ideas. The best practice is 7-8 ideas, structured approach, and on-the-fly delivery without taking notes]
© 2023 Peter K. More at Peter-K.org
| 192
Case #12. Inspired by McKinsey. 2023. AI
Impact of trend
Q2. Make sure the candidate follows these steps
01
• 80% of interviewers feel comfortable when candidates take 30-40 seconds to
Take time or
think and write down their ideas before walking the interviewer through them
do on-the-go
• The best practice is to ideate on-the-fly
02
Do horizontal
• The best practice is to structure brainstorming and offer a 10-second top-down
presentation
overview, e.g. “I’d look into three aspects: downsize, hire, and upskill”
(optional)
03
• Regular feedback from consulting firms is that candidates offer only three ideas
which is a bit on the lower end
Provide at
least 4 ideas • Push the candidate to provide at least 4 ideas
• Top-5% of candidates can usually suggest 7-8 ideas
04
Add colors
(optional)
• To impress the interviewer, the candidates can contextualize some of their ideas
• Examples are given in [] brackets on the previous slide
© 2023 Peter K. More at Peter-K.org
| 193
Case #12. Inspired by McKinsey. 2023. AI
Impact of trend
Q3. Math exercise – prompt
3
What will be the overall change in the headcount at JobJedi as a result of the rapid
development of AI?
Please share with the candidate the
following information
Please provide this additional
information only upon request
• Appendix 1.
• -
© 2023 Peter K. More at Peter-K.org
| 194
Case #12. Inspired by McKinsey. 2023. AI
Impact of trend
Q3. Math exercise – calculations
3
What will be the overall change in the headcount at JobJedi as a result of the rapid
development of AI?
Current
headcount, FTEs*
AI-driven
headcount change
Salespeople
20
+30%
20 * 30% = 6
Account managers
10
-10%
10 * (-10%) = -1
Marketing
20
-15%
20 * (-15%) = -3
Software engineers
15
+40%
15 * 40% = 6
Product managers
5
+100%
5 * 100% = 5
HR
15
-20%
15 * (-20%) = -3
Accounting and Finance
10
-10%
10 * (-10%) = -1
Change
Customer-facing roles
Headquarters
Total Change = 6 - 1 - 3 + 6 + 5 - 3 - 1 = 9
JobJedi should expect an increase in their headcount by 9 FTEs*
Note: *FTEs - full-time employees
© 2023 Peter K. More at Peter-K.org
| 195
Case #12. Inspired by McKinsey. 2023. AI
Impact of trend
Q3. Math exercise – contextualization of the answer
3
What will be the overall change in the headcount at JobJedi as a result of the rapid
development of AI?
Basic comments
(expected from
everyone)
The rapid AI development will bring some structural change to
JobJedi’s headcount resulting in its growth by 9 FTEs
I’d imagine that over the next five years JobJedi might expand
geographically and in scale, as well as add new verticals (e.g.
recruiting services, HR software) which will inevitably affect the
composition and size of its headcount
Advanced
comments (for
outstanding
candidates)
I’d think that not only JobJedi’s headcount will grow, but also the
staff composition will shift towards more expensive high-skilled
employees across different functions as AI will take care of a lot of
lower quality tasks. So, we should expect a jump in the HR expenses
Given JobJedi plans to double their PM staff, the company is going
to materially expand their product portfolio with new value-add
AI-driven services, which makes sense as it’ll allow JobJedi to
differentiate in this very commoditized market
Note: The candidate is not expected to mention all the advanced comments, but adding some of them will demonstrate that the candidate can connect the dots, see the
depth, add colors and bring some insights even if the candidate is not that familiar with the industry/topic
© 2023 Peter K. More at Peter-K.org
| 196
Case #12. Inspired by McKinsey. 2023. AI
Impact of trend
Q3. Make sure the candidate follows these steps
01
02
03
04
Structure
approach
• Providing a big-picture approach of how to calculate the answer might help the
candidate gain more points and help the interviewer follow the candidate’s
thought process
Clarify
• Often interviewers don’t provide all the information
missing data
• The candidate needs to proactively ask for missing pieces
points
• Ideally the candidate shouldn’t make any mistakes
Calculate
accurately
Add colors
(optional)
• It is okay to ask for some time to run numbers and then walk the interviewer
through the calculations (some interviewers though might push back and ask
you to do your Math on the fly)
• The interviewers highly appreciate it when the candidate not only calculates the
answer correctly, but also contextualizes it
• For examples of contextualization, please refer to the advanced comments on
the previous slide
© 2023 Peter K. More at Peter-K.org
| 197
Impact of trend
Case #12. Inspired by McKinsey. 2023. AI
Q4. AI-based offerings
4
Based on the initial assessment (see Appendix 2 and 3), the competition has already
started adopting new AI-enabled services. What AI-powered offerings can JobJedi build?
Services for employers
[I’d imagine that employers usually care about
time-to-hire, hiring biases, and candidate quality.
AI can take care of all of that]
• More accurate screening and candidate
filtering (to better match job requirements)
• Chatbots to schedule interviews, conduct
assessments, and answer questions about jobs
• Artificial voice calls for reference-checking
• Job description improvement (e.g. less biased
language, more clear messaging)
• Advanced analytics (e.g. likelihood of job
applications based on salary, requirement, etc.)
