General Business Skills

General business skills
Training
Agenda
• Excel analysis
• Slides and loops design
• Financial analysis
• Research
• Data analysis
• Collaboration
• Zero Defect
• Time management: 80/20
• Updating your supervisor
• Final tips
This information is confidential and was prepared by Bain & Company solely for training purposes; it is not to be relied on by any 3rd party without Bain's prior written consent. 2
Excel shortcuts allow you to work more efficiently in Excel
Basic shortcuts Work with worksheets

C+C Copy C+PgDn Move to next sheet
C+V Paste C+PgUp Move to previous sheet
A+E, S Paste special A+O, H, R Rename current sheet
A+E, S, V Paste special as values A+E, M Move or copy current sheet
F2 Edit the active cell A+E, L Delete current sheet
Move/Scroll within worksheets Formatting

C+arrows Moves to edge of current data C+S+% Percentage format with no decimal
A+PgDn Move one screen to the right C+S+$ Currency format with two decimals
A+PgUp Move one screen to the left C+B Bold
C+F/H Display the find/replace dialog box C+U Underline
C+I Italic
Selecting columns, rows, fields Enter data

C+space Select the entire column S+F2 Edit a cell comment
S+space Select the entire row
C+S+arrow Extends selection to last non blank cell in the row or column
C=Ctrl
S=Shift
This information is confidential and was prepared by Bain & Company solely for training purposes; it is not to be relied on by any 3rd party without Bain's prior written consent.
A=Alt
3
Frequently used functions
• IF (logical_test,value_if_true,value_if_false): Returns one value if a condition you specify evaluates to TRUE and another value if it evaluates to FALSE
• AND (logical1,logical2, ...): Returns TRUE if all its arguments are TRUE; returns FALSE if one or more argument is FALSE
• OR (logical1,logical2,...): Returns TRUE if any argument is TRUE; returns FALSE if all arguments are FALSE
• SUMIF (range,criteria,sum_range): Adds the cells specified by a given criteria

-
• COUNTIF (range,criteria): Counts the number of cells within a range that meet the given criteria
• MAX (number1,number2,...): Returns the largest value in a set of values
• MIN (number1,number2,...): Returns the smallest number in a set of values
• AVERAGE (number1,number2,...): Returns the average (arithmetic mean) of the arguments
• ROUND (number,num_digits): Rounds a number to a specified number of digits
• ROUNDDOWN (number, num_digits): Rounds a number down
Useful string functions
• CONCATENATE (text1,text2,...): Joins several text strings into one text string
- Example: CONCATENATE(“Test”,2) = “Test2”
• LEFT (text, num_chars): returns the first character or characters in a text string, based on the number of characters you specify
- Example: LEFT(“Test”,2) = “Te”
• RIGHT (text, num_chars): returns the last character or characters in a text string, based on the number of characters you specify
- Example: RIGHT(“Test”,2) = “st”
• TRIM (text): removes all spaces from text except for single spaces between words
- Example: TRIM(“ Test ”) = “Test”
• LEN (text): returns the number of characters in a text string
- Example: LEN(“Test”) = 4
• FIND (find_text,within_text,[start_num]): finds one text string (find_text) within another text string (within_text), and returns the number of the starting
position of find_text, from the first character of within_text. (Note that FIND is case sensitive. SEARCH is an identical function that is not case sensitive)
- Example: FIND(“s”,”Test”) = 3
• PROPER (text): capitalizes the first letter in a text string and any other letters in text that follow any character other than a letter. Converts all other letters to
lowercase letters.
- Example: PROPER(“tEsT”) = “Test”
• LOWER (text): Converts all uppercase letters in a text string to lowercase
- Example: LOWER(“tEsT”) = “test”
• MID (text,start_num,num_chars): returns a specific number of characters from a text string, starting at the position you specify, based on the number of
characters you specify
- Example: MID(“Test”,2,2) = “es”
Agenda
• Excel analysis
• Research
• Data analysis
• Collaboration
• Zero Defect
• Final tips
When designing your own slides, you should aspire to take these five steps
HOW CAN YOU ANSWER THESE
WHAT QUESTIONS SHOULD YOU ASK? QUESTIONS?
1 Who is my audience? How senior are they? Clarify these questions with your supervisor
audience
Understand your How familiar are they with our work?
2 your objective What is our overall goal? Is it to simply inform? Clarify these questions with your supervisor
Clarify To recommend an action?
3 message What is the key message I want the client to Pull up after you finish your analysis and
Define your take away? What is my slide’s action title? synthesize your findings into a key message
4 evidence What data provides the best evidence to Review all data that supports your message and
Identify the best support my key message? isolate the most compelling evidence
5 What chart type best displays my data? How Understand common slide types and remember
Design the slide should I lay out my slide? key principles
Key principles to make star slides
• Use concise single-focus action titles that convey an insight or opinion

Action titles
• Make font size legible for the audience (min. 18pt when projected to small groups; 20pt projected to large groups;
Font 8pt for printed slides)
• Use precise, plain language to say what you mean

Jargon - Remove specific acronyms and business jargon
• Distill word slides down to their essence

Word slides - Bolding, indenting and white space are particularly important in text-heavy slides to ease client understanding and encourage
discussion
Redundant • Eliminate redundant detail in data slides

- Remove units ($, M); place labels in one bar only; use “Other”
detail
• Remember that animation only applies when projected—build complex insights over multiple slides for printing
Animation
• Use color to emphasize key segments, color-code a recurring theme, or highlight a trend
Color
• Include concept diagrams (without 3D format and color gradients) selectively, to visualize key points
Concept diagrams
Characteristics of good slide loops
•Charts have highlights and callouts to focus on insights
•Action titles describe content and have a point of view
•Transition words between slides enhance flow
•Slides build on each other
•Overall storyline is easy to follow
Detailed training available
Agenda
• Excel analysis
• Three types of financial statements
• Fixed vs. variable costs
• Valuation basics
• Ratio analysis
• Research
• Data analysis
• Collaboration
• Zero Defect
• Final tips
These three financial statements serve different purposes
BALANCE SHEET INCOME STATEMENT CASH FLOW STATEMENT
Shows: • Resources available for use • Financial results from business • Sources and uses of cash
• Claims of parties against operations
resources
Timeframe: • Snapshot at a point in time • Flows over a period of time • Flows over a period of time
Basic equation: Liabilities Revenues Beginning cash

Assets = + - Expenses +/- Operating cash flow
Equity Profit +/- Investing cash flow
+/- Financing cash flow
Ending cash
Income statements typically follow this format, showing different types of profit
Revenues
- Cost of goods sold (COGS)
= Gross profit
- Operating expenses (OpEx)
= Operating profit (EBIT)
+ Non-operating revenues
- Non-operating expenses
= Income before extraordinary items
+/- Extraordinary items
- Provision for taxes
= Net income
COGS make up the first level of expenses
Cost of goods sold (COGS):

Raw materials and production costs associated with sold products
INCOME STATEMENT TEMPLATE EXAMPLE: TIRE CO.

