Build a winning marketing strategy with logical structuring

Logical Structuring
Building marketing strategies that drive growth

1
Agenda
Break 15 min.
Lunch 60 min.
Program Overview
5 min.
Analyzing the research
40 min.
Logically structuring your strategy
90 min.
From Storyboard to Presentation
90 min.
Debrief
15 min.
Break 15 min.
1
2
3
4
5

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The purpose of this review is to standardize the structure,
process, and deliverable format required for your annual marketing
strategies
Statement of Purpose
Set standard guidance on the core concept of marketing
strategy development…
1. research and analysis,
2. logical structuring,
3. and storyboarding
…to enable you to write and communicate strategies more
clearly.
Unclear strategy, like unclear thinking, is frequently caused by a lack of consistent structure

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By the end of this review, you’ll be able to develop a marketing strategy,
storyboard it out, and convert it into a presentation
Program Objectives
By the end of this review you will be able to complete the
following functions:
A. Use the Research & Analysis Process to develop a
solution to a complex business challenge;
B. Apply the principles of “logical structuring” to your
solution and create a strategy storyboard;
C. Translate your storyboard into a strategy
presentation.
Much of this is work that we already perform.
This process will standardize our outputs and allow us to compare apples-to-apples

5
To develop a marketing strategy, you’ll need to complete 3 exercises;
we’ll go over each aspect of those exercises in this review
A. Complete the
Research Analysis Process
B. Develop your
recommendations
C. Define the logical flow
of your recommendations
D. Group & order the logical flow of
recommendations
E. Lay out the storyboard for
your recommendations
E. Convert your structure into a
presentation
MARKETING STRATEGY DEVELOPMENT PROCESS
Research & recommend Build logical structure Create the storyboard

Research & Analysis
Connecting the dots
Section
2

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Developing a marketing strategy begins with declaring the problem
you’re looking to solve – make an educated guess at your problem-
statement
Leverage your expertise to analyze research more efficiently.

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• Review research,
(Mkt. Intel & CI),
log the major
points you find,
and note
performance
trends
• Watch for
subcomponents of
you problem
statement
• Given your
research review,
hypothesize as to
the solution of the
problem you’ve
declared
• Recap findings at
the end of each
area of research
• Identify gaps in
knowledge and
risks
• Summarize your
findings and
weigh them
against your
hypothesized
solutions
• State your
recommendations
With your problem statement front-of-mind, complete the following
Research Analysis Process and develop recommendation(s) based on the result
CLARIFY
Step 1
STRUCTURE ANALYZE CONCLUDE
Step 2 Step 3 Step 4
CLARIFY STRUCTURE ANALYZE CONCLUDE
RESEARCH ANALYSIS PROCESS FOR STRATEGY BUILDING

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As you review research, create a research log to track patterns and note
important findings that impact your problem-statement
Date Problem Researched Finding Source
Slide # or
Web
Address
Notes
11-Aug Broker Prodution
Brokers would prefer 7 other types of
Sposorships over PGA events
Co. A's 2013 Broker Segmentation 13
Check with Michele. Could we
spend more at Grammy's, since
that's they're 4th favourite event?
RESEARCH LOG TEMPLATE
(AVAILABLE ON SHAREPOINT)
CLARIFY STRUCTURE CONCLUDEANALYZE

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To answer your problem-statement, you must use data relating to market
statistics, voice of customer, competitor comparisons…

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…And define your product/service capabilities and sales needs.

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Note, Quantitative findings justify your problem-statements;
Qualitative findings explain the quantitative findings
Definition Examples Sources
Quantitative
•Numerical and statistical
•Most suitable when the objective is to
measure or quantify data
•Answers the “what” questions
•Firm stock value
•Market share
•Net Present Value
•financial statements
•statistical studies
•surveys
•censuses
Qualitative
•Interpretive and insightful
•Most helpful when the goal is to understand
situations or provide context
•Answers the “how” and “why" questions
•Pending lawsuits
•Consumer trends
•Market perception
•press releases
•annual reports
•industry white papers
•analyst reports
It’s important to use both quantitative and qualitative observations to support your
recommendation. Combining both creates a balanced argument.

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Weigh your findings against your problem-statement and, in turn,
assemble your recommendations to address the problem statement
Your research log will show that the balance of your hypotheses are supported
by the breadth of your findings
Hypothetical
Solutions
you’ve assumed
Direction
supported by
Research

Logical Structuring
Why to use it and how it works
Section
3a

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Forces you to be “dead clear” about what you’re is
communicating to the reader; preventing messages
that are unclear, unintended, or intellectually empty
Enables you to identify gaps by anticipating and
responding to the reader’s questions before the
communication is delivered
Prevents the reader from “working” to understand the
message, thereby eliminating the possibility that your
message is misunderstood or ignored entirely
Having assembled your research log, we’ll now examine
how to logically structure your findings to supports your hypothesis
Values of Logical Structure

