Transcript Deloitte template - University of Toronto Consulting

Logical Structuring
Case Competition Training
Strategy and Operations
January 16, 2006
©2005 Deloitte Inc.
Logical Structuring Agenda
Purpose and Objectives
Why structure?
Pyramid structure
 Writing the introduction
 Developing the logic
 Grouping ideas
 Creating a story board
Conclusion
2
Purpose
Introduce the basic concepts of logical structuring to enable you to write and
communicate more clearly
This is particularly important for people, such as strategy consultants, who
frequently deal with unstructured problems
Objectives
By the end of this session you should:
Have sufficient understanding of the key elements of the Pyramid Principal
Be able to begin applying the concepts to presentations you create
Unclear writing, like unclear thinking, is frequently caused by a lack of
logical structure
3
Logical Structuring Agenda
Purpose and Objectives
Why structure?
Pyramid structure
 Writing the introduction
 Developing the logic
 Grouping ideas
 Creating a story board
Conclusion
4
Why does structure matter?
1. Makes the message precise
 Forces the writer to be “dead clear” about what s/he is communicating
to the reader, preventing messages that are unclear, unintended, or
intellectually empty
2. Reveals gaps in thinking
 Enables the writer to identify gaps by anticipating and responding to
the reader’s questions before the communication is delivered
3. Provides clarity to the reader
 Prevents the reader from “working” to understand the message,
thereby eliminating the possibility that your message is misunderstood
or ignored entirely
Memo A
John Collins telephoned to say he can’t make the
meeting at 9:00. Hal Johnson says he doesn’t
mind making it later or even tomorrow, but not
before 10:30 and Don Clifford won’t return from
Frankfurt until tomorrow late. The conference
room is booked tomorrow, but free on Thursday.
Thursday at 11:00 looks to be a good time. Is that
okay with you?
5
Memo B
Could we reschedule today’s 9:00 meeting
to Thursday at 11:00? This would make it
more convenient for Collins and Johnson,
and would permit Clifford to be present. It
is also the only other time this week that
the conference room is free.
Logical Structuring Agenda
Purpose and Objectives
Why structure?
Pyramid structure
 Writing the introduction
 Developing the logic
 Grouping ideas
 Creating a story board
Conclusion
6
The Pyramid Structure
Governing Thought:
States the answer to the question
raised in the readers mind
Key Line:
Major points which, taken
together prove the answer
Support:
Data and facts which
support the key line
7
Explains how
or why
An Unstructured Communication
ABC should go online
and the first priority should be to
defend its current market share
Primary benefits
of the internet
strategy
Opportunities
and threats
ABC’s current
ABC’s
Without an
customers are competitors online channel ABC’s online
more likely to are increasing
ABC risks
sales in 2005
shop online
their online
losing some
could reach
than the
product
customers to
$100mm
general
assortment
competitors
population
8
Defend
market share
Grow
revenue
Develop
deeper
relationships
with
customers
Support ABC’s
operating
strategy
A Structured Communication
Acme can reduce costs by
$10mm in the next 2 years
through some operational
improvements
Governing Thought:
Key Line:
Support:
9
Re-engineer core
functions to save $5mm
Outsource non-core
functions to save $3mm
Differentiate service
levels to save $2mm
Compare
cost of
function to
best-inclass
benchmarks
Evaluate
cost and
service
level of
potential
partners
Determine
economic
level of
service for
each
segment
Evaluate
internal
cost of
core
function
Adopt best
practices
based on
benchmark
s
Select
non-core
functions
Choose
one
partner for
each
function
Segment
customers
by value
Shift lower
value
segments
to lower
cost
channels
Building A Pyramid
1.
Writing the introduction

2.
Working out the logic

3.
Ideas are grouped into categories and put in a logical order, such as
time order or order of importance
Creating the storyboard

10
Each idea in the pyramid is logically related vertically to the idea
above and horizontally to other ideas on the line
Grouping the ideas

