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INSEAD
Consulting Club
Handbook 20 20
Sponsored by
Contents
Introduction
The INSEAD Consulting Club (ICC) is pleased to present the ICC Handbook 20 20 , continuing the tradition created by the 2005 class. We’ve created this book as a guide for students who have already decided that consulting is a career they’d like to pursue, and need support in acing the recruitment process. In this handbook, we walk you through the different stages of consulting recruitment, step-by-step. Stage 1: Learn about the role In Chapters 2 and 3, we start with a general overview of the management consulting industry and the opportunities offered to MBA graduates. In Chapter 4, we explain how career progression typically is as well as what to expect in a typical week as a consultant. Stage 2: Select firms and apply To help you get those interview invites, we’ve included samples of cover letters (Chapter 5) and networking tips (Chapter 6). Stage 3: Prepare for interviews We realise that most students are nervous about the interviews, so we’ve dedicated the bulk of this book to support your interview preparation. Chapter 8 explains how to prepare for a case interview, types of cases, and tools and frameworks you can use while cracking the case. To assist your case practice, we’ve included 21 case examples in Chapter
We would like to acknowledge the support we received from The Boston Consulting Group (BCG), who has continuously been sponsoring the production of this book. Since the inception of the ICC book in 2005, BCG has been a leading contributor to each edition, providing access to their resources, case materials, and offering advice and support on how best to compile the information. We would also like to thank all the companies featured in the book for validating their profiles and sharing practice cases. Our most sincere thanks also go to the current students, ex-consultants and alumni who have contributed significantly both to this book and to the ICC’s ongoing activities. Finally, we would like to thank the 2005 ICC members for initiating the production and circulation of the ICC Handbook. It has been a pleasure to put this together, and we hope that this tradition will continue in future INSEAD classes. ICC Organising Committee, 2020
2.2 Timeline of Consulting
Job Preparation
The main difference between the timelines of the consulting job search process for the December and July INSEAD promotions is the possibility of doing an internship during the summer break for the December class. In general, students need to figure out which sector to choose during P1 and P2, network during P3 and go for it in P4 and P5. Make sure you initiate your job search before P4 and P5, when you will have little time and will be more stressed out. Think about your goals, do your research on the sector and network through informational interviews or other activities. This will help you to be more focused on your applications and more confident in your interviews. DECEMBER PROMOTION JULY PROMOTION P MORE SECTOR RESEARCH More Research Just CHILL! More informational interviews (especially with the firms not coming on campus)
P
PREPARE CV & NETWORK Prepare CV and Motivation letters Network Informational Interviews SUMMER BREAK INTERNSHIP More Informational Interviews (during the summer project) Networking
P
NETWORK Research Consulting Sectors & Companies Network Interview Preparations More informational interviews P GO FOR IT! Attend company presentations Company case-interview workshops Interview preparation with Peers Consult job postings On-campus recruitment
P
GO FOR IT! Attend company presentations Company case-interview workshops Interview preparation with Peers Consult job postings On-campus recruitment
P1-P
SELF ASSESSMENT & INTERNSHIP HUNT Attend Mock-interview sessions Prepare CV & Motivation letters Do Informational interviews Interview preparation with Peers Apply for Summer Jobs
P
SELF ASSESSMENT Career Orientation Self Assessment Counselling / Advising sessions CHILL!