• COGS represents the cost of producing the tires
Revenues • Raw materials
- Rubber
- Pigments
- Cost of goods sold (COGS) - Metal
- Others
• Factory labor
= Gross profit • Other materials and production costs
COGS are the simple cost associated with producing the goods sold to
the customer
Operating expenses make up the second level of expenses
Operating expenses (OpEx):

Costs associated with operating the company’s main business (SG&A)
• Operating expenses represent the overhead costs associated

Gross profit with selling the tires
• Selling, general, and administrative expenses
- Tire sales force costs
- Operating expenses (OpEx)
- Marketing costs (e.g., advertising campaign for new tires)
- Overhead costs (e.g., HR, finance)
• Depreciation and amortization
= Operating profit (EBIT) - Tire manufacturing equipment depreciation
Costs associated with generating demand and supporting the organization
There are additional financial and accounting items in the third level of expenses
Non-operating revenues/expenses:
Revenues and costs not associated with the main line of business
• Non-operating items are those not associated with the main

Operating profit (EBIT) business
• Non-operating revenues
+ Non-operating revenues - Interest and dividends earned on investments
- Others
• Non-operating expenses
- Non-operating expenses - Factory employee pensions/benefits
- Others
= Income before extraordinary items
Costs associated with financing the

business and non-cash charges
Taxes are almost always present, but extraordinary items are hopefully rare
Extraordinary items:
Abnormal gains or losses not related to the company’s main business
• Extraordinary items are impossible to plan for and are outside

Income before extraordinary items the normal scope of the business
• There are many examples
- Costs from lawsuit after tires are found to cause
+/- Extraordinary items accidents
- Restructuring costs after lawsuit drives the company into
bankruptcy
- Provision for taxes
- Sale of a subsidiary
= Net income
Almost every for-profit business will have taxes, but a healthy business should have few
extraordinary items
Typical line items found on a balance sheet
Balance sheet
Assets = Liabilities
• Current assets • Current liabilities

- Cash and cash equivalents - Account payable (creditors)
- Accounts receivable (debtors) - Notes payable
- Inventories (stocks) - Accrued expenses
- Pre-paid items • Long term liabilities
• Long term assets +
• Other assets
Owners’ equity
• Capital stock
• Retained earnings
Balance sheet accounts are usually listed in order of decreasing liquidity (ease of
conversion to cash)
The BS and IS are linked through retained earnings and net income
Balance sheet
Retained earnings (Year 0)
Income statement
+
( Net income (Year 1)
- Dividends* (Year 1) )
Retained earnings (Year 1)
Net income (from income statement) directly impacts shareholders’ equity (from balance sheet)
What does cash flow tell us?
OPERATING INVESTING FINANCIAL

CASH FLOW CASH FLOW CASH FLOW
• Ability of business’ recurring operations • Ability of business’ investment decisions • How company is funding its operations
to generate cash to generate cash
Strategic value of business Financial and operational Financial strategy

strategies of business
Cash flow summary
1. Earnings before interest and tax (EBIT)
+ 2. Depreciation
+/- 3. Other non-cash operating income/expenses
- 4. Increase in working capital (excluding cash)
- 5. Taxes paid
+/- 6. Tax impact of interest income/expense
= Operating cash flow
- 7. Capital expenditure
+ 8. Proceeds from sales
= Investing cash flow
+/- 9. Interest income/expense

+/- 10. Tax impact of interest income/expense
+/- 11. Change in long-term debt/liabilities
+/- 12. Change in outstanding stocks/shares

- 13. Dividends
+/- 14. Change in other accounts
= Financing cash flow
Net cash flow (which will reconcile with change in cash*)

The following bottom-up method is often used to forecast cash flow
Cash Flow
Profit Capital
Fixed Working
Revenue Cost
Assets Capital
Volume Margin
Market Market
Size Share
Agenda
• Excel analysis
• Ratio analysis
• Research
• Data analysis
• Collaboration
• Zero Defect
• Final tips
Valuation steps
Calculate total Calculate NPV

Estimate cost of capital Calculate cash Calculate average
Forecast performance cash flows to and interpret
(discount rate) flow terminal value
discount results
• Often calculated • Analyze historical • Use EBIT as • Frequent • Add terminal • Discount total cash
for you performance using starting point technique: growing value (not yet flows back to
key ratios perpetuity discounted back present using
• Calculate Free
to present) to appropriate
• Understand strategic Cash Flow (FCF)
forecasted final discount rate
position
• FCF is equivalent year’s FCF
• Test results
• Develop performance to investing cash
scenarios flow + operating • Interpret results
cash flow within decision
• Forecast individual
context
line items (P&L and
balance sheet)
• Check overall
forecast for
reasonableness
Valuation key formulae
Present Value • PV = FV where FV = future value

(1 + i)N i = discount rate
N = period or year
Net Present Value • NPV = PV – initial investment
Cash Payback Period • Add cash flows in successive period until investment recovered, then count number
of periods
Internal Rate
• IRR is the discount rate that makes NPV = 0
of Return
CFN (i + g)
• Growing perpetuity:
TV =
i–g
Terminal Value
where CFN = Cash Flow in Year N
g = long-term growth rate
i = discount rate
Valuation checklist
• The terminal value calculation is discounted back from Year N to the present
• All financial figures, both historical and forecasted, are either real or nominal
• All treatment of cash flows and discount rates is either on an after-tax or before-tax basis
• All forecasts are realistic and consistent with one another. This includes growth rates (for forecasted period and terminal value),
market share, margins, capacity utilization, and fixed vs. variable expenses
• The length of the forecast period is sufficient to ensure that the cash flows are stable enough for the terminal value growth rate
assumption to be reasonable
• The terminal value does not comprise too large a part of the total present value of the firm or project cash flows. If the TV is well
beyond 50% of the PV, the assumptions and calculations must be scrutinized closely
• The numerator in the TV growing perpetuity calculation is the cash flow from Year N+1, which is usually calculated as CFN(1+g)
• The sensitivity analysis gives a strong indication of what is driving the value in the NPV calculations. This is particularly important
when comparing alternatives with NPVs that are closely matched
Agenda
• Excel analysis
• Ratio analysis
• Research
• Data analysis
• Collaboration
• Zero Defect
• Final tips
All costs can be broken down along two dimensions: fixed/variable and
direct/indirect
FIXED VS. VARIABLE DIRECT VS. INDIRECT
Fixed Variable Direct Indirect
Definition: • Costs that do not vary • Costs that vary • Costs incurred directly • Costs outside of the
directly with changes directly with changes in the production or production process
in output in output delivery of a firm’s
product or service
Examples: • Rent • Raw materials • Dedicated equipment • SG&A

• Advertising • Delivery costs • Raw materials • Plant manager
If a cost changes with production If a cost “goes away” when a product is

changes, it is variable dropped, it is direct
These fixed costs and variable costs are shown right on the income statement
Simplified income statement
Revenues Price per unit x Volume
- Variable costs Cost per unit x Volume
= Gross profit Also called “Contribution margin”
- Fixed costs Overhead costs
= Operating profit (EBIT)
Agenda
• Excel analysis
• Ratio analysis
• Research
• Data analysis
• Collaboration
• Zero Defect
• Final tips
Ratios can be classified into two categories each describing different aspects of
performance
Return Risk
Profitability Turnover Leverage Liquidity Coverage
• Gross margin • Receivables • Asset to equity • Current ratio • Interest charge

• Operating margin • Inventory • Debt to equity • Quick ratio • Fixed charge coverage
• Return on sales • Payables • Debt to total capital
• Asset
How well are How effectively What are the Is the company Is the company
costs managed are company claims of debt able to meet its able to meet its
relative to resources and equity short-term long-term
revenues? managed? owners? How obligations? obligations?
risky is the
business?
Frequently used profitability metrics highlight different aspects of the business
• Percentage of revenue retained by a company after costs directly attributable to the output
Gross Margin
Operating • Percentage of revenue retained by a company after paying for fixed and variable costs of
(EBIT) production
Margin
• Earnings Before Interest, Taxes, Depreciation and Amortization

