Pyramid Principle

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Resolve Complex

Problems With

The Pyramid Principle

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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

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Table of content

Apply the Pyramid principle

Create a story board

2

3 Write the introduction

1 Resolve complex problems with the Pyramid

Principle?

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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

• Example: The company’s market is mature and doesn’t offer growth

opportunity anymore

The situation

• A desired change of the current situation

• Example: The CEO would like to increase his profit by reducing his cost by

10%

The complication

• The question that implicitly results from the complication

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

The question

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Table of content

Apply the Pyramid principle

Create a story board

2

3 Write the introduction

1 Resolve complex problems with the Pyramid

Principle?

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Pyramid Principle Definition

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Create a pyramid with your answer and supporting arguments - Template

Insert your answer

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 #1

Insert your supporting argument #2

Insert your supporting argument #3

Insert your supporting argument

#3,3

Insert your introduction’s question

Why or How?

Why or How? Why or How?

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

Group, summarize and order logically your supporting arguments

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The company can reduce its cost by $5 millions through

some operational improvements 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-in-class benchmarks Adopt best practices based on benchmarks Select and review current supplier costs Evaluate cost of potential alternative suppliers Outsource non-core functions to save $3 Millions

Simplify core functions processes to save $1

Million

Review supplier cost to save $1 Million Renegotiate supplier contracts and/or choose alternative suppliers

How can the company reduce its cost by 10%?

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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

Why or How?

Ensure a vertical logic by answering the question “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

Company X is not profitable

Company Y is profitable

Company Y outsources its non

core functions Company X should

outsource its non core functions

A coherent and logic way of reasoning which automatically leads to a conclusion

Very convincing

_{Sometimes hard to follow}

Situation Observation

Conclusion

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…or an inductive logic

The concept of induction

Industry is attractive Competition is low Entry barriers are low Company X should

invest in industry Y

A chain of non-related statements which make it possible to draw a certain conclusion

It is simple

Link between conclusion and the

A list of independent statements Conclusion

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The template below can be used to summarize the introduction, your answer

and the key hypotheses

• Situation: Replace the text by your own text • Complication: Replace the text by your own text • Question: Replace the text by your own text

• Replace the text by your own text

Insert supporting argument #1 Insert supporting argument #2 Insert supporting argument #3 First answer

Introduction

• Insert key message # 1 • Insert key message # 2 • Insert key message # 3 • Insert key message # 1

• Insert key message # 2 • Insert key message # 3 • Insert key message # 1

• Insert key message # 2 • Insert key message # 3

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Table of content

Apply the Pyramid principle

Create a story board

2

3 Write the introduction

1 Resolve complex problems with the Pyramid

Principle?

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

Answer Supporting argument #1.1 Supporting argument #1.2 Supporting argument #1.3 Supporting argument #2.1 Supporting argument #2.2 Supporting argument #2.3

Supporting argument #1 Supporting argument #2

Why or How?

#

Introduction (situation, complication and question)

Slide to be produced

1

2

7

3

4

5

6 ₈

₉

₁₀

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Then create a storyboard to have an overview of your presentation

1

2

3

4

5

6 Company’s profits

are decreasing

We should outsource

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

1 _{Key message #1}

2 _{Key message #2}

3 _{Key message #3}

Horizontal logic: A presentation should be

easily understood by only reading the key message of each slide

Vertical logic: Texts, diagrams and charts

should support the key message

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Summary

How to effectively communicate to Business

Executives through great and logical

presentation?

Create a MECE Pyramid with your answer and supporting arguments

Create a logical storyboard based on your Pyramid

2

3 Write an introduction containing the situation, complication and

question

1 Produce your slides with a horizontal and vertical logic

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Sources of information

Sources of

information

Slidology: the art and science of creating great presentations by Nancy Duarte The McKinsey Way by Ethan Rasiel