Consulting Industry:
Structure & Global Trends
3.1 Structure
Here are some differences between generalist firms and specialized boutiques: Generalist Firms
- Provide the whole range of management consulting services (strategy, operations, marketing, finance, organizational redesign, etc.) to all industries, across a wide geographical range
- Typically larger firms, with long track record and substantial accumulated knowledge base
- Usually multi-regional office array, covering both developed and high-growth emerging markets
- Often structured around industry and/or function practices, to better leverage personal experience Specialized firms and boutiques - Typically smaller firms, usually founded by ex-partners from larger generalist consultancies - Structured around in-depth expertise in and knowledge of either specific functions (strategy, marketing, finance, etc.) or industry - Smaller, both in terms of number of employees and geographical spread - Usually more focused on developed markets, where such in-depth niche services are in demand
The Consulting Job
4.1 Career Development Paths
Career paths in the consulting firms are very fast and allow professionals to have quick access to Partner positions or to access senior positions in the industry when leaving the firm. Typically, for the major consulting firms, time length between Associate/Consultant and Partner positions is 6 to 7 years. TYPICAL CAREER PATH IN CONSULTING
- Pre-MBA entry level position
- Typical responsibilities: data gathering, data analysis, document creation, modelling, admin & coordination, interviewing, problem solving with team
- Generalist role
- Post-MBA entry level position
- Typical responsibilities: if no prior consulting background, initially very similar to Analyst/ Associate; with time and experience, growing focus on leading Analysts, oversight work, team management, greater client interface
- Mainly generalist
- Main middle management function in consulting
- Typical responsibilities: work stream planning and execution, team leadership, scheduling and time management, key client interface for project, relationship management and some client development
- Expertise building
- Pre-partner position
- Typical responsibilities: professional support and oversight on projects, client relationship management and development, sales and marketing
- Function and/or industry expertise building - Leadership position - Typical responsibilities: core client relationship management, business development, sales & marketing, office, practice, firm, thought leadership, internal initiatives, firm policy and development - Office or practice leadership 2 - 3 years 2 years 2 years 2 - 3 years - Figure 4 / Typical career path in the Consulting industry INDUSTRY
4.2 Processes: Staffing, Promotions,
Opportunities
Generally, project staffing is preference-based, but with some external constraints. The firm will staff you where possible in a given moment and minimize your “on the beach/bench” time. While luck (i.e. having the right opportunities at the right time) plays a major role before you acquire expertise and generate demand from the managers/project leaders’ side, these are some ways in which you can optimise your chances of being staffed on a case you want:
- Network - up, down and sideways
- Identify what interests you and what you’re good at
- Consider your willingness for in-town / out-of-town engagements. At the beginning of your career as a consultant
- Try to identify and get to know good “teachers” and mentors. They will facilitate your integration in the firm
- Decide whether you would like to get exposure to a variety of industries/functions or whether you would like to focus. The advantages to focusing are: easier exit to senior industry positions and potentially faster career path. The disadvantage to narrowing your assignment type is that you’re increasing your risk by depending on one industry/function. ****BUSINESS ANALYST(MCK) ASSOCIATE(BCG) ASSOCIATE CONSULTANT(BAIN) CONSULTANT (BAIN/BCG) ASSOCIATE(MCK) PROJECT LEADER ENGAGEMENT MANAGER MANAGER ASSOCIATE PARTNER – VP PROJECT DIRECTOR PARTNER PRINCIPAL DIRECTOR**
After a first few projects, choose a sector/function and develop your personal interest, knowledge and network in this area
- Focus on true personal interests
- Formulate mid to long-term plans
- Identify and connect with mentors, they are important in your career evolution and on staffing choices for the long-run
- Think about long-term networking with clients
- Keep in mind exit opportunities if you do not wish to stay in consulting all your career long Mobility Regarding geography, staffing in major consulting firms takes usually place on a country- wide basis. In this case, the amount of traveling depends to a large extent on the country’s size and the concentration of industries and services in a given city. In Germany, for example, consultants tend to travel more than in other European countries, as the industries and the financial services players are spread out across the country. For some firms, staffing takes place on an international level, to leverage competences on a given industry or functional practice. In many cases, the major consulting firms give consultants the possibility to have additional international exposure if they wish so, either by promoting temporary transfers across offices or by supporting the participation in international projects. Compensation and post-consulting opportunities The management consulting career has a very fast career track, as showed in figure 4. Average compensations in top consulting firms are above Industry, particularly after the first years, and comparable to Investment Banking positions. The Consulting industry career is also quite stable, much less volatile than Finance positions. As a final point, bonuses recovered after the 2001 - 2002 economic downturn and are significant, especially after reaching Project Leader/ Manager positions and onwards. Furthermore, you can find several exit opportunities after some years as a management consultant. Clients commonly make very good offers for consultants to join their firms, this being one of the main reasons of the high turnover rate in the management consulting industry. Starting a career in a management consulting firm opens many possibilities. Consultants are very well perceived in the market. EXAMPLE OF TYPICAL WEEK OF A CONSULTANT Leave house Monday at 7am Return Thursday 8pm TYPICAL ACTIVITIES With team*
