Case interview charts are a critical element in some job interviews, particularly those in management consulting. These charts, rich with complex data, present an opportunity for candidates to demonstrate their analytical and problem-solving skills. This guide provides practical advice for understanding and interpreting these charts and excelling in this stage of the case interview.
How Are Charts, Graphs, & Data Used In Case Interviews?
From the framework to the final recommendation, each section of a case interview evaluates a specific skill set of the candidate. Charts, graphs, and data typically come into play after presenting your structure and approach to the case, and they allow you to delve deeper into the problem at hand. During this phase, interviewers will assess your ability to:
- Synthesize complex information – Consultants often deal with large amounts of data and information. Being able to condense that into key points and insights is vital. For example, you might be presented with sales and customer preference data for the last five years. It’s up to you to find the trends.
- Find and focus on what really matters – As a consultant, there are many things you could focus on, but prioritizing the most impactful data points or issues – often referred to as the "80/20 rule” – will make you more efficient and effective. For instance, you may have data on all a company’s product lines, but you need to determine which ones are driving the company’s growth.
- Conduct analyses leading to insight – A consultant’s role goes beyond merely interpreting data. It involves using analytical skills to draw conclusions that can guide decision-making. For example, calculating a client’s market share over time can provide insights into the impact of a new competitor.
- Communicate your insight – Generating insights is one thing; effectively communicating them is another. Consultants need to convey their findings clearly and compellingly, often adjusting their communication style to suit different audiences.
These skills are paramount for a consultant, and they’re the reason why firms incorporate charts, graphs, and data into case interviews. Now that we understand the role these play, let’s get tactical on how to prepare.
Steps To Analyzing Charts, Graphs, & Data
While the steps below may seem straightforward, implementing them can be challenging. Though the range of charts and graphs in a given case can vary widely, mastering these steps will equip you to handle whatever comes your way:
- Understand the chart – Initially, take a moment to read and understand the information. A strategy like the outside-in approach can help you avoid feeling overwhelmed with complex exhibits. Start with the outside of the chart – the title, axes, legend, footnotes, etc. – before diving into the data itself. Offer your overall hypothesis of the chart to your interviewer so they can redirect if needed. Ensure that you have a comfortable grasp of the chart's meaning before jumping into analysis, asking questions to clarify your understanding if needed.
- Analyze the chart – Once you understand the chart, consider the types of analysis that could provide helpful insights. Develop an analysis plan, considering its impact on the case problem and the steps you'll take to perform it. Confirm this approach with your interviewer before starting any calculations or analysis. Conduct the analysis, and gut check your answer.
- Derive insights – After analyzing the chart, it's time to extract valuable insights. Reflect on your analysis results and their significance in the case problem context. Look for patterns, trends, or anomalies. This step is about transforming the data into meaningful, actionable insights that directly impact the case problem and will ultimately go into your final recommendation
- Communicate insights – The next step is to effectively communicate your insights to the interviewer. Begin by summarizing your key findings clearly and concisely. Explain how your insights relate to the case problem and could influence your final recommendation. Strong candidates won’t stop there, but will continue driving the case forward, mentioning next steps or requesting additional information to progress.
Common Graphs in Case Interviews To Be Familiar With
Bar graphs – Perhaps the most frequent graph type in case interviews, bar graphs typically appear as simple or stacked bars in which the bars represent absolute values across time or categories.
Sample interview language for understanding the bar graph above: “I see this graph is illustrating the number of sales opportunities by industry vertical, in descending order from most to least opportunities. Each bar is stacked according to the propensity tier. Do I have that correct?”
Waterfall charts – Waterfall charts begin with an initial value column on the left, then highlight incremental changes (usually gains or losses) in the initial value. These changes culminate in ending value column(s).
Sample interview language for analyzing the waterfall chart above: “I see that this chart begins with current revenue from a product offering, highlighting additional revenue opportunities through things like workers’ comp. I could calculate the percentage increase in total revenue the client could realize if they captured all possible incremental revenue opportunities. This would give them a sense of scale for winnable vs. actual revenue. Would that be helpful?”
Line graphs – Line graphs often show time-series data, illustrating the movement of certain variables over time. Pay special attention to the axes in these graphs, as they can differ (as seen below).
Sample interview language for deriving and communicating insights for the line chart above: “It seems that most of the client’s revenue drivers have been relatively stagnant since 2013. However, revenue from services has tripled in this timeframe. This represents an enticing investment opportunity, especially for revenue diversification, which is of particular interest to the client. I’d like to drill deeper to determine which segments within services are driving most of the growth. Then, I would want to understand whether our competitors have seen similar gains in their services revenue since 2013.”
Percentage/pie charts – Often divided into sectors or "slices," with each slice representing a particular category's proportion to the whole. In other words, the entire pie represents 100% of a data set, while each segment signifies a different percentage or proportion of the total.
Combined/other graph types – These can be wildcards and may be difficult to prepare for. Practicing cases from a variety of industries, doing exhibit drills with peers, and case self-study can help prepare you for these. When confronted with an unfamiliar graph type, it is imperative to confirm your understanding of the chart with your interviewer before moving onto analysis.
Sample interview language for understanding the chart above: “This chart seems to show two main things. First, total assets under management is illustrated in orange. Second, fund performance is shown by the blue line. Both are measured quarterly from December 2014 to December 2017. Do I have that right?”
Common Errors when Dealing with Charts & Graphs
When navigating through charts and graphs in case interviews, it's crucial to be aware of common pitfalls that can hinder your performance. These can range from misinterpreting the data to failing to communicate your insights effectively. By understanding these common areas of difficulty, you can better prepare to handle charts in your case interviews and put your best foot forward.
Misinterpretation: This includes not understanding the chart properly, overlooking key details, and ignoring trends or patterns. Always take the time to familiarize yourself thoroughly with what the chart is showing, paying attention to every detail including footnotes, legends, and units. Ask clarifying questions if needed.
Analytical errors: These occur when making assumptions or jumping to conclusions without sufficient evidence, failing to link the analysis to the overall case, or not verifying calculations. Make sure your insights are based on the data provided, clearly linked to the case problem, and double-check any calculations.
Communication issues: A correct analysis can lose its impact if not effectively communicated. Ensure your findings are articulated in a clear, concise, and logical manner that's easy for the interviewer to understand.
Losing sight of the big picture: While focusing on details, don't neglect the overall context of the case. Always consider how the information in the chart fits into the broader scenario.
Conclusion
Mastering the interpretation and analysis of charts and graphs is an indispensable skill for excelling in case interviews, particularly in the field of management consulting. By understanding the role these elements play, adopting a systematic approach to interpreting them, and being aware of common pitfalls, candidates can effectively showcase their analytical and problem-solving abilities. With practice and preparation, you can confidently navigate through any chart or graph thrown your way, deriving meaningful insights and communicating them effectively to drive decision-making in case scenarios. Management Consulted has many resources to help you ace this section of the interview, from exhibit drills to case interview coaching. Get in touch today.