Hypothesis-Based Problem Solving

Consulting Skills Awareness

2017
Agenda
• Introduction
• Hypothesis-based problem solving
• Planning the work

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Although we may not use it on all projects, the hypothesis-based
problem solving approach is at the core of the consulting process
The Consulting Process

Articulating the
Issue Diagram

Structuring
Analyses

Creating Developing
Workplans Storylines

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...and is a powerful tool to structure and prioritize work

Benefits of the Hypothesis-Based Problem Solving Approach

100%
• Structure the problem in a
80% comprehensive and logical way
Additional benefit for

• Prioritize analyzes on the most

problem-solving

important issues
Not Efficient • Anticipate the answer – to start
preparing the client from the onset

• Basis for work planning and storyline

development

20% 100%

MECE Perfect
Effort to Structure Problem

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The problem solving approach also serves as the basis to
develop logical and persuasive communications
Hypothesis-Led Problem Solving Framework
Overarching Issue Write
Write the
the
Communication
Story
Logic Structure
Story
(based on audience analysis for
Main Issue Main Issue Main Issue a specific communication)

Hypothesis/ Hypothesis/ Hypothesis/ Hypothesis/ Hypothesis/

Questions Questions Questions Questions Questions Introduction Key Message Outlook/
• Situation (Answers Action Plan
• Trigger point Overriding •
• Overriding Question) •
question
Data Data Data Data Data Data Data Data Data Data
Explanation
of Key Section Section Section
Findings Findings Findings Findings Findings Arguments

Supporting
Conclusions Conclusions Conclusions Arguments

Recommen- Recommen- Recommen- Recommen- Recommen- Supporting

dations dations dations dations dations Details/data

Description Description
• Main framework used throughout the project • Multiple communication points for each project
• Identifies issues to drive fact-based findings, conclusions • Each communication tailored to the audience
and recommendations • Logical structure to share the key messages, including
the situation, analysis and action plan

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Agenda
• Introduction
• Hypothesis-based problem solving
– Identify and structure the client’s issues and questions
– Formulate hypotheses
– Collect and analyze data
– Develop findings, conclusions and recommendations
• Planning the work

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Hypotheses-based problem solving follows a four-step
approach from an overarching issue to a recommendation
Hypothesis-Based Problem Solving Framework
Identify and structure Develop findings,
Formulate Collect and analyze
the client’s issues and conclusions and
hypotheses data
questions recommendations
Data
Hypothesis/ Solution/
Data Finding Recommendation
Initial Answer
Issue/ Data
Question Conclusions
Data
Hypothesis/ Solution/
Data Finding Recommendation
Initial Answer
Overarching Data
Question,
Issue, or Data
Problem
Hypothesis/ Solution/
Data Finding Recommendation
Initial Answer
Data
Issue/ Conclusions
Question Data
Solution/
Hypothesis/
Data Finding Recommendation
... Initial Answer
Data
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Developing well structured and highly specific issue trees is at
the heart of the hypothesis-based approach
Issue Tree Concept Principles of Issue Tree Development

Sub Issue/ • Break a problem into component parts so

Hypothesis that
Main issue 1
Sub Issue/
Hypothesis
– Problem-solving work can be divided
into intellectually manageable pieces
Sub Issue/
Hypothesis – Priorities can be allocated to individuals
Sub Issue/
Hypothesis
Overarching • Ensure that the integrity of the problem-
Issue/
Main issue 2
Sub Issue/ solving is maintained
Question/ Hypothesis
Problem
Sub Issue/
– Solving the parts will solve the problem
Hypothesis – The parts are mutually exclusive and
Sub Issue/ collectively exhaustive (MECE), i.e. no
Hypothesis overlaps, no gaps
Sub Issue/
Main issue n
Hypothesis
• Be as broad as possible at the beginning
Sub Issue/
Hypothesis – but quickly make it as specific as
possible

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The issue tree needs to be Mutually Exclusive and Collectively
Exhaustive (MECE)

Mutually Exclusive + Collectively Exhaustive

No overlapping Taken together, all

parts parts represent the
problem in total
=

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To aid in the development of issue trees, consider generic
frameworks…
Overview of Typical Issue Trees Examples

Revenue Growth M&A

Increase Revenues
prices Sell more to OPEX
Existing existing Intrinsic
Cost
markets customers value
How to Increase CAPEX
What is WACC
grow volumes
Sell to new company
revenues?
customers value?
New Introduce Revenue
markets new products
Synergies
Enter new Cost
countries

Cost Reduction Strategic Sourcing

Decrease cost of goods sold
Decrease waste
OPEX Decrease indirect cost
Decrease
Redesign products
Decrease personnel cost volume
How can Bundle volumes
Increase life cycles sourcing
How to spend Negotiate with
reduce CAPEX Defer non-critical CAPEX be reduced? existing suppliers
cost? Reduce prices Decrease
Financing prices
Competitive RFP
Tax
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…but quickly make it as specific as possible

Example: Critical Questions for the Due Diligence of Pages Jaunes (Yellow Pages)

