One of the great things about starting your own company is that you may be able to sell it in the future for a massive profit. Depending on how much you sell it for, you may never have to work again to secure your financial future. This could allow you to spend more time with […]
Author: Tom Spencer
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It didn’t work out
And that’s okay. What did you learn? And what do you plan to do next?
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Listen to the Customer
Are you building what the customer wants?
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Immediacy Bias
(Source: Flickr) Whether it be pictures of cats on the Internet, a phone call from a friend asking you to come to the movies tonight, or a university assignment due tomorrow morning, we all suffer from it. We tend to perceive immediate emotions much more intensely when making decisions about what we should do right […]
There were rumors circling last week that Crescendo Partners (the elite global advisory firm based in Sydney) are winding down their operations. These rumors are incorrect. Crescendo Partners MD Joseph Crepaldi confirmed to me by email that while the physical office has been closed because the building is being brought down, Crescendo Partners is still active!
I recently had the good fortune to communicate with Anne Burley, Director or Regional Talent Acquisition for Asia Pacific at A.T. Kearney. A.T. Kearney is a leading global management consulting firm with offices in more than 40 countries. A.T. Kearney is a partner-owned firm, committed to helping clients achieve immediate impact and growing advantage on their […]
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Pie or Cake?
Strategy involves defending your slice of pie, or growing it bigger. Innovation involves saying, “hey, we have some pie, why don’t we bake a cake or some cookies to go with it.” Some companies spend so much time trying to get more pie, that they never get a chance to enjoy a second dish. Business […]
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You, Humans and Life
When a baby is born it knows nothing about the world. So little, in fact, that it has no concept of self. The baby, its mother, and the world are one. As the baby grows it discovers the world for the first time. Hands, feet, pee, poop, mumma and dada. The baby’s mother whispers “you […]
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Culture vs Strategy
Strategy involves understanding your current position, deciding on a destination, and charting a course from here to there. Culture is about who you are, and why you do things. Culture is arguably more important than strategy because, if you look at it over the lifetime of a product or an organisation, the culture is the […]
Phil Libin, CEO of Evernote, doesn’t like the word “cannibalisation” because it’s zero sum. It implies that you’re the guy doing the eating or being eaten. He says being in business is not like playing a sport or being in warfare. It’s more like music, it’s more like art. It’s not a zero sum game. […]
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Love vs Lock In
Economists love to talk about “scarcity” and the fact that we live in a world of limited resources. However, in the digital world this need not necessarily be the case. Phil Libin of Evernote is of the view that if you’re in a traditional industry like minerals extraction or transportation, then customers will either go […]
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Free Services vs Privacy Online
Big data (combined with data analytics and machine learning) offers exciting opportunities to decipher patterns and solve complex problems more quickly and cheaply than ever before, but it also has the potential to infringe the privacy of individual users. Looking at a company like Evernote, which uses a freemium business model to help tens of millions of people be more productive […]
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Porter’s Five Forces
The Porter’s Five Forces framework is used to determine the competitive intensity and attractiveness of an industry, and is relevant in the context of entering a new market, M&A, or starting a new business. The intensity of competition will depend on the strength of the five competitive forces, however the significance of the forces will vary by […]
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Three C’s Framework
The Three C’s Framework may prove extremely valuable for consulting case questions. It can help to assess the business situation in the context of entering a new market, M&A, product development, and starting a new business. It involves examining customers, competition, and the company. 1. Customers Eight (8) factors to consider when examining the customer. 1. Customer […]
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Profitability Framework
The profitability framework is probably the most important framework for solving consulting case questions Profit equals revenue minus cost. 1. Revenue Revenue is normally thought of as being a function of price per unit and units sold. Declining revenue can derive from a fall in prices or a reduction in units sold, and can be […]
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Case Math
(Source: Flickr) In this post we outline some mathematical concepts that may prove useful for solving consulting case questions. 1. Break Even Analysis: Relevant when trying to decide whether to launch a new product or invest in a project with high fixed costs. 2. Customer Lifetime Value: Customer lifetime value is a prediction of the entire future […]
I was grateful for the recent opportunity to communicate with Jennifer Marsh, Global Head of Public Relations Strategy, and Cheryl Coulthurst, Global Head of Talent Acquisition, at North Highland. Founded in 1992, North Highland is an employee-owned global management consulting firm that has been named as a Best Firm to Work For every year since 2007 […]
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Maintaining Market Power Online
In an age of rapid digital disruption, how can you retain market power and continue to prosper online? There is a lot of misinformation and confusion about how to compete in the digital landscape, and one of the points of confusion is about the power and value of content. There is a new company called The Grid, which you may […]
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Monopolies on the Internet
(Source: Flickr) When the Internet was still a toy a decade or so ago, many business leaders and strategists didn’t believe that it would be possible to create a profitable business online. The reasons given to support this belief were many and various. Some argued that business on the Internet would never work because it is impossible […]