Services for job seekers
[Job searching is typically a time-consuming
process that can feel like a second job, requiring
significant operational discipline. By utilizing AI,
JobJedi has the potential to reduce the workload
for job seekers and expedite the job search
process]
• Higher quality job search (better match with
candidates’ profiles)
• More efficient job alerts
• Cover letter preparation
• Resume improvements (incl. automatic
changes to match new jobs)
• Advanced analytics (e.g. likelihood of interview
invite)
Note: This is just one of many potential ways to brainstorm. Please treat this example only as a reference point and develop your own style. [The candidate is usually
expected to generate at least 4 ideas. The best practice is 7-8 ideas, structured approach, and on-the-fly delivery without taking notes]
© 2023 Peter K. More at Peter-K.org
| 198
Case #12. Inspired by McKinsey. 2023. AI
Impact of trend
Q4. Make sure the candidate follows these steps
01
• 80% of interviewers feel comfortable when candidates take 30-40 seconds to
Take time or
think and write down their ideas before walking the interviewer through them
do on-the-go
• The best practice is to ideate on-the-fly
02
Do horizontal • The best practice is to structure brainstorming and offer a 10-second top-down
presentation
overview, e.g. “Great question! I think we can suggest ideas from both sides (optional)
AI-enabled services for employers and AI-enabled services for job seekers”
03
• Regular feedback from consulting firms is that candidates offer only three ideas
which is a bit on the lower end
Provide at
least 4 ideas • Push the candidate to provide at least 4 ideas
• Top-5% of candidates can usually suggest 7-8 ideas
04
Add colors
(optional)
• To impress the interviewer, the candidates can contextualize some of their ideas
• Examples are given in [] brackets on the previous slide
© 2023 Peter K. More at Peter-K.org
| 199
Recommendation
McKinsey typically doesn’t require
recommendation for their cases
© 2023 Peter K. More at Peter-K.org
| 200
Case #12. Inspired by McKinsey. 2023. AI
Impact of trend
Appendix 1. Estimated headcount changes
Current
headcount, FTEs*
AI-driven headcount
change
Salespeople
20
+30%
Account managers
10
-10%
Marketing
20
-15%
Software engineers
15
+40%
Product managers
5
+100%
HR
15
-20%
Accounting and Finance
10
-10%
Other functions
25
Total Headcount
120
Customer-facing roles
Headquarters
Note: *FTEs - full-time employees
© 2023 Peter K. More at Peter-K.org
| 201
Case #12. Inspired by McKinsey. 2023. AI
Impact of trend
Appendix 2. Job boards in the Philippines
Philippines
only
Regional
Global
Job boards
Candidate
screening
functionality
Total number of job postings in the Philippines (May’23)
Jora
Indeed
Glassdoor
Jobrapido
92
JobisJob
77
Trovit Asia
69
CareerJet
66
JobsOra
61
LinkedIn
45
Jooble
41
Google for Jobs
30
Talent.com (formerly Neuvoo)
30
TipTopJob
30
GrabJobs
17
Post Job Free
15
Recruit Net
6
Jobvertise 1
SnapHunt 1
Craigslist <1
Jobstreet
53
BestJobs.ph
29
FoundIt (formerly Monster APAC & ME)
29
Kalibrr 2
Fast Jobs 2
Prosple (formerly GradPhillippines) 1
Glints <1
JobJedi
73
Mynimo
7
PhilJobNet
4
Govjobs.Ph 1
Bossjob N/A
0
© 2023 Peter K. More at Peter-K.org
Real data
50
100
350
191
None
139
Basic. Screening
questions
AI-based scoring
and filtering of
candidates
150
200
250
300
350
400
| 202
Case #12. Inspired by McKinsey. 2023. AI
Impact of trend
Appendix 3. Size of job boards in the Philippines
Real data
Geo
coverage
Size, # FTEs*
500+
Regional
LinkedIn
Craigslist
Glassdoor
Indeed
JobStreet
Talent.com
FoundIt
Trovit Asia
Kalibrr
Jobrapido
JobJedi
50-100
TipTopJob
Mynimo
Jora
Prosple
Fast Jobs
GrabJobs
1-50
CareerJet
SnapHunt
JobisJob
Recruit Net
Jobvertise
1995
Philippines
only
Glints
Jooble
100-250
250-500
Global
Google for Jobs
2000
Note: *FTEs - full-time employees (May’23)
The data for BestJobs.ph isn’t available
© 2023 Peter K. More at Peter-K.org
Post Job Free
2005
PhilJobNet
2010
2015
Bossjob
JobsOra
Govjobs.Ph
2020
Foundation year
| 203
Case
#
13
Inspired by
McKinsey
Distribution strategy
2023
© 2023 Peter K. More at Peter-K.org
| 204
Case #13. Inspired by McKinsey. 2023. Distribution strategy
Implementation
Case #13. Inspired by McKinsey. 2023. Distribution strategy
Prompt
A popular fast-casual salad chain Fresh Bites has gained a loyal following for its
healthy and customizable salads. The chain has been rapidly expanding and today
exceeds 90 restaurants across the U.S. Fresh Bites generates $240M in revenue but
is currently losing money with $100M in net losses (2022). The company’s CEO has
engaged your team to help them upgrade their distribution strategy in order to
propel their sales, increase economies of scale, and thus improve their economics.
How would you help the client improve their distribution given such a fierce
competition in the healthy fast-casual restaurant industry?
Additional
information
Please provide this information only upon request
• Fresh Bites sells mostly through their retail stores, but doesn’t franchise
• The vast majority of fast-food and fast-casual restaurant chains added and/or
boosted a delivery option to support their sales during the pandemic
• Digital channels (e.g. app, site, delivery apps) gain traction. For example, they
generated 52% of Starbuck’s (2021) and 62% of sweetgreen’s (2022) U.S. sales
• Fresh Bites doesn’t consider vending machines as an option due to the short
shelf-life of their offerings
• Panera Bread, Starbucks, Krispy Kreme, Taco Bell and other restaurant chains
sell their products through grocery stores like Walmart, Wholefoods, and Target
Case type
Implementation
© 2023 Peter K. More at Peter-K.org
Hard level
Interviewerdriven case
15-20 minutes
to solve
| 205
Case #13. Inspired by McKinsey. 2023. Distribution strategy
Implementation
Opening. Make sure the candidate follows these steps
01
Restate the Typically the candidates are expected to restate the prompt to make sure they are on the
prompt
same page with the interviewer
Candidates can react to the prompt by providing some quick thoughts which will
demonstrate candidates’ business acumen, e.g.:
02
Add colors
(optional)
• “Restaurant chains are location-driven businesses. Poor locations with low foot traffic
might hurt the bottom line and damage the brand”
• “The pandemic-induced boost of online orders reshaped customer expectations and
delivery option has become an industry standard for restaurants”
• “With such large losses, I’m wondering how much resources Fresh Bites is capable of
dedicating to the upgrade of their distribution strategy. A smartphone app might cost
millions of dollars in development and then marketing”
03
04
Ask 2-3
questions
Candidates often ask 2-3 questions before designing their framework. However, there is no
“that very right” question that candidates should ask. Questions for this case might be:
• What are the most efficient distribution channels among other fast-casual chains?
• What budget does Fresh Bites plan to invest in upgrading their distribution?
• What would be the success metrics for the CEO? Any specific goals for the improvement
of their distribution strategy?
Candidates don’t always get answers to their questions. In fact, McKinsey interviewers often
say that they don’t have any additional information.
Ask for a
moment to
structure
• Typically candidates ask for a couple of minutes to structure their approach
• Sometimes McKinsey interviewers ask the first question and then the candidate takes
time to build their framework
© 2023 Peter K. More at Peter-K.org
| 206
Implementation
Case #13. Inspired by McKinsey. 2023. Distribution strategy
Case questions
01
What factors would you consider in analyzing how to
strengthen Fresh Bites’ distribution strategy?
02
Fresh Bites would like to build a best-in-class app to launch its
digital distribution channel and better connect with its
customers. What ideas of in-app experience personalization can
you suggest?
03
To expand customer reach, Fresh Bites would like to partner
with delivery companies such as DoorDash and UberEats. How
will it affect the client’s bottom line?
04
Despite expected short-term losses, Fresh Bites plans to
proceed and partner with Uber Eats, DoorDash, and other
delivery services. What are some operational implications that
Fresh Bites will encounter as a result of these partnerships?
© 2023 Peter K. More at Peter-K.org
| 207
Case #13. Inspired by McKinsey. 2023. Distribution strategy
Implementation
Q1. Framework
1
What factors would you consider in analyzing how to strengthen Fresh Bites’
distribution strategy?
Own stores
Own smartphone
app
• Chain size and
growth rate
• Financial
assessment
• Geo footprint
• Operational
feasibility
• Capacity
• Quality of locations
• Benefits for
customer
experience
• Brand implications
Food delivery
companies
• Financial terms
• Market reach
o Geo coverage
o New customer
groups
• Cannibalization
Retail chain
partners
• Revenue/cost
projections
• Shelf stability of
existing offerings
• Our production and
logistics capabilities
(to make it happen)
• Execution timeline
and risks
Note: This is just one of many potential ways to structure your approach. Please treat this example only as a reference point and develop your own style.
