Profitability framework

case structure Framework profitability
New answer on Feb 29, 2024
4 Answers
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Anonymous A asked on Feb 09, 2024

Would you agree with the candidate who would approach the standard profitability case with the framework below? I haven't mentioned any details (sub-buckets etc.) in order to simplify my question.

 

1. Problem isolation (where did the problem come from?)

     1.1 Revenue …

     1.2 Cost structure …

2. Root-cause analysis (why did it happen?)

     …

3. Solutions (what to do?)

     …

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Ian
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replied on Feb 10, 2024
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate

Noooooooooooooooooooooo.

Thank you for this Q&A, as it's SUCH a good example of what NOT to do.

Every project has root-cause analysis. Every project has solutions. Every profit project has revenue/cost.

So a client is going to pay millions of $ for a top-tier consultant to say to them “I know how to fix your problem. First, we'll identify it. Revenues. Costs. Then we'll analyze it. Then, we'll come up with solutions”.

Of course not! Goodbye contract. Goodbye money.

A framework is HOWyou're going to approach the problem. Through what lens will you look at problem, revenue, cost, root-cause, solutions

Here's a hint:

Can you use the same framework for McDonalds that's facing weightloss drugs versus a mom-and-pop Parisian boulangerie? Nope :)

How to Shift Your Mindset to Ace the Case
 

Candidate-Led Cases: What to Expect With Example Cases

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Cristian
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replied on Feb 12, 2024
#1 rated MBB & McKinsey Coach

Actually, this can work. 

It's difficult to give you a definitive answer at this granularity, but there are several things that this structure does well

1. it's original

2. it's operational i.e., it's actually leading somewhere

3. it's trying to identify the problem, identify the underpinning reasons and then move into the ideation space. 

Still, I'm very much against the idea of using frameworks, so at most, what you're suggesting can be a starting point, but you should do a lot of tailoring for this to pass muster.

Best,
Cristian

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Alberto
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replied on Feb 10, 2024
Ex-McKinsey Associate Partner | +15 years in consulting | +200 McKinsey 1st & 2nd round interviews

Too generic, it can also be applied to a cat grooming company ;)

There are not such things as profitability frameworks. Frameworks must answer the main case question and this will be absolutely different across industries and companies.

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Pedro
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replied on Feb 29, 2024
Bain | EY-Parthenon | Roland Berger | Market Sizing Expert | 30% discount in Feb & March

If I don't know the problem, I don't know if this is the answer…

Each problem needs a tailored answer. Meaning that if you are trying to find a one-size-fits-all what you will get is a one-size-NEVER-FITS.

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Ian gave the best answer

Ian

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