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Logical Structuring helps to simplify complex
recommendations into clear justifications for action
Original
Mort,
John Collins telephoned to say that 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. Don Clifford’s secretary says that
Clifford won’t return from Frankfurt until
late tomorrow. The conference room is
booked tomorrow, but free Thursday.
Thursday at 11:00 looks to be a good
time. Is that okay with you?
JC – not today;
HJ – tomorrow
after 10:30;
DC – not before
Thursday
Room not
available
tomorrow;
Room OK
Thursday
Is Thursday
OK with
you?
Mort,
Could we reschedule today’s 9:00
meeting to Thursday at 11:00? This
would be 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
available.
Logically Structured Reply
More
convenient
for JC and HJ
Room is
available
Permits DC
to attend
Reschedule
today’s
meeting to
Thursday at
11:00
Mini-Exercise
Observe how
the pyramid
forces clarity

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Governing Thought
States the answer to the question raised in the
readers mind – the single recommendation
Key Line
Major points that when taken
together prove the answer – the
logic behind your recommendation
Support
Data and facts that
support the key line
The “pyramid principle” is the basis of Logical Structuring – it’s how you
build the storyboard that becomes your strategy presentation
“PYRAMID PRINCIPLE” OF LOGICAL STRUCTURING

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3 Rules to building a logically structured pyramid
1. Ideas at any level must be summaries of the ideas grouped below
• Derived from high-level ideas
• Point of a paragraph is a summary of the sentences it contains
2. Ideas in each grouping must always be the same kind of ideas
• All ideas are from the same logical grouping
• Label idea with a plural noun
3. Ideas in each grouping must be in a logical order
• Deductively
• Chronologically
• Structurally
• Comparatively

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Company A should pursue D2C digital sales
and its first priority should be to defend
its current market share
Opportunities
and Threats
Co. A’s
current
customers
are more
likely to shop
online than
the general
population
Co. A’s
competitors
are
increasing
their online
product
assortment
Without an
online
channel Co.
A risks losing
some
customers to
competitors
Co. A’s online
sales in 2015
could reach
$100mm
Primary benefits
of the internet strategy
Defend
market share
Grow
revenue
Develop
deeper
relationships
with
customers
Support Co.
A’s
operating
strategy
Wrongly, strategies are often structured around discrete tactics:
simply aggregating the tactics and justifications into a pyramid does not create a
strategy…
EXAMPLE OF AN UNCLEAR STRATEGY LAID-OUT IN PYRAMID FORM
In the bottom row of the diagram, note the insufficient reasons for supporting the strategy

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Co. A’s can reduce costs by $10mm
in the next 2 years through
operational improvements
Differentiate service
levels to save $2mm
Re-engineer core
functions to save $5mm
Outsource non-core
functions to save $3mm
Governing Thought
Key Line
Support
…but assembling your strategy by applying the reasoning principles of logical
structuring will ensure your approach is comprehensive, compelling, and clear
Segment
customers
by value
Determine
economic
level of
service for
each
segment
Shift lower
value
segments to
lower cost
channels
Evaluate
internal cost
of core
function
Compare cost
of function to
best-in-class
benchmarks
Adopt best
practices
based on
benchmarks
Select
non-core
functions
Evaluate
cost and
service level
of potential
partners
Choose one
partner for
each
function

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To translate your research into a logically structured strategy,
you must complete the following tasks
Write the introduction
The introduction establishes the Situation, Complication, Question, and Answer.
1
Work out the logic (i.e., Build the pyramid)
Each idea in the pyramid is logically related vertically to the idea above and
horizontally to other ideas on the line.
2
Group the Ideas
Ideas on a line are grouped in one of three ways: time order,
structure order or class order
3
Create the Storyboard
After developing the pyramid, the ideas are laid out in a
storyboard format; you’re then able to turn the storyboard
into your strategy presentation
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4 TASKS TO BUILD YOUR STRATEGY FROM YOUR RESEARCH

Logical structuring
How to write a compelling introduction
Section
3b

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The introduction is the foundation of your strategy,
once it’s written your strategy will flow easily
1
2
Group the Ideas
3
storyboard format; you’re not ready to turn the storyboard
4

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A strong introduction has three main elements
Contain the three
elements of a story:
1. The situation
2. The complication
3. The solution
implicitly
answering a
question
Set up the relevant
question on a
reader’s mind that will
be answered in the
document
Remind the reader
of the issues rather
than inform

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Introduction A
We are very pleased to have the opportunity to speak with you today.
We think that your business is very exciting and you have highly skilled
people working for you. We have many ideas on how we can help you,
which we would love to share with you.
Introduction B
As you are aware, growth in the insurance industry is slowing. Since
you have promised investors that you will achieve an annual EPS growth
rate of 20%, you need to investigate other opportunities for growth. We
believe the highest opportunity for growth is in the brokerage industry.
Fundamentally, the introduction tells a story that’s relevant to the reader
Which introduction appeals to you?

