Structured thinking presentation

1. 1
Training: Pyramid principles &
structured thinking
Training materials for Project managers

2. What do you find in the training materials for project managers
Pyramid
thinking,
structuring
Choosing right
graph
Slide writing and
graphical
excellence
Telling story with
slide
Focus of this document
Hypothesis driven
approach
Structured thinking
Structured analysis
and workplaning
Slide-writing and
story-telling
Technical
Powerpoint &
ThinkCell
Presentation
skills & meetings
management
Everyday
project
management
360 communication
Find your style
Managing team
expectations
Collaboration and
group work
Technical abilities
of PowerPoint
Quickly making
slides
Making graphs and
timelines easy with
ThinkCell
Delivering key
messages
Public presence
Managing meeting
and your time
effectively

3. Learning objectives
 In this training session you will …
• Understand the value of structured thinking
• Learn a set of tools and practical tips on structuring analysis
• Understand Four steps to structuring thinking, analysis and work
• Starting developing of structured communication skill
• Practice these core skills
Overarching goal is to work and communicate as
efficiently and effectively as possible

4. What do you think is key in project manager job?
Applying for a job at IKEA
What it would be in project manager job?

5. Remember following to do's—you have 30 seconds!
Book a flight
Improve presentation based on feedback and sales director
Call Alexei from PMO - Clarify what to prepare for the meeting
Call to regional office - Make appointment and schedule
Reserve time of your team to work on slides
Book a taxi and hotel
Go through presentation to rehearse key messages
Call ticket agency regarding Saturday “Bolshoi” theatre opera
Gather regional sell-out market data
Print arrival instructions to regional office

6. To Do's
Flight
Hotel
Taxi
Instructions
Flow
Slides
Market
sell-out data
PMO
expectations
Reg office:
Schedule
Agency:
Bolshoi thickets
Make calls
Finalize
presentation
Prepare trip
to region
In our minds we structure information in pyramids
No matter whether it's tasks, questions, statements, etc.
Make "logical connection" explicit for others to
recognize it
The "logical
connection"

7. Explicitly state complication to solve & question to answer
Understanding leads to the key question of the project
Situation
Complication
Key question
Main statement/
answer
The company offers highly valuable products
Lack of internal alignment hinders
realization of revenue potential
Can the internal processes be optimized,
so that the revenue potential can be realized?
Yes! Three things need to be done ...
Which information is relevant
within the context?
What issues here we are
trying to solve?
Questions to what
answers will lead to
solution?

8. Recognized
stable
situation
Something changed
Something could go wrong
Here's someone with a different
point of view
We need to decide between three
options
What should we do?
How can we prevent it?
Who is right?
Which one should we take?
Important to establish the relevant key question you are answering
• Because the question already exists in the audiences mind
• By stating the complication in a way to make the question obvious
"No need—no question—no attention"
The key question should be obvious given the complication
stated in the introduction
Situation Complication Key question
Source: Minto, The Pyramid Principle, 2002

9. Without a structure and connected plan you can have a chaos
of misdirected activities
Analytical path
A
Analytical path
B
Analytical path
C
Fact 1
Fact 2
Fact 3
Fact 4
Fact 5
Fact 6
Not relevant to this
problem
Wrong answer for
the CEO
Can’t translate into
simple,
implementable
solution
Back-breaking
effort to find this
out. Was it worth it?
Project
logic
invented in
retrospect
Rationale for
determining course
of action unclear

10. The facts of the project often lend themselves to different
ways to structure your flow logic
Conclusion
Conclusion
“The fact
jungle”
Structuring
thinking

11. What you said after BCG project about RTM update is partly
true – they increased some structure and transparency
11

12. Ideas at any level in the pyramid must always be
summaries of the ideas grouped below them
• Identification of the logical connection
• Exhaustiveness of supporting statements
Ideas in each grouping must always be the same
kind of idea
• Logically the same? ("apples and pears")
• Mutually exclusive
Ideas in each grouping must always be logically
ordered
• comparatively (first most important, second, ...)
• chronologically (first, second, third)
• deductively (premises, conclusion)
The introduction
establishes the
relevance of the key
question
... and the pyramid
answers it exhaustively
Each statement supports the main conclusion
The three golden rules of the "pyramid principle"
1
2
3
Source: Minto, The Pyramid Principle, 2002

13. Hypothesis-driven approach emphasises the key elements
of top down project thinking
Issue
Hypothesis
Sub
Issue
…
…
Issue
…
…
…
…
…
…
Issue
…
…
…
…
…
…
Systematic
Logical
Disaggregation
Of Problem
SYNTHESISING
ENVISIONING
PRIORISING
Science
Art
Sub
Issue