© 2023 Peter K. More at Peter-K.org
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Case #13. Inspired by McKinsey. 2023. Distribution strategy
Implementation
Q1. Make sure the candidate follows these steps
01
02
The best practice is to start with a 15-second big-picture overview, e.g. “I’d break down a
Do
horizontal
distribution strategy into four dimensions. First, own stores. Secondly, own app. Thirdly,
presentation third party delivery options. And finally, potential partners among retail chains”
Check if the candidate covers the following key points for an implementation case in their
frameworks:
Hit key
points
1. Areas to change (e.g. stakeholders, supply/demand, PPS (people, processes, systems))
2. Feasibility assessment (e.g. financial analysis, operational viability, talent requirements)
The offered framework in this case covers the areas to change (distribution channels) and
feasibility assessment (each bucket includes financial and operational analyses)
03
Add stories
(optional)
To avoid cookie-cutter/generic approach, the candidates can incorporate 2-3 stories into
their structure presentation, e.g.:
• “Building third-party distribution channels might allow Fresh Bites to expand their geo
footprint, reach out to new customer segments, and thus scale up their sales rapidly”
• “Fresh Bites sales are capped by the capacity of the existing restaurants which might
become a bottleneck for uplifting its distribution strategy”
• “Distribution channel expansion inevitably leads to cannibalization so the team should
prioritize the development of complementary channels first”
04
Finish with
a question
McKinsey interviewers don’t usually expect it, but at the end of the structure presentation, it
is helpful for the candidate to show that they can drive team forward and prioritize, e.g.
“This is how I picture it. Does this framework make sense to you? If so, do we know how
large their current chain is?”
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Case #13. Inspired by McKinsey. 2023. Distribution strategy
Implementation
Q2. Personalization ideas
2
Fresh Bites would like to build a best-in-class app to launch its digital distribution
channel and better connect with its customers. What ideas of in-app experience
personalization can you suggest?
Personalized marketing
Personalized processes
Personalized look and feel
[More efficient marketing is likely the most
valuable outcome of personalization as it
drives sales. Purchase pattern analysis, AIpowered A/B tests, and more precise
customer segmentation unlock cross-selling
and upselling opportunities]
[Customers get more spoiled and demanding
nowadays, as the expectations about speed,
convenience, and choice are constantly raised
by the fierce competition. Streamlined
processes and intuitive app have become table
stakes especially for digitally fluent Gen Z]
[Personalized look and feel
might be a nice addition as it
makes the app more welcoming
but it won’t likely result in
material impact]
Promotions
Order selection
• Promotions based on purchases and profile
• Pre-selected items in an order based on past
regular purchases
• Birthday gifts and discounts
• Personalized pricing (e.g. special discounts
for active customers)
• Personalized menu based on purchase history
• Geo-targeted notifications for customers
near stores with seasonal offerings
• Automatic recurring orders (e.g. for office
workers)
• Gamification (e.g. rewards, points, statuses)
• “One-click” purchase feature
Recommendations
• Integration with voice assistants (e.g. Siri,
Alexa) to make purchases with voice
• Personalized menu item recommendations
• Personalized upselling options (e.g.
frequently bought together with…)
• Personalized in-app greetings
• Customized homepage (e.g.
background, font size, colors)
• Personalized feedback
surveys on specific features
Order placement
Trouble-shooting
• Personalized customer support (e.g. chatbots
that are fed with the data from
a current order)
Note: This is just one of many potential ways to brainstorm. Please treat this example only as a reference point and develop your own style. [The candidate is usually
expected to generate at least 4 ideas. The best practice is 7-8 ideas, structured approach, and on-the-fly delivery without taking notes]
© 2023 Peter K. More at Peter-K.org
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Case #13. Inspired by McKinsey. 2023. Distribution strategy
Implementation
Q2. Make sure the candidate follows these steps
01
• 80% of interviewers feel comfortable when candidates take 30-40 seconds to
Take time or
think and write down their ideas before walking the interviewer through them
do on-the-go
• The best practice is to ideate on-the-fly
02
Do horizontal • The best practice is to structure brainstorming and offer a 10-second top-down
presentation
overview, e.g. “Personalization techniques can be seen through three lenses.
(optional)
First, marketing. Secondly, processes. And thirdly, app’s design”
03
• Regular feedback from consulting firms is that candidates offer only three ideas
which is a bit on the lower end
Provide at
least 4 ideas • Push the candidate to provide at least 4 ideas
• Top-5% of candidates can usually suggest 7-8 ideas
04
Add colors
(optional)
• To impress the interviewer, the candidates can contextualize some of their ideas
• Examples are given in [] brackets on the previous slide
© 2023 Peter K. More at Peter-K.org
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Implementation
Case #13. Inspired by McKinsey. 2023. Distribution strategy
Q3. Math exercise – prompt
3
To expand customer reach, Fresh Bites would like to partner with delivery companies
such as DoorDash and UberEats. How will it affect the client’s bottom line?
Please share with the candidate the
following information
Please provide this additional
information only upon request
• Based on the benchmarking
analysis (Appendix 1), delivery
partners will likely generate 25%
of own channel sales
• Delivery partners typically charge
20% in sales commission
• Fresh Bites enjoys 30% gross
profit margin currently [whereas
net profit margin is negative]
• Delivery partners will likely
cannibalize 10% of existing sales
• Fresh Bites sales were given in the
prompt [$240M]
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Case #13. Inspired by McKinsey. 2023. Distribution strategy
Implementation
Q3. Math exercise – calculations
3
To expand customer reach, Fresh Bites would like to partner with delivery companies
such as DoorDash and UberEats. How will it affect the client’s bottom line?
Cannibalizationinduced profit
loss for own
channels
$240M
-10%
30%
New ownchannel sales
(after
cannibalization)
$240M
(1-10%)
$216M
Profits from
delivery
partners
$216M
25%
(30%-20%)
Change in
overall profits
-$7.2M
$5.4M
-$1.8M
-7.2M
$5.4M
4M
The partnership with delivery companies will result in profit decline by $1.8M
© 2023 Peter K. More at Peter-K.org
| 213
Case #13. Inspired by McKinsey. 2023. Distribution strategy
Implementation
Q3. Math exercise – contextualization of the answer
3
To expand customer reach, Fresh Bites would like to partner with delivery companies
such as DoorDash and UberEats. How will it affect the client’s bottom line?