What is the Market Growth What is the Impact of How Substantial are Cost
Potential? Migration to Online? Reduction Opportunities?
Critical • Can a significant re-enforcement • How extensive will usage • Is Pages Jaunes’ superior
Questions of Pages Jaunes’ advertising migrate from print and to online? EBITDA against European
and sales force investments • Can Pages Jaunes sell online peers due to cost efficiency or
increase advertiser penetration ads at a premium to print? Does under-investments?
– particularly with smaller online provide a higher ROI to • What will be the impact of a
advertisers? advertisers? demerger from France Telecom
• What is the impact of Pages • What is the threat from Google on IT / admin costs?
Jaunes’ book rescoping effort in Maps, Yahoo! Local and other
terms of penetration rate and “local” initiatives?
ARPA? • Which advertiser segments are
the most sensitive/prone to
substitution to alternative online
advertising formats?
• What is the comparative ROI of
online yellow pages vs. other
Internet formats from an
advertiser perspective?

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Step 1: Start by defining the overarching question or issue

Identify and structure Develop findings,

Formulate Collect and analyze
the client’s issues and conclusions and
hypotheses data
questions recommendations

Key Points

Issue/
• In some cases, the main question may
Question be obvious and explicitly provided by the
client – e.g., how can costs be reduced
by 15%
Overarching • In other cases, the main question may
Question, be more difficult to formulate – this may
Issue, or
Problem require further interviews with the client
and some initial analysis of the situation

Issue/
Question

...

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Then break the overarching issue into main issues and sub-
issues, and eliminate the non-essential issues

• Main issues and sub-issues…

Sub Issue/
Question – Answer the overarching question/concern, breaking it
down into sub-issues that lead to hypotheses

Main Issue/ Sub Issue/

– Are there subordinate topics that need to be
Question Question investigated to address the overarching issue

• Main issues and sub-issues should be…

Sub Issue/
Question – Concise: Determine the essential topics to be
Overarching investigated to address the overarching issue
Question,
Issue, or – Mutually exclusive and collectively exhaustive
Sub Issue/
Problem
Question (MECE): Ensure topics are discrete items with no
overlap and all topics taken together completely
address the issue
Main Issue/ Sub Issue/ – Horizontally consistent: Organize topics and
Question Question
subtopics so each layer contains elements at a
similar level of detail/importance to the issue
...
Sub Issue/ – Vertically logical: Include all logical subtopics and
Question organize them so they connect to the appropriate
topics and issues

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An example issue tree for increasing sales

Overarching Question /
Main Questions / Issues Sub Question / Issues
Issue

How can Client X increase part

of customers' supplies?

How can Client X increase How can Client X increase

sales per customer? clients‘ potential?

How can Client X improve

customer mix?
How can Client X increase
sales over the next 2 years?
How can Client X gain new
customer groups?

How can Client X increase How can Client X gain

number of customers? individual customer groups?

How can Client X decrease

fluctuation of customers?

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Agenda
• Introduction
• Hypothesis-based problem solving
– Identify and structure the client’s issues and questions
– Formulate hypotheses
– Collect and analyze data
– Develop findings, conclusions and recommendations
• Planning the work

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Step 2: Formulate hypotheses to guide your work

Identify and structure Develop findings,

Formulate Collect and analyze
the client’s issues and conclusions and
hypotheses data
questions recommendations

Hypothesis/
Key Points
Initial Answer
Issue/
• Answer the question to resolve the
Question problem
• Each answer/ hypothesis should be
Hypothesis/
Initial Answer supported by the issue tree
Overarching
Question,
Issue, or
Problem
Hypothesis/
Initial Answer

Issue/
Question
Hypothesis/
... Initial Answer

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Hypotheses are statements supported by arguments, which can
be validated or rejected
Hypothesis / Initial Answer

Hypothesis/ A Hypothesis – What is it? Arguments – What are they?

Initial Answer
– Argument • An idea about the potential • Arguments support a
root cause of an issue or an hypothesis and help validate
– Argument
Issue/ initial answer to a question or reject it
Question based on experience • Arguments for a hypothesis
Hypothesis/ • A “best educated guess”, should follow these criteria
Initial Answer which can be validated or
– Argument – Must be acceptable by
rejected
client and team, if valid
– Argument
Overarching • A hypothesis should follow – MECE
Question, these rules
Issue, or – Specific enough to be
– Derive directly from the
Problem Hypothesis/ translated into supporting
corresponding
Initial Answer facts
issue/question
– Argument – On its own, each argument
– Must be testable
– Argument is necessary to support
Issue/
– Establish a focus for data the hypothesis
Question
collection and analysis – As a group, arguments
Hypothesis/
Initial Answer – Provide a basis from which should be sufficient to
... to draw conclusions support the hypothesis
– Argument
– Argument

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Hypotheses are based on input from various sources and are
refined in an iterative process
How to Develop Hypotheses
Make it easy to get started
• Use simple lists instead of forcing full-blown
logic from the beginning
• Use Word or Excel in early stages, convert to
PowerPoint slides later on