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4 REQUIRED ELEMENTS OF THE INTRODUCTION
When you’re using logical structuring, once you have detailed out the
introduction, the rest of your strategy will ladder up underneath
Answer
A statement about the
subject with which you
know the reader will agree
The complicating event
that creates the tension
in the story
• Situation:
• Complication:
The implicit question
that results from the
complication
• Question:

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A well-designed introduction is composed of 4 parts,
the Situation, Complication, Question (S-Q-C) and Answer
1. The Situation
• Starting point for your story
• Non-controversial statement
• Triggers the reader to wonder “so what?”
2. The Complication
• Follows the situation
• Introduces a disturbing event
• Should raise a question in the readers’ mind
– (that your document will then address)
3. Key Question
• The situation: complication can create questions
— What do we do?
— Is this the right solution?
— Why not?
4. Your Answer to the Question
The Superbowl is on
television on Sunday
I have work and other
activities I need to do on
Sunday
How do I …?

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You can create multiple S-C-Q scenarios with the same base information;
therefore, it is important to consider all options before settling on one solution
Situation: The Superbowl is on television on Sunday
Complication: I have other work and activities I should be doing on Sunday
Question: How do I prioritize my time on Sunday
Possible Answers: Activity prioritization strategies
Situation: The Superbowl is on television on Sunday. I would like to watch it but have to complete a number of
work/activities during the day
Complication: The work activities necessitate getting together with my team
Question: How can I combine meeting with my team and watching the Superbowl
Possible Answers: Facilities identification & ground rules for multi-tasking
Situation: The Superbowl is on television on Sunday
Complication: I have other activities that I should be doing on Sunday
Question: How can I change my commitments to have Sunday off work
Possible Answers: Negotiation strategy to change my commitments
EXAMPLES OF SITUATIONS WITH MULTIPLE SOLUTIONS

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Exercise 1. S-C-Q
• Develop S-C-Q alternatives for one topic
• Potential Topics:
– Organizing a client meeting
– Identifying resources required for a project
– Making a deliverable deadline
• Develop at least 2 alternative S-C-Qs for your selected topic
Mini-Exercise
Creating
multiple
S-C-Qs from
the same
challenge

Logical structuring
How to build support for your approach
Section
3c

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With your introduction set, you’ll now use your research findings to define
the answers to your problem-statement
1
2
Group the Ideas
3
storyboard format; you’re not ready to turn the storyboard
4

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The pyramid imposes a vertical Q&A dialogue with the reader;
the horizontal groupings answer the question
Vertical Logic
• Creates a question and
answer dialogue
• Pyramid asks questions
until there are no more
questions raised by the
answers given
• Typical questions:
– Why?
– How?
– How do you know?
Governing Thought:
Key Line:
Support:
Horizontal Logic
• Logically answers questions raised vertically
• Logic/reasoning used to answer questions:
– Inductive
– Deductive
Action

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Vertical Logic Questions
How?
Why?
Action
Conclusion
Step Step Step
Reason Reason Reason
We must redesign customer
service to take advantage of
$10 million in savings
Redirect
volume
Improve
organizational
efficiency
Establish
operational
standards
We should purchase
a new office building in Atlanta
We need more
office space
It is the least
expensive
option
It is a more
convenient
location
Structure Example

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Company A must
develop a value
proposition tailored to
the Millennial market.
Understand the unique
needs of the Millennial
market
Adapt product line to
meet the younger
market’s needs
Educate the Millennial
market on Company A’s
ability to
meet their needs
Governing Thought:
Key Line:
S: Company A must increase its
focus on the Millennial market
C: Company A is not currently
focused on the Millennial
market
Q: How can Company A increase
its focus on the Millennial
market?
Step 1 Step 2 Step 3
Answer: Vertical Logic – How?
How?

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Company A should
spend $25 million to
accelerate the approval
process
for D2C VB Accident
insurance
The D2C VB Accident
insurance market is
expected to top
$1 billion per year
Earlier approval allows
Company A more time
before enrollment
season, which is worth
$200 million in profit
MetLife is developing a
substitute that may
capture the market if
launched first
Governing Thought:
Key Line:
S: Approval for Company A’s new
D2C VB Accident insurance is
taking longer than expected
C: Company A can spend $25
million to accelerate the
approval process
Q: Should Company A spend $25
million to accelerate the
approval process?
Reason 1 Reason 2 Reason 3
Answer: Vertical Logic – Why?
Why?