EBITDA • Frequently used by private equity firms
Margin - Strips out non-cash charges (depreciation/amortization)
- Eliminates effects of financing and accounting decisions, taxes and extraordinary items
• Percentage of revenue available to shareholders after fixed and variable costs, interest to debt
Net Margin holders, and taxes to the government
• Includes financing, taxes, and extraordinary items
Profitability ratios are calculated with information from the income statement
PROFITABILITY RATIO EQUATION
Sales – Cost of goods sold (COGS)

Gross Margin
Sales
Operating profit (EBIT)

Operating (EBIT) Margin/ Return On Sales
Sales
Operating profit before depreciation (EBITDA)

EBITDA Margin
Sales
Net income
Net Margin
Sales
Turnover ratios show how efficiently the company is managing its operations
WHAT WOULD A HIGH RATIO INDICATE? A

DEFINITION LOW ONE?
• Ratio that shows how many times per period the • High ratio: quick collection
Receivables company collects its average receivable amount • Low ratio: potential to improve collection efficiency
Turnover • Shows effectiveness in extending credit as well as
collecting debts
• Shows how many times a company's inventory is • High ratio: inventory turns over quickly
Inventory sold and replaced over a period • Low ratio: business keeps inventory in stock
Turnover
• Measure of inventory management effectiveness longer
Payables • Ratio that shows how many times per period the • High ratio: quick debt payoff
Turnover company pays its average payable amount • Low ratio: delayed payoff
• Measures a company's ability to generate sales from • High ratio: using the investment in assets
Asset asset investments effectively to generate revenues
Turnover
• Low ratio: investment is used less effectively
Turnover ratios use a combination of income statement and balance sheet items
TURNOVER RATIO EQUATION
Credit sales in period*

Receivables Turnover
Accounts receivable average balance
Cost of goods sold (COGS) in a period

Inventory Turnover
Average inventory in a period
Purchases on account**
Payables Turnover
Accounts payable average balance
Sales in period
Asset Turnover
Average assets
*Sales is often a good proxy **Cost of goods sold is often a good proxy
Note: Average = (Year Beginning + Year End) / 2
Turnover ratios can be expressed as period ratios, showing the number of days in a
cycle
• How many days does the company

Receivable days take to collect accounts receivable?
• How many days does it take for the

Inventory days company to turn over all its inventory?
• How many days does the company

Payable days take to pay accounts payable?
Days In Period*
Period Ratio =
Turnover Ratio
*Typically we use 365 days (1 year) for the period

Agenda
• Excel analysis
• Research
• Data analysis
• Collaboration
• Zero Defect
• Final tips
3 types of research
3
Secondary Research
Primary Research
1 2
Internal External
• Data, analysis and insights that • Data, analysis and insights that • Data that does not already exist
already exists and is based on already exists from external • Typically involves conducting
prior work research sources interviews and surveys
• Also includes tools and • Gathered through ‘desk’ research • Gathered through “field” research
benchmarks to help do your
work
• Gathered through ‘desk’ research
How to approach informational phone interviews
Plan the research Prepare for the interview Conduct the interview Summarize insights
• Clarify objective • Write interview guide • Set up the interview • Type and synthesize notes
• Develop a hypothesis • Identify best sources to contact • Make the call • Roll up data
• Prepare blank slides • Find contacts • Manage the conversation • Update hypothesis
• Create a contact database • Take detailed notes • Update Manager as necessary
• Develop an interview plan • End the interview • Feed new knowledge into
• Seek Manager approval for interview guide
contact lists & interview scripts
Create an interview guide to structure the interview and act as a checklist
Short
i Prepare a short introduction introduction
- Write it in full if you find it helpful
- Mention any contact name you have
i Tie each question to a blank slide or hypothesis
i Write unbiased open ended questions
i Ask follow-on questions
- How? Why?
i Avoid jargon
- e.g., CAGR, ROS, BDP
i Try using different questions to check the answers you are
getting (“triangulate”)
i Make it as interesting as possible for the respondent
- Just asking them to give you numbers or report data is
not interesting
Ask to follow up with

additional questions
Follow-on
questions 41
Next step is to determine the best sources to contact – there are four common ones
Industry experts Analysts Companies Consumers
Description: • Experts within an industry • Analysts whose role is to • Contacts within • Regular consumers, either
who know specific examine a specific companies existing or potential
details and trends industry or company • Often setup through customers
contacts or “cold” calls
Useful for: • Market trends • Historic growth trends & • Consumer sentiment
• Company details
- Growth trends new opportunities • Decision process and key
• Company activity,
- Product shifts • Company specific purchase criteria
including investments,
• Technology shifts details • Brand perceptions
R&D, and M&A progress
• Potential M&A activity • Market segmentations
Less useful for: • Company specific • Cultural aspects of • Overall market growth • Market trends
details companies trends • Industry-specific
- Organization structure • Overall market M&A information
- Financials activity
• Competitor specific
details
- Org. structure
- Financials
Create a contact database to track interviews
• Include
- Full names
- Positions
- Switchboard and direct numbers, where available
- Any other useful information regarding the interviewee
8 E.g., comments regarding source of contact
- Status of call
Each type of contact should be approached differently
Industry experts Analysts
• Be knowledgeable of their report

• Acknowledge their expert status • Analysts are very busy, ask pointed, insightful
• Expert calls are valuable, do basic research on questions
your own and prepare insightful questions • Ask if they know of anyone else who may also be
• Be direct, not talkative helpful
Companies Consumers
• Clearly state your role and purpose of interview • Be friendly and personable
• Clearly state how you will use any information • Do not use jargon so as not to intimidate or
gained to calm suspicions confuse
• Acknowledge any recent successes at company • Give an overview of how you will use the
information they provide to calm any suspicions
• Assure them it is not a sales call
Conducting the interview
Step 1: set up interview
• Determine best time to call – consider time zones, lunch breaks, etc.
• Go somewhere quiet
- Manager office/meeting room
• Leave yourself plenty of time
- The whole process always takes longer than you expect
• Be persistent and try your best to get the full contact name for the right person
- Ask switchboard operators in small companies
- Ask department assistant/secretary in large companies
- Be sure to ask for and record the full name, proper pronunciation and contact information
Could I speak to
Could I speak to the Could you connect me the person in your
person in charge of to the IT department department who
IT purchasing? manager? makes decisions
on hardware?
• Recognize the value of people’s time

- Always ask whether or not it’s a convenient time
- Be prepared to schedule the interview for a later time
- Be honest about how long it will take
Step 2: make the call (1 of 2)
i It can be helpful to conduct interviews in pairs
- Initially sitting in with someone more experienced
- One person can take notes whilst the other focuses on the interview
- Two minds are always better than one
- Introduce everyone in room to your interviewee
i Call the more junior people on your list first
- They may have time and be more willing to talk
- Gives an opportunity for you to practice
- However, make sure they are senior enough to give you credible information
i Manage resistance
- If person is busy:
8 “I know I could learn a great deal from you. Is there some way you could squeeze me in
later in the week?”
- Or:
8 “Is there someone else at your company who could answer my questions?”
i Leave messages
- It provides an introduction
- Prepares people for your call
- However, people will seldom return your call so always say you will call again
Step 2: make the call (2 of 2)
• Introduce yourself and your objectives

