how to draw a creative and customized framework

Framework
Recent activity on Feb 15, 2019
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cynthia asked on Feb 15, 2019

Hello,

I have contructed some framework for different kinds of cases but I think they are all the same when applied to that type of case, for example, I will use the same framework for all kinds of market entry cases.

I wonder how to recontsruct the framework and make changes facing the specific case? So that I am be regraded as creative and not just reply on the memoried framework. I don't think hypo driven is very useful because the hypo at the begining will be the same for similar type of case, for example, my hypo for all market enter cases is the client should enter the market because the market is big enough and the competition is not very intense.

Thank you fo much!

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Vlad
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replied on Feb 15, 2019
McKinsey / Accenture Alum / Got all BIG3 offers / Harvard Business School

Hi,

It really depends on the objective and the context. Market entry cases can have completely different objectives:

  • Should we enter the market?
  • Which top 3 markets out of 10 we should enter?
  • Can we get xx% market share on the new market?
  • Can we get xx ROI if we enter this market?
  • etc

Depending on the Objective and the Context you should come up with a proper structure to address the problem. Of course, you may use the patterns that you've learned while solving the other cases.

Now, let's make it clear with the hypothesis.

First, the hypothesis are not officially required for a McKinsey interview. That's smth Victor Cheng proposed to market his books. However, now there is a whole generation of interviewers who were prepared on his books and they might be looking for the hypothesis:)

There are two ways to use the hypothesis:

First - presenting a structure using the hypothesis. For example, if you are having a PE (private equity) case, you should do the following:

1) Make classic structure (market, company, competitors, feasibility of exit)

2) Make subpoints (e.g. in market: size, growth rates, profitability, segmentation, etc)

3) Present your 1st level Hypothesis:

  • - "In order to understand whether we should invest in Company A, I would like to check that the Market is Attractive, the Company is Attractive, the competition is favorable and we have good opportunities for of exit"

4) Present the main 2nd level Hypothesis:

  • "In the market, I would like to make sure that the market is big enough and growing;
  • In the company I would like to find additional opportunities for growth;
  • In competition I would like to check that the market is fragmented enough;
  • Finally, I would like to check if we have potential buyers and can achieve desired exit multiples"

Another way to use hypothesis is using the hypothesis to prioritize your analysis:

1) Make a structure: "Problem in sales may be related to Sales Motivation, Sales Strategy, Sales Coverage, and Sales Process:

2) Prioritize a part of the structure based on your knowledge / common sense / available data: "Taking into account that motivation is the core problem of the sales organization, I would like to prioritize this part of the analysis"

Good luck!

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Vlad

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