Basic comments
(expected from
everyone)
Due to high sales commissions and expected cannibalization, using
delivery companies will lead to deepening losses by $1.8M
The revenue increase driven by delivery companies might strengthen
economies of scale and thus improve unit economics which might end
up increasing, not decreasing Fresh Bites margins
Advanced
comments (for
outstanding
candidates)
The economics of third-party delivery services might be even worse as
customers might place smaller orders than they would for in-person
dining. Customers might also order fewer high-margin items like
refreshments as drinks might be challenging to transport
Increase in convenience and accessibility might improve loyalty and
retention rate of customers, which will increase marketing ROI and
lifetime value of customers. Thus, potentially lower marketing
expenses (customer acquisition costs) will improve bottom-line
(despite lower gross margins)
Note: The candidate is not expected to mention all the advanced comments, but adding some of them will demonstrate that the candidate can connect the dots, see the
depth, add colors and bring some insights even if the candidate is not that familiar with the industry/topic
© 2023 Peter K. More at Peter-K.org
| 214
Case #13. Inspired by McKinsey. 2023. Distribution strategy
Implementation
Q3. Make sure the candidate follows these steps
01
02
03
04
Structure
approach
• Providing a big-picture approach of how to calculate the answer might help the
candidate gain more points and help the interviewer follow the candidate’s
thought process
Clarify
• Often interviewers don’t provide all the information
missing data
• The candidate needs to proactively ask for missing pieces
points
• Ideally the candidate shouldn’t make any mistakes
Calculate
accurately
Add colors
(optional)
• It is okay to ask for some time to run numbers and then walk the interviewer
through the calculations (some interviewers though might push back and ask
you to do your Math on the fly)
• The interviewers highly appreciate it when the candidate not only calculates the
answer correctly, but also contextualizes it
• For examples of contextualization, please refer to the advanced comments on
the previous slide
© 2023 Peter K. More at Peter-K.org
| 215
Case #13. Inspired by McKinsey. 2023. Distribution strategy
Implementation
Q4. Operational implications
4
Despite expected short-term losses, Fresh Bites plans to proceed and partner with Uber
Eats, DoorDash, and other delivery services. What are some operational implications
that Fresh Bites will encounter as a result of these partnerships?
People
Processes
Systems
[New stakeholders (delivery
partners) usually increase
operational complexity which
naturally requires careful
management and assessment]
• Hire account manager(s) and
analyst(s) to work with delivery
partners
• Train in-store staff and call center
operators on the specifics of these
new delivery methods and new
processes
• Get ready for a rapid headcount
increase (e.g. in-store, logistics,
and warehouse staff) in case of
sales spike driven by delivery
partners and relevant marketing
[Delivery companies will plug in at the
end of the value chain, so processes
before that should not be affected]
• Design new packaging for delivery
partners (e.g. to prevent access to
food during delivery and ensure food
safety)
• Build pick-up procedures for couriers
• Establish coordination mechanism
between Fresh Bites and delivery
partners on trouble-shooting (e.g.
delivery delays, missed items)
[I’d not anticipate changes in
hardware but Fresh Bites and
delivery companies will need to
integrate their software systems at
multiple functions]
Integrate software systems of Fresh
Bites with delivery partners:
• Order processing (e.g. menu,
order placement, queuing)
• Food inventory (e.g. what salads
are available today)
• Financial flows (e.g. customer
payments)
• Customer data storage and
processing
Note: This is just one of many potential ways to brainstorm. Please treat this example only as a reference point and develop your own style. [The candidate is usually
expected to generate at least 4 ideas. The best practice is 7-8 ideas, structured approach, and on-the-fly delivery without taking notes]
© 2023 Peter K. More at Peter-K.org
| 216
Case #13. Inspired by McKinsey. 2023. Distribution strategy
Implementation
Q4. Make sure the candidate follows these steps
01
• 80% of interviewers feel comfortable when candidates take 30-40 seconds to
Take time or
think and write down their ideas before walking the interviewer through them
do on-the-go
• The best practice is to ideate on-the-fly
02
Do horizontal • The best practice is to structure brainstorming and offer a 10-second top-down
presentation
overview, e.g. “I’d like to see operational implications at three levels - people,
(optional)
processes, and systems”
03
• Regular feedback from consulting firms is that candidates offer only three ideas
which is a bit on the lower end
Provide at
least 4 ideas • Push the candidate to provide at least 4 ideas
• Top-5% of candidates can usually suggest 7-8 ideas
04
Add colors
(optional)
• To impress the interviewer, the candidates can contextualize some of their ideas
• Examples are given in [] brackets on the previous slide
© 2023 Peter K. More at Peter-K.org
| 217
Recommendation
McKinsey typically doesn’t require
recommendation for their cases
© 2023 Peter K. More at Peter-K.org
| 218
Case #13. Inspired by McKinsey. 2023. Distribution strategy
Implementation
Appendix 1. Benchmarking analysis
Real data
sweetgreen’s revenue structure by distribution channel
100%=
M USD (2020-22)
$220M
$340M
$470M
18%
21%
21%
100%
90%
80%
70%
25%
33%
60%
Delivery partners:
Caviar, DoorDash,
Grubhub, Postmates,
and Uber Eats
38%
In-store
50%
40%
30%
56%
20%
46%
41%
Own digital: pick-up,
own delivery service,
and outpost*
10%
0%
2020
2021
2022
Note: *Outpost channel enables office workers, hospital workers, or building residents to get their custom sweetgreen order delivered directly to one of 768 outpost
stations (2022) at their location during a dedicated time window each day
© 2023 Peter K. More at Peter-K.org
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Case
#14
Inspired by
McKinsey
Digital
transformation
2023
© 2023 Peter K. More at Peter-K.org
| 220
Case #14. Inspired by McKinsey. 2023. Digital transformation
Implementation
Case #14. Inspired by McKinsey. 2023. Digital transformation
Prompt
A global biopharmaceutical company Bio Co focuses on R&D for medications on
severe central nervous system disorders, inflammatory disorders, and oncology. A
quarter of its 10k employees are salespeople who follow traditional sales practices.
For example, they share information about prescription drugs with doctors and
other medical practitioners typically during face-to-face visits. The Bio Co’s CEO
believes that sales digitalization might unlock a lot of value for the company. They
have hired your team to conduct a digital transformation for their sales function.
How would you help the client?
Additional
information
Please provide this information only upon request
• Digitalization is the use of tech, data, and analytics to design business
processes. Digitization is the conversion of analog information to digital formats.
Digital Transformation is business transformation enabled by digitalization
• Bio Co enjoys $6B in revenue and 15% net profit margin (2022)
• Bio Co has successfully digitalized R&D - built digital capabilities shortened study
timelines and improved access for a more diverse range of participants
• The current level of sales process digitalization at Bio Co is minimal
• Bio Co doesn’t have any goals but realizes that this project will be capex heavy
Case type
Implementation
© 2023 Peter K. More at Peter-K.org
Hard level
Interviewerdriven case
15-20 minutes
to solve
| 221
Case #14. Inspired by McKinsey. 2023. Digital transformation
Implementation
Opening. Make sure the candidate follows these steps
01
02
03
Restate the Typically the candidates are expected to restate the prompt to make sure they are on the
prompt
same page with the interviewer
Add colors
(optional)
Ask 2-3
questions
Candidates can react to the prompt by providing some quick thoughts which will
demonstrate candidates’ business acumen, e.g.:
• “The pandemic should have accelerated sales digitalization in pharma as sales reps were
limited in their in-person interaction with healthcare providers. So, Bio Co’s competitors
might have already built some sales digital capabilities and Bio Co needs to catch up now”
• “In their day-to-day lives physicians are used to online product research, online shopping,
and remote customer support. So, their learning curve won’t likely be steep if Bio Co
digitalizes their customer journeys. We shouldn’t probably expect strong resistance from
healthcare providers, but in fact we might see support and increase in satisfaction”
• “Digital transformation is usually a capex intensive project so I’m glad to see that Bio Co
can afford it as they are a big-name player and likely enjoy deep pockets”
Candidates often ask 2-3 questions before designing their framework. However, there is no
“that very right” question that candidates should ask. Questions for this case might be:
• What software is currently used for sales at Bio Co? CRM, online store, analytical tools?
