Expert case by

Ian

BCG - YodaPhone

Case information

Difficulty: Intermediate

Candidate-led

4.4

< 100 Ratings

Times solved: 13.8k

Operations strategy

Case Prompt:

Our client is Yoda's Phones, a national telecommunications company. They have embarked on a three-year, multi-million dollar digitization program. Unfortunately, two years into the program, they realize they are significantly behind schedule and over budget.

You have been brought in to right the ship and ensure the digitization program is delivered as planned.

=====================================================

Framework can be found here:

YodaPhone Optimal Framework Solutions

Overview of All Exhibits

Practice makes the difference

Practicing alone helps – with a partner it’s even better. Solve this case in a realistic mock interview.

Sample Structure

Show sample structure Hide sample structure

Show additional information Hide additional information

Note for Interviewer

The information in this case can be provided in a fluid manner. While it is described below linearly, the candidate may ask for information in a different order. This is perfectly acceptable, and you can provide the information as they ask for it.

Note for Interviewer

Exhibit I can be provided if the candidate asks whether we know how much effort/time is required across the workstreams.

You may also tell them that we currently have 10 teams, that each cost $100,000 per month.

For clarification, you can also tell them that the measurement “team months” means that 1 team would take 1 month to complete 1 unit of work.

If they ask, you may also clarify that teams can work at the same time on the same workstream.

If the candidate asks about/proposes time/cost/scope related items, let them know:

Time – The project is unwilling to accept a project delay as they have made public announcements as to the digitization program timeline.
Cost – The project is also unwilling to incur extra costs, as they have already been approved for extra budget and reached their maximum allowance.
Scope – The project is unwilling to reduce quality, as its reputation is on the line, but not all work pieces are essential.

Note for Interviewer

You should guide the candidate towards realizing that scope has to be cut. If they initially brainstorm solutions other than this (particularly around gaining efficiencies), that is fine (and even desired). However, you still need to counter. For example:

Bring in more resources = we have maxed out our budget and cannot
Restructure teams = Teams have already been restructured multiple times to no effect (and any additional restructure would be disruptive)
Institute agile methodologies = Agile methodologies are already being used and teams are working as efficiently as possible
Sacrifice some quality standards = We cannot sacrifice quality due to both industry regulations and our own company’s reputation/brand.

Show solution Hide solution

II. Scope analysis

Show additional information Hide additional information

Show solution Hide solution

In this phase, the candidate needs to determine that some work is worth doing and other work isn’t worth doing. They need to identify which work pieces should be continued versus dis-continued.

The candidate should clarify what work we are embarking on as part of this digitization program.

Brainstorm how/why we might be gaining benefits from each workstream. A good answer would include the following:

Customer experience – a better customer experience means more customers will buy our products/services, ultimately providing a revenue uplift
Process improvements – by improving our internal processes across products (i.e. handling complaints, processing new orders, etc), we can reduce the time taken across activities, thereby requiring a smaller workforce and reducing costs
Data insights – by leveraging our customer and system data, we can run predictive analytics to improve marketing campaigns, recommend additional products to customers, solve issues before they appear, etc. This provides both a revenue and a cost uplift

Upon reading the exhibit, the candidate should note that some workstreams are worth more than others. Furthermore, benefits don’t necessarily correlate with time remaining.

Key insights:

Data insights – generally have a lot of effort/time remaining, but don’t provide much value
Process improvements – do take a lot of time, but they also provide the most benefits
Customer experience – is somewhere in the middle effort and benefit-wise, but is much more valuable for Mobile Phones than for the Internet

Marginal monthly benefit of these workstreams across our products

The candidate should understand that we are figuring out the monthly benefit of each piece of work (i.e. if it takes 10 team-months and is worth $1M, it’s worth $100,000 per team-month).

The candidate should recognize that, because we have the monthly cost of each team, we’re effectively figuring out what scope will actually see a positive ROI. A benefit of <$100,000/month is not worth completing, because our teams cost $100,000/month.

Answer (cells in green are scope worth completing. Red cells are scope we should cut):

III: Team allocation and cost savings

Show additional information Hide additional information

Show solution Hide solution

Further Questions

What teams would you cut? (Candidate should explain their logic/structure)

Show solution Hide solution

Practice This Case With Peers Who Are Currently Looking for Interview Partners.

