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BCG

BCG Potential Test

by Stephan Spijkers Leave a Comment

BCG Potential TestThe BCG Potential test is a written case interview, very similar to the McKinsey Problem Solving Test or PST. They both serve the same purpose and test the same skills:

  • Determine whether you have the analytical skills to become a strategy consultant
  • Screen candidates before conducting ‘real’ case interviews

The similarity of the BCG Potential Test to the McKinsey PST means that the preparation for both can be done at the same time and with the same material.

What is the BCG Potential Test?

It seems that BCG is still running trials with written cases and we’ve had reports of different versions being in tested in the field. What can you expect?

  • 50 or 23 questions spread over multiple cases
  • Limited time to answer all questions (50 minutes)

It differs from the McKinsey PST in how answers are scored: correct answers net you 2 points, unanswered questions 0 and wrong answers will decrease your score by -1. So no last minute guessing, as with the PST.

BCG Potential Test: how to practice?

If you’ve been invited to do the test by BCG, you’d probably want to prepare. Luckily there’s a lot of material available and we’ll zoom in on the specific skills required by the BCG Potential Test as well as sample tests you could take.

Math skills

The BCG Potential Test requires you to do a lot of calculations in a short amount of time. To make sure you calculate quickly and correctly you should practice your quantitative skills. There are plenty of sites and apps to test your mathematical prowess, and we’ve listed some in our article on case interview math. Don’t be put off by your initial performance: your skill will improve rapidly with daily practice.

Reading Skills

You’ll have to parse a lot of text and (financial) data during the test, and it helps when you can quickly decide which piece of information is important and which not. It also helps to know the “business jargon” and read up if your background is not in Business or Finance. Good ways to get up to speed quickly is reading The Economist or Business Insider articles.

Other preparation

Since the BCG Potential test features a lot of reading questions combined with math, it helps to use GMAT/GRE training material as well.

BCG Potential Test: sample

If you want to practice the BCG Potential test, you should take a look at the BCG website: the BCG Netherlands office offers a sample test online. These are only a few questions though. Luckily the BCG Potential Test and the McKinsey PST are much alike and we offer a lot of practice material to start right away:

  • The Key to the PST: a fully-fledged practice PST with 26 questions and an extensive answer guide. In addition, it also features tips on how to ace the McKinsey PST both when preparing and during the actual Problem Solving Test.
  • The Second Key to the PST: an additional practice PST with a fresh set of cases and the same extensive answer guide.
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Filed Under: BCG Tagged With: BCG, BCG Potential Test, BCG written case, written case

BCG Case Interview

by Stephan Spijkers Leave a Comment

In our last post, we looked at the history of BCG. And following CaseInterviewHQ tradition, we will now continue with the specifics of the Boston Consulting Group (Case) Interview process, as we did with the McKinsey Case Interview. The basic structure of the case interview is the same, so I really recommend reading the McKinsey post (again).

About 75% of the interviewing process overlaps between firms, and within firms there is about 90% overlap. That means there are differences between firms but there are also subtle differences between offices. The latter is caused by specialization: New York offices focus more on finance, Detroit offices focus more on manufacturing. So what makes the Boston Consulting Group different from the rest?

 

The Interview Process

Normally, the process would be six case interviews with consultants in ascending seniority. So while you might meet a senior consultant in your first rounds, your final rounds will almost always be with partners. There could also be five case interviews, with the first interview being a telephone interview with recruitment, or an ‘experience interview’ (focused on your resume and motivation) at the office, also with recruitment. We’ll come back to the case interview later, first a closer look at some recent developments in the BCG recruitment process: the computer test and the written case interview.

 

Computer Test

A pretty recent development, currently only employed in Western Europe, is the computer test. While I have no personal experience with it, I have been told that it is comparable to the McKinsey PST, but focuses more on the quantitative part. To me, it looks like an intelligence test adapted specifically to the consulting practice. It’s a first round selection tool and probably features a cut-off score: if you beat it, you can expect an invitation to the case interviews, otherwise it’s over.

 

The Written Case

At BCG, you can expect two kinds of case interviews. Aside from the normal ‘conversational style’ interview where you ask questions to the interviewer and solve a case together, some BCG offices feature a written case. In a written case interview, you’re asked to solve a specific question for a hypothetical client and you’ll be handed a pack of paper with analyses. You’re then given one hour to analyse the data and present your findings after one hour. Since there is too much data to read and investigate everything (just as in real consultant life), you need to structure your analysis and focus on what’s important. Start with a hypothesis (“Company X can improve profit by reducing costs”) and set out to (dis)prove this hypothesis using the data you’ve been given: basically the same method as used during real case interviews.

