CTT-5A-Getting To The So What - Document - To Share

STAR: Sinarmas Training and Development
Academy
Driving Analysis to Insight: Getting to the "So What"
August 2017
Our training today: Getting to the "So What"
Copyright © 2014 by The Boston Consulting Group, Inc. All rights reserved.
This document is for training participants only and is not to
be distributed to others without explicit BCG permission
CTT-5A-Getting to The So What_Document- to share.pptx Draft—for discussion only 1

Getting to the "So What" is one of the five trainings in STAR
1 2 3 4 5
Hypothesis-Driven Modeling Structuring your Getting to the Leading effective
Problem Solving Analysis Message "So-What" meetings
• Defining the real • Designing, building • Translating • Understanding • Facilitating

problem and using a model hypotheses into a implications of effective meetings
• Formulating to validate logic clear and compelling analysis you • Handling
What is hypotheses and quantify impact story conduct challenging
it? • Defining required • Detailing and • Driving to clear, question
analyses to support visualizing the story actionable
the hypotheses in clear and recommendations
powerful slides
• Ensures focus: • Ensures analytic • Ensures clarity: • Ensures action: • Ensures impact:
Why
sets the right level of rigor: highlights the "so driving analysis to create and
does it supports what", allowing to actionable insights conduct effective
detail for the right
matter topics hypotheses with decide and take meetings
? logic and data action

Agenda
Introduction: setting the development agenda 30 minutes
The Four Key BCG Success Factors to get to "so what" 60 minutes
Break 15 minutes
Exercises: Try it yourself! 60 minutes
Wrap up: key learnings and how to "make it stick" 15 minutes

After structuring and analyzing problems, our next step is to
drive our analysis to insights!
"Always have an answer"
Frame & structure the Deliver high- quality

Drive to insight
problem analysis
Iterate if needed
"80/20 behavior"

Observations are often very apparent, but to get to insight
you have to go beyond the obvious
Many people have seen … but Isaac Newton took the next step to
these common occurrences … get insight as to why they happened
Law of Universal Gravitation
• "Two particles attract one
another with a force directly
An apple falling from a tree
proportional to their mass"
Newton's First Law of Motion
• "An object at rest tends to stay
at rest, and an object in motion
tends to stay in motion unless
acted upon by an external force"
A moving object … unless something

keeps going … else stops it
Like Newton, it is important to go beyond the

obvious and get to the "so what"

So ... what is "so what" in our context?
We are here to help you solve situations you might face
during your project work
Ahh ... I just finished

WHERE IS THE this business model
INSIGHT? ... but what is it
telling me?
Mr. Manager
This is just a bunch of
random numbers ...
what are you trying to
tell me??
- CEO

Our value comes from going beyond obvious observations
and showing what it means for our key stakeholders
Many people can point out these … but our value comes from getting to
common observations … the "so what"
"Sales are down 20% this year." "Sales are down 20% because of changes in
consumer preferences. Rebranding is required to
improve business."
"The distribution department is "The distribution department is performing poorly

performing poorly and packages are because the warehouse is unorganized and the
arriving late." shipping process must be improved."
"Customer satisfaction has been "Customer satisfaction has been declining
decreasing the past 18 months." because of poor support staff training, and
production quality issues."
"The market looks appealing." "The market is appealing because companies are
adapting the new technology and are wiling to
pay a premium over current offers."
Doing the right analysis is not enough, we must push

ourselves to connect the dots

For discussion: What do you want to get out of this training?
How is getting to the "so what" relevant for your work?

• Understand why being insightful is a critical skill to success
• Learn how to drive to insight effectively, following four key steps
– Understand the implications of your analysis
– Develop and select an actionable recommendation
– Know when further iteration is necessary to support you recommendation
– Avoid biases and errors common to PMO
What would you like to be able to do differently/better after this training?
• What specific skills on modeling would you like to improve?
• What would you like to do different next Monday?
• How would your coworkers/ clients/ boss notice the change?

