Pyramid Principle

March 25, 2017 | Author: Slidebooks Consulting | Category: N/A
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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 ”

“ Save your time by using our fully editable PowerPoint slides that you can reuse for your own presentation ”

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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

2

Apply the Pyramid principle

3

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



Insert key message # 1



Insert key message # 1



Insert key message # 1



Insert key message # 2



Insert key message # 2



Insert key message # 2



Insert key message # 3



Insert key message # 3



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

2

Apply the Pyramid principle

3

Create a story board

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Based on your pyramid, identify the slides that you need to produce #

Slide to be produced

1

2

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

4

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Company X has same revenue as us

2

We should outsource

3

5

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

1

Key message #1

2

Key message #2

3

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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