Pyramid principle

Resolve Complex
Problems With
The Pyramid Principle
Training &Templates

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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
own presentation ”

Table of content
Apply the Pyramid principle
Create a story board
2
3
Write the introduction1
Resolve complex problems with the Pyramid
Principle?

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
2
3
Principle?

Pyramid Principle Definition

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
argument #2
argument #3
Insert your
supporting
argument
#3,3
Insert your introduction’s question
Why or How?
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

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%?
Create a pyramid with your answer and supporting arguments - Example

Ensure that your pyramid is Mutually Exclusive and Collectively Exhaustive
(MECE)

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?
Why or How?Why or How? Why or How?
Ensure a vertical logic by answering the
question “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

…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

…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
statements not always obvious
A list of independent statements
Conclusion

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

Table of content
2
3
Principle?

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?
Why or How?Why or How?
#
Introduction (situation,
complication and question)
Slide to be produced
1 2
73
4 5 6 8 9 10

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

Ensure that your storyboard combines horizontal and vertical logic
1 2 3Key message #1 Key message #2 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

And finally produce the slides!

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 logic4

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

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Pyramid principle

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