Critical Thinking -pyramid 5yx6g

Resolve Complex Problems with the PYRAMID principle

Write an Introduction which contains the situation, the complication and the question

The Situation

The complication

The Question

• A neutral description with facts that you know your audience will agree on • Example : The company’s market is mature and does not offer growth opportunity anymore

• A desired change of the current situation • Example : The CEO would like to increase his profit by reducing his cost by 10%

•The question that implicitly results from the complication •Example: How can the company reduce its cost by 10%?

The Pyramid principle The Pyramid Principle helps to define complex problems, structure your reasoning into a coherent and transparent argument, and think creatively.

The Pyramid Principle has been invented by Barbara Minto. The Next slides will explain you how to quickly apply the pyramid principle.

Create a pyramid with your answer and ing arguments Insert your introduction’s question To communicate in a structures way with a busy executive you should start with the answer to the executive’s question first and then list your ing arguments

Insert your In Answer

Group, summarize And order logically your ing arguments

Why or How? Insert your ing In argument # 1 Why or How?

Insert your ing argument # 2 Why or How?

Insert your ing argument # 3 Why or How?

Insert Insert Insert Insert Insert Insert Insert Insert Insert your your your your your your your your your In ing ing ing ing ing ing ing ing ing Argument Argument Argument Argument Argument Argument Argument Argument Argument # 1.2 # 1.3 # 2.1 # 2.2 # 3.1 # 3.2 # 1.1 # 2.3 # 3.3

Create a pyramid with your answer and ing arguments- Example How can the company reduce its cost by 10%? The company can reduce its cost by $5 millions through some operational improvements

Outsource non-core Functions to save $3 Millions

Select Non-core functions

In

Evaluate Cost and Service level Of potential partners

Choose One Partner for each function

Simplify core functions Processes to save $1 million

Design Current processes

Compare Adopt best Current Practices Process to Based on Best-inbenchmarks Class benchmarks

Review supplier cost To save $1 Million

Select and Review Current Supplier costs

Evaluate Renegotiate Supplier Cost of Potential Contracts Alternative And/or Choose suppliers Alternative suppliers

Ensure that your pyramid is Mutually Exclusive and Collectively Exhaustive (MECE) Mutually Exclusive means that all items in each category belong only to that category

Collectively Exhaustive means that all the possibilities have been covered

Ensure that each category of your pyramid does not contain too many subcategories

In this example, each category only contains 3 subcategories, which is the ideal number for clear communication

Ensure a vertical logic by Answering the question “why” or “how”

Why or How?

Why or How?

Why or How?

Why or How?

You Can also use the horizontal logic within the pyramid

Horizontal Logic at the first level

Horizontal Logic at the second level

By using deductive logic A coherent and logical way of reasoning which automatically leads to conclusion

Conclusion

Company X is not profitable Situation

Company X should outsource its non core functions

Company Y is profitable

Company Y outsources its non core functions Observation

By using inductive logic A chain of non related statements which make it possible to draw a certain conclusion

Conclusion

Industry is attractive

Company X should invest in Industry Y

Competition

Entry Barriers

is low

are low

A list of Independent statements

The Template-Summarize introduction, your answer & Key hypotheses Introduction Situation Complication Question First Answer Replace by your own text

Insert ing argument #1

Insert ing argument #2

Insert ing argument #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

Insert Key Message #1 Insert Key Message #2 Insert Key Message #3

Based on your pyramid, identify the slides you need to produce 2

1 Introduction (Situation, Complication & Question)

Answer Why or How? 3

4

ing Argument #2

ing Argument #1 5

6

ing Argument #1.1

Why or How?

ing Argument #1.2

7

ing Argument #1.3

8

ing Argument #2.1

Why or How? 9

ing Argument #2.2

1 0

ing Argument #2.3

Then create a storyboard to have an overview of your presentation

1 Company’s profits are decreasing

2 We should Outsource

3 Competitor X is profitable

4 Company X has same revenue as us

5 But Company X has lower cost

6 50% of it’s core functions are outsourced

Ensure that your storyboard combines vertical & horizontal logic

Horizontal Logic: A presentation should be easily understood by only reading the key message of each slide

1 Key Message #1

2 Key Message #2

Vertical Logic: Texts , diagrams and charts should the key messages

3 Key Message #3

Lets do this case

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