There are good and bad ways to structure your analysis and we discussed the consultant’s method of choice a few weeks ago: the Minto Pyramid Principle. Using the above example (“Company X can improve profit by reducing costs”), you will want to split the analysis in MECE categories. In this case, Revenue and Cost would be interesting area’s of investigation and MECE (Mutually Exclusive and Collectively Exhaustive): there are no other factors influencing profit. Since your hypothesis is that reducing cost will improve profits, you then break down costs into MECE-categories, for example Fixed and Variable, but you could also segment cost per product line or country. If there are indeed huge potential cost savings, you have proven your hypothesis and can start working on recommendations. If not, you change your hypothesis and start looking at the other branch of your analysis: Profit. You then continue to dig down until you’ve found the problem and it’s solution. But always let a hypothesis guide your analysis, an important thing to keep in mind even during normal case interviews. A great way to practice written cases is the Interactive Case on the BCG website.

 

Where BCG differs

Apart from the regional differences and the ‘new’ case interview methods discussed above, the Boston Consulting Company is a pretty selective bunch. They’ll be looking for candidates that ace their case interviews (so don’t screw up your math) and are passionate and enthusiastic about consulting at the same time. Try not to underestimate that ‘soft’ part of the interview, as it really does influence your chances a great deal.

BCG is also more qualitative in their cases then competitors, McKinsey in particular (another reason to polish up your math). BCG case interviews are also far more often ‘interviewee-led’, so don’t expect much from the consultant on the other end of the table, again different from the McKinsey case interview which is more often led by the interviewer.

Other than that, I can only say that practice does help, giving you the self-confidence necessary to appear relaxed and pleasant. More info on the consulting interview process (from cover letter to case interview), can be found in my book and on the Company Profiles page. Good Luck!

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Filed Under: Case Interviews, Uncategorized Tagged With: BCG, Case Interview

BCG: From 1 Phone Line to 4,400 Consultants in 50 Years

by Stephan Spijkers Leave a Comment

This time, we’ll look at the biggest competitor for McKinsey: The Boston Consulting Group (BCG). Next week, we’ll take an in-depth look at the recruiting and BCG case interviewing process, which differs from region to region. For example, some use an analytical test as the McKinsey PST, other offices focus only on case interviews and some add a one-hour ‘experience interview’ in the first rounds to make sure you fit with office culture.

But today as a general introduction and guidance for the one or two resume questions you get at the beginning of each case: the history of the Boston Consulting Group.

 

A New Perspective

Founded in 1963 by Bruce Henderson (ex-Arthur D. Little) as part of the Boston Safe Deposit and Trust Company, with Henderson as sole consultant, the management consulting firm that would later be known as the Boston Consulting Group directly started challenging business literature status quo. These regular essays called ‘Perspectives’ would form the platform from which BCG would launch its famous business concepts.

 

The Experience Curve

The first of these concepts developed by Henderson was inspired by work in the semiconductor industry in an attempt to understand the quick price drops. Experience producing a product allows a firm to lower production costs as cumulative volume (‘experience’) increases. It affirmed the importance of increasing market share and production scale, as it allows you to reap cost benefits.

Dogs, Question Marks, Stars and Cash Cows

Only two years later another famous concept would find its way into the ‘Perspectives’: the Growth-Share Matrix, or just the BCG-matrix. Allowing firms to categorize their product portfolio into categories and rationalize their cash flows: invest money from cash cows into stars and question marks, divest dogs. It resurfaced during the 80’s when it was used to categorize firms in investment portfolios to identify opportunities and divest divisions or companies with negative cash flows.

From Bill Bain Until Now

In 1973, Bill Bain leaves BCG to start up his own Boston consulting firm: Bain & Company. Meanwhile, BCG continues to grow and expand internationally. The Boston Consulting Group maintains its reputation as a research-driven and status-quo challenging company, being the first to identify the network-structure and the resource based view of the firm. Now 4,400 consultants strong, it’s the second largest firm (McKinsey still has about twice as much consultants at 9,000) in the strategic consulting industry and still growing.