(Source: Flickr) When can you consider something that you have to be an asset? This may sound like a funny question, but it is particularly important for the success of organisations and your success as an individual. The answer turns out to be largely a matter of perspective. If you are an accountant, then your goal is to categorise resources into groups: assets, liabilities, and […]
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Emulate vs Imitate
(Source: Flickr) When we imitate someone the goal is to copy what we see; to replicate; to produce more of the same. Think Rocket Internet or cheap Japanese electronics from the 70’s. When we emulate, on the other hand, we take inspiration from a role model, a hero. And with effort we might one day hope […]
This post is a collaboration between BROSO™ and Tom Spencer, and was originally posted on Truth Has No Temperature. Why is the Australian venture capital industry almost non-existent and irrelevant on a global scale? Three reasons: A massive misallocation of capital, particularly when it comes to Australia’s $1.7 trillion superannuation bolstered capital pool, the fourth largest capital pool in […]
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Sample Consulting Case Questions
(Source: Flickr) Below we provide a selection of sample consulting case questions. The questions are broken down into seven (7) question types to make them easier to digest. 1. Declining Profitability Our client is eBay. Its share price fell from $310 to $200 per share on reports of declining profits. What’s going on and how […]
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Concluding A Consulting Case Question
(Source: Flickr) At the end of a case question it is important to provide a summary of the problem and a set of actionable recommendations that answer the question. Recommendations should be justified with the key findings that you had been noting down as you progressed through the case. For example, you might say something like […]
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Tackling A Consulting Case Question
(Source: Flickr) The second stage of a consulting case question, after setting it up, is to solve the problem. Here are six (6) tips for successfully tackling a case question: Find the source of the problem – You might get asked a question such as “Profits have declined, what should we do?” Before diving head long […]
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Setting Up A Case Question
(Source: Flickr) When it comes to answering a consulting case question, there are three stages to the answer: setting it up, solving it, and providing a recommendation. The first stage is setting it up, and below we provide five (5) steps to setting up a case question: 1. Summarize the question Give yourself time to think by writing down […]
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Conversation with Cartesian
I recently had the good fortune to talk briefly with Adam Fraser who is a Business Analyst at Cartesian. Cartesian is a specialist provider of consulting services and managed solutions to leaders in the global communications, technology and digital media industries. Please read the edited transcript of my discussion with Adam below. This will be […]
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Say Something
Often we can be scared to open our mouths and say something. Expressions like “empty vessels make the most noise” and a pervasive social fear of rejection can make it difficult to open up. Why is this the case? Schools, universities and families typically work best when there is an open flow of communication. But on a day […]
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Should you do a PhD?
I had coffee in early June with Chris McKenna, Associate Professor at Oxford’s Said Business School. When I say we “had coffee”, we didn’t actually drink coffee, but I had offered to buy Chris one as I thought it might give him a reason to meet with me. Chris’s area of expertise is strategy and business history, and he is also Director […]
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Playing For Time In The Case Interview
(Source: Flickr) If you get stuck during a case question then there are four (4) things you can do to regain momentum. If the interviewer has just given you some information then you can say something like “let me take a second to consider that information”. You can safely stay silent for up to 90 seconds […]
(Source: Flickr) The business case question is the cornerstone of the consulting interview, and consulting firms use it to assess a candidate for a number of qualities: Structured thinking; Numerical ability; Communication skills; Comfort with ambiguity; Speed of thought; Knowledge of key business concepts; Enthusiasm for consulting; Calm resolve under pressure; and Ability to represent […]
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Factors Questions
(Source: Flickr) Factor questions are a type of question that you may come across in consulting interviews. They are designed to help the interviewer see how you think, and you might be asked a question such as “What factors influence X, Y, Z?” or “What factors would you consider when A, B, C?”. An example […]
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Answers to Sample Brainteasers
(Source: Flickr) Last week we provided a list of ten (10) sample brainteasers that you might come across in consulting interviews. If you didn’t read the post, you might want to read it before taking a look at the answers below (to read last week’s post, click here). Answers to Sample Brainteasers A round manhole cover cannot fall […]
I recently had the opportunity to communicate with Janine Clifford, Recruitment & HR Manager at L.E.K. Consulting. L.E.K. Consulting is a global management consulting firm that uses deep industry expertise and analytical rigor to help clients solve their most critical business problems. Please read my discussion with Janine below. This will be of particular interest […]
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Impending Grexit?
(Source: Flickr) We have seen this week some heated negotiations between Greece and its European lenders. Here are some of the issues facing Greece at the moment: Technical default: Greece is due to repay €1.6bn (£1.2bn) to the IMF at the end of June. On Wednesday, Athens announced that it is stony broke and will not be able to pay […]
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Trump Nation?