14. Should we invest
in particular
distributor by
giving him a
trade credit?
Does the
distributor have
all necessary
capabilities?
Is the distributor
growing PRR
market share?
Is the distributors
financially sound
and can return
the credit?
Why?
How? Which?
How much?
So
what?
"Obvious" questions connect main and supporting
hypothesis - and lead to a natural workplan
A statement
triggers questions
that get answered
by statements on
the level below
Drill down until
there are no more
relevant questions
within the given
context

15. Even within pyramid Important conclusions can get buried...
Implementation
of New PRR RTM
Sales performance
and efficiency,
RTM tools used
Sales potential and
requirements of
the market
Allocation of
resources and
implementation
support
" " " " " " " " "
Sales potential
of $M XX
PRR boost it’s
sales wherever
implemented new
RTM
New model of central
support and approach to
roll out is required

16. ...instead of being given adequate weight and elevation
Potential of $ XX M with
implementation of New PRR RTM
in regions with central support
Where do we stand
vs competitors in
RTM tools overall
and in regions?
What is sales
potential of PRR
brands in regions?
How should we
proceed with RTM
implementation
and what central
support required?
" " " " " " " " "

17. The main principle of the approach is that thinking always
drives doing …
Thinking Doing
Not this…
"What are we going to do with this?"
"What data is already available?"
"Better to talk with our clients/Director?"
"Let's play with the data we have"
But this…
Our service rate dropped due to
the customer feedback. An issue
is whether orders not assembled
and delivered right or we face out
of stocks and wrong sales and
operations planning?
"Better interview clients and make
analysis to understand our supply
chain…."
• Delivery performance
• Responsiveness
• Flexibility

18. What is good action/analysis?
Requires Thinking and Planning Before Doing/Analyzing
Good action/analysis is
• Relevant – helps to answer CEO
overarching question(s)
• Insightful – leads to direct
implications and actions they should
be taking
• Simple – easy to interpret and
explain, “tells the story”
• Timely
Undirected action/analysis
is often
• Interesting, but not relevant to CEO
specified objectives
• Data output
• Too complex, rarely efficient – difficult
for CEO to comprehend,
communicate and act upon
• Not timely, or back-breaking to make
timely
Objective: Get the best answer possible by conducting most
powerful and compelling analysis—with limited time and data!

19. Your approach to structuring project work:
link thinking pyramid with practical work plan
Thinking map
top down
Compile work plan
bottom up
Main message Question Answer Question Answer
"Introduce
product XYZ
everywhere"
Increase profits
Can be easily
introduced
Highly
competitive
Synergies
Cross selling
Better work load
High retailer demand
Lot of space available
Low costs
Weak competition
High market share
Why?
Why?
Why?
Why?
Build storyline as analysis
progresses

20. Specify tasks and timing in the activity schedule
xxx
Subissue
xxx
Issue Analysis
xxx xxx
Data
source
xxx
Resp
xxx
Date
xxx
Output
Work
time
xxx
Major
questions to
answers to
which could
form recom-
mendations
formatted to
yield a yes/no
answer
(implying
action)
More detailed
questions, the
answers to
which will
collectively
solve a major
problem issue
Not likely to
have yes/no
answers
few very
specific
exercises to
gather data
and calculate
answers to
issues—the
action steps
The end
production of
the action
Where to find
the data
The
person
re-
sponsible
for the
action
Focuses on solving
the right problem
Focuses on managing
activity

21. Timeline is a sanity and coherence check
Timeline example for three-month project
1 2 1 3
3 4 4 2
Data gathering
• Set up teams
Analyses
• Internal research
• Internal interviews
• Comparable
analysis/interviews
• Customer interviews/feedback
• Detailed study
Deliverables
• Develop concept and refine
• Target market analysis
• Competitive environment
• Determine key success
factors
• Gap analysis
• Financial return
• Risk assessment
• Recommendations
Month 1 Month 2 Month 3
2 3 4
1
Meetings
• Steering committee

22. Recap of structured top-down approach: Four steps to a
structured workplan
Prepare, clarify
and align
Explore,
specify and
structure
Plan your work 4
Identify tasks/timing
• What tasks are involved in getting there?
• Over what timeframe?
W
o
r
k
t
i
m
e
3
Establish a structure
• What are the issues/subissues?
• What do we need to know to test this assumption?
1 Establish an understanding of the problem
• What problem are we trying to solve?
2
Establish hypotheses/running answer
• What do we think is the root cause of the
problem?
Hypothesis/thinking driven—instead of action-driven

23. Some final thoughts
 Structured approach to problem solving...
 ... reduces the anxiety surrounding project assignment
 ... gives you more control
⌐ over the content of your work
⌐ over your schedule
 ... makes the working process more transparent and predictable
⌐ Drives you and the rest of the team to answers more quickly
⌐ Allows you to link analysis together
⌐ Engages necessary experts
 ... simplifies the preparation Steering Committee meetings and PMO
reviews
 ... provides excellent practice for leading teams
⌐ You may be managing people and work sooner than you think