- Convey confidence and be brief
- Be nice to the admin person who may answer the contact
person’s phone
8 Get his or her name if you have to call back
• Make the call and its purpose non-threatening

- “We’re trying to identify trends in…”
- “We are trying to understand customer needs to improve the service you receive…”
• Flatter the interviewee and name drop

- “I was intrigued by your article in the Wall Street Journal in which you identified the key trends…”
- “I have talked to quite a few people about _______, but I believe you could provide a unique perspective
because…”
- “Tom Muffin at the Bakers Association gave me your name as someone who could provide the best explanation
of…” (only if true)
• Set the appropriate tone

- For experts/customers/suppliers, sound prepared and let them know you need their assistance
- For competitors, let them know why their assistance is valuable
Step 3: manage the conversation
• Control but don’t dominate the conversation
• Keep the conversation moving

- Use terminology with which the person is familiar
- Move quickly from question to question but allow them time to think
8 “That’s a good point. Now what about…”
8 “Switching subjects for a moment…”
• Determine what the interviewee will be able and willing to answer
• Probe
- Ask for clarification
8 Check figures and definitions
8 Ask for the spelling of names
- Force interviewees to be specific
8 “Does that happen one out of every ten times or one out of fifty?”
- Understand reasons behind interviewee’s opinions
8 “Are you saying growth is 50%, because…?”
- Prompt with ranges when specific information is not available, but don’t lead
• Validate
- Ask for explanation of terms
8 “What do you mean by ‘technical assistance’?”
- Rephrase interviewees statement to ensure total understanding
Step 4: take detailed notes
• Record as much information as you can during the interview
- Begin writing as soon as interviewee begins answering
- Capture general message with key words
- Capture quotes accurately
- Do not let note taking interrupt the “flow” of the conversation
• Make further notes as soon as you end the call – you’ll likely forget what happened in the interview if you have multiple
others that day
- Schedule breaks between interviews to write notes
- Include any useful comments about the interviewee
• Make sure all notes are clearly labeled with contact details of interviewee
Step 5: end the interview
• Make sure you have all the key information before ending the conversation
i Show your appreciation
- “Thank you so much for your time – you’ve been really helpful.”
- Send thank you note, if appropriate (especially for experts we may want to contact again)
i Always ask if you may call again
- You often find new questions arise as the case develops. It’s extremely useful to be able to re-call people with follow-up
questions
- Find out when a good time to call back is
i Ask for additional contacts and publications that may help answer your questions
- Be persistent. The “right person” usually has good resources
Core principles on data gathering
WHAT SOURCES
WHAT SUBJECTS CAN YOU COVER WHAT IF SOMETHING GOES WRONG
CAN YOU USE
• Check Conflict ID System (CIS). If the • Never misrepresent yourself, the firm, • Inform your Manager if you receive
person is employed by a current or or the type of research being information that a reasonable person
recent Bain client (in prior 3 years), you undertaken would consider to be confidential,
need consent from the client head – and do not use it
applies to any form of contact (site • Do not reveal your client’s identity
visits, email, phone, etc.) • Engage your Manager if you feel you
• Do not ask for confidential may have or be about to expose
• Check the Do Not Call list (using CIS) - information when using incentives yourself or the firm to a data
you can’t call employees of companies gathering risk
on this list • Get Manager approval of your
interview script and any email • Reach out to your Professional
• Get supervisor approval of your solicitations Standards Manager if you have any
contact list (e.g., LinkedIn blasts) question
Colleagues are often strong resources for contacts/ information but be careful in
your communication
• Do not name client/prospect or nature of work

- Describe generically (e.g., a major European Telecommunications Co)
- Do not say if work is for a private equity team
• Do not provide excessive detail about current area of interest/problems of the client/prospect
- Provide enough detail to help focus responses, but no more
• Do not encourage or invite violations of our policies

- E.g., do not ask for undisguised decks/materials
• Do be sensitive to competitive situation
- Remember that we could be working on competing assignments
• When sending out a ‘request for contacts’ email, specify:

- That they reply to you with contact names and information (so you can conduct CIS search if appropriate)
- That they do not forward the email outside of the organization
How to handle difficult questions/responses
DIFFICULT QUESTIONS/
RESPONSES POTENTIAL REPLY
i How did you get my name? “I read an article in which you were cited as an industry expert.”
“James Grease of OilCo recommended you as an industry expert.”
i What is the information going to be “We are conducting a broad industry survey. As part of that effort, we are interviewing several
used for? Who else are you experts in the field. All individual responses will be kept confidential” (only if true).
interviewing?
i Who is your client? “In order not to bias responses, we would like to keep the client anonymous. But I can tell
you…” (ask your Manager what information you can provide - industry? size? geographic
focus?)
“Due to client confidentiality agreements, I am not at liberty to say, specifically. But I can tell
you…”
“I can assure you that our client is not a direct competitor” (only if true)
How to handle difficult questions/responses
DIFFICULT QUESTIONS/
RESPONSES POTENTIAL REPLY
• Do you work for a competitor? “We do not work for a direct competitor. We are attempting to compare issues in your industry to those
facing our client” (only if true)
“I don’t want to discuss anything you might deem confidential. I’m looking for general information, not
proprietary information.”*
• I would rather not answer your question “Is there a particular issue with which you are uncomfortable?”
• That’s confidential “Do you have an idea of the average for the industry?”*
• What are you hearing from others? “There has been quite a range. It’s between 20% and 50%”
• Will you send me a summary of your work “I would be happy to share general trends and summary results”
when you are done? (say only if prepared to do so; client must approve and information shared cannot be proprietary and
cannot be the direct client deliverable; a Bain Access Letter may also be required**)
• Is this information going to be held “Individuals will not be identified. Only aggregate results will be shared” (only if true)
confidential?
• I am busy. Why should I talk to you? “I will be happy to call back later. Is there a time that would be more convenient for you?”
“The results of this research will help our client improve the services they offer to your industry?” (only if
true)
*if you receive confidential information, you must inform your Manager and you cannot use the information
**in all situations, contact Legal for help
There are four different types of analyst reports
1 2
Initiating coverage Updates
• Published when an analyst begins to track a company • Issued in response to news affecting company stock price
and/or analyst recommendations
• These are a great way to quickly “get smart” on a company
• Updates will address the latest happenings at the company
3 4
Industry overviews Earnings call transcripts
• Analysts develop industry expertise, since they cover multiple • Management hosts quarterly conference calls for analyst Q&A
companies in an industry
• Analysts often have the same questions we would usually ask,
• Helpful report for to learn a new industry and answers come direct from the source
Tips and tricks: Working with analyst reports
1• Never rely on only one source!
2• Use reports to find other data sources
3• Search parameters can help you find the most useful reports
- Initiating coverage button
- Sort by number of pages
- Search for expert authors
• Use the Find function (CTRL + F) to search for key words in the report (e.g., division name, market share, etc.)
4
5• Save reports as backup to the network drive for team use, with descriptive names
Tips and tricks: How to talk to analysts
GENERAL POINTERS GETTING TACTICAL
• Know the report well • Phrase questions as “I’m trying to learn more about the
- Analysts believe that there are dumb questions market”
- You are looking for something beyond the pages - Protect client confidentiality
• Analysts are very busy • Be aware of who you’re calling