(Source: Flickr) The Donald has announced his intention to run for the White House in 2016 on a ticket to “Make America Great Again!”. At this stage it’s unclear whether he will run for office or not because he has flirted with running in the past and then not done so. Whatever happens though, the take away lesson at […]
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Brainteasers
(Source: Flickr) Brainteasers are another kind of question that you might confront in consulting interviews. They are likely to be tricky and to require “out of the box” thinking. Why do interviewers ask brainteasers? Well, since clients can sometimes ask questions which have no immediate or obvious answer, the goal of the brainteaser is to assess […]
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Math Questions
(Source: Flickr) In consulting interviews, the interviewer may quiz you on your quantitative skills with one or two short maths questions. Below we outline six (6) sample math questions to give you an idea of what to expect: What is 13 x 13? What percentage is 5 of 42? The total smart phone market is $900 […]
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Sample Guesstimate Questions
(Source: Flickr) The guesstimate question (market sizing or other) is one of the types of question you are likely to encounter in consulting interviews. Below we list twenty three (23) sample guesstimate questions broken down by question type. Population Questions How many births are there in America each day? How many petrol stations are there […]
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Approaching the Guesstimate Question
(Source: Flickr) A guesstimate question can be approached by breaking a question down into smaller pieces by asking the interviewer questions and making a series of narrowing assumptions. You can break a question down either by starting big (e.g. making an assumption about the total population) or starting small (e.g. making assumptions about the average household […]
I was grateful for the recent opportunity to talk with Heather Tortorello, the talent growth director at Vivaldi Partners Group. Founded in 1999, Vivaldi Partners Group works across industries to help build strong brands, ignite innovation and drive growth by connecting business strategy with a deep understanding of changing customer contexts. Please read the edited […]
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Ownership vs Control
The recent news of succession planning at 21st Century Fox brings an interesting issue to light. On Thursday, the Guardian reported that James Murdoch will succeed Rupert Murdoch as CEO at 21st Century Fox. At the same time, Rupert and Lachlan will become executive co-chairmen. The interesting thing about the Murdoch family’s control of Fox is that it relies on a dual-voting structure in […]
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Guesstimate Questions
(Source: Flickr) The guesstimate question frequently comes up in consulting interviews. It will often be a market sizing question, which may be a standalone question or part of a larger case question. What will you be asked to do? The typical guesstimate question will require you to estimate a number by doing a rough “back […]
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How to Answer Behavioural Questions
(Source: Flickr) In consulting interviews, when you are asked a behavioural interview question, you will typically want to include five things in your answer: A specific situation; The goal you set for yourself or obstacle you faced; The action you took; The outcome achieved; and What you learned from the experience. [For more information on consulting interviews, […]
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Sample Behavioural Interview Questions
(Source: Flickr) Behavioural interview questions are one type of question that you are likely to encounter in the consulting interview. Below we provide thirteen (13) sample questions to give you an idea of what to expect: Tell me about yourself. Can you provide an example of a time when you demonstrated leadership? Can you provide […]
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Behavioural Interview Questions
(Source: Flickr) In consulting interviews, the interviewer is likely to ask questions based on your résumé with the aim of understanding your skills and experience. Your résumé may provide a structure for these kinds of interview questions, but you also need to be prepared to elaborate on your experience including by highlighting your skills using […]
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To Those Who Have
John Paulson, the American hedge fund manager and billionaire, donated $400 million to Harvard University this week. The donation will go to Harvard’s School of Engineering and Applied Sciences which, strangely enough, will be renamed the “Harvard John A. Paulson School of Engineering and Applied Sciences”. Donating money to an educational institution can never be a bad thing, can it? Well, […]
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Art vs Business
(Source: Flickr) I attended a talk last week at the Oxford Union given by Alexandra Shulman, editor-in-chief of British Vogue. Shulman is the longest serving editor in British Vogue history. She took the helm in 2002, and has presided over a circulation increase to 220,000 copies. Needless to say, I was interested to hear what she had […]
Crowdfunding is a growing trend that allows individuals, non-profits and start-ups to fund projects by raising money from the crowd using an online platform. Last week I attended a crowdfunding discussion at the Oxford Launchpad with Jonathan May, CEO of Hubbub, and representatives from the development offices of various Oxford colleges. Asking for donations from alumni is one […]
A few weeks ago I attended a panel discussion at Oxford’s Said Business School entitled “Trust Me, I’m A Stranger: Learn from leading entrepreneurs innovating in the collaborative economy”. The panelists were Lily Cole founder of Impossible, a social network that encourages users to exchange skills and services for free in the hope of encouraging […]