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Anonymous A

on Oct 12, 2019

Global

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Is there an easy way yo think about hypothesis:issue tree:proving&disproving ...

I've read the Mckinsey mind book which talks about forming a hypothesis and using the issue tree to approve and disprove a hypothesis and the article here talks a lot on it.

However, it gets a bit complex to digest sometimes. Can you simply put the concept of an issue tree into perspective? Thanks

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Question on the Case Interview Basics Article

Approaching a Case

Case interviews can be overwhelming, but they are one of the most important parts in the hiring process. These interviews allow companies to assess your problem-solving skills, your ability to structure complex problems, and how well you communicate your solutions.A case interview isn't just about finding the "right" answer – it's about how you think. The best way to approach any case is to stay organized, break the problem into manageable parts, and explain your thinking clearly. In this guide, we'll walk you through the key steps to excel in a case interview, avoiding common mistakes, and standing out against the competition. Why Case Studies Matter in InterviewsCase studies are used in interviews because they simulate real business challenges, testing your ability to solve difficult problems under pressure. More than your technical skills, interviewers are looking for:Problem-solving abilities: Can you break down a complicated issue into smaller, more manageable parts?Prioritization and management: Can you identify the most important elements of a case and address them first?Communication: Are you able to clearly and logically explain your thinking process?Your performance in a case interview shows how you think on your feet and whether you'd be able to handle the challenges that arise in the job. A structured approach to the problem is key, and this is where your preparation can really pay off. Step-by-Step Guide to Solving Case StudiesStep 1: Clarify the problem statementStart by making sure you completely understand the case's problem. Repeat the key facts and ask follow-up questions to clarify any uncertainties. This shows the interviewer you're not rushing in blindly and that you understand the importance of precision.Step 2: Define goals and prioritiesOnce the problem is clear, define the objective of the case. What is the end goal? It could be maximizing profits, reducing costs, or improving efficiency. Identify the key performance indicators (KPIs) that matter to the business. This helps you and the interviewer align on what success looks like in solving the case.Step 3: Build a clear structure (the MECE principle)A good structure is key. One helpful approach is the MECE principle – Mutually Exclusive, Collectively Exhaustive. This means breaking down the problem into separate parts that don't overlap, but when combined, cover everything. By making sure each part is distinct (mutually exclusive) and nothing important is missed (collectively exhaustive), you create a clear and complete framework for solving the case.For example, if the case is about declining profits, you could break it down into:Revenue issues (sales, price, volume)Cost issues (fixed costs, variable costs)External factors (competition, regulation)Using the MECE principle ensures you address each issue without repeating yourself, and that you cover all relevant areas. This helps keep your analysis organized and easy to follow for both you and the interviewer.💡 Want to learn more about the MECE principle? Check out our article!Step 4: Gather key information (about the client, industry, and product)Now that you have your structure, gather relevant information. What do you know about the client’s industry? What internal and external factors could be affecting the company? Are there any market trends you need to consider? Asking insightful questions will allow you to collect the right data to support your analysis. This is also a good opportunity to demonstrate your creativity and ability to generate new ideas based on the information you uncover.Building a Strong Case Structure and How to Communicate ItTo build a strong structure in problem-solving, start by identifying key factors, known as first-level drivers, that directly influence the issue. You can approach this top-down (breaking the big picture into parts) or bottom-up (building from details). Prioritize and analyze these drivers to guide your recommendations.When communicating your structure, introduce your approach clearly and connect different parts of your analysis to show how they address the problem. Confidence and openness to feedback showcase your problem-solving abilities.In case interviews, identifying first-level drivers and clearly communicating your thought process demonstrates your strategic thinking and sets a strong tone for the rest of the discussion. Avoiding Common MistakesInformation overload: Don’t try to gather every possible piece of information. Focus on what's relevant to the case, and avoid overloading yourself or the interviewer with unnecessary details.Lack of clear structure: Failing to follow a structured approach will make your solution harder to follow and may lead you to miss critical aspects of the problem. Always keep your structure clear and logical.Poor preparation for the conclusion: Many candidates rush through the final stage of the case, giving vague or underdeveloped recommendations. Make sure your conclusions are well-supported by the data and analysis you've conducted throughout the case.If you want more tips about how to approach a case, this video will help you! Conclusion – The 4 Keys to Success in Case InterviewsTo excel in a case interview, focus on these essential steps:Listen and clarify: Ensure you fully understand the problem before diving in. This includes asking the right questions to clarify any uncertainties.Define goals and build a structured approach: Start with a clear structure, whether you’re using a top-down or bottom-up approach, and apply frameworks like the MECE principle to break down the problem into manageable parts.Analyze and organize data: Gather relevant information about the client, industry, and product, and organize your findings logically to support your analysis.Communicate clearly and confidently: Explain your reasoning step by step, ensuring your thought process is easy to follow and open to feedback. Conclude with well-supported recommendations.By following these steps, you’ll demonstrate problem-solving abilities, prioritize effectively, and communicate your ideas clearly – key qualities that interviewers look for. With preparation and practice, you'll be ready to confidently tackle any case interview challenge – Good Luck!