Agenda
Break 15 minutes

The Four Key Success Factors for driving to insight
1
Understand implications
• Get to the "so what" of the analysis you perform
2
Build an insightful, actionable recommendation
• Create and select your recommendation
3
Iterate if needed!
• Meet the burden of proof for what you are recommending
4
Avoid common biases and errors
• Steer clear of common pitfalls as you develop your answer

1
2
3
Iterate if needed!
4

1
When getting to the "so what", it is critical to go
beyond the obvious
Cost target $120M Costs are higher

Go beyond the obvious Truck fleet costs $125M than expected
Take a step back and think about 1 Why?
Costs as % of revenue
what the analysis is saying Company Industry
(%) (%) Fuel costs higher
Labor 39 40 than industry
To go beyond the obvious, remember Fuel 37 30 2 Why?
• Think about what the stakeholder Mantainence 10 10
needs to do because of your analysis Pay a higher price
• Draw connections to other Price per gallon (avg.) than competition
experiences and work Company Industry 3 Why?
Price ($) 3.20 2.90
• Draw parallels to other areas within
the stakeholder No contract
with suppliers
4 Why?
A pragmatic tool to go beyond the
obvious and get to the "so what" is Drivers negotiate
the Five Whys contracts alone
• Use this to drill down further and 5 Why?
gain deeper insights
No central
procurement office
Strive to reach multiple layers of insight

and keep asking "why?"

1
The "so what" exists at all levels of the case
• What will it take to implement?

Stakeholder • How does this fit in with the stakeholder's broader agenda?
• How will this impact the stakeholder's business? Does it change how they look at it?
• What is the central question you are trying to answer?

Case • What is the case "answer" and resulting recommendation?
• What other critical questions have been identified thus far?
• What does this analysis mean?
Module • Why are the results of this analysis important?
• What are the next analyses/right options going forward?
• What is the key takeaway from the slide?

Slide • Where does this information fit in the overall story?
• Does this slide build on or relate to another point?
Remember: What does this analysis mean?

Why is it important? What are the next steps?

Example: Get to the "so what"
From our model What is the "so what"of this information?

Time to
serve (Min) Large Medium Small What does this analysis mean?
Delivery 15 15 10 • Reducing sales time could greatly increase
time—Merch.
driver productivity and visit speed
Delivery 15 10 5
time—Picking • Taking away sales duties from the drivers
Delivery 10 5 5 would yield significant savings
time—
Client/Sales
Total 40 30 20 Why is it important?
Delivery
563,184
• The drivers currently are using valuable truck
savings($)
capacity when selling product
If we remove the sales task from delivery … • The company may be able to reduce its truck
Time to fleet and drivers
serve (Min) Large Medium Small
Delivery 15 15 10
time—Merch. What are the next steps?
Delivery 15 10 5 • Look at potential cost of hiring a sales team
time—Picking • See if reducing driver count is an option
Delivery 0 0 0
time— • Investigate potential losses in sales
Client/Sales from change
Total 30 25 15
Delivery
2,206,330
savings($)
We can save about $1.64M in delivery costs by removing sales duties
from the truckers' tasks at a stop

1
2
3
Iterate if needed!
4

2
You need to move beyond analysis and integrate the

"so what" into actionable recommendations
… an effective analysis draws out key
Your initial results after analysis insights and integrates them into
are often just observations … recommendations
General results (e.g., numbers only) Explains what the numbers mean
Limited insights, first level of implication Takes it to the next level, digs further
Usually stand-alone Connects to other modules and the big picture
Informative but not actionable by itself Show the next steps and spurs stakeholder to
action
"Cheese revenue is down since last year.
Name Brand sales have decreased "The Store Brand is cannibalizing our other
significantly. However, our cheaper Store brands.
Brand's sales almost doubled since we By returning the Store Brand to its previous price,
lowered the price by 33%" this business owner will be able to improve
cheese revenue"
And reorganize around

Work out what you analyzed
what your stakeholder wants to know

2
A recommendation is essentially the "so what" packaged

for your key stakeholder
Ensure that As you translate your insights into

your recommendations are … recommendations remember …
... actionable ... to push to insight early and tell the
• Spurs the stakeholder to action stakeholder what to do
• Ensures the stakeholder knows what to do • Put a stake in the ground
next • Build a plan the stakeholder can execute
• Know your priorities when deciding
... specific ... that your decision is not isolated
Lays out a definite plan • Leverage your team
• Gives the stakeholder precise steps rather • Consider your decisions in stakeholder
than context
• vague concepts • Look ahead to future consequences of
your recommendation
... insightful ... to be brave