- Ask targeted and specific questions - Senior people know the industry but are very busy
- Make them quick - Junior people (listed 2nd or 3rd) run the models
• A conversational tone is most effective • Be aware of when you call

- Call first thing in the morning
- Avoid lunch time
- Know time zone differences
Agenda
• Excel analysis
• Research
• Data analysis
• Collaboration
• Zero Defect
• Final tips
Creating insights is a six-step process
1 2 3 4 5 6
Develop Gather Prepare Analyze Synthesize Present
an approach the data the data the data findings insights
1• DEVELOP AN APPROACH: structure the problem as the correct type of analytical exercise with clear hypotheses
2• GATHER THE DATA: collect the data from external sources or internal sources
3• PREPARE (AND CLEAN) THE DATA: impose form and structure on the data set(s) to facilitate data cleaning and analysis
4• ANALYZE THE DATA: exploit and manipulate the data to generate the preliminary conclusions
5• SYNTHESIZE FINDINGS: assemble the conclusions to create a point of view (e.g., develop the “so what?”)
6• PRESENT INSIGHTS: communicate the point of view
There are three steps in developing an approach to data analysis
Think about
Clarify the objective Make a plan
the answer
What is • Confirm with your supervisor that • Think of what a great answer • Develop a plan to get to the
required: you understand the expectations would include and what data answer
of your work would be needed - Methodology
- Tools required
- Timing
Key questions to • What question are you trying to • What would a great answer • What is the best way (e.g.,
ask: answer? include? research, analysis) for
• How long do you have? • What data is needed? approaching the problem?
• What steps/ activities are
involved?
• How long will it take?
Once you know the type of analysis, you’ll then need to estimate the timing
Task
Think
through
all the Build in time to
required brainstorm and
tasks plan
Call out planned or

formal check-ins
with your
supervisor
Workplan
Build in time for revisions—there

will always be room for
improvement
• Think through answer
Scheduled supervisor check-in Be realistic with timing. It’s worse to be

aggressive with deadlines and miss them
This information is confidential and was prepared by Bain & Company solely for training purposes; it is not to be relied on by any 3rd party without Bain's prior written consent. than to get finished early 61
Five client data gathering steps: outline the request
• Think about the output you are trying to create
Outline the request - What question are you trying to answer?
- What information do you need to know?
• Be comprehensive
- Ask for any data you reasonably think you may need given the larger
Identify the source(s) context of the case
• Be specific
- Ask for the exact type of data you need
8 Key dimensions of difference (e.g., region, business unit, sales
Make the request person, store)
8 Data mappings (e.g., store codes to distribution warehouses)
8 Time periods
8 Units/currency
Follow-up as needed 8 Level of detail (or summary)
8 Define “key” fields: unique identifiers and links between tables (e.g.,
customer ID, transaction number)
Verify irregularities
Five client data gathering steps: identify the source(s)
• Identify the right source(s)
Outline the request - This can initially be challenging and frustrating
- You may need to ask multiple people
- Guidance from other members of your team will likely be necessary
• Remember that some projects run for a long time
Identify the source(s) - For projects that have been up and running, verify that other colleagues
do not have the data already
• Develop relationships with client contacts
- Use this as an opportunity to develop client relationships in a relatively
Make the request low risk setting
Follow-up as needed
Five client data gathering steps: make the request
• Make the request easy to understand
Outline the request - Free of Bain-speak or other jargon
- Well-organized
- Clearly formatted (e.g., bullets, bolding)
- Specific
Identify the source(s) • Provide context for the data request
- Engage the client to help you adjust the data request as your client will
know more about the data than you
• Suggest a timeframe
Make the request - Be polite, but always let your client know when you need the data
• Discuss the logistics of transferring the data
- Delivery (e.g., email, Bain’s FTP site, jump drive)
- Size
Follow-up as needed - File format (e.g., Excel, .csv, tab delimited)
Five client data gathering steps: follow-up as needed
• “Check in” with you client after sending the request
Outline the request - Following up gives you an opportunity to adjust expectations on when
the data may be available
- It may also uncover potential roadblocks or difficulties
• Be proactive—clients will not always have the time to be proactive so you
should
Identify the source(s)
- Bear in mind that our clients have other responsibilities
Make the request
Follow-up as needed
Five client data gathering steps: verify irregularities
• Review the data when you receive it
Outline the request - Sometimes the data you receive may have irregularities, or may just be
the wrong piece of data
• Ask questions if there are things you do not understand
• Irregularities can fall into some of the following categories:
Identify the source(s) - Missing field data within some records
- Incomplete data
- Incorrect data joins
- Duplicate records
Make the request • Be creative and use common sense when checking client data
“Based on other sources, I know there are 75 stores nationwide”
“When I aggregate the unique stores in this data set, I find there are only
68 stores”
Follow-up as needed “Therefore, something’s wrong… checking back, we discover that my
client accidentally excluded stores that opened within the last year”
3 steps to preparing data
Verify Clean Structure
• Confirm the data is correct to • Set up the data for analysis • Organize the data in a way that will
ensure the analysis is accurate support your analysis
Good datasets tend to share four attributes
1 2 3 4
Flexible
Clean data Consistent naming Neat appearance
design
• Extra characters or spaces in • Different spellings or • More than one piece of • Misspellings
Common a column or row abbreviations for the same information in the same cell • Messy column/row headers
problems: • Unformatted numbers category
Potential impact: • Impairs vlookups and/or pivot • Leads to incorrect • Limits data analysis • Makes analysis more difficult
tables segmentation of data • Makes updates or data • May make errors more difficult
• Makes analysis more difficult refreshes more difficult to catch
• May cause supervisors to
think the analysis is sloppy
There are seven common data issues
Hidden apostrophe (‘) before
the ID NUMBER
City and state
information in one
column Inconsistent naming
of COST GROUP
Capital
letters
Extra space at the start
of the REGION column
Extra characters in the Simple Misspelling

ID NUMBER
Four basic steps will guide you to building the perfect model
Determine Work backwards

Build model on paper Create model on
necessary (from outputs to inputs/ first computer
output assumptions)
A relationship tree helps you lay out inputs and calculations needed for your outputs
Assumption
Revenue
Calculation/intermediate output
Final output (on income

statement)
Unit Unit
volume price
Market size Target Current

in units market share market share
Current
Market
market size
growth rate
in units
Building the model on paper: example
Assumptions Sheet: Revenue Sheet (input): Cost Sheet (input):
• Volumes • Revenue for each product • Cost for each product calculated
• Price per unit calculated from assumption sheet from assumption sheet
- Unit volume * price per unit - Unit volume * variable cost per
• Variable cost per unit
unit
• Fixed costs, include sources - Fixed costs
Income Sheet (output):
• Income for each product calculated from revenue and cost

- Revenue - cost
Create the model on computer: things to remember
• Leave empty columns and rows

• Build downwards if using separate sheets
Flexibility • Don't hard code anything (put a number in a formula/calculation that can be referenced instead)
• Run all numbers from one assumption sheet
• Build in checks (e.g., percentages sum to 100%) and noticeable error messages, e.g., red font on
Error
yellow background
checking
• Know what you'll be asked (e.g., do the customer volumes tie to the industry forecasts?)
• Include calculations for "Factoids" or "Tidbits" that can be helpful for reality checking or as
Statistics interesting slide data
- Total revenue, sales per square foot, cost per customer
• Name worksheets and sections of worksheets
Formatting • Use shading, cell borders, and bolding to make the workbook look neat
• Remember to set print areas and appropriate page set-up
• Clearly document sources, assumptions & methodologies used