- Meet project manager (PM) daily to propose your plan for the day/week and get feedback
- Inform him of potential meetings with clients
- Check progress of other team members
- Meet with senior partner once in two weeks With clients
- 1 - 2 client meetings ; 2 - 3 times per week
INITIAL PART OF CAREER /
ENGAGEMENT
- Team problem solving, agree on structure and hypothesis
- Manager may come along to gain insight and will let you lead
- Check your initial hypothesis and refine thinking
- Get expert advice on how problem should be structured
- Check hypothesis and data
LATER IN CAREER /
ENGAGEMENT
- Lead the problem solving, refine storyline and help over teammates
- Run the meeting with minimal PM lead and PM participation
- Integrate work-streams, make storyline smooth and gain cross functional insights
- Get feedback on progress
- Check progress and relationship building
- Meet office colleagues
- Finish Expenses and booking travel
- Familiarize yourself with office
- Develop networks and get insight into your industry and functional expertise
- Team: Project Manager + 2
- 8am – 9pm (varies depending on factors including the day of week, team and client)
- Once in two weeks, organize team events: Spa, Football Games, Bowling, Dinner at nice restaurant
- Feedback sessions with PM once in 2 weeks and with Senior Partner once a month *Source: July ’09 student currently with McKinsey Please note that this is just one of many examples and that consulting, by nature, is a variable job; no week is the same LOGISTICS FRIDAY LIFESTYLE MONDAY THROUGH THURSDAY
Networking
with Consulting Firms
5.1 Why and How?
A good start to the job search is to conduct several informational interviews with employees of companies that you are interested in. The goal of these interviews is to increase your understanding of this company, to make a better decision as whether to apply and will also serve as a good preparation for the application process. Informational interviews are useful to
- Learn what the company values in its employees
- Gain insight in the process of recruiting
- Evaluate how your skills and interests fit with a particular career or business
- Learn about the working environment and office specific culture Remember, the sooner you can make contact with the firms you are interested in, the better. It is a great opportunity to clarify your thoughts, understand which firms you would consider working for and get used to communicating with potential interviewers. Ways to set up such sessions would be via the advertised time slots companies provide, via LinkedIn searches or via informal introductions through colleagues and peers. Don’t hesitate to get back to the INSEAD Consulting Club should you need any help to set up informational interviews.
5.2 Tips for Informational Interviews
Contacting people to interview
- Try to set up informational interviews with INSEAD alumni (1-5 years out of INSEAD) as they can relate to you more easily than an INSEAD student and are usually more willing to give you a hand. The INSEAD Alumni database is easy to navigate and can be exploited to contact alumni
- Clearly indicate where you got the person’s name or contact details
- Make it clear from first contact that you are not contacting for a job, but rather to gain further insight into the company as part of your research on the industry Preparing for the interview To make best use of your interview time, know in advance what questions you are going to ask. Keep in mind, this contact may be via a phone call and will require you to be quite flexible to fit into their schedules. Examples of questions to ask during these sessions include: - What is a week on this job really like? - What do you like about your job? What do you dislike about it? - Is your role/trajectory typical of others in this field / for this company? - What is the culture like at the company, and at the particular office? - What kind of experience or basic training is required for a successful application? - What are employers looking for (in terms of skills, education and experience)? - What is the potential for advancement and the associated timing? - What are current job prospects like? Conducting the interview The person with whom you are meeting might be a valuable contact. So, even though this is not a job interview, you want to make a good impression. Some advice: - Dress professionally - Take notes - Stick to the time limit that you agreed on when you set up the interview - Ask for a business card for your records - Thank the person for taking the time to meet with you Following up Don’t forget to send a thank-you note. Include any follow up questions as well as any specific actions that you both agreed to, for both parties involved.
Cover Letter
and CV Preparation
6.1 Goal of Your Cover Letter and CV
Before starting your cover letter and CV, remember the four following basic questions
- What is the purpose of this letter?
- Why should the company in question consider you?
- Why does this company interest you?