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The Role of the Hypothesis in Consulting

In the field of consulting, the hypothesis plays a central role in the analysis of problems, the development of solutions and the derivation of strategic recommendations. A hypothesis is a preliminary assumption or conjecture made on the basis of existing information and data. It serves as a starting point for investigations to gain empirically verifiable knowledge. This article explores the meaning, purpose, and application of hypotheses in the consulting context.The Importance of a Hypothesis in ConsultingIn the world of consulting, where complex business issues must be solved, the hypothesis is a fundamental component in developing structured approaches to solving them. A hypothesis allows consultants to sort through their thoughts and focus specifically on certain aspects of an issue. It also serves as a guideline to direct and guide the research process as data are collected and analyzed.The hypothesis also functions as an "educated guess" or informed conjecture based on existing knowledge, experience, and market insights. It helps structure the advisory process and guide efforts in the right direction.Components of a HypothesisA well-formulated hypothesis consists of several essential components:Independent and Dependent Variables: The hypothesis defines the relationship between an independent (manipulated) variable and a dependent (measured) variable. The independent variable is the one that is purposefully changed in an experiment, while the dependent variable is the response that is measured.Prediction: The hypothesis contains a clear prediction about how the change in the independent variable will affect the dependent variable. This prediction is what is tested in the experiment.Testability: A hypothesis must be testable, meaning that it can be tested by experimental investigation. It should be formulated in such a way that its correctness or incorrectness can be determined from observations and data.Clear Formulation: the hypothesis should be precise and clearly formulated to avoid misunderstandings. Clear wording also facilitates communication of the results.The Purpose of a Hypothesis in ConsultingFormulating a hypothesis serves several important purposes in consulting:Directional Thinking: A hypothesis forces consultants to think about possible causes and relationships that may have led to a problem. It promotes structured thinking and prevents aimless poking around in problem-solving.Focused Analysis: Hypotheses help focus the investigation on relevant data and information. This prevents an overload of unimportant details and allows for an in-depth analysis of the aspects that are most likely to have an impact.Measurable Results: A clear hypothesis makes it possible to establish concrete criteria for the success or failure of an investigation. This creates a basis for evaluating the effectiveness of proposed solutions.Structured Communication: A precisely formulated hypothesis facilitates communication between consultants and clients. It enables the planned steps, methods and expected results to be communicated in an understandable way.The Application of Hypotheses in ConsultingThe use of hypotheses in consulting spans several key phases of the consulting process and contributes significantly to structuring and finding solutions. In the problem identification phase, hypotheses help identify potential causes and influencing factors of a business problem by serving as a starting point for in-depth investigations.During data collection and analysis, hypotheses act as a guide to extract targeted relevant information, enabling more precise and focused data analysis.In the solution development phase, hypotheses play an important role in the evaluation and selection of different solution approaches. By serving as criteria to assess the probability of success of different options, they contribute to the development of the most promising solutions. Finally, hypotheses enable strategic recommendations to be derived. They provide a sound basis for formulating persuasive arguments in favor of particular strategies and for convincing clients of the soundness of proposed actions.Overall, the application of hypotheses functions as a systematic approach in consulting to bring structure to complex issues, perform targeted analyses, and ultimately derive informed decisions. This approach promotes the efficiency and effectiveness of the consulting process and ensures that the solutions developed are based on sound and validated assumptions.ConclusionThe hypothesis is an essential tool in consulting that helps structure complex problems, conduct targeted analyses, and derive informed solutions. It promotes a structured and focused approach and plays a crucial role in communicating ideas and recommendations to clients. In an industry based on informed decision-making, hypothesis is a powerful tool to influence the success of consulting projects.

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