- In “notes”
- In text boxes
• Build calculations in pieces
Clarity - Units/person * number of people = total units
- Total units * revenue per unit = total revenue
• Name cells and arrays
- Ease of interpreting cell formulas post-creation
Error-checking: smart tips
• Build “automatic” error checks into the model

- E.g., cost categories sum to 100% of costs
- E.g., assets sum to liabilities + shareholders equity
• “Idiot” check the model outputs

- E.g., market share implied by forecast sales
- E.g., return on sales implied by forecast profits
• Compare model outputs to other data sources and calculations

- E.g., calculate a rough answer before building the full model, and check the model’s output against this
- E.g., compare sales growth forecast by the model to external growth forecasts
• Test how the model behaves when the inputs are set to extremes, as it is usually easier to figure out what the answer should be
in those cases
- E.g., What happens if you set inputs to 0? To 100%? Does the output make sense?
• When you find an error, understand the nature of the error and how it happened, and look for similar errors
The steps for getting past a roadblock
Re-attack
Revise your approach
Assess the situation
Recognize the problem
What is • Acknowledge that you • Take stock of what you • Develop a new plan for • Execute your revised plan
required: have reached a serious have done to date and finding the data or working of attack
obstacle determine other possible around the current issue
solutions • Often, this will mean using
triangulation
Key • Why am I not getting an • What are the key activities • What is the likelihood of • What skills are required to
questions answer? I have performed to date? success for each execute successfully?
to ask: - Have I taken all the • What is the status of each alternative data source • What are common “watch
right steps? activity? identified? outs” I need to be aware of
- Have I exhausted my • Is there enough time with this new approach?
• What are potential
resources? alternative approaches? available to execute this
• Will I still be able to approach successfully?
complete my current
approach successfully?
• Does the data make
sense?
How do you triangulate?
1. Start with reliable sources and gather as much information as possible

2. Work to understand the inconsistencies across the different sources
3. Piece together different data from different sources to develop an answer
4. Document how you got to your answer
5. Reality check the final answer
Agenda
• Excel analysis
• Research
• Data analysis
• Collaboration
• Zero Defect
• Final tips
To be prepared for a meeting you should understand both the project, the
organization of the customer and the context/ background
• Listen carefully during the internal Bain kick-off meetings to get solid understanding of case
Project context, scope, and roles
• Ask your Consultant/Manager follow-up questions
• Check the GXC to see what past work we have done

• Ask your Supervisor/ Manager for tips and/or cautions on how to share relevant client and/or
industry information
• Use IS resources to “get smart” on the industry and client – e.g., industry and analyst reports,
Client and recent news articles
Industry • Sign up for online news alerts about the industry and/or client
• Read case kick-off materials carefully as they will often include valuable context
• Ask fellow team members or colleagues who worked on the previous case(s) for background
and/or client dynamics
• Ask your Manager to explain any other client dynamics to be aware of
Developing a working relationship with your client map begins with the introductions
YOURSELF PROJECT WORKSTREAMS
What: • Helps the client understand what you • Helps motivate the client • Helps the client understand their role
will contribute • Knowing the project goal allows • Understanding the required output/
• Gives client map context on how you clients to help more effectively analysis will enable your client map to
will work together help more effectively
Tips: • Be prepared to explain your role • Be aware of what can and cannot be • Always be specific in your data
• Be professional at all times shared request
• Be friendly • Be attentive and listen to their • Realize that data pulls may take
thoughts and needs significant time
• Be grateful for the client’s help and
time
• Follow-up to let them know how the
data was used
Get started right, and make sure your Manager is involved
Analysts often run into tricky situations and questions
TRICKY QUESTION POTENTIAL ANSWER
“What are you doing here?” “I’m part of the team that has been brought in by [project sponsor]
to help with X project.”
“What kind of expertise do you have on our company/industry?” “At Bain, we have a great deal of experience from looking at
similar problems across multiple industries. Our expertise is in
using a data-driven approach to solving these problems.”
“How long have you worked for Bain?” “I am in my first year at Bain.”
Agenda
• Excel analysis
• Research
• Data analysis
• Collaboration
• Zero Defect
• Final tips
What is zero defect?
• “Zero defect is following a process, and building in time to do the best you can to ensure your
work has no mistakes”
• “Zero defect is not never ever making a single mistake in your life!”
Four aspects of zero defect
• Attitude of taking our
duty seriously to deliver
high quality work
m
le
M
ob
• Never-ending challenge of
in
pr
tackling problems in the ds
et
s
absence of perfect data
es
s in
Bu
Zero defect
• Goal that we constantly
push ourselves to
achieve (despite the As • Way of planning and
impossibility of pi executing work that leads to
s
ra
s
ce
perfection) tio airtight, credible output
n
o
Pr
Opinions on zero defect
• It is amazing how just one little typo that would take two seconds to correct can really undermine
credibility and completely distract the audience from the purpose of the presentation.”
• Sometimes new analysts are too cavalier about zero defect because they’ve just come from college where
everything is an educational exercise with no real world consequences. But then they get put on a cost
reduction case, and their model ultimately determines what costs get cut.”
How to think about zero defect: aspire to a “developed point of view”
INITIAL POINT OF VIEW DEVELOPED POINT OF VIEW
“My spreadsheets can have absolutely no mistakes.” “I operate in a way that minimizes errors.”
“My analysis didn’t have any mistakes, so I am zero “I proactively avoid data, modeling, and presentation
defect.” errors.”
“Until someone finds a mistake, “I am always adopting best practices to avoid

I am doing well on zero defect.” potential pitfalls. Zero defect is something I discuss
with manager.”
“If I don’t make any mistakes I won’t get in trouble in “If I prove I can manage my work appropriately I will get
front of the team/client.” broader roles and step up opportunities”
Zero defect is a result Zero defect is a mentality that

complements the entire skillset
A zero defect work process has 3 benefits
It helps you Minimize errors so that

If you do make
mistakes don’t happen in the first
mistakes …
place…
If you don’t
It helps you Catch mistakes before
catch mistakes
they make it to the rest of the team
…
It helps you Mitigate the

consequences when mistakes do
happen
These 3 benefits are a result of specific behaviors and attitudes
Minimize Catch Mitigate
• Planning analysis on paper before • Building time into the schedule to • Avoiding arrogance in all interactions
opening Excel review analysis & output with supervisors and clients
• Organizing files and data so they can • Creating a clear audit trail from the • Clearly explaining the error, the
be reviewed easily slides back to the original data correct answer, and impact on overall
work
• Understanding your own mental • Taking two paths to every answer
limits whenever possible
• Keeping your supervisor updated to

minimize surprises
Exact steps to fixing a mistake will differ by situation
Past communication (“Who knows about the wrong information”)

Just you Team Manager User of analysis
• Fix and move on • Inform quickly – before • Approach immediately • Approach manager
wrong answer is spread - New answer immediately
changing
- New answer - Suggested approach to - New answer