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Quiz: Which Question is Raised - How or Why?
S: Ford’s plant is not meeting its production goals
C: The production line is frequently stopped because of insufficient parts
Q: What should the plant do differently?
A: 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: Books-a-Million, a book retailer, is considering developing an online channel
C: The online retail book market is dominated by 2 strong players
Q: Should Books-a-Million develop an online channel?
A: Yes, Books-a-Million should go online because it cannot afford to lose market share
S: You have undertaken a number of initiatives to improve customer service
C: Customer service continues to result in decreased customer satisfaction
Q: How can we improve customers service?
A: We must completely redesign customer service
Mini-Exercise
Determine if
these are HOW
or WHY
questions

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Vertical Logic Example – Delegating Work
Governing Thought:
By delegating
work I can meet
this week’s
project deadline
Some of the less
senior team
members could
complete the
work over the
next two days
Early drafts
of the
document
exists
Some team
members
are
currently
under-
utilized
S: I have a project deadline this week
C: I have to complete several action
items in order to meet the deadline
Q: How do I meet the deadline?
How?
Why?

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Exercise 2. Vertical Logic
Build a vertical logic tree using one of the alternatives from your selected S-C-Q (Exercise 1)
Governing Thought:
S:
C:
Q:
Key Line:
Answer
Mini-
Exercise
Build a
Vertical Logic
Tree

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There are only two possible horizontal logic flows
Deductive
Groupings
Deduction
Conclusion
• 1st idea makes statement about a situation that
exists
• 2nd idea comments on the subject or predicate
of the first
• 3rd idea states the implication of the first two
ideas existing at the same time
• Conclusion summarizes the argument of the
ideas
Presents an argument in successive steps
Inductive
Inference
Groups ideas related by their plural noun
Inductive
Groupings • Ideas are all the same type:
• Steps
• Reasons
• Problems
• Ideas described by the same plural noun
• Draw inference based on the
similarity of the ideas

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Deductive and Inductive Reasoning
German
tourists are
driving in
droves to
Krakow
Russian
tourists are
sampling the
delights of
Polish vodka
in Poland
Italian
tourists are
responding to
the joys of
Polish opera
Poland is becoming
a prime attraction
for European
tourists
Deductive Reasoning
Inductive Reasoning
French
tourists are
forsaking the
Riviera for
Warsaw
Birds fly I am a bird
Therefore, I
fly
I fly because I
am a bird
• The first point makes a statement
• The second point comments on the first
• The third point is the “therefore” point
• The point above summarizes the
grouping by taking the third point,
putting it above, and adding a
“because” to cover the other two points
• Ideas are all of the same kind (have the
same subject or the same predicate)
• They are all able to be described by the
same plural noun (e.g., reasons,
problems, steps)
• The point above states the insight gleaned
by seeing the similarity in the ideas
Thus, the rule of thumb is:
• In deduction, the second point
comments on the first
• In induction, the points are
separate and of the same kind

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Quiz: Which Logic is Represented?
1. To maintain its growth, Company A needs to move into new markets
– Company A needs to sustain a high growth rate
– The growth rate in Company A’s current market is slowing
– Company A needs to move into new markets
2. Acme Industries can increase revenue by $100 MM per year
– Develop an online channel
– Extend the product line
– Target new customers
3. Sow’s Ear Inc. should exit the silk purse market
– The silk purse market is stagnant
– Stagnant textile industries are unprofitable
– The silk purse division is not profitable
Mini-Exercise
Determine if
Inductive or
Deductive
Logic is being
used

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Answers: Which Logic is Represented?
1. To maintain its growth, Company A needs to move into new markets
• Company A needs to sustain a high growth rate
• The growth rate in Company A’s current market is slowing
• Company A needs to move into new markets
2. Acme Industries can increase revenue by $100 million per year
• Develop an online channel
• Extend the product line
• Target new customers
3. Sow’s Ear Inc. should exit the silk purse market
• The silk purse market is stagnant
• Stagnant textile industries are unprofitable
• The silk purse division is not profitable
Deductive
Deductive
Inductive
Related
Points
Related
Points
Unrelated
Points
Mini-Exercise
Determine if
Inductive or
Deductive
Logic is being
used

43
Summary
• Vertical Logic: Creates the question and answer dialogue between the parties
– Two typical questions raised through vertical logic are:
• How?
• Why?
• Horizontal Logic: Answers questions raised vertically
– Horizontal logic typically uses:
• Inductive reasoning - groups ideas of the same type that are related by their
plural noun
• Deductive reasoning - presents an argument in successive steps

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Exercise 3. Horizontal Logic
Create one Inductive logic stream and one Deductive Logic stream for your pyramid based on
two different Key Lines
Deductive Reasoning
Inductive Reasoning
Mini-Exercise
Create one
Inductive Logic
stream and one
Deductive Logic
stream

Storyboarding
Grouping your recommendations
Section
4a

46
Ideas in any grouping must be in logical order: there are only 4 different
ways to order your ideas
When using deductive reasoning, there is only one way to order your presentation:
The logical order of ideas for deductive groupings are imposed by the structure of the reasoning
Time Order Structure Order Class Order
Outcome
Step 2Step 1 Step 3
Company
Structure
Division
B
Division
A
Division
C
Universe of
Problems
3 Key
Problems
All Other
Problems
• Grouping items to reflect the
order in which they occur
• Always answer “how” question
• Grouping ideas in the order
that reflects what you see
once you visualize
something—by diagram or
map or drawing
• Grouping items because they
possess a characteristic in
common and are different from
other items in the universe
When using inductive reasoning, there are three possible ways to order your presentation
1. Time order
2. Structural order
3. Class/degree order
V.S.

