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Does anyone have any advice for dealing with non-profits or public sector cases particularly in helping them grow?

Are there any extra factors/framework you would recommend just while I am learning about public sector/non-profit cases in general (this is a topic I am new to)? 

Secondly if trying to grow their revenues would you approach this issue differently to a 'regular' business?  

I am struggling with them, I'd be grateful for any advice. 

Thanks!

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Top answer
Ken
Coach
edited on Feb 07, 2021
Ex-McKinsey final round interviewer | Executive Coach

It may not be the answer you want to hear but taking a framework-driven approach will only get you so far. Interviewers like giving non-proift/public sector cases partly because they tend to be more interesting/impactful but also because it better tests a candidates ability to really think (as opposed to apply a framework and practice lots of cases) as they will typically not be as familiar with the topic.

The most important thing is for you to "define the problem" as in what you are solving for. Growth is a very generic topic and so its usually fine to clarify the objective(s) of the client during your initial clarification questions. The objective (as well as issues faced) of a healthcare organisation trying to distribute vaccines in Africa will be very different to a non-profit art gallery who are trying to remain competitive to their peers, etc. I would then take a more academic approach of asking yourself a few guiding questions such as is it supply or demand driven? What are the internal vs. external factors? to have a hypothesis-driven approach to coming up with the different ways to help grow your client. The key here is not to have the perfect answer but more for you to tangibly and creatively think about the way your client could grow (i.e., if you were the Director General of the healthcare organisation what would you do?).

At McKinsey this is called "problem solving by first principles". Even in a traditional profitability case, interviewers are looking for signs of your actual critical thinking which is often is apparent in the levels of detail after one has explained the obvious profitability tree (e.g., fixed vs. variable cost etc.).

Good luck!

Below is a recent thread on a similar topic: 

https://www.preplounge.com/en/consulting-forum/how-to-approach-politicalout-of-the-box-questions-esp-for-mckinsey-9130

Florian
Coach
edited on Feb 04, 2021
1400 5-star reviews across platforms | 600+ offers | Highest-rated case book on Amazon | Uni lecturer in US, Asia, EU

Hey there,

Fully agree with Ken here.

Frameworks were applicable in the 2000 years, the era of Victor Cheng and Case in Point. McK has long caught up on this and the cases you will get during the interviews are tailored in a way to test your creativity and ability to generate insights, not remember specific frameworks.

In fact, it will hurt you when you try to use a framework on a case that calls for a completely different approach. Also, it gives a false sense of security that will translate to stress once you figure out how your approach won't work during the real interview - I have seen this so many times...

Your goal should be to learn how to build issue trees no matter the context, industry, or function of the case. I have a system for that, especially for McKinsey cases, that teaches you exactly this approach + a ton of exercises I give my coachees to progress their ability to come up with deep, broad, and insightful frameworks for each case individually.

Happy to help if needed!

Lastly, it definitely helps to constantly read articles in the Economist, WSJ, FT, etc. about current issues just to build your reservoir of ideas, knowledge, keywords, and phrases that you could apply during the cases. This, however, still needs to be based on the creative approach I outlined above.

Cheers,

Florian

Deleted user
on Feb 04, 2021

Hey,

Agree with other coaches that frameworks should be used to give you a head start. Dont get bogged by them. But I have couple of tips to help you.

Any company that operates in any industry will have following layers:

  • Customers they sell to (B2B or B2C)
  • Channels to sell to those customer (e.g. retail, online etc)
  • Product & Service to sell through those channels to the customer
  • All underlying processes
  • Data to enable the processes
  • Technology/Tools to execute the processes
  • People & Organisation
  • Physical assets (offices, warehouse, stock etc)

So use this to think about and analyse relevant factors for non-profit/public sector organisations.

In addition, you must also look at external factors

  • PESTLE
  • COVID

Use the above two to pick out relevant branches/layers and deep dive into them.

Happy to help you further so feel free to send me a message.

17
Ian
Coach
edited on Feb 04, 2021
Top US BCG / MBB Coach - 5,000 sessions |Tech, Platinion, Big 4 | 9/9 personal interviews passed | 95% candidate success

Hi there,

My approach

Public sector cases are tricky because they feasibly be any case type (Product Launch - new service for citizens; M&A - merging two departments; even Profitability - cost cutting mandate). For any public sector case, I recommend:

  1. First identifying the type of case it is.
  2. Second, leverage your knowledge of the public sector as constraints/considerations.

Considerations/Constraints

Regards #2, you know that public perception is particularly important to consider in any public sector move. Additionally, you can count on bureacracy/slowness in implementation. You should identify the goal/mission of the organisation as well and keep this top of mind (if it loses money, but achieves it's goal of helping the poor, no problem). Howvever, just because the government sector doesn't have profit as a target, doesn't mean you should ignore the profit tree altogether - governments are still obliged to take into costs (and sometimes revneues) in decisions (example: setting up a public transport initiative). Don't get tricked into thinking you can't consider the economics of the case!

Other items to consider include, but are not limited to:

  • Politlcal landscape (i.e. upcoming elections, special interest groups)
  • Sustainability
  • Private-public partnerships
  • International vs governmental vs state vs local partnerships/alignment
  • Income = taxes/budgetary landscape
  • Digitialization of government

Framework Resource

In terms of resources, the UPenn Wharton 2011 casebook has a framework for public sector. It's split into:

  1. Strategic rationale (Mission of organisation and stakeholder reactions)
  2. Deal economics (planned investment and returns, if any)
  3. Other (Required capabilities and risks)

Practice Cases

If you want some practice cases:

  • Tepper 2008's "NGO Effectiveness"
  • Colombia 2011's "MadeCasse"

Hope this helps, and please don't hesitate to ask any follow-up/clarifying questions!

on Feb 04, 2021
McKinsey | NASA | top 10 FT MBA professor for consulting interviews | 6+ years of coaching

Hi,
I have a dedicated package for NGO and public sector cases. Feel free to text me for additional info

Best,
Antonello

Clara
Coach
on Feb 05, 2021
McKinsey | Awarded professor at Master in Management @ IE | MBA at MIT |+180 students coached | Integrated FIT Guide aut

Hello!

Industry does not really matter. 

A growth case is always solved the same way, with very little changes regarding the industry. 

Cheers, 

Clara

Gaurav
Coach
on Feb 16, 2021
#1 MBB Coach(Placed 750+ in MBBs & 1250+ in Tier2)| The Only 360° coach(Ex-McKinsey+Certified Coach+Active recruiter)

Hi there, 

great question!, but I'm afraid knowing a specific framework does not always help you solve a case, leave aside the real cases once you start working. It's all about the practice and understanding of different contexts, industries, and factors. 

Cherrs, GB

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