Answer
- Offer to sit down and MGR (live) - Suggested approach to

Severity of the error
explain why things have - Be prepared to explain the MGR (live)

changed detail and show the model - Be prepared to explain the
detail and show the model
• Fix and move on • Inform team over email • Inform over email • Inform over email
- New answer - New answer - New answer
Not answer
changing
- Quick explanation of - Suggested approach to - Suggested approach to

change in email MGR (email) MGR (email)
- Be prepared to explain the - Be prepared to explain the
detail detail
Urgency: Less urgent Urgent Very urgent
Reminder: a “perfect” spreadsheet is one that…
• Is easy to follow
- Separate assumptions from calculations and outputs
- Show step by step calculations
- Could be transferred
• Is well-formatted
- Label filename, author, and date
- Use semantic formatting (e.g. assumptions in blue)
- Highlight headers and important data
• Is error-free
- Have check cells for visual proofing
• Is flexible
- Minimize hard-coding
• Is clear and states sources of data
Some advice about zero defect analysis
• “When your supervisor asks for some analysis ASAP, they mean as soon as possible to produce a zero-
defect product – it is always worth spending a few extra minutes to ensure there are no mistakes. There are no
exceptions.”
• “With models, you always have to think about appearance. Forcing yourself to make it neat and tidy will help
you avoid many mistakes. If it looks good, people naturally feel more confident about the output.”
We use two main forms of written communication
EMAILS SLIDES
• Data request • Full presentations

• “Cold” emails to analysts and experts • Formal updates
• Status update summaries for your supervisor • “Work in progress” check-ins with your team
• Requests • Any other
• Any other
All communication needs to be zero defect
Some advice about zero defect communication
• “Treat emails with as much caution as slides. Some colleagues (especially more junior ones) never see a
slide, but see a ton of emails. Their impression is based in part on the quality of those emails. Don’t
misspell their name, don’t have typos, and don’t email the wrong person.”
• “Zero defect slides are not just important to convince our colleagues that we are doing high quality work,
but also to convince your Manager that you’re ready for more responsibilities. If your Manager keeps
spotting mistakes in your slides, s/he will not be comfortable giving you ownership over bigger pieces of the
answer, and your professional development will suffer.”
Approach to zero defect emails
• Structure content
- Use bullets and bolding when appropriate
• Use a meaningful subject
- Not simply “S&CD” or “Request”
• Address an e-mail appropriately
- Always insert recipient last – helps avoid accidentally sending incomplete emails
- Consider Backing recipients when appropriate (blind carbon copy)
- Check the correct spelling of your recipient
- Use AutoFill for recipient names with extreme caution
• Always proof-read
• Be careful with reply, reply to all and forward function
• Save important e-mails
- Send to yourself in bcc – also helps confirm the e-mail was actually sent out
Approach to zero defect slides
1 2 3 4 5
Put on your Check

Block out time for review Use simple checks Do sanity check
supervisor hat for CFR
• Reserve 45 minutes • Verify whether totals • Confirm answers • Think about what your • Eliminate typos
before updates tie make sense given Manager or client is
known factors, e.g., likely to ask • Check that slides are
• Print slides and mark • Verify consistency market size, CFR
errors with red pen within slide and from population, GDP, etc.
slide to slide
• Read slides aloud
Check your slide and ask what your Manager might ask
Increasing portion of time dedicatedIstothis theand

Bain right number
GMATs of hours per week?
DRAFT
Do totals match Hours per activity per week
between bars?
Sleep
Friends
168
GMAT
100%
Bain
Why is the number

of calls Why is this CAGR so
decreasing? Increasing large?
involvement
in Extra 10’s
80
Note: School includes GMAT studying

Source: Analysis of my life
This information is confidential and was prepared by Bain & Company solely for training purposes; it is not to be relied on b y any 3rd party without Bain's prior written consent. Time distribution 30
Zero defect slide CFR checklist
1
3 4
Tag tells most important Bar totals labeled Series colors consistent across 5
message & is consistent CAGRs checked,
(unit labels if necessary); slides (and used only when
with slide correctly labeled
tie to other slides necessary)
Increasing portion of time dedicated to Bain and
GMATs 6
Slide status labeled
DRAFT
2 Y-axis labeled;
unit labels present if Hours per activity per week
7
necessary Legend, if necessary
Sleep
Friends
14 Axis units consistent
168 168
GMAT
across slides;
appropriate decimal
100%
Bain
places
8
Callouts used to ID key
insights
Increasing
involvement
in Extra 10’s
13
Data row labeled 80
Note: School includes GMAT studying

Source: Analysis of my life
Time distribution
9
Correct bar labels
12 11 10
Note includes exceptions & explanations; all sources
Appropriate decimals File name is not
listed; text doesn’t overlap with file name or each
shown controversial
other
60
96
Agenda
• Excel analysis
• Research
• Data analysis
• Collaboration
• Zero Defect
• Final tips
80/20 is important in all aspects of our work; planning and executing
PLANNING THE WORK EXECUTING THE WORK
• Determine the most critical questions • Determine what resources you have
- Develop an answer-first workplan - Amount of time available
- Identify the aspects that will have the biggest impact for the - Data availability and quality
client - Access to support or additional resources
• Determine the most efficient and focused way to execute • Determine what would make a good answer
- Prioritize tasks based on importance and difficulty - Be sure you answer the specific question being asked
- Concentrate on areas that are most likely to change the - Identify the level of certainty/ accuracy necessary
answer and/or are controversial
• Do the work efficiently
- Use a prioritized approach, focusing on the key questions
first
- Know when you have a good enough answer and can stop
doing analysis
When doing analysis, there are different considerations you need to balance
A B C
Characteristics of Confidence
Resources available
a good answer level required
• What is the specific concern we are • How comfortable are we with the • How much time do I have to do this
addressing? answer-first? work?
• What type of answer will drive the client • How critical/ controversial is the answer • What data do I have available and how
to action? to this question? much do I trust it?
• Will the answer require the client to • Are there people or resources that might
make significant changes? be able to help?
Ensure you address the right question and determine what makes a “good” answer
Key questions Tips for success
• What is the specific concern we are addressing? • When doing competitor analysis, the client may be concerned
- What is the question? about a very specific question
- Why is this an issue/pain point for the client? - What drives their higher profits?
- What is different about their product offering?
• Knowing the specific question/ concern will focus your analysis
• What type of answer will drive the client to action? • Your analysis may differ based on what is required to drive
action
- For example, data-driven analysis is usually more powerful
than anecdotal evidence
• Create a blank deck as a tool to help communicate your
approach with your Manager
Determine the level of confidence and precision required early in the process
• How comfortable are we with the answer-first? • Answer-firsts are intended to guide the work, but are
- Is this a point of uncertainty? assumptions
- Are we verifying an assumption we’re already comfortable • Key questions where we are uncertain will require more proof
with? and analysis
• How critical/controversial is the answer to this question? • Non-controversial assumptions will require less analysis to
- Is this something that is expected? prove
- Is this something that will be surprising? • The “burden of proof” is higher when the answer is
controversial or surprising
• Will the answer require the client to make significant changes? • Robust analysis is essential when it informs major decisions
and investments (zero defect analysis is always required)
The resources you have available will also impact your task prioritization and
planning
• How much time do I have to do this work? • A company overview will look different based on time available
- Hours? - 1 hour: one slide showing highlights
- Days? - 1 day: 5-10 slide loop with key data points and recent
- Weeks? news
- 1 week: loop with a thorough overview of the company
• What data do I have available and how much do I trust it? • Ideal data may exist, but it is unlikely
• Data is often imperfect, so you may have to develop
workarounds
• Are there people or resources that might be able to help? • Information may exist within Bain that you can use
- Internal Bain support (E.g., IS, GXC, etc.) • There may be client analysis that you can use as a starting
- Client resources point
Understanding these points will help you to prioritize and develop a plan
Low 3 1
Pick off as part of the rest of your