24. Agenda
Practical exercise 1

25. Exercise A: Formulate introduction and hypothesis, issues
tree and workplan at project at the 'Phoenix'
Imagine you has just started a project for new called Phoenix. You have been staffed on this project
with other 2 team members
Just before leaving for a trip in Paris, your director has sent you email asking you to think through key
issues and analysis. She told you that
• Phoenix manufactures and installs hot water systems based on solar energy for
residential/commercial use
• They have 8,700 employees and generated ~ €900M last year
• Phoenix is quality leader in the market
• It is still not profitable after five years in the market
• Preliminary analysis of key financial results shows that key competitor Thermo has achieved
profitability three years after entering the market
• Two Asian competitors are about to move into the market
• After many unsuccessful cost cutting initiatives motivation among the staff is low
• The owners have requested the CEO—who hired You —to make Phoenix profitable over the
next two years
Before you dig into work you want to align the 'introduction' (situation, complication, key question),
hypothesis and issues tree, and work plan before your director gets in the taxi to the airport
You have 30 minutes before you need to meet and
present to your Director

26. Agenda
Practical exercise 2

27. Prepare workplan in 30 minutes
Exercise: Wooden Boats Limited
You work at company that produces
wooden boats Your project
You have just been assigned on a
project at Wooden Boats Limited. The
company has recently experienced a
significant decline in profitability in its
core motor cruiser division
Your have following notes, information
and personal observations to work
together with your colleagues as a team
to generate a first cut at the issues
which will form the basis of the
workplan
You've got 30 minutes to make and present a workplan

28. Information about the company
Brief about the company
you work for
• Founded in 1923 by George Fraser
• IPO in 1978 to release cash to family members
• Rapid revenue growth in 80's and 90's
• Traditionally regarded as highest quality producer
in market based on craftsmanship of long serving
workforce
Info about Chief Executive –
Wooden Boats Limited
• Ex-Olympic sailor (Gold in 56)
• Joined in 1975 as CFO (from competitor)
• Managed IPO successfully and selected as CEO in
1980
• First CEO from outside family
– Historically very entrenched in the past
Industry
• Rapid consolidation of industry (3 significant
players now versus 28 in 1973)
• Increasing price competition in fight for scale
• Shift in demand towards more economical
materials such as fiberglass
• Cost of timber increasing with scarcity
Financials ($ M)
Sales
COGS
Admin,
etc.
PBT
Units sold
1997
130
78
22
30
1,
1998
145
87
24
34
1,810
1999
164
95
25
44
2,190
2000
148
104
25
19
1,740

29. Agenda
APPENDIX

30. Exercise: Create a pyramid with questions to structure your
approach—based on the introduction and your hypothesis
Situation
Complication
Key question
• Phoenix is quality leader, but unprofitable
• Key competitor is profitable
Owners demand turn around during highly challenging times
• Low motivation of staff after unsuccessful cost cutting initiatives
• Threat from market entry of Asian competitors
You have 30 minutes before you present the
"flip-chart“ to the group
Which levers are available and realistic to make Phoenix profitable within the next two years
considering the current challenges of low motivation and increasing competitive pressure?
... ?
... ? ... ?
... ?
... ?
... ?
... ?
... ? ... ? ... ?
... ? ... ?

31. Exercise A: One possible introduction
Situation
Complication
Key question
• Phoenix is quality leader, but unprofitable
• Key competitor is profitable
Owners demand turn around during highly challenging times
• Low motivation of staff after unsuccessful cost cutting initiatives
• Threat from market entry of Asian competitors
Which levers are available and realistic to make Phoenix profitable within the
next two years considering the current challenges of low motivation and
increasing competitive pressure?
Which information is relevant
within the actual context?
Why has you been hired?
To solve which problem?
Can the final outcome
be visualized?

32. Brief about the company
you work for
Info about Chief Executive –
Wooden Boats Limited
Industry
Financials ($ M)
• Founded in 1923 by George Fraser
• IPO in 1978 to release cash to family members
• Rapid revenue growth in 80's and 90's
• Traditionally regarded as highest quality producer
in market based on craftsmanship of long serving
workforce
• Ex-Olympic sailor (Gold in 56)
• Joined in 1975 as CFO (from competitor)
• Managed IPO successfully and selected as CEO in
1980
• First CEO from outside family
– Historically very entrenched in the past
• Rapid consolidation of industry (3 significant
players now versus 28 in 1973)
• Increasing price competition in fight for scale
• Shift in demand towards more economical
materials such as fiberglass
• Cost of timber increasing with scarcity
Sales
COGS
Admin,
etc.
PBT
Units sold
1997
130
78
22
30
1,
1998
145
87
24
34
1,810
1999
164
95
25
44
2,190
2000
148
104
25
19
1,740
Must be getting
old – is this
declining?
Any
chance of
tickets?
Is innovation an
issue? Are we
sub-scale?
Test total
market
size!!
What is
driving
lower
volume?
Too many
fixed
costs?
Information about the company