Engage the team and the client Draw on the best available data
• Brainstorm with your team and your principal • Leverage A.T. Kearney IC and experts?
and/or project officer – Has Kearney done this type of work before?
– Do they bring alternative facts, opinions or Who are the experts?
hypotheses? – What approach was taken in the past?
– What may you have overlooked? • Look for industry or company analogies
• Test hypothesis with client – What insights can secondary research
– Are hypotheses consistent with client’s provide?
“reality”? • Conduct a few external expert interviews and
– Are there assertions or facts known by the collect some primary data
client that could immediately validate or – What do the facts say?
reject your hypothesis? – Are there experts beyond Kearney who
could shed light on the subject?
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Hypotheses should help structure / prioritize analyzes and begin
to provide a sense of the storyline
Overarching Main Questions /
Sub Question / Issues Hypotheses
Question / Issue Issues

Fewer planned visits • Improve store locations

The number of
people coming into compared to competitor • Increase promotional activity
Clothes Barn outlets
is less than our Fewer unplanned visits • Increase outdoor merchandising
competitor compared to our competitor • Improve store locations

A smaller percentage of the • Improve availability of products

customers had planned a on shelf
Percentage of purchase compared to our
people making competitor • Increase range of products
How can Clothes offered in-store
purchases at
Barn increase
Clothes Barn is less A smaller percentage of the • Improve performance and
sales volume?
than our competitor customers had not planned a quality of sales force
purchase compared to our
competitor • Improve indoor merchandising

• Improve merchandising
Customers buy fewer items
The volume of than competitor
purchases per • Improve performance and
customer is lower quality of sales force
than our competitor • Improve merchandising
Customers buy a limited mix
of items compared to
competitor • Change product mix
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Exercise 1: Participants develop an issue tree and hypotheses

■ Congratulations! You have just been staffed on your first engagement. The client is Michaels
Meals, Inc.
■ The client Jennifer Garrison has hired A.T. Kearney to perform a strategic and operational
assessment of the company.
■ Your team’s mandate is to conduct a short, rapid study to understand the key issues facing
the company’s financial prospects and develop high level options for delivering on its financial
plans over the next three years
■ Your final deliverable for Thursday is an eight-page presentation (not including appendices)
■ Complete the following activities for this exercise:
• Develop an issue tree of the client situation, including a statement of the client’s overarching
issue
• Develop the hypotheses that you would like to test during this engagement

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Debrief: Exercise 1

■ What approach did your team use to define the issues? How did you start?
■ What made structuring the main issues easy or difficult?
■ What challenges did you encounter?
■ Are your team’s main issues concise, MECE, horizontally consistent, and vertically logical?

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Debrief (continued): Sample Issue tree
Main
Overarching
Questions / Sub Question / Issues Hypotheses
Question / Issue
Issues
More clearly defined brand positioning can help MM's
Is there a need to
better segment and target their customer base leading
reposition the 2 MM’s
to clarity in value proposition, greater unit sales and
product lines?
potential positive pricing impacts
How does MM’s repair
MM’s can launch green and socially conscious
it’s reputation in the
How can MM initiatives targeted at repairing its reputation
marketplace?
grow
revenues? International expansion can provide access to
Should MM expand
untapped and growing markets for both organic and
How can MM internationally?
processed foods
turn around
their Should MM expand to MM can leverage its current brand image and
slide in adjacent product lines? positioning to launch adjacent products
revenues and
earnings over
the next two How can MM decrease MM can explore lower packaging and ingredient costs
years? packaging costs? in order to reduce COGS and increase margins

MM's can reduce transportation costs by redesigning

its distribution network
How can MM
decrease How can MM's decrease MM's can optimize the number of truck rolls by better
costs? transportation costs? sharing inbound and outbound vehicles

MM's can fuel efficiency and lower carbon emissions

by exploring alternative fuels

How can MM reduce G&A expenses related to personnel and marketing can
G&A expenses? be optimized to reduce costs
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Agenda
• Introduction
• Hypothesis-based problem solving
– Identify and structure the client’s issues and questions
– Formulate hypotheses
– Collect and analyze data
- Research
- Interviewing
– Develop findings, conclusions and recommendations
• Planning the work

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Step 3: Data collection and analysis helps determine what
information is needed to test the hypotheses…

Identify and structure Develop findings,

Formulate Collect and analyze
the client’s issues and conclusions and
hypotheses data
questions recommendations
Data
Hypothesis/
Key Points
Data
Initial Answer
Issue/
• Data should verify the hypotheses
Data
Question
Data
• They should be explicit enough to
Hypothesis/
translate into an effective
Initial Answer
Data presentation
Overarching Data
Question,
Issue, or Data
Problem
Hypothesis/
Data
Initial Answer
Data
Issue/
Question Data
Hypothesis/
Data
... Initial Answer
Data
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…so it is important to plan your work and link to issues and
hypotheses or key questions of the engagement
Example 1

Issue Sub-issue Hypothesis/ Analysis Data Source(s) Method Resp Date/

Question(s) Timing
What are What are the Materials costs will be Comparison Projec- Supplier Interviews
the potential potential cost reduced: of price vs. ted interviews; Database
economic reductions? • What will be the new volume; volume Sourcing Records
benefits purchasing volume? identification and database;
(of the • How will this impact of break- costs Purchasing
merger of A costs? points records
and B)? • Check question:
What are expected
market trends in
materials prices?