• How does a typical sales cycle look like? (e.g. length, stakeholders, products sold)
• What are the major customer segments Bio Co sell to?
Candidates don’t always get answers to their questions. In fact, McKinsey interviewers often
say that they don’t have any additional information.
04
Ask for a
moment to
structure
• Typically candidates ask for a couple of minutes to structure their approach
• Sometimes McKinsey interviewers ask the first question and then the candidate takes
time to build their framework
© 2023 Peter K. More at Peter-K.org
| 222
Implementation
Case #14. Inspired by McKinsey. 2023. Digital transformation
Case questions
01
What factors should your team explore to help Bio Co
digitalize their sales function?
02
The manager reached out to you and asked for your thoughts
on what sales processes and customer touch points can Bio
Co digitalize?
03
It seems like a lot of value can be unlocked through sales
digitalization. However, the CEO is afraid that salesforce will
push back. What might be the reasons of salesforce’s
potential reluctance to adopt new tech?
04
Your manager would like to understand how much time it’ll
take to train all the Bio Co salespeople to transition on the
new software. Can you run the numbers?
© 2023 Peter K. More at Peter-K.org
| 223
Case #14. Inspired by McKinsey. 2023. Digital transformation
Implementation
Q1. Framework
1
What factors should your team explore to help Bio Co digitalize their sales function?
Healthcare
providers
Salesforce
• Organizational
structure
• Existing sales
software
• Sales processes:
‒ Admin
‒ Account
development
‒ KPI tracking
• Customer segments
• Current level of
digitalization of
customer journey
(e.g. product
research, customer
support)
• Existing software to
analyze customer
behavior
Management
• Marketing software
(e.g. campaign
assessment, A/B
test analysis)
• Reporting software
Implementation
• Financial
assessment
• Operational
feasibility
• Required talent
• Required team (e.g
PMO, project
management office)
Note: This is just one of many potential ways to structure your approach. Please treat this example only as a reference point and develop your own style.
© 2023 Peter K. More at Peter-K.org
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Case #14. Inspired by McKinsey. 2023. Digital transformation
Implementation
Q1. Make sure the candidate follows these steps
01
02
The best practice is to start with a 15-second big-picture overview, e.g. “A great case! Let
Do
horizontal
me look into four dimensions. First, salesforce. Secondly, healthcare providers. Thirdly,
presentation management. And finally, implementation”
Check if the candidate covers the following key points for an implementation case in their
frameworks:
Hit key
points
1. Areas to change (e.g. stakeholders, supply/demand, PPS (people, processes, systems))
2. Feasibility assessment (e.g. financial analysis, operational viability, talent requirements)
The offered framework in this case covers the areas to change (stakeholders - salesforce,
customers, and management) and feasibility assessment (last bucket)
To avoid cookie-cutter/generic approach, the candidates can incorporate 2-3 stories into
their structure presentation, e.g.:
03
Add stories
(optional)
• “I’d imagine that selling prescription drugs is a relationship-based business and that’s why
Bio Co hosts an army of sales reps to do high-touch sales. However, digitalization might
dramatically improve salesforce efficiency and help Bio Co not only increase revenue but
also scale back on their sales rep headcount”
• “Sales digitalization isn’t a new strategy and has been widely adopted. I’d think there is a
good number of time-proven software solutions that encompass various best practices”
• “Rapid AI development, cloud tech, and easy-to-use tablets likely enable sales software
to streamline admin work of salesforce and free up their time to focus on sales”
04
Finish with
a question
McKinsey interviewers don’t usually expect it, but at the end of the structure presentation, it
is helpful for the candidate to show that they can drive team forward and prioritize, e.g.
“Does it come across as a reasonable plan of attack? If it resonates with you, I’d look into
the sales processes first. Do we know how a typical sales cycle look like?”
© 2023 Peter K. More at Peter-K.org
| 225
Case #14. Inspired by McKinsey. 2023. Digital transformation
Implementation
Q2. Process map
2
The manager reached out to you and asked for your thoughts on what sales processes
and customer touch points can Bio Co digitalize?
xxx
Admin
[I’d imagine that sales conversations
take just a small portion of the sales
cycle, and salespeople might dedicate
a lot of time to paperwork, scheduling
and other admin. The digitalization of
admin functions might free up a lot of
time and help salespeople focus on
their core job]
Sales funnel
• Lead identification
• Lead verification
• Contract preparation
• Electronic signature
Meeting prep
• Day planning (incl. route planning)
• Presentation pre-population with
client’s data
• Scheduling intro/follow-up calls and
meetings
Reporting
• Client status updates
• Dashboard preparation (e.g. with
personal stats)
Sales
[Technology might empower
salespeople with insights on clients’
purchasing behavior from the entire
organization, educate them on the
recent changes in their regions, and
help rapidly navigate through products
and contract options]
• Data-based insights about patient
population changes and local health
environment dynamics (to tailor
sales pitch)
• Predictive analytics on healthcare
providers’ likelihood of switching
therapies/medicines
• AI-powered recommendations for
cross-selling and up-selling to
providers
• Tablet-based digital questionnaires
for client profiling
Customer journey
[Healthcare providers likely do their
homework to learn more about Bio Co’s
drugs before or after meetings with
salespeople. So, Bio Co should offer
self-service top-notch digital solutions
for doctors and other healthcare
practitioners]
Product research at site
• Intuitive design
• Powerful search function
• Short and on-the-point video
presentations
Q&As
• AI-enabled chatbots for general
questions
• Webchats and video-calls with
experts
Note: This is just one of many potential ways to brainstorm. Please treat this example only as a reference point and develop your own style. [The candidate is usually
expected to generate at least 4 ideas. The best practice is 7-8 ideas, structured approach, and on-the-fly delivery without taking notes]
© 2023 Peter K. More at Peter-K.org
| 226
Case #14. Inspired by McKinsey. 2023. Digital transformation
Implementation
Q2. Make sure the candidate follows these steps
01
• 80% of interviewers feel comfortable when candidates take 30-40 seconds to
Take time or
think and write down their ideas before walking the interviewer through them
do on-the-go
• The best practice is to ideate on-the-fly
02
Do horizontal • The best practice is to structure brainstorming and offer a 10-second top-down
presentation
overview, e.g. “I’d like to suggest sales processes of three categories. First,
(optional)
admin. Secondly, sales themselves. And finally, customer product research”
03
• Regular feedback from consulting firms is that candidates offer only three ideas
which is a bit on the lower end
Provide at
least 4 ideas • Push the candidate to provide at least 4 ideas
• Top-5% of candidates can usually suggest 7-8 ideas
04
Add colors
(optional)
• To impress the interviewer, the candidates can contextualize some of their ideas
• Examples are given in [] brackets on the previous slide
© 2023 Peter K. More at Peter-K.org
| 227
Case #14. Inspired by McKinsey. 2023. Digital transformation
Implementation
Q3. Implementation obstacles
3
It seems like a lot of value can be unlocked through sales digitalization. However, the
CEO is afraid that salesforce will push back. What might be the reasons of salesforce’s
potential reluctance to adopt new tech?