47
Clarifying Grouped Ideas
• Organize ideas
into logical order:
– Order of
Importance
– Time Order
• Write the essence
of each category
• Define problem /
issue within each
idea:
• Ask “Why is
this a problem /
issue?”
• Identify:
– Patterns
– Categories
– Ideas
• Create a list of
key ideas:
– Findings from
interviews
– Research
– Analysis
List all Ideas
Identify the Type
of Issues
Summarize the
Ideas
Order the Ideas
Process to clarify grouping of ideas:

48
• The major causes of
businesses moving to
the country are:
– Ability to attract
and retain
employees
– High costs of
operating in the
city
– Office space
requirements
• Operational costs
• Office space
requirements
• Ability to attract and
retain employees
• Operating cost
• Office space
• Employee impact
• High city taxes
• Higher wage rates
• No room to expand
• Employees
commuting time
• City office space is
expensive
• Lack of public
transportation
• Lack of technology
infrastructure
• High city taxes
• Higher wage rates
• No room to expand
• Employees commuting time
• City office space is expensive
• Poor public transportation
• Lack of technology infrastructure
Clarifying Grouped Ideas: Example
Many businesses are moving out of cities & into the country due to the following:
List all Ideas
Identify the Type
of Issues
Summarize the
Ideas
Order the Ideas

49
Clarifying Grouped Ideas: Example (cont’d)
The major causes of
businesses moving to
the country are:
Ability to attract
and retain
employees
Key Line:
Governing Thought:
Employee
commuting
time
High costs of
operating in the city
Office space
requirements
Lack of public
transportationSupport:
High city
wage tax
Higher
wage rates
Expense of
office space
No room to
expand
Lack of
technological
infrastructure
Order of importance was dictated by a low
unemployment rate, a move to cost
management, and finally growth perspective
of most businesses in the city.
Why the
Order?
Why?

50
Don’t forget to apply the Rules of MECE to your pyramid
MECE = Mutually Exclusive and Collectively Exhaustive
Example
• Making Dinner:
– Select menu
– Buy ingredients
– Prepare courses
• Mobile Phone Types:
– Analog cellular
– Digital cellular
– Digital PCS
• Reasons to acquire
competitor:
– Complimentary
customer base
– Superior technology
– Digestible size
MECE
Mutually
Exclusive
Do any of the points
overlap?
Collectively
Exhaustive
Have all possibilities
been covered/or
explored?

51
MECE Example
• Which belong to a MECE Grouping?
1. Africa
2. Hong Kong
3. North America
4. Amazon
5. Australia
6. Manila
7. South America
8. Antarctica
9. Taipei
10. Asia
11. Europe
12. Hanoi
Mini-
Exercise
Which items
are MECE
and why?

52
We identified the
highest-potential area
for cost reduction in
credit card operations.
Identified all costs
involved in each division
within credit card
operations
Compared the costs in
each division to external
benchmarks
Governing Thought:
Key Line:
Calculated the variance
btw internal costs and
external benchmarks to
identify widest gap
Support:
Supporting ideas/data
One Common MECE Grouping Is By Time Order
Time Order Example

53
A Second MECE Grouping Is By Structure Order
Structure Order Example
Wallace Cheese, Inc.
needs to increase
profits.
Raise the price
per pound of
cheese
Reduce
manufacturing
cost per pound of
cheese
Governing Thought:
Key Line:
Support:

54
A Final Common MECE Grouping Is By Class Order
Class Order Example
Company A should
develop an integrated
customer service
strategy.
Customer retention will
improve, creating more
revenues.
Customer interactions will
be more structured,
reducing burden on reps &
increasing their morale.
Company A’s brand image
will improve.
Governing Thought:
Key Line:
Support:

Storyboarding
Creating the storyboard for your
presentation
Section
4b

56
Translating your well-structured pyramid into
a horizontal presentation (i.e., PowerPoint) is easy
From Pyramid to Storyboard
Cutting Edge Corporation
should close its razor
manufacturing operation
in Wisconsin and
manufacture razors in
Mexico
Overall costs in Mexico are
75% lower than in
Wisconsin,
resulting in recovery of
moving costs in 6 months
Key Line:
Governing Thought:
Mexico provides an
operating environment that
is as stable as Wisconsin,
ensuring continuity of
operations
Manufacturing technology is
more advanced in Mexico
than in Wisconsin, enabling
Cutting Edge to leverage
leading edge capabilities
Support:
One page for each idea
Page 2
Page 1
Situation
Complication
(Question)
Each requires
a set-up
page