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A data matrix can guide your data gathering efforts to help you
focus your research, save time, and be more effective
Where will we get the data and how will we collect it?
Method Own Company Client Others
Experts Board of Directors Industry experts
• sector Top Management personnel • Association
• functional Staff personnel • Competitors
Interview/Focus Group • methodology Operations personnel • Universities
• home Personnel in the industry
• field Users of product/service
Trade Unions Suppliers/Agent

Library Audit reports Trade literature

• Client reports Budgets and operating records Government reports
• Periodicals and books Personnel records and charts Annual reports
• Central files Customer satisfaction surveys Databases
Research and Surveys
Working papers Market data Dun & Bradstreet
Information centre Policy and procedures Internet
Other directories manuals

Observation Client and competitors

• Activities • Image • Operations • Storage
• Employees’ • Processes • Layout • Service
behaviour • Procedures • Work flow
• Environment

Source: PDN A.T. Kearney CSA Problem Solving/05.2017/vXYttrQkl77Hkmk0ym 26

Sample A.T. Kearney data matrix

B Supply
Hypotheses Questions B CEO Chain A COO Research
Director
Company A can help • What is the current size of the U.S.
Company B increase its gum business and how is it expected
market share in the gum to grow? 
market, particularly in the
United States • What is each organization’s current
position in the U.S. gum market and
how well are they positioned to take 
advantage of future growth?

Company A can help • What is the geographic footprint of

Company B compete more each company?  
aggressively in the global
confectionary industry • What geographic overlap exists
between the two companies?  
Company A’s acquisition • What patents or technological
improves Company B’s innovations does B have 
ability to innovate in product
development, particularly for • How might any B’s patents or
the gum market technological innovations be
leveraged across the combined  
companies?

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 Successful and focused research is structured in four phases

Research Resources

Understand Identify & Access Verify Synthesize

• Project scope and • Relevant sources and • Verify data is accurate • Present analysis in a
objective overview websites and appropriate format that will clearly
Approach

• Level of detail • ATK Subject Matter • Verify and document provide insights to the
Experts (SMEs) sources project team
• Questions to answer
• Data points needed to • Intellectual Capital
prove or disprove • Global Research
hypothesis team

• Make sure you have a • Start with your issue • Think critically about • Clearly organize your
Best Practices

good understanding tree to make it easy the data you receive data to make it easy
of the client problem to determine • Be prepared to justify for other team
and manager’s appropriate data and cite your findings members to follow
expectations sources
• Prioritize resources
and define your
search strategy
before you start
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To obtain good results, develop a search strategy before you
start searching
Some tips for your search strategy
■ Who knows, who cares?
• Trade associations, trade publication
• Government statistics
• University research

■ Define keywords and use a thesaurus if uncertain:

• Synonyms and correct industry terms (ex. Global positioning systems vs. personal navigation devices)
• Spelling variations (flavor vs. flavour; tire vs. tyre, etc.)
• Acronyms (ABS vs. Acrylonitrile-butadiene-styrene or is it anti-lock braking systems?)

■ Use search operators (such as AND, NOT, OR and “quotation marks”) and advanced search options

■ Search the best sites in depth: check URLs and site maps; when site was last updated

Broaden / narrow your search based on your initial results

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There are a wide range of resources available to support you in
conducting your research
Possible data sources

Your Laptop + Global Research Team + A.T. Kearney Network

• End-user tools • Support with all kinds of research • Contact ATK colleagues listed as
– Factiva, ProQuest, EBSCO, and IC related inquiries experts on GlobaLink
EFMA, GLG, etc. • Generalist researchers and PKCs • Contact ATK colleagues who have
• GlobaLink (Practice Knowledge Coordinators) authored IC or white papers of
• Access to fee-based databases interest
– Find projects, experts and IC
and analyst reports • Once you have exhausted the
• SharePoint Practice sites “standard” sources, consider
• External web sites sending a Request for Support
email to the entire ATK community
– www.atkearney.com
– Company websites
– National Statistics
– Trade Associations

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Many research questions can be solved by consultants directly;
For others, you will need the Global Research team’s input
Sources for Research

Research Global Research –

“DIY” Research Question Your research partner

All employees have access to: Global Research gets involved when:
• A.T. Kearney’s Globalink • Time constraints require additional
• A.T. Kearney’s “End-user tools” 1 resources
• Internet • Requests require subject expertise
or special sources
• Requests span multiple geographies

1. A.T. Kearney’s End-user tools refer to data that A.T. Kearney has subscribed to globally. It includes access to Factiva, Ebsco, Proquest,
EIU, Financial Times, etc.. End User tools change according to firm needs and contract negotiations. A.T. Kearney CSA Problem Solving/05.2017/vXYttrQkl77Hkmk0ym 31
A meaningful request ensures you get the answer you need