Painful changes in sales
process
[Salespeople may be hesitant to
relinquish their established best
practices and compromise their income
for new software that lacks a proven
track record but has the potential to
result in profound changes in sales
processes]
• Threat to salespeople’s autonomy
(e.g. own judgement on when to
interact is replaced by AI-suggested
time for touch points)
• Software might replace parts of faceto-face interaction and jeopardize
client relationships
• Software might be perceived as
additional burden (new admin work)
that takes time from sales
• Increased sales efficiency will likely
lead to changes in the incentive
structure (Bio Co will likely decrease
sales commissions)
Skill development issues
[The development of the skill to work
with the new software will depend on
the starting point and learning curve]
• Lack of tech savviness
• Inefficient training
• Complicated software; too steep
learning curve (e.g. too timeconsuming to learn how to use it)
• Limited ongoing support (e.g. long
response time from helpdesk)
Poor change
management
[Regular and clear communication
about the crucial sales digitalization role
might create sense of urgency and pride
that will increase chances for successful
implementation]
• Lack of support from middle
management/ direct supervisors
• No advocates, no champions
• Lack of big-picture importance of sales
digitalization
• Lack of top-management’s
encouragement
• Organization-wide inertia
Note: This is just one of many potential ways to brainstorm. Please treat this example only as a reference point and develop your own style. [The candidate is usually
expected to generate at least 4 ideas. The best practice is 7-8 ideas, structured approach, and on-the-fly delivery without taking notes]
© 2023 Peter K. More at Peter-K.org
| 228
Case #14. Inspired by McKinsey. 2023. Digital transformation
Implementation
Q3. Make sure the candidate follows these steps
01
• 80% of interviewers feel comfortable when candidates take 30-40 seconds to
Take time or
think and write down their ideas before walking the interviewer through them
do on-the-go
• The best practice is to ideate on-the-fly
02
Do horizontal
presentation
(optional)
03
• The best practice is to structure brainstorming and offer a 10-second top-down
overview, e.g. “I can see salesforce hesitation coming from three sources. First,
painful changes in sales processes. Secondly, skill development issues. And
finally, poor change management”
• Regular feedback from consulting firms is that candidates offer only three ideas
which is a bit on the lower end
Provide at
least 4 ideas • Push the candidate to provide at least 4 ideas
• Top-5% of candidates can usually suggest 7-8 ideas
04
Add colors
(optional)
• To impress the interviewer, the candidates can contextualize some of their ideas
• Examples are given in [] brackets on the previous slide
© 2023 Peter K. More at Peter-K.org
| 229
Implementation
Case #14. Inspired by McKinsey. 2023. Digital transformation
Q4. Math exercise – prompt
4
Your manager would like to understand how much time it’ll take to train all the Bio Co
salespeople to transition on the new software. Can you run the numbers?
Please share with the candidate the
following information
Please provide this additional
information only upon request
• Each training cycle lasts 2 months
and can accommodate 500
salespeople
• The number of salespeople is
given in the prompt (a quarter of
10k which is 2.5k)
• Each training program ends with
an exam, and the expected pass
rate is 80%
• Bio Co will run additional training
cycles For those who didn’t pass
• The pass rate for additional cycles
is expected to be 100%
© 2023 Peter K. More at Peter-K.org
| 230
Case #14. Inspired by McKinsey. 2023. Digital transformation
Implementation
Q4. Math exercise – calculations
4
Your manager would like to understand how much time it’ll take to train all the Bio Co
salespeople to transition on the new software. Can you run the numbers?
10k
500
salesmen
per cycle
5 cycles
500
salesmen
per cycle
(1-80%)
5 cycles
500
salespeople
Number of
additional
training cycles
500
salespeople
500
salesmen
per cycle
1 additional
cycle
Total time
required for
training
(5+1)
cycles
2 months per
cycle
12 months,
or 1 year
Number of
training cycles
A quarter
Number of
salespeople
who will fail the
exam
Bio Co will need an entire year to successfully train all their salespeople
© 2023 Peter K. More at Peter-K.org
| 231
Case #14. Inspired by McKinsey. 2023. Digital transformation
Implementation
Q4. Math exercise – contextualization of the answer
4
Your manager would like to understand how much time it’ll take to train all the Bio Co
salespeople to transition on the new software. Can you run the numbers?
Basic comments
(expected from
everyone)
It’ll take an entire year for Bio Co to successfully train all their
salespeople to transition on the new software
These calculations don’t consider a potentially high churn rate as
a lot of salespeople might be reluctant to change their overyears-built sales technics and might quit. The estimated timeline
also doesn’t take into consideration new hires
Advanced
comments (for
outstanding
candidates)
A one-year training program might require a large budget and a
separate PMO (Program Management Office) with dedicated staff.
Given learning and development might not be a core competency
of Bio Co, the company might need to bring external consultants
Such a long training period might create tensions among
salespeople as some of them get access to the new software far
earlier than others and thus might have unfair advantage and
earn far higher sales commissions (driven by the tech)
Note: The candidate is not expected to mention all the advanced comments, but adding some of them will demonstrate that the candidate can connect the dots, see the
depth, add colors and bring some insights even if the candidate is not that familiar with the industry/topic
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Case #14. Inspired by McKinsey. 2023. Digital transformation
Implementation
Q4. Make sure the candidate follows these steps
01
02
03
04
Structure
approach
• Providing a big-picture approach of how to calculate the answer might help the
candidate gain more points and help the interviewer follow the candidate’s
thought process
Clarify
• Often interviewers don’t provide all the information
missing data
• The candidate needs to proactively ask for missing pieces
points
• Ideally the candidate shouldn’t make any mistakes
Calculate
accurately
Add colors
(optional)
• It is okay to ask for some time to run numbers and then walk the interviewer
through the calculations (some interviewers though might push back and ask
you to do your Math on the fly)
• The interviewers highly appreciate it when the candidate not only calculates the
answer correctly, but also contextualizes it
• For examples of contextualization, please refer to the advanced comments on
the previous slide
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Recommendation
McKinsey typically doesn’t require
recommendation for their cases
© 2023 Peter K. More at Peter-K.org
| 234
Case
#
15
Inspired by
McKinsey
Online training
2022
© 2023 Peter K. More at Peter-K.org
| 235
Case #15. Inspired by McKinsey. 2022. Online training
Implementation
Case #15. Inspired by McKinsey. 2022. Online training
Prompt
Our client is Shey Investment, SI, a British-American global asset management
group. They offer a range of financial products to individuals, intermediary advisors
and institutional investors. SI manages $290B in assets. Over the last several years
SI expanded its offerings of mutual funds that its financial consultants should know
well to advise them to SI’s clients. The CEO has hired your team to build an online
training program aimed at educating all 300 financial consultants on mutual funds
and sales techniques to effectively close client deals related to these mutual funds.
What do you need to know to design and implement this online training program?
Additional
information
Please provide this information only upon request
• SI offers 50+ different mutual funds. A mutual fund is an investment fund that
pools money from many investors to purchase securities; different types of
mutual funds invest in different types of securities (e.g. equities, bonds)
• SI enjoys $2.2B in revenue, mostly from management fees (2022)
• SI employs 3,000 full-time employees globally
• SI uses an internally designed basic online courses that financial consultants
take to learn about SI’s mutual funds, contracts, legal aspects, etc.