57
Overview
Cutting Edge Corporation currently manufactures all
of its razors in a Wisconsin plant. The plant was built
50 years ago and the location selected because of its
proximity to key suppliers.
However, over the last 3 years, all of your key
competitors have moved their manufacturing
facilities to Mexico. Your key suppliers are also
beginning to move operations to Mexico.
1
Cutting Edge corporation should close its razor
manufacturing operation in Wisconsin and
manufacture razors in Mexico. Doing so will reduce
costs while ensuring operating stability and providing
access to world-class technology.
 Reduce Costs — Overall costs in Mexico are
75% lower than in Wisconsin, resulting in fast
recovery of moving cost
 Ensure stability — Mexico provides a stable
operating environment that will ensure
continuity of operations
 Improve capabilities — Manufacturing
technology is more advanced in Mexico,
enabling Cutting Edge to leverage leading edge
capabilities
2
S: Cutting Edge Corp. currently manufactures
all of its razors in a plant in Wisconsin
C: Cutting Edge’s key competitors have
relocated their manufacturing facilities to
Mexico
Q: Should Cutting Edge move its Wisconsin
plant to Mexico?
Your 1st page of your document describes the situation and
complication; the 2nd page provides the answer as well as the rationale

58
Key Line:
Governing Thought:
Support:
should close its razor
manufacturing operation in
Wisconsin and manufacture
razors in Mexico
Overall costs in Mexico are
75% lower than in
Wisconsin,
resulting in full recovery
of moving costs in 6
months
Costs are 75%
lower operating
generating
$10mm/year in
savings
The net cost of
moving from
Wisconsin to Mexico
is $5mm, half the
annual savings
The net cost of
moving will be fully
recovered in 6
month
Reduce Costs
 Labor Cost____
– ______
 Investment____
– ______
 Recovery
– ______ 3
Labor Cost
$22.4
34.0 41.9
57.5 67.2
53.9
1995 1996 1997 1998 1999 2000
4
Recovery
$22.4
34.0 41.9
57.5 67.2
53.9
1995 1996 1997 1998 1999 2000
6
Investment
120.0
$25.5
50.5
24.0
20.0
1996 1997 1998 1999 2000
5
The 3rd page will start to go through the support for
the governing thought using the top down approach

59
The Horizontal Logic of Storyboarding Leads the Audience
From One Page to Another – your horizontal logic becomes your headlines
– Can the headlines of the deliverable be scanned to determine the context of the document?
– Can the document tell a story without a consultant there to explain it?
– In the case of a Word Document, does the Table of Contents tell its own story about the flow of the
deliverable?
Deliverables require key
threads.
Threads flow through the
entire deliverable.
This creates a narrative
story.
A narrative’s logic can be
easily followed.
The narrative must be
understood by clients.
Understanding gives a
deliverable credibility.

60
The Vertical Logic (Content) On a Page Must Support the Headline
of the Storyboard
– Does the content of the page match the heading?
– Is the page clean, simple, and uncluttered?
– Does the page convey a message through the use of tasteful graphics and text?
E-tailors must focus on
increasing Volumes.
•Seen increase in volumes
over 3-year time period.
The company should build a
warehouse in Chicago.