Top Tips How To Structure A Request Sample Requests

• Be as specific as possible • Forecasts for Home Care products
• Explain the context and involve the Global
Research team early
• Inform us what sources you have already
checked
• Which region is of interest? What time period?
• Be available for clarifications, communicate
scope changes
• Book capacity ahead of time
• Provide a deadline – be realistic!
• Prioritize - Not every request can be handled
ASAP!
• Define outputs and expectations: raw or
synthesized data? PowerPoint slides, Word or
Excel?
• Give a budget for time and data
• Provide a charge code! Client codes jump
to the head of the queue

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Exercise 2: Participants develop a data matrix, search IC
Tracker, and send a Global Research request
Data gathering (part one): Conduct secondary research
■ Secondary research will help you gain a better understanding of Michaels Meals’ situation and
glean insights that can be leveraged to formulate your analysis and conclusion
■ Complete the following three activities for this exercise:
• Develop a data matrix for the Michaels Meals case. You should include at least the following
three sources:
– Secondary research
– Interview with Sam Hill (Michaels Meals Chief Financial Officer)
– Interview with Bob Daniels (Michaels Meals Chief Operating Officer)
– Interview with Matt Chen (Michaels Meals Chief Marketing Officer)
• Search the IC tracker for any information that may be relevant to the case (~10 minutes)
• Create and submit a Global Research request, based upon your data matrix
■ It is not recommended that you incorporate additional sources of secondary research for this
exercise beyond what has been prescribed

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Debrief Exercise 2: Participants develop a data matrix, search
IC Tracker, and send a Global Research request

■ What approach did your team take in deciding what to include in your data matrix?
■ How did you use your issue tree in structuring your Global Research request?
■ In what ways can the Global Research team support your data gathering?

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Agenda
• Introduction
• Hypothesis-based problem solving
– Identify and structure the client’s issues and questions
– Formulate hypotheses
– Collect and analyze data
- Research
- Interviewing
– Develop findings, conclusions and recommendations
• Planning the work

A.T. Kearney CSA Problem Solving/05.2017/vXYttrQkl77Hkmk0ym 35

The interview process is a useful resource for gathering data to
drive the analytics of a consulting engagement
Interviewees Objective
• Client management • Gathering facts/data
• Client staff • Confirming issues to address
• Client SMEs • Testing hypotheses
Internal Interviews • A.T. Kearney SMEs • Understanding and mapping processes
• Capability assessment
• Understand client business/engagement
goals

• Customers
• Gathering facts/data
• Suppliers/vendors
• Understanding customer behavior
• Competitors and preferences
External Interviews • Analysts • Collecting competitive benchmark information
• Former A.T. Kearney • Testing hypotheses
Clients • Capturing industry best-practices

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There are three important stages in the interview process –
preparation, execution, and analysis
Interview Process
1 2 3
Prepare for Conduct the Record and
the Interview Interview Analyze Findings

• Define objectives • Setup the interview • Record interview findings

– Develop testable – Introductions – Write-up notes
hypotheses – Brief overview of – Capture data in templates
– Identify data required to project/objective • Conduct follow-up
prove/disprove – Agenda for interview discussion, as required
hypotheses (prioritize • Conduct interview according • Synthesize findings
between must and nice- to guide and capture notes
to-have data) • Refine interview guide as
• Close interview required
• Develop an interview guide
• Schedule/confirm
interviews
• Understand motivations /
incentives of interviewees
• Develop templates to
capture interview data/
findings
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 Record
Prepare Conduct
and
for the the
Analyze
Interview Interview
Findings

Structure the interview guide to make the most of the

scheduled time
Preparing for the Interview

Opening/Introduction Body Closing

• Set up context for the • Sequence topics/questions by • Close with open-ended
interview importance and sensitivity questions
– Positioning statement – General before specific – Encourages “big-picture”
– Overview of the project and – Qualitative before thinking (e.g. What are the
objectives quantitative three things our client
• Open with background • Use open-ended questions for should do to improve
delivery)
questions that put the subjective
interviewee at ease information/opinions – Captures additional
• Use specific or closed-ended information not solicited
– Title/role/responsibilities of
directly by the questions
interviewee questions for data or facts
• Anticipate supporting
– Company strategy/goals • Identify relevance of
documentation needs
– Market trends and other questions to different
information interviewees – create different
guides as required

Break Collect Leave the Door

the Ice Essential Data Open

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 Record
Prepare Conduct
and
for the the
Analyze
Interview Interview
Findings

Review, test and refine your interview guide

■ Review the interview guide with your team, manager, principal and/or firm SMEs
■ Rehearse the interview – anticipate responses or counter-questions
■ Make sure the questions are pertinent to the interviewee
■ Screen out questions that can be answered through secondary research
■ Practice – do less important interviews first to test the questions and flow
■ Revise interview guide as needed

