This document summarizes a lecture on structured problem solving and business analysis techniques. It introduces Minto's Pyramid Principle as a standard framework for logical analysis and clear communication. The lecture outlines building a Minto Pyramid through collecting facts, logical grouping, and synthesis. It assigns students to analyze a case study on Costco using the pyramid structure and present key insights in a 10-slide presentation with annotations, due in one week.

1. Lecture 2
Structured Problem Solving
Lecturer: Dr. Preston Teeter
MGTS7301
Tools and Techniques
for Business Analysis

2. Before we start:
1) Phones/electronics silent, off and away!
2) Say hello to the people around you;
you need a small group to discuss
questions
MGTS7301
Tools and Techniques
for Business Analysis

3. Outline
• Complexity and decision making
• Minto’s Pyramid Principle
• Activity: GoPro Case

4. COMPLEXITY AND
DECISION MAKING

5. Complexity and
decision making
These days, we are often faced with highly complex
problems that contain a number of inter-related issues.
Often, we do not possess all relevant information and face
severe time pressures to arrive at a solution. What’s more,
we must then communicate how we arrived at our
eventual solution in a clear and logical manner.
Consider the accident on Three Mile Island in 1979.
Which of these elements were present?
Watch video

6. ‘Everything should be made as simple as possible,
but not simpler.’
Albert Einstein

7. Common mistakes:
• Incorrect problem definition
• (Over)-reliance on ‘gut feelings’/intuition
• Improper prioritisation
• Number of facts ignored
• Recommendations incomplete
• Unable to communicate recommendations
Complexity and
decision making

8. Decisions
Conclusions
Clarity
Critical Thinking
Clarity
Conclusions
Decisions
Automatic Thinking
Weak foundations for decisions, less
time getting clear, and more time
needed for decisions
Strong foundations for decisions,
more time getting clear, and less
time needed for decisions
Complexity and
decision making

9. MINTO’S PYRAMID PRINCPLE

10. Barbara Minto
• Harvard MBA
• McKinsey consultant
• Principle now standard framework for analysis
and communication at all major consulting and
auditing firms

11. The Pyramid
Principle
• Facts need to be grouped logically
– Enables memory and communication
• Groups then need to be structured in a
hierarchy
• More than just groupings
– Rigorous analysis
– Creates clarity
– Results in insights

12. The Pyramid Principle
Facts
So what?
Findings
So
what?
Why/How
Why/How
Why/How
Key Line Governing Thought

13. The Pyramid
Principle
Rules
1. Ideas at each level must summarise, and eventually
synthesise, the ideas or facts grouped below them
2. Groupings must be logical, similar ideas or facts
3. Ideas/facts should be in a logical order

14. Synthesis vs.
Summary

15. Logical orders
Grouping type Example
Deductive (logical argument) Only birds have feathers. I have feathers. Therefore, I
must be a bird.
Chronological 1st, 2nd, 3rd
Design, build, operate
Structural America, Europe, Asia, Australasia
Comparative Most important, 2nd most important, etc.

16. MECE
• Groupings must be MECE
– Mutually exclusive
• No (or limited) overlap between groups
– Collectively exhaustive
• Comprehensive of ideas/facts below

17. The Pyramid
Principle

19. Introduction
• DO NOT start presentation/report with
recommendation!
• An introduction is always necessary
– Begin with what is known (less confrontational)
– Allows audience/reader to focus
– Allow audience/reader to follow argument

20. Introduction
• Situation
– Understandable and agreeable
• Complication
– What happened? What’s the problem?
• Question
– What decisions need be made?
• Answer
– Your governing thought/recommendation

22. The Pyramid
Principle
Steps in building a pyramid
1. Determine question or problem
2. Collect all the facts (use post-it notes)
3. Group them logically
4. Test and re-test MECE rule
5. Continue to group and synthesise
6. Develop governing thought, and SCQA
7. Test and re-test entire pyramid
8. Design presentation/report going in reverse

24. Assignment #1
• Using the case provided, you must:
– Analyse the case and take down all the KEY FACTS
(minimum 30, maximum 60).
– Organise your facts into a Minto Pyramid, this
pyramid will be an appendix to your slide deck.
– In 10 slides or less, translate your pyramid into a
slideshow presentation. Use annotations in the
speaker’s note function to give details not apparent
from the slides. (Title slide is not counted.)
– Submit by converting the speaker’s notes view (shows
slide and annotations) to PDF. Submit the PDF.

25. Assignment #1

26. Assignment #1
DON’T
• Make wordy or unprofessional slides with numerous
spelling or grammatical errors
• Plagiarise (including sentences from the case!)
• Give your pyramid or slideshow to other students
• Submit late (lose 1 point per day, even if just an hour
late)
• Forget to submit in pdf notes view format

27. Assignment #1
Consultation
• Draft review ONLY AVAILABLE in Lecture #3
– Bring draft of pyramid to class
– Partial drafts are fine, but limited feedback can be provided
– Draft review will be provided one-on-one after brief lecture
• After Lecture #3, please continue to ask questions
during class, in the forum or during consultation.
However, drafts cannot be reviewed after this point.
• Due Date: 30 August 2pm
• Case: Costco, available on the course site (Assessment)

28. ACTIVITY: GOPRO CASE

29. GoPro Case
Founded in 2002 by American Nick Woodman,
GoPro manufactures action cameras and
develops its own mobile apps and video-editing
software. Following its IPO in 2014, the
company’s share price tripled in price in just
over three months.
Watch video

30. Quiz #2
Based on the information in the case, please answer
the following:
1. What was the major business question going
forward for GoPro? Write out a brief SCQ. (No
need for an Answer)
2. What would a Minto’s Pyramid of the GoPro
situation start to look like? Start by analysing the
products on pages 7 and 8, according to the
MECE rule.

31. Questions?