• Currently SI hires vendors that conduct a series of workshops for financial
consultants to improve their sales skills to sell more mutual funds
Case type
Implementation
© 2023 Peter K. More at Peter-K.org
Hard level
Interviewerdriven case
15-20 minutes
to solve
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Case #15. Inspired by McKinsey. 2022. Online training
Implementation
Opening. Make sure the candidate follows these steps
01
02
03
04
Restate the Typically the candidates are expected to restate the prompt to make sure they are on the
prompt
same page with the interviewer
Add colors
(optional)
Ask 2-3
questions
Ask for a
moment to
structure
Candidates can react to the prompt by providing some quick thoughts which will
demonstrate candidates’ business acumen, e.g.:
• “I’d imagine mutual funds like other financial products are highly regulated and
complicated investments. Thus, financial consultants should demonstrate deep
understanding of them in order to provide accurate information to clients”
• “Advising mistakes of financial consultants might be costly for SI’s reputation which is
likely the key sales driver in this highly commoditized market. So, no wonder they are
ready to invest in a brand-new online training program”
• “With recent AI development and tech like ChatGPT, the new online training program
might be able not only to personalize learning journey but also provide actionable and
expert-level feedback”
Candidates often ask 2-3 questions before designing their framework. However, there is no
“that very right” question that candidates should ask. Questions for this case might be:
• How do SI’s financial consultants learn about its mutual funds and improve their sales
skills currently?
• What’s the current turnover rate of SI’s financial consultants?
• Does SI have any specific success metrics for this new online training program?
Candidates don’t always get answers to their questions. In fact, McKinsey interviewers often
say that they don’t have any additional information.
• Typically candidates ask for a couple of minutes to structure their approach
• Sometimes McKinsey interviewers ask the first question and then the candidate takes
time to build their framework
© 2023 Peter K. More at Peter-K.org
| 237
Implementation
Case #15. Inspired by McKinsey. 2022. Online training
Case questions
01
What do you want to know in order to design and
implement the online training program to educate financial
consultants on SI’s mutual funds and sales techniques?
02
The client has piloted three modules of the learning
program. Could you calculate how many consultants
successfully graduated from the pilot program?
03
The pilot showed low completion rate and low overall
learning outcome. What could we do to increase completion
rate and learning outcome in the next pilot?
04
Poor pilot results also revealed misalignment and lack of
clarity in expected goals. What success metrics of the online
training program do you think SI should track and target?
© 2023 Peter K. More at Peter-K.org
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Case #15. Inspired by McKinsey. 2022. Online training
Implementation
Q1. Framework
1
What do you want to know in order to design and implement the online training
program to educate financial consultants on SI’s mutual funds and sales techniques?
Online training
program
[educators]
Financial
consultants
[learners]
• Program architecture
(e.g. asynchronous,
webinars, tests)
• Target audience of
consultants (e.g. geo,
size, roles)
• Required content
(e.g. mutual funds
info, legal aspects)
• Current knowledge
and capability gaps
• Expected learning
outcomes (e.g.
knowledge, sales skill
boost)
• Success metrics for
learners (e.g. sales
increase, learner
satisfaction)
Feasibility
assessment
• Required talent to
design the program
(e.g. instructional
designers, subject
matter experts)
• Operational feasibility
(e.g. time,
complexity)
• Financial feasibility
(e.g. capex required)
Implementation
• PMO (project
management office)
and team
• Workstreams (incl.
deliverables,
ownership and
deadlines)
• Expected milestones
(e.g. 30-60-90 days)
• Maintenance of the
program in future
Note: This is just one of many potential ways to structure your approach. Please treat this example only as a reference point and develop your own style.
© 2023 Peter K. More at Peter-K.org
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Case #15. Inspired by McKinsey. 2022. Online training
Implementation
Q1. Make sure the candidate follows these steps
01
02
The best practice is to start with a 15-second big-picture overview, e.g. “Glad to be on the
Do
horizontal
project! I’d like to break it down into four workstreams. First, online training program.
presentation Secondly, financial consultants. Thirdly, feasibility assessment. And finally, implementation”
Hit key
points
Check if the candidate covers the following key points for an implementation case in their
frameworks:
1. Areas to change (e.g. stakeholders, supply/demand, PPS (people, processes, systems))
2. Feasibility assessment (e.g. financial analysis, operational viability, talent requirements)
The offered framework in this case covers the areas to change (supply/demand - educators
and learners) and feasibility assessment (bucket #3)
03
04
Add stories
(optional)
To avoid cookie-cutter/generic approach, the candidates can incorporate 2-3 stories into
their structure presentation, e.g.:
• “During the pandemic the demand for online education went through the roof as people
were locked down and had time to build new skills and expertise. That makes me
optimistic that the adoption rate of our new online training program might be high”
• “The online training program will offer a scalable solution. It’ll be tailored to the needs of
Shey Investment as it’ll be designed in-house ”
• “Developing a company-wide online training program might be capex intensive so it’s
good to know that our client is a big-name company with deep pockets”
Finish with
a question
McKinsey interviewers don’t usually expect it, but at the end of the structure presentation, it
is helpful for the candidate to show that they can drive team forward and prioritize, e.g.
“Does it sound reasonable to you? If it does, let’s dive into the program architecture first.
Do we have any information on it?”
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Implementation
Case #15. Inspired by McKinsey. 2022. Online training
Q2. Math exercise – prompt
2
The client has piloted three modules of the learning program. Could you calculate how
many consultants successfully graduated from the pilot program?
Please share with the candidate the
following information
Please provide this additional
information only upon request
• There are three consecutive online
modules and each module had a different
completion rate
• 40 financial consultants participated in the
pilot
• In order to move to the next module
learners should complete the previous one
• To graduate from the pilot program
learners should pass an exam
© 2023 Peter K. More at Peter-K.org
• 90% of learners competed Module 1
• One third of learners dropped out on
Module 2
• 75% of learners completed Module 3
• Out of the learners who completed all
three modules, 50% passed the exam on
their 1st attempt and 70% of the rest
passed it on the 2nd attempt
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Case #15. Inspired by McKinsey. 2022. Online training
Implementation
Q2. Math exercise – calculations
2
The client has piloted three modules of the learning program. Could you calculate how
many consultants successfully graduated from the pilot program?
Number of
learners who
completed the
pilot program
40
participants
90% * (1 - 1/3) * 75%
Number of
learners who
passed the
exam on the 1st
attempt
18
participants
50%
9 participants
Number of
learners who
passed the
exam on the
2nd attempt
(18 - 9)
70%
6 participants
Total number
of learners
who passed
the exam
9 participants
6 participants
15
participants
18
participants
Only 15 out of 40 financial consultants graduated from the pilot program
© 2023 Peter K. More at Peter-K.org
| 242
Case #15. Inspired by McKinsey. 2022. Online training
Implementation
Q2. Math exercise – contextualization of the answer
2
The client has piloted three modules of the learning program. Could you calculate how
many consultants successfully graduated from the pilot program?