A.T. Kearney CSA Problem Solving/05.2017/vXYttrQkl77Hkmk0ym 39

 Record
Prepare Conduct
and
for the the
Analyze
Interview Interview
Findings

Landing an interview with the appropriate person requires

careful planning and tenacity
Planning the Interview
■ Develop a compelling introduction and rehearse it
• What is the objective of the interview? What are the topics you will cover with the
interviewee?
• How long is the interview expected to take?
• “Why should I speak with you?”
– Appeal to their self interest
– Make them feel like an expert
– Give them something for something (e.g. sharing results of a benchmarking study)
– Anticipate negative responses and have a rebuttal ready
■ Once you find the right person, pursue them with tenacity
• Set up the interview date, time, and place with confirmation to follow
• Use interviewee’s administrative assistant to schedule the meeting
• Call one/two days prior to confirm and provide the appropriate portion of the guide prior to
the interview
• Conduct a telephone interview only if logistics are a problem
■ Set up the logistics and travel for your interview, giving yourself plenty of buffer time
■ Identify a note taker for the interview who can tag-team with you
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 Record
Prepare Conduct
and
for the the
Analyze
Interview Interview
Findings

A methodical approach facilitates a smooth and successful

interview
Conducting the Interview

Opening/Introduction Main Interview Closing

• Introduce yourself, A.T. • Pace yourself through the • Summarize key learnings vs.
Kearney and the project interview guide objectives
• Assure the interviewee of • Don’t settle for any answer – • Review action items and
confidentiality probe for specifics especially discuss next steps
• Gauge the interviewee’s role when responses are too • Sharing the results of the
within the organization, and vague/ general interview (follow with written
their goals/ interests • Skip less important questions notes)
• Confirm the time allotted for if running out of time, or • Gather documentation, if any
the interview request another session • Thank interviewee and
• Set the right tone, making • Give interviewee the guide (or request a follow-up
them feel like an expert a copy) to fill in quantitative discussion if needed
• Provide interviewee with time data (e.g. ratings) • Give a last opportunity for the
to ask clarifying questions • Make quick notes, recording interviewee to ask questions
specific facts and data (on • Repeat the assurance of
your own copy of the confidentiality
interview guide, if possible)
A team of two should conduct the interview:
• Primary interviewer: makes the introductions, asks the questions, and keeps the interview moving
• Note taker: focuses on recording responses, interjecting with clarifying questions, and keeping the
interview on track if it veers off course
A.T. Kearney CSA Problem Solving/05.2017/vXYttrQkl77Hkmk0ym 41
 Record
Prepare Conduct
and
for the the
Analyze
Interview Interview
Findings

Framing the right questions and clarifying information

throughout are essential for a successful interview; listening
skills complement these techniques
Listening Skills

Objective Example

Open • Initiate discussion of a broad subject • “Why was this product chosen
Ended • Encourage comprehensive explanation for development?”
Question • Gather opinions rather than facts
Framing
Closed • Elicit specific information • “How many product returns did
Ended • Gather facts/data rather than opinions you have in 2007?”

Type 1 • Restate expressed thoughts, feelings or • “So there are two primary
information provided factors which affected sales,
…”
Paraphrasing
Type 2 • Interpret and restate implied thoughts, • “It sounds like you would really
feelings or information provided like to change the situation”
Type 3 • Restate sensitive issues and address • “So you are concerned this
concerns/feelings would make things worse”

Seeking • Clarify statement or data provided • “Which costs specifically have

Clarification • Resolve ambiguity or vagueness gone up this year?”
A.T. Kearney CSA Problem Solving/05.2017/vXYttrQkl77Hkmk0ym 42
 Record
Prepare Conduct
and
for the the
Analyze
Interview Interview
Findings

Simple strategies can be used to manage unproductive

interviewee behavior
Interviewee Behavior Response/Handling

• Reassure interviewee that A.T. Kearney is an objective, neutral party and

Nervous or anxious their responses will be confidential
• Smile to put the interviewee at ease

• Keep interview on track – “I want to be mindful of your time…”

• Prioritize questions in the guide, if time starts running out
Compulsive talker • Request follow-up interview – “You have some really good ideas. Can we
schedule some time to finish these questions?”

• Keep probing till you get a satisfactory response

Non-talker • Paraphrase frequently to elicit information (e.g. “Type 2” on previous slide)

• It’s not personal – a lurking issue needs to be surfaced

Angry or hostile • Inquire about and directly address the interviewee’s concerns
• Reinforce that you have the client’s best interests in mind

• Avoid judgment statements, particularly about other employees

Conspiracy theorist • Remain objective – return to facts/data to counter strong opinions or biases

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 Record
Prepare Conduct
and
for the the
Analyze
Interview Interview
Findings

When conducting an interview by conference call, there are a

few important points to remember

Do… Don’t…
• Clearly identify yourself on the call. If there • Be afraid of silence. Normally, you are able to
are multiple parties on the phone, it may be observe a client’s non-verbal cues as they
difficult to determine who is talking. It is okay reflect on a question, however with a
to confirm who the speaker is conference call, silences may only be a sign
• Establish rapport. While this is easier to that the client is thinking
accomplish face-to-face, every interaction is • Take the mute button for granted
an important client-building opportunity • Assume that the only clients on the
• Clarify any uncertainties. Without the benefit conference call are those that you invited. It is
of having documents to point to confirm a easy for a client to forward the dial-in
figure or head nods to confirm a statement, it information to additional parties
is especially important • Multi-task. It’s easy to get sidetracked with
• Maintain the same demeanor on a conference email or surfing the web and lose track of the
call as you would face-to-face. Even if the conversation
client can’t see you, they can tell if you are
smiling or frustrated
• Speak slowly and enunciate. More slowly and
clearly than you would think!