- What action do you want the reader to take next? The answer for the last answer is straight forward: the goal of your cover letter and CV is to get an interview. You are not going to prove your qualities as a consultant yet; this is tested in the interviews. The target of your cover letter and CV is to attract the attention of the people working in the recruiting process. Regarding the cover letter, recruiters will look for two aspects. First, they will try to assess the candidates’ motivation, either by their knowledge about the company or by the description of their experience while they attended the companies’ presentations. The cover letter has to be short in order to be read: it is useless to re- copy extensively your main achievements or qualities, which are better described in the CV. Secondly, the recruiters will look for the offices you are applying for, not only to coordinate the interviewing process but also to match your preferences with the system’s needs. Don’t just list these. Rather, justify why you have the chosen the specific offices. Generally, the knowledge of the local language of the office of choice is required. You must contact the Recruiting Coordinators to check for exceptions. In the CV, you communicate your achievements and the skills that you have which are useful and transferable to consulting (especially if you are not from the consulting industry). Key skills to focus on are
- Leadership and impact: proven track record of “making things happen”, leading people in complex challenges and achieving substantial results
- Quantitative skills: comfort with numbers and ability to meet numerical challenges
- Analytics and problem solving: logic-based problem structuring, analysis and synthesis capabilities - Communication: ability to effectively convey messages both orally and in writing, especially in high-stress situations - Teamwork: Ability to function well in a team setting, both as a team-member and as a team-leader Your CV should demonstrate the use of each of these skills mentioned. Further details behind each of these skills are listed below: Leadership and impact - Track record, advancement path, development curve - Increasing responsibilities over time, number of people managed - Unusual/outstanding responsibilities and challenges - Results and achievements – preferably concrete quantifiable impact ($$$, time etc.) Quantitative skills - Quantitative background, past accomplishments (academics, awards), GMAT - Number-related functions/activities/responsibilities performed Analytics and problem solving - Analysis-focused or related activities, functions and responsibilities - Problem-solving track record, e.g. specific problem-solving tasks you were in charge of or involved in – including the result (preferably successful…) - Specific problem-solving initiatives you have self-started and concluded successfully (impact) Communication - Previous communication roles, responsibilities and achievements - Accumulated communication-related experience, e.g. preparing, writing, editing and/or presenting written and oral communications
Sample cover letter 2 Dear Sir or Madam, I am currently enrolled in INSEAD’s MBA Programme, and will complete my degree in December of this year. As a result of my prior education and work experience in research, I am interested in pursuing a career in Consulting, and particularly with the Recruiting Company’s Place Office. After nearly four years at Company Name, I feel I am extremely well-suited for a demanding career solving key business issues for global managers. I have combined financial acumen, leadership, and project management skills and reached a level of success rare for someone entering the firm at a junior level. In the spring of 2003, I became one of only two people in my Associate class of 25 to be asked to stay on at the firm, and was promoted to an Analyst position. Early on, as I demonstrated my skills and tenacity to my team, I was entrusted with numerous important responsibilities and frequently interacted with senior executives at the firm to present my research and conclusions. My strong reputation has followed me even outside of the bounds of employment, and I continue to be consulted by Company Name’s senior management regarding current issues at the firm even while I am pursuing my MBA studies. My superior undergraduate education at the School Name gives me an advantage given its formal and rigorous business and financial training. While at INSEAD, I am building on my prior financial experience and increasing my management skill set. Although my experience has been in Investment Management, my current focus is consulting. I have enjoyed and learned a great deal through my research work, but I am much more interested at this point in my career to develop my strategy and management skills. I believe that my previous work experience coupled with my general management MBA give me an important skill-base that can be successfully applied in this environment. I would specifically like to be considered for the Office 1 , with a backup choice in the Office 2. I have included my résumé for your review, and please do not hesitate to contact me if you require further information from me. Sincerely Yours, Name Sample cover letter 3 Dear Name, Currently in the process of completing my MBA degree at INSEAD, I had the pleasure to meet your team at your on-campus presentation. Having followed your company and been influenced by your diligent, collaborative, and practical style to provide sustainable and non- conventional solutions for the customers, I am convinced that Recruiting Company Name will be the ideal workplace for my background, competencies, and values, both professionally and personally. The meeting with the partners and other Recruiting Company Name’s consultants at the dinner reinforced my belief that your company commits to provide its members an international and stimulating environment, diversified business contexts, unique learning and skill development opportunities, and a progressive career track. I therefore decided to apply for the Senior Consultant position at Recruiting Company Name. My personal, academic and professional pursuits have allowed me to develop a solid band of analytical, strategic, problem- solving and people skills, which make me a good candidate for your company. I am Chinese, living in Europe (EC citizen), and have been responsible for the strategic planning and business development for Company Name in Europe, one of the biggest Japanese multinational companies. Such a complex environment has helped me to be a dedicated, open, self-aware, interesting and interested person. It also fostered my ability to thrive in high- pressure situations, to embrace new challenges, and to assimilate quickly and flexibly different cultural and business contexts. After INSEAD MBA, it is my aim to go on to a successful Consulting career by combining and extending my skills and learning into a management position with more explicit project management and business development requirements. It is my determination to work with a committed team to achieve the goal of creating value. Thanks to the above-mentioned attributes and my personal determination and motivation, I am convinced that I would prove a valuable contribution to Recruiting Company Name. I look forward to your response to the above and the attached CV, and sincerely hope to meet with your recruitment team in the near future to explore potential mutual interest. Yours truly, Name
Case Interview
Resources
This handbook aims to give you an overview of the consulting industry, provide you key insights on the interview process and get you started in practicing case interviews - but there’s still an abundance of case interview resources out there for you to practice with.