Quick wins
analysis
Difficulty/time
required
4 2
Propose a path, but discuss with your

Low priority
supervisor
High
“Nice to have” Critical

Importance to answering
the key client question
Pulling up and thinking about the question and its context can help you stop
“spinning”
KEY QUESTIONS TO ASK YOURSELF SO YOU KNOW

WHEN TO STOP TIP
• What is the question/hypothesis this work is being used for? “To stop myself from “spinning,” I find it helpful to go back to the
question I’m being asked and check my approach to ensure
• How important is this piece of analysis to the overall answer? I’m focusing on the right things.”
• Will a more detailed look at the analysis change the answer?
• How much will the answer change if I work on this more?
If you find yourself “spinning” on a piece of analysis, pull up and think through the context and key questions
Agenda
• Excel analysis
• Research
• Data analysis
• Collaboration
• Zero Defect
• Final tips
Various topics are appropriate for different types of Manager updates
Email In-person Hallway Weekly team meeting
Appropriate for: • Updating Manager on • Review of work • Keeping Manager up- • Sharing insights of work
your progress • Discussion of to-date on progress to wider team
• Discussing an obstacle professional • Briefly discussing an • Soliciting ideas for
you need help on development obstacle you need help further analysis
• Responding to requests • Discussion of personal on
for updates or needs
information
Not appropriate for: • Detailed discussions of • Discussion of other • Detailed discussions of • Discussion of
data/analysis (unless team member’s work data/analysis professional
told otherwise) when they are not there development needs
Checklist for writing effective emails
 Use a predictive subject header

 Open with a description of subject and purpose
 Convey key points immediately
 Elaborate on key points
 Provide only what is relevant
 Separate out supporting data
 Clearly state desired action or requested input
 End with offer to provide further help, if needed
Sample email – informational update
State that email is

Descriptive informational
heading
Summary of
findings
Bullet
points
Next steps outlined
Additional help offered
Sample email – requested input
Descriptive
heading
Desired action stated
Key questions
emphasized
Questions
organized by
subject
Offer to follow up
Best demonstrated practices for updating your supervisor
• Begin with the objectives of what you hope to accomplish

- Include agenda in Outlook invitation
- Send slides in advance unless your Manager says otherwise
- Agree to objectives at beginning of meeting
• Use Answer-First structure in communications
- Summarize key points and learnings up front
- Share insights, not process (based on message, not chronology)
- Suggest solutions; don’t just communicate problems
- Highlight areas in which you want input and/or in-depth review
• Finish by summarizing key points and learnings; agree on how to proceed
- Determine next set of deliverables
- Agree on timeline (prioritize tasks)
- Identify any intermediate communication that will be required
Adjust your style to that your of supervisor
Example of how to structure a supervisor update
1. Here are the objectives/agenda for this meeting
2. This was the question you asked me
3. This is the answer
4. Here are the supporting facts and data
5. These are the areas of uncertainty/issues
6. This is what I'm doing about it
7. Here is where I'd like your help
8. These are my next steps
Preparation is key to effective supervisor updates
There are many common communication mistakes you can avoid
MISTAKE IMPLICATION
• Error-filled slides (data, typos) Manager lacks confidence in your actual analysis
More senior people generally have back to back meetings

• Being late to meeting
• Rushed communication Implies your analysis may also have been rushed
• Avoid asking for help Managers want to coach and share expertise
Manager is unlikely to give you “step-up” opportunities

• Raising issues without suggesting how to address them
You are missing opportunities to communicate regularly

• Relying solely on formal meetings to update your Manager
Agenda
• Excel analysis
• Research
• Data analysis
• Collaboration
• Zero Defect
• Final tips
Participate effectively in meetings to become more than just an analyst
 Agree on your role in the meeting beforehand
 Rehearse your introduction with your Manager

Try to keep it as brief as possible
 Do your research before the meeting

Who will be attending the meeting?
What will be the topic?
What points can you make during the meeting?
 Think very carefully about what you say and do

Beware of how your words and actions can come across
 Always be prepared to take copious notes

Offering to write up meeting minutes is impressive
Top tips: summary
Problem Solving Client Results Extraordinary Teams
• Clarify objectives • Know what’s on the back of your t- • Thrive in an apprenticeship culture
• Take ownership shirt • Be a team player
- Become an expert • Start building client relationships • Be aware of how others work
- Think about the “so what” and next • Participate effectively in meetings
steps • Communicate clearly and concisely
• Master zero defect
Following these tips will help you enjoy a richer business analyst experience

General Business Skills

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General Business Skills

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General business skills

Basic shortcuts Work with worksheets

Move/Scroll within worksheets Formatting

Selecting columns, rows, fields Enter data

• SUMIF (range,criteria,sum_range): Adds the cells specified by a given criteria

• MAX (number1,number2,...): Returns the largest value in a set of values

• MIN (number1,number2,...): Returns the smallest number in a set of values

• AVERAGE (number1,number2,...): Returns the average (arithmetic mean) of the arguments

• ROUND (number,num_digits): Rounds a number to a specified number of digits

• ROUNDDOWN (number, num_digits): Rounds a number down

• Use concise single-focus action titles that convey an insight or opinion

• Use precise, plain language to say what you mean

• Distill word slides down to their essence

Redundant • Eliminate redundant detail in data slides

•Charts have highlights and callouts to focus on insights

•Action titles describe content and have a point of view

•Transition words between slides enhance flow

•Slides build on each other

•Overall storyline is easy to follow

BALANCE SHEET INCOME STATEMENT CASH FLOW STATEMENT

Basic equation: Liabilities Revenues Beginning cash

- Cost of goods sold (COGS)

- Operating expenses (OpEx)

= Operating profit (EBIT)

= Income before extraordinary items

+/- Extraordinary items

- Provision for taxes

Cost of goods sold (COGS):

INCOME STATEMENT TEMPLATE EXAMPLE: TIRE CO.

Operating expenses (OpEx):

INCOME STATEMENT TEMPLATE EXAMPLE: TIRE CO.

• Operating expenses represent the overhead costs associated

Costs associated with generating demand and supporting the organization

INCOME STATEMENT TEMPLATE EXAMPLE: TIRE CO.

• Non-operating items are those not associated with the main

= Income before extraordinary items

Costs associated with financing the

INCOME STATEMENT TEMPLATE EXAMPLE: TIRE CO.

• Extraordinary items are impossible to plan for and are outside

• Current assets • Current liabilities

OPERATING INVESTING FINANCIAL

Strategic value of business Financial and operational Financial strategy

+/- 9. Interest income/expense

+/- 12. Change in outstanding stocks/shares

= Financing cash flow

Net cash flow (which will reconcile with change in cash*)

Calculate total Calculate NPV

Present Value • PV = FV where FV = future value

Net Present Value • NPV = PV – initial investment

FIXED VS. VARIABLE DIRECT VS. INDIRECT

Fixed Variable Direct Indirect

Examples: • Rent • Raw materials • Dedicated equipment • SG&A

If a cost changes with production If a cost “goes away” when a product is

Simplified income statement

Revenues Price per unit x Volume

- Variable costs Cost per unit x Volume

= Gross profit Also called “Contribution margin”

- Fixed costs Overhead costs