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 Record
Prepare Conduct
and
for the the
Analyze
Interview Interview
Findings

Write up your interview notes and capture data in the templates

immediately after the interview is complete – while it is still fresh
After the Interview
■ Background information
• Capture the title, responsibilities, and other relevant comments (disposition, etc.) on interviewee
• Other relevant background information
– How we obtained the interview
– Importance of interviewee’s organization or opinions
– Positioning of interview in study
■ Write-up your interview notes, filling in the gaps and nuances from the interview that you might not have
captured during the interview
• Complete interview notes no later than one/ two days after the interview
• Collaborate with additional interview participants (note taker) to create a thorough summary document
• Always include an executive summary at the beginning of your notes
■ Communicate results to team at regular intervals
• Disseminate interview reports together with an executive summary
• When interviewing away from the office, send notes regularly and communicate key points to your
manager
■ Follow up with interviewee
• Thank them for their time
• Ask any additional questions (new or missed during the interview)
■ Modify/Refine interview guide as needed
A.T. Kearney CSA Problem Solving/05.2017/vXYttrQkl77Hkmk0ym 45
Interview demonstration – interviewee overview

Sam Hill Chief Financial Officer, Michaels Meals

Education 2002 MBA
1996 B.A. Business Administration

Work Experience 2007 – present: Chief Financial Officer, Michaels Meals, Inc.
2002 – 2007: Director of Finance, Modern Electronics, Inc.

A bit about Sam • As with most CFOs, Sam is completely focused on financials
• Outside of work, Sam is an avid hiker and enjoys watching football

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Debrief: Interview Role Play

■ What approach did the interviewer take in opening the interview?

■ What structure did they use in the main part of the interview? Did they paraphrase?
Mirror? Use a combination of open and closed questions?
■ How did they close the interview?

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Exercise 3: Participants develop interview guides, conduct two
interviews, and receive Global Research team response
Data gathering (part two): Interviewing
■ Complete the following four activities for this exercise:
• Develop interview guides for the following Michaels Meals executives
– Bob Daniels – Chief Operating Officer
– Matt Chen – Chief Marketing Officer
• Interview Bob and Matt. You will have 10 minutes for each interview
• Capture their comments in interview notes
• Follow up with the Global Research team to receive any documentation they can provide
and their feedback on your Global Research request
■ Logistics
• You have already called to set up and reconfirm all the interviews
• An interview and Global Research follow-up schedule will be provided
• The interviewees know that A.T. Kearney consultant teams will conduct the interviews
• All interviewees value time and promptness…be organized and on time

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Debrief Exercise 3: Interviewing

■ What approach did you use in preparing your interview guides?

■ How did you use your hypotheses and questions to guide your interview questions?
■ How did you use paraphrasing and open and closed questions to help direct the
main part of the interview? How effective were these tools?
■ What challenges did you encounter overall in the interview process?
■ Do you feel like you made the best use of the time allocated for the interviews?

A.T. Kearney CSA Problem Solving/05.2017/vXYttrQkl77Hkmk0ym 49

Agenda
• Introduction
• Hypothesis-based problem solving
– Identify and structure the client’s issues and questions
– Formulate hypotheses
– Collect and analyze data
– Develop findings, conclusions and recommendations
• Planning the work

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Step 4: Recommendations outline action for the client based on
conclusions and findings
Identify and structure Develop findings,
Formulate Collect and analyze
the client’s issues and conclusions and
hypotheses data
questions recommendations

Findings are facts

Data supported by the analysis
Hypothesis/ Solution/
Data Finding Recommendation
Initial Answer
Issue/ Data
Question Conclusions
Data
Hypothesis/ Solution/
Data Finding Recommendation
Initial Answer
Overarching Data
Question, Conclusions synthesize
Issue, or the findings
Data
Problem
Hypothesis/ Solution/
Data Finding Recommendation
Initial Answer
Issue/ Data
Question Conclusions
Data
Hypothesis/ Finding Solution/
... Initial Answer Data Recommendation

Recommendations outline
actions the client should take
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Findings and conclusions guide the logic to solve the problem

Findings and Conclusions

Data What is a Finding? What is a Conclusion?