7.1 Books and Guides
One of the most common questions students ask during recruitment is, “How many practice cases should I do?”. As frustrating as it is, there is simply no definitive answer! Successful students have done as few as <10 cases to as many as >50. If you do seek more practice, we recommend the below (most of which are found in INSEAD’s Library). Case in Point: Complete Case Interview Preparation by Mark Cosentino Cosentino demystifies the consulting case interview. He takes you inside a typical interview by exploring the various types of case questions, sharing with you a system that will help you answer today’s most sophisticated case questions with both competence and confidence. The book includes 40 strategy cases and 10 case start exercises. Case Interview Secrets by Victor Cheng Victor Cheng provides an great starting point for case interview practice through his book as well as his Look Over My Shoulders Audio series. Crack the Case by David Ohrvall Mr. Ohrvall is considered the guru of case interviews and provides a novel approach to cracking the case. Included in this book are 10 detailed cases, each with a thorough solution and analysis For more information about the book or the author, you can visit his website at: http://www.mbacase.com WetFeet Editions WetFeet provides five case books with around 12 cases in each. This collection of books is a very important practice source as it provides around 60 well designed, tough and challenging cases. Ace Your Case: Consulting Interviews Ace Your Case II: Mastering the Case Interview Ace Your Case III: Market-Sizing Questions Ace Your Case IV: Business Strategy Questions Ace Your Case V: Business Operations Questions Wetfeet also has a collection of books about consulting. Vault Guides For the consulting interview, three main books are available and should be used to complement the other two resources. The case interview book will give you an overview of the methodology used to solve consulting case interview along three levels of frameworks (the most advanced pointing to frameworks such as Porter’s Five Forces, the Four Cs etc.) Case in Point by Mark Consentino Case Interview Secrets by Victor Cheng Crack the Case by David Ohrvall Ace Your Case
The Consulting
Interview Process
8.1 Case and Fit Interviews:
What is Being Tested?
The first round is generally organized on campus: applicants will have two one hour interviews with Associates/ Project Leaders. The second round is often at the offices you are applying to, with more senior people. During an interview you can face three different exercises: During the interview you should be prepared to encounter any or all of the following types of questions:
- CV/Cover Letter: questions about your experiences and about your rationale behind pursuing consulting
- Fit Interview: questions to test your fit with the company culture via examples such as those of leadership and teamwork
- Case: a problem will be presented for you to work through, similar to those consultants encounter on a daily basis You have to be prepared for all three sections of the interview; they are all crucial and very important for getting a job into a consulting firm. Often applicants overemphasize their case preparation and don’t invest sufficiently in the fit part of the interview! WHAT ARE CONSULTING COMPANIES LOOKING FOR DURING AN INTERVIEW Structure
- Does the candidate have/follow a structure while tackling the problem?
- Is the structure relevant to the case being analyzed?
- Does the candidate have a structure that is both concise and flexible? Quantitative/analytical ability
- Is the candidate comfortable with numbers?
- Does s/he break down ambiguous problems systematically? Issues/Prioritizations
- Does the candidate quickly identify a list of issues that are most relevant to the business problem?
- Can s/he prioritize/organize the issues or is it more like a laundry list? Energy/Presence
- Is s/he comfortable with the case or is there a sense of “oh no, not this kind of problem”?