4.
The introduction reiterates in story form what the reader already
knows about the subject and sets up the relevant question
After developing the pyramid, the ideas are laid out in a storyboard
format
Logical Structuring Agenda
Purpose and Objectives
Why structure?
Pyramid structure
 Writing the introduction
 Developing the logic
 Grouping ideas
 Creating a story board
Conclusion
11
Elements of the Introduction
• Situation:
Governing Thought:
Answer
Key Line:
Support:
12
A statement about the
subject with which you know
the reader will agree
• Complication: The complicating event that
create the tension in the
story
• Question:
The implicit question that
results from the complication
Logical Structuring Agenda
Purpose and Objectives
Why structure?
Pyramid structure
 Writing the introduction
 Developing the logic
 Grouping ideas
 Creating a story board
Conclusion
13
Structuring a Response to How
Acme must develop a
value proposition tailored
to the coyote market.
Governing Thought:
S: Acme must increase its
focus on the coyote market
C: Acme is not currently
focused on the coyote
market
Q: How can Acme focus on
the coyote market?
How?
Key Line:
14
Understand the unique
needs of coyotes
Adapt product line to meet
coyote needs
Educate coyotes on Acme’s
ability to meet their needs
Step 1
Step 2
Step 3
Structuring a Response to Why
DrugsRUs should spend
$25 million to accelerate
the approval process for
Antizak
Governing Thought:
Why?
Key Line:
15
S: Approval for DrugsRUs
new lifestyle drug Antizak
is taking longer than
expected
C: DrugsRUs can spend $25
million to accelerate the
approval process
Q: Should DrugsRUs spend
$25 million to accelerate
the approval process?
The Antizak market is
expected to top $1 billion
per year
Earlier approval allows
DrugRUs more time
before patent protection
expires, which is worth
$200 million in profit
Competitors are
developing a substitute
that may capture the
market if launched first
Reason 1
Reason 2
Reason 3
Which Question is Raised - How or Why?
S:
The plant is not meeting its widget production goals
C:
Q:
A:
The production line is frequently stopped because of insufficient parts
What should the plant do differently?
The parts procurement process needs to be redesigned to reduce fulfillment time
S:
Sow’s Ear Inc. developed a silk purse product line 2 years ago
C: Since then, the silk purse division has been unprofitable
Q: What should Sow’s Ear do?
A: Sow’s Ear Inc. should abandon its silk purse product line
S:
C:
Q:
A:
ABC, a book retailer, is considering developing an online channel
The online retail book market is dominated by 2 strong players
Should ABC develop an online channel?
Yes, ABC should go online
S:
C:
Q:
A:
You have undertaken a number of initiatives to improve customer service
Customer service continues to result in decreased customer satisfaction
How can we improve customers service?
We must redesign customer service
16
Logical Structuring Agenda
Purpose and Objectives
Why structure?
Pyramid structure
 Writing the introduction
 Developing the logic
 Grouping ideas
 Creating a story board
Conclusion
17
Clarifying Grouped Ideas
List the Points
Activities:
18
Synthesize
findings from
interviews,
research and
analysis
Create a list
of key points
Identify the
Type of Point
Put the points
into categories
by defining the
kind of problem
being discussed,
attempting to
use similar level
of abstraction
across
categories
Summarize the
Points
Write a
sentence that
states the
“essence” of
each category
Order the
Points
Put the points in
logical order,
such as order of
importance or
time order
The Importance of MECE
Example
Mutually
Exclusive
Do any of the points
overlap?
MECE
Making Dinner:
• Select menu
• Buy ingredient
• Prepare courses
Mobile Phone Types:
• Analog
• Digital
• GSM
Collectively
Exhaustive
Have all possibilities
been covered?
Reasons to acquire competitor ABC:
• Complimentary customer base
• Superior technology
• Digestible size
Points across horizontal levels of the pyramid should be MECE
(Mutually Exclusive, Collectively Exhaustive)
19
Which Belong to a MECE Grouping?
1.
Africa
7.
South America
2.
Hong Kong
8.
Antarctica
3.
North America
9.
Taipei
4.
Amazon
10. Asia
5.
Australia
11. Europe
6.
Manila
12. Hanoi
20
Logical Structuring Agenda
Purpose and Objectives
Why structure?
Pyramid structure
 Writing the introduction
 Developing the logic
 Grouping ideas
 Creating a story board
Conclusion
21
Creating the Storyboard
Governing Thought:
Key Line:
Overall costs in Mexico are
75% lower than in
Wisconsin,
resulting in recovery of
moving costs in 6 months
Cutting Edge Corporation
should close its razor
manufacturing operation
in Wisconsin and
manufacture razors in
Mexico
Mexico provides an
operating environment that
is as stable as Wisconsin,
ensuring continuity of
operations
Support:
One page for each idea
22
Situation
Complication
(Question)
Page 1
Page 2
Manufacturing technology is
more advanced in Mexico
than in Wisconsin, enabling
Cutting Edge to leverage
leading edge capabilities
Each
requires
a set-up
page
Example Storyboard
Cutting
CuttingEdge
Edgecorporation
corporationshould
shouldclose
close its
itsrazor
razor
manufacturing
manufacturingoperation
operationin
inWisconsin
Wisconsin and
andmanufacture
manufacture
razors
razorsin
inMexico.
Mexico. Doing
Doingso
so will
will reduce
reduce costs
costs while
while
ensuring
ensuringoperating
operatingstability
stabilityand
andproviding
providingaccess
access to
toworld
world
-class
class technology.
technology.
Overview
Overview
Cutting Edge Corporation currently manufactures all
of its razors un a Wisconsin plant. The plant was
built 50 years ago and the location selected of its
proximity to key suppliers…
Relocating to Mexico
Cutting Edge Corporation
However, over the last 3 years, all of your key
competitors have moved their manufacturing facilities
suppliers…
to
Mexico. Your key suppliers are also beginning
to move operations to Mexico
February 2001
key suppliers are also beginning to move operations to
Mexico
11
Labor Cost
Investment
53.9
1996
1997
1998