61
The complete Story Board should mirror the structure of your pyramid

•
•
•
•
•
•
•
•
•
t)
FS
– –
K: FS
•
•
•
•
•
•
–
–
–

• • •
• • •
• • •
Labor Cost
$22.4 34.0 41.9
57.5 67.2 53.9
1995 1996 1997 1998 1999 2000
Labor Cost
$22.4 34.0 41.9
57.5 67.2 53.9
1995 1996 1997 1998 1999 2000
Overview
key suppliers are also beginning to move operations to
Mexico
1
Overview
Mexico
1
Reduce Costs
§ Labor Cost____
– ______
§ Investment____
– ______
§ Recovery
– ______
Overview
Mexico
1
Overview
Mexico
1
Reduce Costs
§ Labor Cost____
– ______
§ Investment____
– ______
§ Recovery
– ______
Ensure Stability
Macroeconomic
Environment
Macroeconomic
Environment
Labor UnionsLabor Unions
Legal
Infrastructure
Legal
Infrastructure
Text
Text
Text
Text
Text
Text
Text
Text
Text
Description
Relocating to Mexico
February 2001
Macroeconomic Environment
Chart Title: 14pt Bold, Title Case
Chart Subtitle:12pt, Title Case
Chart Units or Dates: 10pt, Title Case (e.g., $ Millions; Percentt)
Chart Title: 14pt Bold, Title Case
Chart Subtitle:12pt, Title Case
Chart Units or Dates: 10pt, Title Case (e.g., $ Millions; Percent
0
10
20
30
40
50
60
70
80
90
100%
1995 1996 1997 1998 1999 2000
0
10
20
30
40
50
60
70
80
90
100%
1995 1996 1997 1998 1999 2000
Labor Unions
• First level bullet
Secondlevel bullet
TitleText
•First level bullet
Secondlevel bullet
TitleText
Legal Infrastructure
First level bullet
– Secondlevel bullet
First level bullet
First level bullet
Label
10pt Bold,
Centered
Label
10pt Bold,
Centered
Label
10pt Bold,
Centered
Label
10pt Bold,
Centered
Label
10pt Bold,
Centered
Label
10pt Bold,
Centered
Label: 10pt Bold, CenteredTitleCase
Improve Capabilities
nProvision Cutting
•____________________
n Packaging
•____________________
nQuality Control
•____________________
Provision Cutting
First level bullet
ColumnTitle Text
First level bullet
First level bullet
First level bullet
ColumnTitle Text
First level bullet
First level bullet
• First level bullet
Secondlevel bullet
ColumnTitle Text
Secondlevel bullet
Secondlevel bullet
Packaging
$22.4
34.0
41.9
57.5
67.2
53.9
1995 1996 1997 1998 1999 2000
Quality Control
Label: 10pt
Times New Roman Bold
Label: 10pt
Label: 10pt
First level tablebullet
– Secondlevel table bullet
Text Description:
Text Description:
Text Description:
Next Steps
n_______________________________
n_______________________________
n_______________________________
n_______________________________
3
5 74
9 108 11
15141312
Overview
suppliers…
Mexico 1
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…
However, over the last 3 years, all of your key
competitors have moved their manufacturing facilities
to Mexico. Your key suppliers are also beginning
to move operations to Mexico
1
manufacturing operation in Wisconsin and manufacture
razors in Mexico. Doing so will reduce costs while
ensuring operating stability and providing access to world-
class technology.
§ Reduce Costs— Overall costs in Mexico are 75%
moving cost
§ Ensure stability— Mexico provides a stable operating
§ Improve capabilities— Manufacturing technology is
leverage leading edge capabilities
2
manufacturing operation in Wisconsin and manufacture
razors in Mexico. Doing so will reduce costs while
ensuring operating stability and providing access to world-
class technology.
§ Reduce Costs— Overall costs in Mexico are 75%
lower than in Wisconsin, resulting in fast recovery of
moving cost
§ Ensure stability— Mexico provides a stable operating
environment that will ensure continuity of operations
§ Improve capabilities— Manufacturing technology is
more advanced in Mexico, enabling Cutting Edge to
leverage leading edge capabilities
2
Investment
120.0
$25.5
50.5
24.0
20.0
1996 1997 1998 1999 2000
Investment
120.0
$25.5
50.5
24.0
20.0
1996 1997 1998 1999 2000
Recovery
$22.4 34.0 41.9 57.5 67.2 53.9
1995 1996 1997 1998 1999 2000
Recovery
$22.4 34.0 41.9 57.5 67.2 53.9
1995 1996 1997 1998 1999 2000
5 6

62
There Are Six Primary Storyboarding Pitfalls
#6 Visual mismatch
Support and headline are unrelated
#1 See below
Headline does not capture key idea of page
#2 So what?
Headline offers information but no conclusion
#3 Data dump
Support is not logically presented
#4 Orphan data
Support is not captured or introduced by headline
#5 Visual clutter
Page has too much and too complex information

63
Keep These Additional Principles in Mind When Developing Content
Clarity of message
The “point” of the slide should be clear within five seconds
Simplicity
Minimize clutter that obscures the message
Self-sufficiency of each slide
Slides should be able to stand alone and retain their meaning
Assumptions, notes, sources and file references MUST be documented on the slides
Logical flow
The headlines should convey a coherent “story” WITH A CONCLUSION
Each slide should link to the previous and next slides
Professional language
Avoid slang or business jargon

Storyboarding
Practice case
Section
4c
Mini-
Exercise
Complete the
following
practice case

65
E-mail from Steve to Company A Manager
Project Manager,
I’ve just landed in Germany and received an e-mail from another team on the ground at CareFirst.
Using information that they have access to, they have done some analysis and determined that CareFirst
should focus on a substantial workforce reduction. They have developed the detailed recommendation
slides and have asked me to include them in the presentation on Wednesday.
Could you please have the team to take a look at the attached slides, bubble them up into a
recommendation, and add it in as the third key recommendation in your presentation? I think this is a good
opportunity for us to touch on a lot of their areas of concern – leading to a great deal of work for Company
A.
Thanks,
Steve
Mini-
Exercise
Complete the
following
practice case

66
CareFirst still operates call centers onshore,
refusing to take advantage of reduced offshore rates
• TBD.
Position
# of
Employees
Onshore
Salary per
employee
Total Onshore
Salary
Offshore
Salary per
employee
Total Offshore
Salary
Customer
Service Rep.
223 $38,000 $8,474,000 $14,820 $3,304,860
Supervisor 15 $51,000 $765,000 $19,890 $298,350
Trainer 7 $60,000 $420,000 $23,400 $163,800
Manager 3 $89,000 $267,000 $34,710 $104,130
Totals 248 $9,926,000 $3,871,140
Total Savings:
~ $6 Million
Source: CMTAnalysis
Mini-
Exercise
Complete the
following
practice case