- If the candidate gets stuck on a particular issue, does she recover gracefully? LEADERSHIP AND IMPACT TEAMWORK^ COMMUNICATION^ PROBLEM SOLVING^ QUANTITATIVE SKILLS
- Ability to lead teams
- « Make it happen »
- Personal initiative
- Entrepreneurship
- « can do » attitude
- Build on other’s people ideas
- Manage information flows
- Willingness to follow when appropriate
- Ability to convince
- Understanding
- Comfort with ambiguity
- Empathy
- Presence
- Business sense
- Ability to structure complex business issues
- Analysis and synthesis capabilities
- Creative thinking
- Comfort with numbers
- Ability to simplify complex calculations
- Confronting numbers with reality/business sense Figure 5: Five key dimensions for evaluating consulting interviews - specifically during the fit interview Source: BCG FIT: CV + FIT QUESTIONS CASE: JOB SIMULATION HIRE / REJECT DECISION
For the fit interview, the firms have their own needs, according to the different cultures: We list below what potential characteristics that some popular management consulting firms look for, according to a survey made in the US (Source: Chicago GSB). This is not intended to be complete but rather the informal feedback of former MBAs. Bain & Company Hypothesis driven – the candidate should quickly analyze facts and make a hypothesis. She should then drill down to see if the hypothesis is true or should be modified. Finally it is very important that she gives actionable recommendation. Strategy& Strategy& is big on microeconomic concepts MR = MC, supply/ demand etc. It tends to evaluate the candidates on their micro skills. Candidates should also definitely ask questions to understand industry/business trends (this is true for all firms, but with Strategy& you get dinged if you forget this part). Boston Consulting Group Intellectual curiosity and prioritization of issues - while the candidates should be structured, they should demonstrate out-of- the-box thinking. McKinsey & Company Big picture, Big picture, Big picture. It evaluates the candidates on numbers, but it is vital that they lay out all the issues systematically. The issues should be mutually exclusive and collectively exhaustive (MECE). Candidates should never rush into a hypothesis or probe details (quite different from Bain or BCG, for example)
8.2 Case Interview Overview
During case interviews consultancies watch precisely how candidates analyze, structure and solve business problems. Case interviews are in fact an excellent indicator of how good you will be as a consultant, both in terms of your problem-solving skills and your personality. Main problem solving skills
- Analyze a problem with structure
- Recognize critical issues
- Gather, select and organize information
- Formulize and test hypothesis (very important!)
- Think creatively
- Have business and common sense Candidates will face a typical business problem, giving them an insight of the consulting job. Management consultants are problem solvers, thus case interviews test mainly problem solving skills. However, during a case interview, consultancies will also evaluate your quantitative, communication and teamwork skills; your own energy, flexibility and personal human maturity. Finally, the interviewer will look if you have enjoyed the case preparation and interview. If you did so, you will most likely enjoy the problem solving in your job as a consultant. Case interviews are the cornerstone of the recruiting process in the consulting industry. The case is not about finding the right or wrong answer, but rather about the method you use to derive your answer. It is about the questions you raise, the assumptions you make, the issues you identify, the areas you prioritize, the frameworks you use, the creativity involved, the logical solution you recommend, and the confidence and poise you present.
8.3 How to Prepare for the Case Interviews?
Practice! And start practicing early. Most students don’t ace cases naturally. You don’t have to do all the cases you can find but the process is much easier if you have done a couple of them before interviews are scheduled. Preparation tips
- Do research on the firm (Peers, Internet, database resources in library)
- Do online case simulations available on the consultancies’ websites
- Practice with your peers in mock interviews
- Read the financial newspapers. Look for new ideas in HBR and in corporate papers depending on which company you target (the McKinsey Quarterly, Booz strategy + business, etc…).
- Remind yourself of your High School and GMAT Math. You are expected to make quick calculations on paper or in your head. Consultants love back-of-the-envelope calculations General interview tips
- Be prepared
- Demonstrate that you did your homework
- Don’t hesitate to quote your personal readings, or to compare business problems with your previous experiences
- Have a point of view
- Clearly voice your opinion and be prepared to defend your point of view with a couple of good arguments
- Practice answering behavioral questions
- Listen to the questions asked by the interviewer, they might contain some hints
- Identify your high priority employer and try to interview with him last