• Goes beyond an observation • Risks and mistakes are okay
• Move from discovering a problem to • Look for lessons learned from mistakes
showing the fix • Seek small successes or improvements

2
Example: Create actionable, specific, and insightful

recommendations
Good recommendations Less effective recommendations
"Dairy Co. should reduce the driver and "Drivers waste 5–10 minutes on sales
truck count by eliminating the sales task when they serve stores."
from their drivers' responsibilities, • Actionable ✗
allowing drivers to serve 20% more • Specific ✓
stores." • Insightful ✗
• Actionable ✓
• Specific ✓
• Insightful ✓
"Dairy Co. should replace the driver sales "Dairy Co. could save $1.6MM by taking
task with a dedicated sales team. away the driver sales task and using a
Using specialists will generate delivery sales team instead."
savings and improve sales" • Actionable ✗
• Actionable ✓ • Specific ✓
• Specific ✓ • Insightful ✓
• Insightful ✓

1
2
3
Iterate if needed!
4

3
Iterating will help refine your analysis & recommendations
What does it mean to iterate? Why is iteration an important step?

• Continuously create and test new hypotheses • Allows you to sharpen your answers and
arising from your analysis and conclusions build robust support for you recommendation
• Utilize previous analysis and synthesize it • Lets you see the problem from multiple perspectives
with new information to get to insights • Lets other people help you
• Iterating is not doing the same thing over
and over again!
"Always have an answer"
Frame and structure Deliver high
Drive to insight
the problem quality analysis
Iterate if needed
"80/20 behavior"
Repeatedly: Refine your hypothesis → Conduct analysis →

Synthesize your conclusions

3
Tips to keep in mind when you iterate
Push the boundaries, go beyond the typical analyses

• Further look at nonobvious patterns in the data
• Insist on understanding inconsistencies and outliers
Approach the problem from different perspectives

• Question the assumptions or constraints of the business
You are not alone: Leverage your team meetings and peers
• Come with high-level analysis/data sample/preliminary answers
• Get colleagues to think with you: push from data, to insight, to recommendation
Keep iterating until you have the support needed

for your recommendation

3
Example: Iterate!
Hypothesis Analysis Conclusions
Getting rid of sales Removing sales

Driver productivity can be
would save $1.6M in task could improve
increased
delivery costs profitability
Iterate!
Sales team replacing Sales losses and team Driver count reduction
drivers would increase costs are $1M less than could improve profits
profits driver savings by $1M
Iterate!
Remove sales task from

Driver and truck count can Route distances allow for
drivers and create sales
be reduced by 20% and reductions of max. 15% in
team for $700K in
15% respectively drivers and 10% in trucks
annual savings
Final recommendation: By removing the sales task from the drivers and creating a sales team to perform
all sales, business owner can save $700K annually from reduced truck and driver needs

1
2
3
Iterate if needed!
4

4
When developing a solution, it is important to keep an
open mind and see the problem through multiple lenses
Discussion: Examples of biases you may have encountered

4
Example: Avoid biases
Biased statement How to avoid biases Improved statement

"From the analysis, it looks Overconfidence effect "From the analysis, it looks
like we need to go tell them to • Do not judge options like removing sales tasks
get a sales team and cut prematurely from drivers. Can we eliminate
driver count right away." • Increase alternatives other tasks instead?"
"I spent a week analyzing data Sunk-cost bias "I spent a week looking at
without identifying anything to • Ignore sunk costs data and it looks like they
change. I need to spend more • It is okay to admit mistakes have industry-leading
time to find something practices. I should expand my
to suggest." work into other areas now."
"In my last case, the problem Anchoring bias "In my last case the problem
was related to the driver • Ask yourself if you are being was related to the driver
unloading time, I should unduly influenced by unloading time, I should keep
spend a week seeing if that's information that is recent it in mind as I work through
the problem here." or vivid the problem."