Data Finding • A summary statement derived • A diagnostic statement based

from data generally answering on the data and findings that is
Data yes/no questions in line with hypothesis
Conclusions
• Findings should • Conclusions should
Data
– Fully test the hypotheses – Unite the findings
Data Finding – Fully support the conclusions – Diagnose the issue or
Data – Be reliable and accurate problem
– Be clear and convincing – Suggest possible
Data
• Review facts in the context of recommendations
Data Finding the hypothesis • Conclusions may come from
– Confirm facts the hypotheses, but they may
Data also come directly from findings
Conclusions – Cross-check relevant data
• Ensure that conclusions are
Data – Ask “why?” and “so what?” to
ensure relevance – Relevant
Data Finding – Supported by data and
• Review and revise your
hypotheses based on findings findings
Data

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A recommendation addresses the overarching issue and tells
the client what to do Example

Findings Conclusions Recommendation

• Typical EBITDA margin of companies

analyzed is 10 -12% above client’s target
• Business is financially attractive for client
• Target companies won’t require addl.
investments to serve existing contracts
as equipment/ facilities are already
owned

• Typical contracts in the industry are long

term (>8 years) • Business provides financial stability to
client’s revenues
• Revenues are not cyclical Client should enter waste
management business
• Revenues collected from contracts
depend on residential population and
tourism; both are expected to grow
steadily • Business is expected to grow in the
following years
• Expense in waste per inhabitant is
expected to raise even more due to
recycling and environmental issues

• Client’s already manages a portfolio of • Getting into Waste management will

complimentary municipal services such allow the client to provide a
as sanitation, roadway/ bridges, fire comprehensive portfolio of services to
department, utilities, etc. municipal customers
A.T. Kearney CSA Problem Solving/05.2017/vXYttrQkl77Hkmk0ym 53
Agenda
• Introduction
• Hypothesis-based problem solving
– Identify and structure the client’s issues and questions
– Formulate hypotheses
– Collect and analyze data
– Develop findings, conclusions and recommendations
• Planning the work

A.T. Kearney CSA Problem Solving/05.2017/vXYttrQkl77Hkmk0ym 54

A complete assessment of a hypothesis can take significant
time
Typical Activities Depending on Project Stage
High Level 80/20 Detailed
Process Lay out and test
Steps Develop initial critical arguments Create “bulletproof”
identified by answer from refined
hypothesis hypothesis
hypothesis

Typical 1-3 weeks 2 weeks - 2 months Remainder of project

Time Frame

Typical • Literature searches on • 80/20 calculations • Gather and analyze

Activities client, industry, • Top-down analysis with detailed client and
competition functional external data
historically-based
area • Review detailed market
assumptions
• Analyst reports • Sample customer calls research
• Industry/topical expert • Analogous industry • Build extensive models
interviews overview • Refine assumptions
• A.T. Kearney IC
• Run sensitivities and
• Client interviews scenarios

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The issue tree then serves as a basis for planning the work and
linking activities that are required to validate arguments
Activity Planning Illustrative

Hypothesis Arguments Activity 1 Activity 2 Activity 3 Activity 4 Activity 5

• Hypothesis X • Argument A
ü
• Argument B
ü ü
• Hypothesis Y • Argument C
ü ü
• Argument D

ü ü ü
• …

Building a matrix to identify the activities that support multiple arguments is

critical for large projects

A.T. Kearney CSA Problem Solving/05.2017/vXYttrQkl77Hkmk0ym 56

For each argument, the required activities should be identified
and further planning details determined
Hypotheses / Activities Template Illustrative

Issue Hypothesis Arguments Activities Sources Output Responsible Due

• Is the client • Yes, since • The seismic market • Compile historical • Industry Chart Thomas 10-Jun
well- the client is expected to data statistics
positioned has a high develop slowly
strategically market
in the share and • Client can defend • Create market • Analyst Chart Thomas 15-Jun
seismic the industry existing market forecast reports
industry of is relatively share
the North stable • For the short to • Analyze technical • Company List Richard 15-Jun
Sea? medium term the trends reports,
exploration research
technologies will not publications
change dramatically
• Despite some M&A • Collect deals along • Deal Excel Harry 20-Jun
activities, the value chain databases sheet
industry structure
will remain the same • Analyze industry • Company List Harry 25-Jun
trends reports
• …

One analysis often supports several arguments across several issues

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Exercise 4: Participants develop findings, conclusions, and
recommendations

■ Given the data that you have collected via your interviews and secondary research,
develop findings, conclusions, and recommendations
■ Remember that
• Findings are statements of fact that should fully test the hypotheses and fully
support the conclusions
• Conclusions address the main issues and questions of the engagement and lead
to recommendations
• Recommendations should be action oriented, practical, achievable, and beneficial

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Debrief Exercise 4: Findings, conclusions, and
recommendations

■ How did your team approach the process of developing findings and conclusions?
■ How clear are your statements of findings and conclusions?
■ Are all of your hypotheses supported with findings and conclusions?
■ Do your findings fully test the hypotheses?
■ Do your findings support your conclusions?
■ Do your recommendations fully address the main issues identified for the
engagement?
■ How did you take into account existing conditions within Michaels Meals when
formulating your recommendations?
■ What specific benefits do your recommendations lead to for this client?

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