Resolve Complex Problems With The Pyramid Principle Training &Templates
Objectives of this document
“ Improve your ability to resolve complex problem by applying the Pyramid Principle – Training & Templates created by former Deloitte Consultants ”
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Table of content Resolve complex problems with the Pyramid Principle?
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Write the introduction
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Apply the Pyramid principle
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Create a story board
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Write an introduction which contains the situation, the complication and the question
• A neutral description with facts that you know your audience will agree on
The situation
• Example: The company’s market is mature and doesn’t offer growth opportunity anymore
• A desired change of the current situation
The complication
• Example: The CEO would like to increase his profit by reducing his cost by 10%
• The question that implicitly results from the complication
The question
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• Example: How can the company reduce its costs by 10%?
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Table of content Resolve complex problems with the Pyramid Principle?
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1
Write the introduction
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Apply the Pyramid principle
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Create a story board
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Pyramid Principle Definition
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Create a pyramid with your answer and supporting arguments - Template Insert your introduction’s question To communicate in a structured way with a busy executive, you should start with the answer to the executive’s question first, and then list your supporting arguments Insert your answer
Group, summarize and order logically your supporting arguments Why or How?
Insert your supporting argument #1
Insert your supporting argument #2
Insert your supporting argument #3
Why or How?
Why or How?
Why or How?
Insert your supporting argument #1.1
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Insert your supporting argument #1.2
Insert your supporting argument #1.3
Insert your supporting argument #2.1
Insert your supporting argument #2.2
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Insert your supporting argument #2.3
Insert your supporting argument #3.1
Insert your supporting argument #3.2
Insert your supporting argument #3,3
Create a pyramid with your answer and supporting arguments - Example How can the company reduce its cost by 10%?
The company can reduce its cost by $5 millions through some operational improvements
Select non-core functions
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Outsource non-core functions to save $3 Millions
Simplify core functions processes to save $1 Million
Evaluate cost and service level of potential partners
Compare current process to best-inclass benchmarks
Choose one partner for each function
Design current processes
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Adopt best practices based on benchmarks
Review supplier cost to save $1 Million
Select and review current supplier costs
Evaluate cost of potential alternative suppliers
Renegotiate supplier contracts and/or choose alternative suppliers
Ensure that your pyramid is Mutually Exclusive and Collectively Exhaustive (MECE)
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Ensure that each category of your pyramid doesn’t contain too many subcategories In this example, each category only contain 3 subcategories, which is the ideal number for a clear communication
Ensure a vertical logic by answering the question “why” or “how”
Why or How?
Why or How?
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Why or How?
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Why or How?
You an also use an horizontal logic within your pyramid…
Horizontal logic at the first level
Horizontal logic at the seond level 11
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…by using a deductive logic… The concept of deduction A coherent and logic way of reasoning which automatically leads to a conclusion
Conclusion
Company X is not profitable
Situation
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Company X should outsource its non core functions
Company Y outsources its non core functions
Company Y is profitable
Observation
Very convincing Sometimes hard to follow Click here to download the editable PowerPoint version atwww.slidebooks.com www.slidebooks.com
…or an inductive logic The concept of induction A chain of non-related statements which make it possible to draw a certain conclusion
Conclusion
Industry is attractive
Company X should invest in industry Y
Competition is low
Entry barriers are low
A list of independent statements
Link between conclusion and the statements not always obvious
It is simple 13
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The template below can be used to summarize the introduction, your answer and the key hypotheses Introduction • Situation: Replace the text by your own text • Complication: Replace the text by your own text • Question: Replace the text by your own text
First answer • Replace the text by your own text
Insert supporting argument #1
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Insert supporting argument #3
Insert supporting argument #2
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Insert key message # 1
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Insert key message # 1
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Insert key message # 1
•
Insert key message # 2
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Insert key message # 2
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Insert key message # 2
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Insert key message # 3
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Insert key message # 3
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Insert key message # 3
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Table of content Resolve complex problems with the Pyramid Principle?
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1
Write the introduction
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Apply the Pyramid principle
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Create a story board
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Based on your pyramid, identify the slides that you need to produce #
Slide to be produced
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Introduction (situation, complication and question)
Answer
Why or How?
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Supporting argument #1
Supporting argument #2
Why or How?
4 Supporting argument #1.1
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5 Supporting argument #1.2
Why or How?
6 Supporting argument #1.3
8 Supporting argument #2.1
9 Supporting argument #2.2
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10 Supporting argument #2.3
Then create a storyboard to have an overview of your presentation 1 Company’s profits are decreasing
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Company X has same revenue as us
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We should outsource
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But Company X has lower cost
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Competitor X is profitable
50% of his core functions have been outsourced
Ensure that your storyboard combines horizontal and vertical logic
Horizontal logic: A presentation should be easily understood by only reading the key message of each slide
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Key message #1
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Key message #2
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Vertical logic: Texts, diagrams and charts should support the key message
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Key message #3
And finally produce the slides!
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Summary How to effectively communicate to Business Executives through great and logical presentation?
Write an introduction containing the situation, complication and question
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Create a MECE Pyramid with your answer and supporting arguments
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Create a logical storyboard based on your Pyramid
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Produce your slides with a horizontal and vertical logic Click here to download the editable PowerPoint version atwww.slidebooks.com www.slidebooks.com
Sources of information
The McKinsey Way by Ethan Rasiel
Slidology: the art and science of creating great presentations by Nancy Duarte
The Pyramid Principle by Barbara Minto
Sources of information
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