Agenda
Break 15 minutes

Agenda
Break 15 minutes

Exercises
Getting to the "So-what": Exercises
You will now receive slide handouts containing lots of data and analysis
Objective of this exercise: Translate this analysis into clear, actionable insights
• Craft a title that captures the 'so-what' of the slide
Way of working:
• Form pairs
• Per pair: choose 2 information sheets and transform them in to slides (20 minutes)
• Every group presents their slide (5 minutes) followed by group feedback (5 minutes)

Exercises: Getting to "so what"
Exercise 1
Client: PE fund
Write the title Case: Industry landscaping BCG case
context
Glo ba l foo dservi ce e qui pmen t market size 1 ($ B)

80
+4.0%
CAGR C AGR
'0 4-'11 '11-'16
60 57
55
+4.5% 52 9% RoW +3. 9% +4. 5%
51 9%
49 9%
47 9% 8% I ndi a +13.2% +8.9%
42 45 9% 7%
40 43 9% 7% 9% A sia 2 +5.5% +5.4%
5% 7%
Lots of data
34 38 5% 9% 7% 9% .
d
36 4% 9% 9% 6% 9% 9% ve
40 4% 5% 6% 9% 10% L. Am erica +7. 8% +5.8%
r
e
4% 9% 9% 10% s
e
8% 9% 10% r
and analysis
9% 9% 10% ts
9% 8% 8% 10% 10% 9% Japan +0.2% +0. 4% h
9% 8% 9% 9% 10% 10% g
ri
8% 8% 9% 10% ll
8% 8% 11% 11% A
8% 12% 12% 12% .
c
14% 13% 17% 17% 18% China +13. 7% +6.9% n
I
14% 16% 16% ,
15% 12% 14% 15% 15% p
u
20 10% 11% o
r
9% 9% G
g
18% 18% 17% 17% 16% US +1.4% +0. 8% in
23% 22% 22% 21% 20% 19% tl
23% 23% su
n
o
C
n
23% 22% 22% 21% 21% 21% 21% 20% 20% 20% W . Europe +2. 3% +2. 8% o
st
25% 24% 24% o
B
0 e
h
T
y
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 b
4
1
0
2
©
1. Mar ke t for foods ervice equipme nt estimated by a pplying ave rage % equipme nt spend/ye ar to total foodse rvice f ood co st (includes bever ages) , which is the a va li a ble d ata f rom t
h
Dat amonitor . % equ ipment spen d/year calculate d b y taking straight line dep reciation of initial capex of vario us QSR food service establishm ents as a % of food cost (estim ated throu gh g
i
ry
annual repor ts and exper t inter views). FSR and cost-foo dservice %sp end appro xim ated at the lowest end of QSR's spend. Depreciat o i n: 7-8 yr s for QSR and F SR, 10-12 years for cost p
o
foodservice . Dema nd for '15 and '16 are extrap olated based on 11-'14 CAG R 2. Asia oth er t han Jap an, China, In dia C
Sour ce: Datam onitor Globa l Foo dservice Analyzer 2011, exper t inter views, BCG analysis
G e ttin g to th e s o wh a t-SL -S IN-1 3 Ap r2 0 14 .pp tx Dra ft—for discuss ion only 38
Task: What is the 'so what'?

What is your recommendation?

Agenda
Break 15 minutes

The Four Key Success Factors to Drive to Insight
1
2
3
Iterate if needed!
4

Personal reflection diary: Key learnings on Getting to the "So-
What"
What are the most important learnings from this training for me?
What will I do differently on my next data? How will others notice the change?
What could prevent me from making this a structural and What am I going to do to make sure this improvement will
lasting improvement? "stick"?

