Hi, I have a question about asking clarifying questions at the beginning of the case. I've been told to only ask these if I don't understand something, but normally, I feel that I pretty much understand what I'm being asked to do upfront. In that case, do I just skip the clarifying questions, or are there other things I should be asking or thinking about at the beginning of every case?
I suggest asking the following questions:
1) Clarify the business model / how the business actually makes money. Even if you think you understand it, try to repeat it to make sure that you understand it correctly. e.g. if the case is about oil&gas company which revenues are declining, ask if it is Up / mid / down-stream problem. In this case, defining a revenue stream is critical to setting up the right structure.
2) Clarify the objective. Here make sure that your goal is:
- Has a time-framed
- Has / has no limitations
e.g. Should I invest 100k in this business for 1 year if I want to get 15% return?
3) Ask the questions that will help you build a relevant structure and remove ambiguity.
I suggest that before starting with your structure, you should be clear on the following four questions, in order of importance:
- Objective - what is the client's objective
- Business Model - how does the client make money (e.g., B2B, B2C, B2B2C etc.)
- Product - what does the product do and how (especially relevant in complex industries like pharma or finance
- Timeline - when is the client looking to achieve the objective (e.g., doubling the revenues in 6 months is very different from a 2-5 year horizon)
Now, no point being a robot, even when clarifying:
- Don't ask the question, if you have the information or the answer is obvious (e.g., cafes make money by serving food and drinks to customers)
- The best way of clarifying, is by confirming a suggested hypothesis (e.g., "Would it be correct to assume that most of the revenues of a newspaper come from advertising?")
Hope it helps!
There is always more that you can understand. If you understand the goal as improving profits, there's so much more you can ask - do they have a % change target in mind, how long do we have to turn this around, do they prefer this to be done through raising revenue or cutting costs, etc.
I always write BOTMG at the bottom of my framework page to help myself think of things I'm missing in case I'm stuck.
This helps "trigger" you to consider questions around B = Business Model, O = Objective, T = Timing, M = Market, G = Geography.
However, you should never just say "so, what is their business model?" Obviously, ask questions that help you frame your hypothesis, understand the situation, and ultimately drive your case better.
Besides the above, usually helps to clarify scope of case (geography, business units, time). Should try to keep clarifying questions below three, so it doesn’t blur with case solving.
hope it helps,
On top of Vlad's good points, just be careful not to ask problem solving questions, i.e., the ones whose answers you need in order to solve the problem rather than to structure it (e.g., asking for total size of the market or how is demand evolving)