Basic comments
(expected from
everyone)
15, or less than half of the initial participants, successfully
graduated from the pilot program
While the exam pass rate sounds reasonable (15 out of 18), it’s
alarming to see such a low completion rate (18 out of 40, or less
than half) which might be driven by the low quality of the training
materials, low motivation or busy schedules of consultants
Advanced
comments (for
outstanding
candidates)
40 participants is more than 10% of 300 financial consultants
which likely makes the pilot results statistically representative
While the end-of-course knowledge testing is important, what
matters the most is if this online training program will bring
material change in consultants’ work. For example, if it will lead
to sales increase or fewer mistakes in advising clients
Note: The candidate is not expected to mention all the advanced comments, but adding some of them will demonstrate that the candidate can connect the dots, see the
depth, add colors and bring some insights even if the candidate is not that familiar with the industry/topic
© 2023 Peter K. More at Peter-K.org
| 243
Case #15. Inspired by McKinsey. 2022. Online training
Implementation
Q2. Make sure the candidate follows these steps
01
02
03
04
Structure
approach
• Providing a big-picture approach of how to calculate the answer might help the
candidate gain more points and help the interviewer follow the candidate’s
thought process
Clarify
• Often interviewers don’t provide all the information
missing data
• The candidate needs to proactively ask for missing pieces
points
• Ideally the candidate shouldn’t make any mistakes
Calculate
accurately
Add colors
(optional)
• It is okay to ask for some time to run numbers and then walk the interviewer
through the calculations (some interviewers though might push back and ask
you to do your Math on the fly)
• The interviewers highly appreciate it when the candidate not only calculates the
answer correctly, but also contextualizes it
• For examples of contextualization, please refer to the advanced comments on
the previous slide
© 2023 Peter K. More at Peter-K.org
| 244
Case #15. Inspired by McKinsey. 2022. Online training
Implementation
Q3. Learning outcome growth ideas
3
The pilot showed low completion rate and low overall learning outcome. What could we
do to increase completion rate and learning outcome in the next pilot?
Increase quality of
video-content
Offer more opportunities
to practice
Make it social
[One-way lectures are the
least efficient way of teaching,
so we need to make sure our
training program is different]
Make more engaging
• Shorten videos (e.g.
microlearning)
• Improve storytelling and
avoid dry language
• Change teaching techniques
every 10-15 min to avoid
attention fatigue
Show value
• Offer more practical
examples of how this will
help consultants
• Validate the content with
subject matter experts
Create push/pull incentives
• Set strict deadlines to
create sense of urgency
• Offer rewards/bonuses for
best exam scores
[I’m not an education expert
but I’d imagine that practice
ensures skill development and
solidifies learnings. Lack of
practice might result in
insufficient feedback for
learners and thus inability to
see their knowledge gaps]
• Offer optional drill exercises
• Incorporate more quick
quizzes throughout modules
• Add mandatory reflective
essays to solidify the
learnings (e.g. “Which of my
clients should I offer this
mutual fund, and what
factors might pique their
interest in it?”)
• Create app-based flashcards
for additional practice
[To my best knowledge, teambased learning is one of the
hot topics nowadays, as
making education social
creates additional
accountability and sense of
community that increases
attendance and completion
rates]
• Allow comments and incourse discussions
• Crowd-source opinions on
burning questions
• Do in-course surveys and
share aggregated results
• Ensure social pressure (e.g.
share anonymized progress
curve; percentiles)
• Encourage peer-to-peer
practice where possible
Provide post-graduation
learning options
[Forgetting curve might be
steep after the training
program is over. So, in order to
keep gained knowledge and
skills fresh among their
financial consultants, Shey
Investment should ensure an
ongoing support system]
• Offer 1-on-1 mentorship to
solidify learnings
• Conduct another exam 3
months after graduation
• Create a series of podcasts
for consultants to revisit
materials during their
commute or work-out
Note: This is just one of many potential ways to brainstorm. Please treat this example only as a reference point and develop your own style. [The candidate is usually
expected to generate at least 4 ideas. The best practice is 7-8 ideas, structured approach, and on-the-fly delivery without taking notes]
© 2023 Peter K. More at Peter-K.org
| 245
Case #15. Inspired by McKinsey. 2022. Online training
Implementation
Q3. Make sure the candidate follows these steps
01
• 80% of interviewers feel comfortable when candidates take 30-40 seconds to
Take time or
think and write down their ideas before walking the interviewer through them
do on-the-go
• The best practice is to ideate on-the-fly
02
Do horizontal
presentation
(optional)
03
• The best practice is to structure brainstorming and offer a 10-second top-down
overview, e.g. “I’d suggest thinking about opportunities through four lenses.
First, increase content quality. Secondly, ensure a lot of practice. Thirdly, make
learning process social. And finally, offer post-graduation learning options”
• Regular feedback from consulting firms is that candidates offer only three ideas
which is a bit on the lower end
Provide at
least 4 ideas • Push the candidate to provide at least 4 ideas
• Top-5% of candidates can usually suggest 7-8 ideas
04
Add colors
(optional)
• To impress the interviewer, the candidates can contextualize some of their ideas
• Examples are given in [] brackets on the previous slide
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| 246
Implementation
Case #15. Inspired by McKinsey. 2022. Online training
Q4. Key success metrics
4
Poor pilot results also revealed misalignment and lack of clarity in expected goals. What
success metrics of the online training program do you think SI should track and target?
Learning outcomes
Business results
[Learning outcomes can be measured at different
stages of learners’ journey - during the training,
at the end of training, and post-training]
[The eventual goal of the investment in human
capital is to monetize it successfully and
strengthen the company’s market positioning]
• Program completion rate
• Sales increase
• Pass rate of the program’s exam
• Long-term retained knowledge and skills (e.g.
3 months/6 months after program completion)
‒ Number of new clients and amount of new
funds
‒ Cross-selling and up-selling for existing
clients
• % of learners that received industry
certificates (in case they exist)
• Improvement in customer satisfaction
• Learners’ satisfaction
• Number and frequency of advising mistakes
• Acknowledgement as best-in-class training
program in the industry by independent
experts
• Improvement in brand perception due to
higher quality of investment advising
Note: This is just one of many potential ways to brainstorm. Please treat this example only as a reference point and develop your own style. [The candidate is usually
expected to generate at least 4 ideas. The best practice is 7-8 ideas, structured approach, and on-the-fly delivery without taking notes]
© 2023 Peter K. More at Peter-K.org
| 247
Case #15. Inspired by McKinsey. 2022. Online training
Implementation
Q4. Make sure the candidate follows these steps
01
• 80% of interviewers feel comfortable when candidates take 30-40 seconds to
Take time or
think and write down their ideas before walking the interviewer through them
do on-the-go
• The best practice is to ideate on-the-fly
02
Do horizontal
presentation
(optional)
03
• The best practice is to structure brainstorming and offer a 10-second top-down
overview, e.g. “There are two sides that I can see. First, we need to measure the
learning outcomes. And secondly, we need to track how these learning outcomes
help us achieve business results”
• Regular feedback from consulting firms is that candidates offer only three ideas
which is a bit on the lower end
Provide at
least 4 ideas • Push the candidate to provide at least 4 ideas
• Top-5% of candidates can usually suggest 7-8 ideas
04
Add colors
(optional)
• To impress the interviewer, the candidates can contextualize some of their ideas
• Examples are given in [] brackets on the previous slide
© 2023 Peter K. More at Peter-K.org
| 248
Recommendation
McKinsey typically doesn’t require
recommendation for their cases
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| 249
More at
Peter-K.org
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Peter K’s MBB
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top-notch cases
inspired by real MBB
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