Next Training will equip participant with delivery & discussion
skills
1 2 3 4 5
Hypothesis-Driven Modeling Structuring your Getting to the Leading effective
Problem Solving Analysis Message "So-What" meetings
• Defining the real • Designing, building • Translating • Understanding • Facilitating

problem and using a model hypotheses into a implications of effective meetings
• Formulating to validate logic and clear and compelling analysis you • Handling
What is hypotheses quantify impact story conduct challenging
it? • Defining required • Detailing and • Driving to clear, question
analyses to support visualizing the story actionable
the hypotheses in clear and powerful recommendations
slides
• Ensures focus: • Ensures analytic • Ensures clarity: • Ensures action: • Ensures impact:
Why
sets the right level of rigor: highlights the "so driving analysis to create and conduct
does it supports what", allowing to actionable insights effective meetings
detail for the right
matter topics hypotheses with decide and take
? logic and data action

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STAR: Sinarmas Training and Development

CTT-5A-Getting to The So What_Document- to share.pptx Draft—for discussion only 1

• Defining the real • Designing, building • Translating • Understanding • Facilitating

CTT-5A-Getting to The So What_Document- to share.pptx Draft—for discussion only 2

Introduction: setting the development agenda 30 minutes

Wrap up: key learnings and how to "make it stick" 15 minutes

CTT-5A-Getting to The So What_Document- to share.pptx Draft—for discussion only 3

"Always have an answer"

Frame & structure the Deliver high- quality

CTT-5A-Getting to The So What_Document- to share.pptx Draft—for discussion only 4

A moving object … unless something

Like Newton, it is important to go beyond the

CTT-5A-Getting to The So What_Document- to share.pptx Draft—for discussion only 5

Ahh ... I just finished

CTT-5A-Getting to The So What_Document- to share.pptx Draft—for discussion only 7

"The distribution department is "The distribution department is performing poorly

Doing the right analysis is not enough, we must push

CTT-5A-Getting to The So What_Document- to share.pptx Draft—for discussion only 8

How is getting to the "so what" relevant for your work?

CTT-5A-Getting to The So What_Document- to share.pptx Draft—for discussion only 9

Introduction: setting the development agenda 30 minutes

Wrap up: key learnings and how to "make it stick" 15 minutes

CTT-5A-Getting to The So What_Document- to share.pptx Draft—for discussion only 10

CTT-5A-Getting to The So What_Document- to share.pptx Draft—for discussion only 11

CTT-5A-Getting to The So What_Document- to share.pptx Draft—for discussion only 12

Cost target $120M Costs are higher

Strive to reach multiple layers of insight

CTT-5A-Getting to The So What_Document- to share.pptx Draft—for discussion only 13

The "so what" exists at all levels of the case

• What will it take to implement?

• What is the central question you are trying to answer?

• What is the key takeaway from the slide?

Remember: What does this analysis mean?

CTT-5A-Getting to The So What_Document- to share.pptx Draft—for discussion only 14

From our model What is the "so what"of this information?

CTT-5A-Getting to The So What_Document- to share.pptx Draft—for discussion only 15

CTT-5A-Getting to The So What_Document- to share.pptx Draft—for discussion only 16

You need to move beyond analysis and integrate the

Usually stand-alone Connects to other modules and the big picture

And reorganize around

CTT-5A-Getting to The So What_Document- to share.pptx Draft—for discussion only 17

A recommendation is essentially the "so what" packaged

Ensure that As you translate your insights into

... specific ... that your decision is not isolated

... insightful ... to be brave

CTT-5A-Getting to The So What_Document- to share.pptx Draft—for discussion only 18

Example: Create actionable, specific, and insightful

Good recommendations Less effective recommendations

CTT-5A-Getting to The So What_Document- to share.pptx Draft—for discussion only 19

CTT-5A-Getting to The So What_Document- to share.pptx Draft—for discussion only 20

Iterating will help refine your analysis & recommendations

What does it mean to iterate? Why is iteration an important step?

"Always have an answer"

Repeatedly: Refine your hypothesis → Conduct analysis →

CTT-5A-Getting to The So What_Document- to share.pptx Draft—for discussion only 21

Tips to keep in mind when you iterate

Push the boundaries, go beyond the typical analyses

Approach the problem from different perspectives

Keep iterating until you have the support needed

CTT-5A-Getting to The So What_Document- to share.pptx Draft—for discussion only 22

Hypothesis Analysis Conclusions

Getting rid of sales Removing sales

Remove sales task from