Ensure
Ensurestability—
stability— Mexico
Mexico provides
provides aa stable
stable operating
operating
environment
environmentthat
thatwill
will ensure
ensurecontinuity
continuityof
of operations
operations

Improve
Improvecapabilities—
capabilities— Manufacturing
Manufacturingtechnology
technologyisis
more
moreadvanced
advanced in
inMexico,
Mexico, enabling
enablingCutting
CuttingEdge
Edgeto
to
leverage
leverage leading
leadingedge
edge capabilities
capabilities
22
1999
1996
2000
1997
1998
 However,
Investment____
over the last 3 years, all of your key competitors
However, over the last 3 years, all of your key competitors
have
their
have
moved
theirmanufacturing
manufacturingfacilities
facilitiesto
toMexico.
Mexico. Your
Your
– moved
______
key
keysuppliers
suppliersare
arealso
alsobeginning
beginningto
tomove
move operations
operationsto
to
Mexico
Mexico
 Recovery
–
______
11 3
120.0
1999
2000
5
4
Macroeconomic Environment
razors
razorsin
inaaWisconsin
Wisconsin plant.
plant. The
Theplant
plantwas
was built
built50
50years
years
ago
the
ago
and
thelocation
location selected
selected because
because of
of its
itsproximity
proximityto
tokey
key
– and
______
suppliers…
suppliers…
Ensure Stability
50.5
$25.5
1995
Reduce
Reduce Costs—
Costs— Overall
Overallcosts
costs in
inMexico
Mexico are
are75%
75%
lower
lower than
thanin
in Wisconsin,
Wisconsin, resulting
resultingin
in fast
fast recovery
recovery of
of
moving
cost
moving cost
Recovery
20.0
$22.4

