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Part IV

PART IV: Analysis

Chapter 6: Analysis Is Not a Fact Dump

Video: Case Analysis That Actually Wins: Build Bulletproof Support for Your Recommendation

One of the most common problems in case-solving competitions is analysis that is really just information.

Teams find facts. They put those facts on slides. They add graphs. They add frameworks. Then they make a recommendation. The problem?

The analysis never actually explains why the recommendation is right.

Analysis should move you from:

FACTS → ISSUES → INSIGHTS → ALTERNATIVES → DECISION

The Analysis Ladder

  • Step 1: Fact - What do we know?
  • Step 2: Observation - What does the information show?
  • Step 3: Insight - What does that tell us that isn’t immediately obvious?
  • Step 4: Implication - Why does it matter to the organisation?
  • Step 5: Decision - What should we do differently because of it?
An Example
  • Fact: Customer retention has declined.
  • Observation: Existing customers are leaving at a higher rate.
  • Insight: The organisation may be losing value not because acquisition is weak, but because the current customer experience is failing to retain customers.
  • Implication: Investing heavily in acquiring more customers may not solve the underlying profitability problem.
  • Decision: Prioritise retention before significantly increasing acquisition spending.

That is ANALYSIS!

Chapter 7: Choosing the Right Framework

MasterClasses: Framework-specific videos are available in the second MasterClass -- Case-Solving Toolkit: Frameworks, Analysis & Essential Skills.

Frameworks are useful. But frameworks are not answers. They are lenses. Your job is to choose the lens that helps you see something important and ask: So what?

SWOT

Use SWOT to examine:

Internal

  • Strengths
  • Weaknesses

External

  • Opportunities
  • Threats

The objective isn’t to create four boxes. The objective is to identify strategic implications.

Value Chain

Use the value chain to investigate:

  • where value is created;
  • where value is lost;
  • capabilities;
  •  activities;
  • sources of competitive advantage;
  • missing capabilities.

Porter’s Five Forces

Use it to understand competitive pressures. Ask:

  •  How intense is rivalry?
  • How powerful are customers?
  • How powerful are suppliers?
  • How easy is entry?
  • Are substitutes becoming more attractive?

PESTLE

Use PESTLE to investigate broader external forces:

  • Political
  • Economic
  • Social
  • Technological
  • Legal
  • Environmental

Again: The framework isn’t the insight. The insight comes from interpreting what the framework reveals.

Financial Analysis

If the audience is senior management, financial impact will often be critical. Ask:

  • What happens to revenue?
  • What happens to costs?
  • What happens to margins?
  • What happens to profit?
  • What investment is required?
  • How quickly does the investment pay back?
  • What happens under different assumptions?

Use appropriate tools such as:

  • ratio analysis;
  • ROI;
  • NPV;
  • pro forma statements;
  • sensitivity analysis.

These tools and more are explained across the videos in MasterClass 4: Case Finances & Excel Mastery: Turn Numbers into Compelling Insights available here. The financial analysis should answer a strategic question: Is the impact large enough to matter to this organisation and this audience?

The Framework Selection Test

Before using a framework, ask:

  • What question am I trying to answer?
  • Will this framework help me answer it?
  • What decision will the answer influence?
  • What insight did the framework produce?
  • Can I explain the “So What?”

If you cannot answer those questions, don’t use the framework.

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