During the interview

When interviewing with BCG, know that they have always been innovators and still love to challenge the status quo in economic theory and business practice. If you can show that you’ve been innovative in your PhD-research or other area’s of your life, do so! Also, know their five pillars and try to match your ambitions with one or more of these: show that you’re prepared and passionate about working for BCG. Acing the cases and knowing your math is only part of the interview, the soft part is equally important!

Want to know how to communicate passion and enthusiasm without looking like  a clown? Buy my book! Also applying at other firms? Check out the Company Profiles. And as always, good luck with your interviews!

 

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Filed Under: BCG, Company Profiles, Uncategorized Tagged With: BCG, Management Consulting

Case Interview Basics

by Stephan Spijkers Leave a Comment

At the very beginning of CaseInterviewHQ.com, we already introduced basic guides on case interview math and the McKinsey PST. After looking at the specifics of the McKinsey and BCG case interview, we now ‘take a step back’ and return to the basics of case interviews in a specific page.

Click  to learn more on the basics of case interviews.

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Filed Under: Uncategorized Tagged With: basics, BCG, Case Interview, McKinsey

Even Starting Strategy Consultants Earn More

by Stephan Spijkers Leave a Comment

 

Considering a job at McKinsey, BCG, Bain or another strategy consultant? Good news for you, as you’ll be earning more than your peers:
Image source

On average, strategy consultants earned about 10% more than their peers in other consulting fields, with consultants in the Project Management and Business Process Improvement getting the least: a ‘mere’ £ 41,000 (~ € 48.000 / ~ $ 63.000) a year, including bonuses and benefits. Maybe a compensation for the many hours they put into their work?

Payment in the UK is still below that of US ( $ 72,000) and Europe (€ 55,000) averages, so if you are in for the money you should considering starting in those two areas. More info can be found in the full report (pdf), which also includes the salaries of senior level consultants up to partners.

Want to make sure you ace the interview and get the job at the firm you want? Keep updated on this site by signing up for the Feedburner newsletter and buy the book when it comes out!

 

 

 

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Filed Under: Consultant's Life Tagged With: Accenture, Bain, BCG, Case Interview, Deloitte, McKinsey, Salary, Strategy Consulting

Cracking the Case Available Now!

by Stephan Spijkers Leave a Comment

The best book on case interviews is now available!

It took many hours to complete and even more to fine-tune and perfect it, but ‘Cracking the Case’ is finished and available now! Click here to find out everything about the book’s features, special bonuses and content previews.

Having finished the book, I will also have more time on my hands to update the blog, so stay tuned for further updates.

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Filed Under: Uncategorized Tagged With: Bain, BCG, Case Interview, case interview book, cracking the case, McKinsey, PST

Which MBA gets you into McKinsey?

by Stephan Spijkers 2 Comments

Most strategic consulting firms offer their employees the option of a sponsored MBA at any of the world’s leading business schools. This looks more generous than it is: even though they pay the astronomical tuition fees, the fine print tells you that you’ll be working for McKinsey, BCG or Bain for at least a couple of years after finishing your MBA to pay off their ‘gift’. Applying for an MBA while working at these firms has an additional advantage: they let you in more easily.

But what if you’re not one of those lucky few? What if you are considering an MBA to later join a consulting firm? Which MBA gives you the best chances on a job at McKinsey, BCG or Bain? Well XiaoXiao Ma was wondering the same thing and investigated how many people working at MBB had an MBA from which business school. The list with his results below comes from the Consulting Times:

There are some important caveats however: he does not exclude sponsored MBA-ships and does not include consultants with an MBA that worked at MBB but then left for other jobs. Nor does he take firm size or school size into account. That being said: the results are not so surprising: HBS, INSEAD and Wharton “supply” the most consultants.

If you want a job at McKinsey, BCG or Bain, I suggest you first apply now before you do an MBA. Read the Company Profiles and my book to increase your chances on a job. Good luck!

 

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Filed Under: Consultant's Life, Uncategorized Tagged With: Bain, BCG, Development, MBA, McKinsey

Welcome!

by Stephan Spijkers Leave a Comment

This is the first post on CaseInterviewHQ.com!

In the coming weeks, this site will grow out to be the best resource for case interview material on the web. If you would like to land the job you’ve always wanted at McKinsey, Bain & Company, The Boston Consulting Group, Accenture or any other consulting firm, this is the site to bookmark!

Want to keep updated on the progress on this site? Join my mailing list now!

See you soon!

 

– Stephan

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Filed Under: Uncategorized Tagged With: Accenture, Bain, BCG, Case Interview, Deloitte, McKinsey

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