crack the case

Interviewer Fact Sheet

Pack: 004 page 7 of 21

IntroIntro FactsFacts

(Tell(Te lthetheCandidateCandidateififAsked)Asked)

•• CostCostcontainmentcontainment––ManagementManagementisisleeryleery ofofmakingmakingtootoomanymanycutbackscutbacksforforfearfearofof losinglosingmembersmembers

•• EconomicEconomicoutlookoutlook––TheTheeconomyeconomyseemsseems totobebeimprovingimproving.. ManyManyexpertsexpertspredictpredictaa recoveryrecoveryininthethenextnextsixsixtototwelvetwelvemonthsmonths..

GymGymmembershipsmembershipstypicallytypica lyriseriseandandfallfa linin line with the economy.

line with the economy.

•• MemberMemberopinionsopinions––ThereThereisisnonodatadataonon

whatwhatmembersmembersthinkthinkofofthethetrainerstrainers..

•Competitors – FX is the only mega-gym of

•Competitors – FX is the only mega-gym of itsitskindkindwithinwithin2020milesmiles..

•• AmenityAmenityusageusage––ThereThereisisnonodatadataononhowhow frequently various amenities are used. frequently various amenities are used.

On-Track Indicators

Looks for data early in the case – asks questions that will help put numbers to the problem

Pulls out insights – does a good job of “connecting the dots” between the low amount of costs and the high potential for lost revenue

Creative analytics – thinks out of the box in an attempt to address this issue and uses data to back it up

Keyey InsightsInsights

(Do(DoNotNotTellTe lthetheCandidate)Candidate)

•Trainers are a break-even proposition.

•Trainers are a break-even proposition.

Trainers are barely paying for themselves. Trainers are barely paying for themselves. Without changing their salary structure, we know Without changing their salary structure, we know that their value lies in attracting/retaining

that their value lies in attracting/retaining members, not generating revenue. members, not generating revenue.

•Few members use personal training. Trainers

•Few members use personal training. Trainers

perform 900 (18 trainers x 2.5 sessions x 20 perform 900 (18 trainers x 2.5 sessions x 20

working days) sessions per month. Since the working days) sessions per month. Since the average trainee meets 2x per week, 450 different average trainee meets 2x per week, 450 different people are being trained. That’s less than 5% of people are being trained. That’s less than 5% of

the 14,000 membership base. the 14,000 membership base.

•To be valuable, trainers must be offering other

•To be valuable, trainers must be offering other

intrinsic value. Trainers could be adding value intrinsic value. Trainers could be adding value by attracting new customers or by giving tips

by attracting new customers or by giving tips

throughout the day that the members appreciate. throughout the day that the members appreciate. You do not have any data to show whether or not You do not have any data to show whether or not

they are providing a service that draws or keeps they are providing a service that draws or keeps members, but it would make a good discussion members, but it would make a good discussion toward the end of the interview.

toward the end of the interview.

Off-Track Indicators

Focuses on the qualitative – organization cases are interesting and can provide a lot of distractions, but the candidate needs to first stick to the data

Asserts without data – tends to believe something strongly but can’t prove it

Misses the need for cost detail – does not seek to break down the cost data to the point of gleaning insights

Case at a Glance

Pack: 004 page 8 of 21

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Case at a Glance

Pack: 004 page 9 of 21

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Expect the candidate to do quite a few calculations. Offer help where appropriate.

Discuss the insights.

See p. 11 to understand the full set of insights. The Candidate should have developed most of these. Help fill in the gaps where appropriate.

Expect a logical conclusion and if there is time, move the conversation to other critical issues (see Heavy Lifting).

Consider asking these questions if you have more time:

•Do you think Fitness Xtreme needs to offer this many amenities to be successful?

•What is your 80/20 hunch about the fastest way to boost membership?

During the Candidate’s wrap-up, look for the following:

•Good understanding of the issues from a data point of view

•Strong prioritization of the issues with the most important listed first

•Clear next steps that are actionable and designed to provide clarity on bottom line issues

Data Distribution

Pack: 004 page 10 of 21

Math Zone

Recommended Approach

Pack: 004 page 11 of 21

Costs in Percent

Re-routers and Heavy Lifting

Rerouters

Questions To Keep Things On Track

Pack: 004 page 12 of 21

Interviewer Feedback

Pack: 004 page 13 of 21

6. You drove the case.

1 2

Clearly in control, you took the case to a conclusion

Analytics

7. You analyzed the data well on a piece by piece basis.

8. You integrated data well and reached insights (saw the big picture).

Recommendation

9. Your final recommendation was to the point and data driven.

10. You were persuasive in making your final points.

Total Score:

(10-60)

Before giving your score, have the candidate do the Self Assessment at the back of the case pack. What can you tell the candidate that will help him or her prioritize his prep going forward?