Case preparation for the beginner: A nudge toward an open door.

A business case is a narrative that describes a situation that has taken place. Sometimes the case describes a managerial situation requiring a decision. Other times, it may portray what appears as a business success or a managerial mistake. A student frequently studies theories as though they exist in isolation, while all other activities are held constant or in abeyance. This constancy and isolation do not exist in real situations. The purpose of a case is to transcend the process of learning from the classroom to real-life experiences. Case study is meant to actively involve the reader in the processes of learning, developing, and decision making. Business cases are written to develop the reader's skills, approaches, and philosophy of management. The case approach fosters the development of "doing" skills by forcing the reader to take an active role in considering key managerial factors, weighing the significance of these factors, and making an action-oriented decision. Furthermore, when offered a variety of industries and organizational settings over time (e.g., during a semester or quarter), the reader learns to recognize and understand similarities and differences. The objective of case analysis is to develop and present a plan of action to improve the organizational situation. Problem solving relies on developing a solid analysis from imperfect information subject to varying degrees of uncertainty. Generally, the most powerful and interesting cases are those that permit multiple interpretations of the same information to lead to different but equally plausible solutions. This is because the emphasis is on the process of decision making rather than its product. Students decide what's the 'right answer' to a case during their deliberations, debate, and discussions. Preparing the Case Most cases offer a complex web of interrelationships that may appear overwhelming. It is important to sort through the available information and understand what is going on, what is fact, and what is opinion. When reading the case in this context, assume statements made in the case by the case writer as true. However, if a statement is made by one of the characters in the case, treat it as though there is a question mark hovering over it. Assume the time period as that indicated in the case.

Case Preparation for the Beginner

The important elements in evaluating student performance on case analyses consist of: a. b. c. d. e. f. the care with which facts and background knowledge are used, demonstration of the ability to state problems and issues clearly, the use of appropriate analytical techniques and theory, evidence of sound logic and argument, consistency between analysis and recommendations, and the ability to formulate reasonable and feasible recommendations for action.

As beginning case students, you are not expected to do all these things well immediately. However, the following guidelines should help in preparing cases. Determine What is Going On First, read the case rapidly to determine the general nature of the company and its setting. Next, examine the case more carefully. Jot down, in list form, the significant facts of the case. Classify, sort, and combine this information. If provided, case questions can help this categorizing process. However, it is not sufficient to be able to state the central issues without substantiation by facts, data, and clearly stated rationale. Analyze Assess the information available. Simply stating facts is not analysis. One must identify problems and/or opportunities indicating a need for management action. Frequently, the most difficult aspect of diagnosing a case is to determine what the problems are. Furthermore, there generally are some problems and/or opportunities that are major and some that are minor. Identify and rank based on urgency and importance. To successfully manage a large number of issues, it may be necessary to combine problems dealing with similar subjects. Be sure to consider the information provided in any tables and exhibits. It is common practice to put the quantitative details of the case in exhibits and appendices. Unfortunately, exhibits and appendices are seldom read with the same level of discernment as the text portion of the case. Do not make this mistake. Determine What is Missing and What is Relevant in the Case Items that are possibly important may be missing in a case because it is missing in the firm. Such an omission should be not only noted but also considered in terms of its overall importance. In addition, you must be able 2

Case Preparation for the Beginner

to sort out irrelevant information and make sound assumptions when certain facts are not available. A decision must be made even though it appears that more data would be desirable. Develop Alternatives Consider a number of feasible alternative actions or programs. Do not be satisfied with the first answer that comes to your mind. Your fourth or fifth solution, or a combination of solutions, may provide the best answer. Explore the consequences of solutions you have developed, including the value of the possible outcomes and the risks that are involved. Seek basic objectives and broad strategies that will provide guides to the solutions of the problems. Evaluate the Alternatives Determine what action recommendations are acceptable to top management. Review the alternative sets of goals, strategies, and problem solutions. Evaluate by listing and weighing the advantages and disadvantages of each alternative. Carefully articulate and apply theory and principles to the situation. This step is important in integrating theory and practice. Make a Decision Recommendations are central to a case analysis. On the basis of your evaluations, prepare a set of specific recommendations for action. Avoid generalities-- take a stand. Clearly indicate the key actions which are crucial to the plan's success or failure. Always be prepared to support the reasons for your position. It is normal for anyone beset with trying problems to recommend calling in outside help (consultants, researchers, etc.). Do not make this recommendation. You are the outside help! Case Discussion A business case is examined in a community of students. Each student has invested several hours sifting through the information, assessing the problems, and thinking of solutions. Each has probably uncovered some evidence others have overlooked. Each has likely interpreted identical information in a slightly different manner [this is the value of a diverse community of students]. Each is ready to offer an assessment of the situation and a set of recommendations for management. If a student is not prepared to discuss his (or her) view, then the process of learning for the entire community of students is impaired. Once discussion has begun, each student must continually rethink the validity 3

Case Preparation for the Beginner

of the individual analysis as the group debate unfolds. Listening to other students and remaining open-minded is critical to the education process. Learning often comes from defending your view or abandoning it as the group moves in some direction not supported by your analysis. It is important to note that you cannot realistically expect to be right all the time. Learning comes partly from making mistakes. If your classmates or professor reveal an error in your logic or analysis, accept it. Trying to defend an error-filled position is the mark of a poor manager. Some Final Thoughts During a case course, you may find it hard to keep a finger on the pulse of how much you are learning from the cases. This contrasts with lecture and/or problem courses where experience has given you an intuitive feeling for how well you are acquiring substantive knowledge of theoretical concepts, problemsolving techniques, and institutional practices. But in a case course, where analytical ability and the skill of making sound judgments are less apparent, you may lack a sense of solid accomplishment, at least at first. Admittedly, additions to one's managerial skills and powers of diagnosis are not as noticeable or as tangible as a loose-leaf binder full of lecture notes. But this does not mean they are any less real or that you are making any less progress in learning how to be a manager. In the process of hunting around for solutions, very likely you will find that a considerable knowledge about types of organizations, the nature of various businesses, the range of management practices, and so on, has rubbed off. Moreover, you will be gaining a better grasp of how to evaluate risk and cope with the uncertainties of enterprise. Likewise, you will develop a sharper appreciation of both the common and the unique aspects of managerial encounters. Such is the essence of management, and learning through the case method is no less an achievement just because there is a dearth of finely calibrated measuring devices and authoritative crutches on which to lean. If throughout the course you can remain open to the diverse views found in your community of students, while developing your own skills of critical reasoning and decision making, your learning will climb to heights accessible to only a select few.
Based on a note originally prepared by Professor William F. Crittenden of Northeastern University.