24.0
67.2
57.5
41.9
34.0
Cutting Edge
Corporation
Edge
Corporationcurrently
currentlymanufactures
manufacturesall
allof
ofits
its
 Cutting
Labor
Cost____
Recovery
Investment
Labor Cost
1
Overview
Overview Costs
Reduce
$22.4
34.0
41.9
1995
1996
1997
57.5
67.2
1998
1999
Description
53.9
2000
6 6
5
Labor Unions
Macroeconomic
Macroeconomic
Environment
Environment
• Text
• Text
• Text
Labor
Labor Unions
Unions
• Text
• Text
• Text
Legal
Legal
Infrastructure
Infrastructure
• Text
• Text
• Text
7
K:\INDUSTRY\ FS\2001\PYRAMIDPRINCE\February\001PYRAMID\001PYRAMID.PPT
Improve Capabilities
Legal Infrastructure
n Provision Cutting
• ____________________
Chart Title: 14pt Bold, Title Case
Chart Title: 14pt Bold, Title Case
Chart Subtitle: 12pt, Title Case
Chart Units or Dates: 10pt, Title Case (e.g., $ Millions; Percen
t)
Chart Subtitle: 12pt, Title Case
Chart Units or Dates: 10pt, Title Case (e.g., $ Millions; Percen
t)
100%
100%
90
90
80
80
70
70
60
60
50
50
40
40
30
30
20
20
Title Text
n Packaging
• ____________________
Title Text
• First level bullet
– Second level bullet
• First level bullet
– Second level bullet
10
10
0
0
1995
1996
1997
1998
1999
1995
2000
n Quality Control
• ____________________
Label: 10pt Bold, Centered Title Case
1996
1997
1998
1999
2000
8
K:\INDUSTRY\ FS\2001\PYRAMIDPRINCE\February\001PYRAMID\001PYRAMID.PPT
Ensure Stability
9
K:\INDUSTRY\ FS\2001 \PYRAMIDPRINCE \February\001PYRAMID\001PYRAMID.PPT
Label
Label
10pt
10ptBold,
Bold,
Centered
Centered
• First level bullet
– Second level bullet
Label
Label
10pt
10ptBold,
Bold,
Centered
Centered
• First level bullet
– Second level bullet
Label
Label
10pt
10ptBold,
Bold,
Centered
Centered
• First level bullet
– Second level bullet
10
K:\INDUSTRY\FS\2001\PYRAMIDPRINCE\February\001PYRAMID\001PYRAMID.PPT
11
Next Steps
Quality Control
Packaging
K:\INDUSTRY\FS\2001 \PYRAMIDPRINCE\February\001PYRAMID\001PYRAMID.PPT
n _______________________________
n _______________________________
n _______________________________
Column Title Text
• First level bullet
– Second level bullet
• First level bullet
– Second level bullet
Column Title Text
• First level bullet
– Second level bullet
• First level bullet
– Second level bullet
Column Title Text
n _______________________________
67.2
• First level bullet
– Second level bullet
Label: 10pt
Times New Roman Bold
Label: 10pt
Times New Roman Bold
Label: 10pt
Times New Roman Bold
57.5
53.9
Text Description:
• First level table bullet
– Second level table bullet
• First level table bullet
– Second level table bullet
• First level table bullet
– Second level table bullet
Text Description:
• First level table bullet
– Second level table bullet
• First level table bullet
– Second level table bullet
• First level table bullet
– Second level table bullet
Text Description:
• First level table bullet
– Second level table bullet
• First level table bullet
– Second level table bullet
• First level table bullet
– Second level table bullet
41.9
• First level bullet
– Second level bullet
34.0
$22.4
• First level bullet
– Second level bullet
• First level bullet
– Second level bullet
• First level bullet
– Second level bullet
1995
K:\INDUSTRY\ FS\2001\PYRAMIDPRINCE\February\001PYRAMID\001PYRAMID.PPT
23
12
1996
K:\INDUSTRY\ FS\2001 \PYRAMIDPRINCE \February\001PYRAMID\001PYRAMID.PPT
1997
1998
1999
2000
13
K:\INDUSTRY\FS\2001\PYRAMIDPRINCE\February\001PYRAMID\001PYRAMID.PPT
14
15
K:\INDUSTRY\FS\2001 \PYRAMIDPRINCE\February\001PYRAMID\001PYRAMID.PPT
Logical Structuring Agenda
Purpose and Objectives
Why structure?
Pyramid structure
 Writing the introduction
 Developing the logic
 Grouping ideas
 Creating a story board
Conclusion
24
Conclusion
Logical structuring is essential for ensuring that presentations are clear,
concise and compelling
Make sure that you follow the process:
 Write an introduction in SCQA format
 Use the pyramid principal to develop your logic and group ideas,
making sure all ideas are MECE across the horizontal structure of the
pyramid
 Once you have your logical structure, convert it into a storyboard
This is a powerful tool in consulting – Use it in your case
presentations!!!
25
Appendix
26
Common Patterns for Introductions
Explaining “How To”
Do X in Y way
Examples
S: You must do X
C: You currently can’t do X
Q: How do we do X?
S: XYZ is currently using a logistics management system.
C: The system is not working properly.
Q: How can we fix the system?
A: You can fix the system by further
customizing the software.
Choosing Among Alternatives
Select C
S: We want to do X
C: We have 3 ways to do X
Q: Which way is best?
S:ABC needs more office space.
C: ABC can build a new building, buy a new building
or lease additional space?
Q: Which alternative is best?
A: ABC should buy a new building.
Making a Recommendation
Y is the optimal
solution
27
S: You are doing X
C: X is causing a problem.
Q: What should we do?
S: Acme has been growing revenue quickly.
C: Rapid growth has strained Acme’s operations.
Q: What should Acme do to maintain operations?
A: Acme should build 2 new operations centers.
Exercise 1: Grouping the Ideas
Senior management is
dissatisfied
with the current cost reports
Governing
Thought:
Key
Line:
The reports
are often
delivered late
The data is
sometimes
inconsistent
with other
reports
The format of
the reports is
hard to follow
Key numbers
on the reports
should be
highlighted
The reports
are not
generated
frequently
enough
The font on
the reports is
too small
Group the points into categories
28
The reports
contain more
data then is
necessary
The data on
reports often
contains
errors
Exercise 1: Grouping the Ideas
Senior management is
dissatisfied
with the current cost reports
Governing
Thought:
Key
Line:
29
Proposed Solution
The reports
are often
delivered late
The data is
sometimes
inconsistent
with other
reports
The format of
the reports is
hard to follow
Key numbers
on the reports
should be
highlighted
The reports
are not
generated
frequently
enough
The font on
the reports is
too small
The reports
contain more
data then is
necessary
The data on
reports often
contains
errors
Timing
Data
Format
Format
Timing
Format
Data
Data