Introduction
Investment banking interviews are notoriously challenging, but with the right preparation, you can increase your chances of success. One of the most effective ways to prepare is to use the STAR method to structure your responses to behavioural and situational questions.
What is the STAR Method?
The STAR method is a framework for answering behavioural and situational questions in a way that is clear, concise, and tailored to the specific question being asked. The acronym STAR stands for:
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Situation: Describe the situation or challenge you faced.
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Task: Explain what you were tasked with doing.
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Action: Describe the specific actions you took to address the situation or challenge.
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Result: Quantify the results of your actions.
How to Use the STAR Method
When answering a behavioural or situational question using the STAR method, follow these steps:
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Carefully listen to the question and identify the key elements. What is the interviewer asking you to do? What information are they looking for?
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Briefly describe the situation or challenge you faced. This should be a concise overview of the context in which your actions took place.
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Explain what you were tasked with doing. This should be a clear and specific statement of your responsibilities in the situation.
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Describe the specific actions you took to address the situation or challenge. This is the heart of your response. Be sure to provide concrete examples of what you did and how you did it.
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Quantify the results of your actions. This is where you show the interviewer the impact of your actions. Be specific and use numbers whenever possible.
Here are some examples of how to use the STAR method to answer common investment banking interview questions:
Question: Tell me about a time you had to deal with a difficult client or colleague. **
Situation: I was working on a complex financial modelling project for a large client. The client was very demanding and often made changes to the project specifications at the last minute.
Task: I was responsible for managing the project and ensuring that it was completed on time and within budget.
Action: I developed a communication plan to keep the client informed of the project's progress and to address their concerns in a timely manner. I also documented all changes to the project specifications and ensured that the client was aware of the impact of these changes.
Result: The project was completed on time and within budget, and the client was satisfied with the final product.
Question: Tell me about a time you had to work under pressure to meet a deadline.**
Situation: I was working on a pitch for a new client. The deadline was very tight, and I had to work long hours to get the pitch completed.
Task: I was responsible for researching the client's industry and developing a financial model that would demonstrate the value of our services.
Action: I created a detailed timeline for the project and broke it down into smaller, more manageable tasks. I also worked efficiently and prioritized the most important tasks first.
Result: The pitch was completed on time and was well-received by the client.
Question: Tell me about a time you had to solve a complex problem.**
Situation: I was working on a valuation of a company that was in the midst of a restructuring. The company's financial statements were complex and difficult to interpret.
Task: I was responsible for valuing the company and developing a recommendation for our client.
Action: I conducted thorough research on the company's industry and competitors. I also analysed the company's financial statements in detail and made adjustments for the restructuring.
Result: I developed a well-supported valuation that was accepted by our client.
Why is the STAR Method Useful?
The STAR method is a useful tool for investment banking interviews because it helps you to:
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Structure your responses in a clear and concise way.
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Focus on your actions and results.
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Quantify your accomplishments.
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Make a positive impression on the interviewer.
Conclusion
The STAR method is a powerful tool that can help you to ace your investment banking interview. By using the STAR method to structure your responses, you can demonstrate your skills, experience, and ability to handle difficult situations. With practice, you can use the STAR method to confidently answer any question you are asked.
