Resolve Complex Problems With: The Pyramid Principle

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?
Write the introduction
Apply the Pyramid principle
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 companys market is mature and doesnt 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
Example: How can the company reduce its costs by 10%?
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Table of content
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Pyramid Principle Definition
Create a pyramid with your answer and supporting arguments - Template

Insert your introductions question
To communicate in a structured way with a busy executive, you should start with the answer to the executives 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
Why or How?
Why or How?
Why or How?
Insert your supporting argument #1.1
Insert your supporting argument #3,3
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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
Outsource non-core functions to save $3 Millions
Simplify core functions processes to save $1 Million
Review supplier cost to save $1 Million
Select non-core functions
Evaluate cost and service level of potential partners
Choose one partner for each function
Design current processes
Compare current process to best-inclass benchmarks
Adopt best practices based on benchmarks
Select and review current supplier costs
Evaluate cost of potential alternative suppliers
Renegotiate supplier contracts and/or choose alternative suppliers
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Ensure that your pyramid is Mutually Exclusive and Collectively Exhaustive (MECE)
Ensure that each category of your pyramid doesnt contain too many subcategories
Ensure a vertical logic by answering the question why or how In this example, each category only contain 3 subcategories, which is the ideal number for a clear communication
Why or How?
Why or How?
Why or How?
Why or How?
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You an also use an horizontal logic within your pyramid
Horizontal logic at the first level
Horizontal logic at the seond level

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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 should outsource its non core functions
Company X is not profitable
Company Y is profitable
Company Y outsources its non core functions
Situation
Observation
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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
Company X should invest in industry Y
Industry is attractive
Competition is low
Entry barriers are low
A list of independent statements
It is simple
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Link between conclusion and the statements not always obvious
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
Insert key message # 1

Insert key message # 2 Insert key message # 3


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Table of content
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Based on your pyramid, identify the slides that you need to produce
# Slide to be produced
1
Introduction (situation, complication and question) Answer
Why or How?
3
Supporting argument #1 Supporting argument #2
Why or How?
Why or How?
4
Supporting argument #1.1
5
6
8
9
10 Supporting argument #2.3
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Then create a storyboard to have an overview of your presentation

1 Companys profits are decreasing 2 We should outsource 3
Competitor X is profitable
Company X has same revenue as us
But Company X has lower cost
50% of his core functions have been outsourced
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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
Key message #1
Key message #2
Key message #3
Vertical logic: Texts, diagrams and charts should support the key message
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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
Create a MECE Pyramid with your answer and supporting arguments
Create a logical storyboard based on your Pyramid
4
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Produce your slides with a horizontal and vertical logic

Sources of information
The McKinsey Way by Ethan Rasiel
The Pyramid Principle by Barbara Minto
Slidology: the art and science of creating great presentations by Nancy Duarte
Sources of information
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Thanks
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Objectives of this document

Write the introduction

Apply the Pyramid principle

Create a story board

A desired change of the current situation

The question that implicitly results from the complication

Example: How can the company reduce its costs by 10%?

Click here to download the editable PowerPoint version atwww.slidebooks.com www.slidebooks.com

Write the introduction

Apply the Pyramid principle

Create a story board

Pyramid Principle Definition

Click here to download the editable PowerPoint version atwww.slidebooks.com www.slidebooks.com

Create a pyramid with your answer and supporting arguments - Template

Insert your supporting argument #1

Insert your supporting argument #2

Insert your supporting argument #3

Insert your supporting argument #1.1

Insert your supporting argument #1.2

Insert your supporting argument #1.3

Insert your supporting argument #2.1

Insert your supporting argument #2.2

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

Outsource non-core functions to save $3 Millions

Simplify core functions processes to save $1 Million

Review supplier cost to save $1 Million

Select non-core functions

Evaluate cost and service level of potential partners

Choose one partner for each function

Design current processes

Compare current process to best-inclass benchmarks

Adopt best practices based on benchmarks

Select and review current supplier costs

Evaluate cost of potential alternative suppliers

Renegotiate supplier contracts and/or choose alternative suppliers

Click here to download the editable PowerPoint version atwww.slidebooks.com www.slidebooks.com

You an also use an horizontal logic within your pyramid

Horizontal logic at the first level

Horizontal logic at the seond level

by using a deductive logic

Company X should outsource its non core functions

Company X is not profitable

Company Y outsources its non core functions

Company X should invest in industry Y

Entry barriers are low

A list of independent statements

Link between conclusion and the statements not always obvious

Insert supporting argument #1

Insert supporting argument #2

Insert supporting argument #3

Insert key message # 1

Insert key message # 1

Insert key message # 1

Write the introduction

Apply the Pyramid principle

Create a story board

10 Supporting argument #2.3