All Meeting Slots

Do you have questions on this case?

Ask our community and receive answers and tips directly from our experts.

Questions on This Case

Consulting

Question about

Cost savings?

on Aug 28, 2020

Global

4.1k

Related Case Interview Basics Articles

The Stacey Matrix

Useful Business Analysis Tools

The Stacey Matrix is an important tool for navigating complexity in project management, developed by Ralph Douglas Stacey in the 1990s. In this article, we’ll break down how the matrix works, explore different project types, and discuss its relevance in consulting and case interviews. Plus, we’ll dive into its strengths and limitations in project management. Let’s get started!

To the article

The Kanban Framework

Common Terms of Business

In your journey to becoming an efficient consultant, understanding various work management systems is crucial. One such system that has made a profound impact, particularly in the world of technology and services, is Kanban. Before we dive into the current applications of Kanban, it's important to acknowledge its origins. Kanban was born in the late 1940s within the walls of Toyota's manufacturing plant in Japan. Taiichi Ohno, an industrial engineer at Toyota, introduced Kanban to improve manufacturing efficiency. The word 'Kanban' translates to 'billboard' or 'signboard' in English, emphasizing the visual nature of the system. Ohno was inspired by the supermarket model of product replenishment, where stock is replaced as soon as it depletes. He applied the same principle to Toyota's production lines, effectively aligning inventory levels with actual parts of consumption. The implementation of Kanban led to significant improvements in Toyota's productivity and efficiency, setting the foundation for what we now call 'Lean Manufacturing'. Fast-forward to the present, Kanban has evolved beyond manufacturing and found its way into the technology and services industries. The system, still true to its origins, is designed to maximize efficiency, limit work in progress, and, most importantly, visualize your work. Derived from the Japanese word for 'visual signal', Kanban is an effective tool for making intangible or invisible work more understandable. By understanding the roots and evolution of Kanban, you, as a consultant, can better appreciate its applicability across industries and harness its principles to improve operational efficiency on diverse projects. It is also important to realize that Kanban is a process management system that aids decision-making in a collaborative manner.

To the article

Public Value Strategic Triangle

Useful Business Analysis Tools

The Strategic Public Value Triangle is a conceptual framework developed by Prof. Mark H. Moore to guide public managers in creating public value. It emphasizes the interplay between three key elements: public value proposition, the operational capacity to deliver, and the legitimacy and support of the authorizing environment. [The Strategic Public Value Triangle showing the interaction between Public Value, Operational Capacity, and Legitimacy & Support.] Prof. Mark H. Moore is a distinguished academic known for his work in public management and leadership. He is the Hauser Professor of Nonprofit Organizations at the Harvard Kennedy School. Moore's research and teachings have significantly influenced the field of public administration, particularly with the introduction of the Strategic Public Triangle in his seminal book "Creating Public Value: Strategic Management in Government" published in 1995.

To the article

Case Leadership

Consulting Skills & Preparation

You've already learned the basics of case cracking, but now it's time to focus on how to take charge and steer the interview like a pro. Leading a case is all about showcasing your problem-solving skills, structuring your thoughts, and confidently guiding the discussion. Ready to master this crucial skill? Let's get into it!

To the article

The Cynefin Framework

Useful Business Analysis Tools

For graduates aspiring to embark on a career in consulting, understanding and effectively navigating complex situations is essential. The Cynefin Framework (pronounced: Kin-ev-in) provides a powerful tool for consultants to make sense of different problem domains and determine appropriate approaches. In this article, we will explore the Cynefin Framework, its sections - Simple, Complicated, Complex, and Chaotic and the Disorder domain. Additionally, we will provide an example of how the framework can be applied in the consulting industry.

To the article

Practice makes the difference

Practicing alone helps – with a partner it’s even better. Solve this case in a realistic mock interview.

Do you have questions on this case?

Ask our community and receive answers and tips directly from our experts.

BCG - YodaPhone i

Case Prompt:

Sample Structure

II. Scope analysis

III: Team allocation and cost savings

Further Questions

BCG - YodaPhone