67
The Membership function has repetitive sub-functions resulting in
wasteful allocation of resources
• In Payments/Requisitions sub-function, CareFirst could eliminate eight positions resulting in
approximately $400K in savings per year.
• If all sub-functions are assessed, savings could reach over $2 million.
Functional Duplication
Data Entry
3 11
Payments
1 3
Proof & Ctrl
6 15
Investigation
2 8
4 5
Finance
9 40
Data Entry
2 6
Payments
2 13
Proof & Ctrl
1 1
Investigation
2 3
Proj. Mgt.
1 4
Finance
4 12
Payments
3 41
Proj. Mgt.
1 3
Finance
1 3
Consolidated
Bus.Accounts
CareFirst of
Maryland
Group Hosp.
& Med Srvs.
Membership
Proj. Mgt.
Function
Groups FTE
Key:
35
57
38
37
28
77
Total
FTEs
Data Entry
3 18
Proof & Ctrl
5 22
Investigation
3 26
Proj. Mgt.
4 16
Finance
3 22
BCBS of
Delaware
Source: CMTAnalysis
Mini-
Exercise
Complete the
following
practice case

68
CareFirst should remove approximately 160-290
employees in management positions to maximize efficiency
• By aligning CareFirst’s managerial span-of-control with Best In Class (BIC)
levels… TBD.
SMD/MD/EVP
SVPs
1st VP/VP
AVP
1 Headcount Data as of beginning of June 2006
2 Best In Class (BIC) based on Company A Healthcare
experience
Total Savings Range:
~ $16 – 29 Million
Number of
People
$ Millions3
Opportunity
Number of People
Potential Savings
3.2
Existing
286
$28.6
4
BIC
High2
3.6
BIC
Low2
Staff 4570 45704570
Management 1428 11421269
159
$15.9
Management:Staff Save Range
Management:Staff Ratio
of 1428:4570 or 1:3.2
Total Number of Management by Function
Number of People1, %
260
381
239
167
174
1428
46%
17%
27%
52%
81%
23%
Total
Management
Management as
% of Total Staff
207 85%
Finance 12% 23% 46% 19%
Marketing 13 24.1 59 4
Membership 11 24 55 11
Information
Technology
13 17 48 22
Human
Resources
19 13 44 25
Communications 12 18 41 29
CareFirst Total 13 21 52 14
Mini-
Exercise
Complete the
following
practice case

69
Exercise 4. Pyramid to Story Board
Work together as a team to complete the following:
• Organize your two recommendations, along with the workforce reduction strategy, into a
logically structured pyramid
– Your recommendations should include the pro-forma analysis targets
– Your support should justify the recommendation and the target so make sure to incorporate
assumptions, justification and rationale from the financial analysis exercise
• Using notecards, physically arrange your pyramid on a flipchart or on the wall for
presentation to the Project Manager
• Convert the content from the pyramid into a skeleton presentation deck; focus on
structure, slide titles and supporting information, not formatting
Mini-
Exercise
Complete the
following
practice case

71
Questions to the room…
• What was the most helpful section of the pyramid in structuring your
recommendations / presentation?
• What was the most challenging section of the pyramid to understand / develop?
• How was it to incorporate the workforce recommendation into your pyramid?
• If you were at a client site, how might you apply the pyramid on a day-to-day
basis?

72
Common Patterns for Introductions
Choosing Among Alternatives
Making a Recommendation
S: We want to do X
C: We have 3 ways to do X
Q: Which way is best?
Explaining “How To”
S: You must do X
C: You currently can’t do X
Q: How do we do X?
Do X in
Y way
Select C
Y is the optimal
solution
S: You are doing X
C: X is causing a problem.
Q: What should we do?
Examples
Company A is currently using a logistics
management system.
The system is not working properly.
S:
C:
How can we fix the system?Q:
A: You can fix the system by further
customizing the software.
Company A needs more office space.S:
Company A can build a new building, buy a new building
or lease additional space?
C:
Which alternative is best?Q:
Company A should buy a new building.A:
Acme has been growing revenue quickly.S:
Rapid growth has strained Acme’s operations.C:
What should Acme do to maintain operations?Q:
Acme should build 2 new operations centers.A:

73
Exercise 1: Grouping the Ideas
Senior management is
dissatisfied
with the current cost reports
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
Key
Line:
Governing
Thought:
Group the points into categories
Mini-
Exercise
Group the
ideas into
categories

74
Exercise 1: Grouping the Ideas
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
Key
Line:
Governing
Thought:
Timing TimingData Data DataFormat Format Format
Senior management is
dissatisfied
with the current cost reports

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