Resolve Complex Problems with

the PYRAMID principle

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

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

The • A desired change of the current situation

complication • Example : The CEO would like to increase his profit by reducing his
cost by 10%

•The question that implicitly results from the complication

The Question
•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 supporting arguments
Insert your introduction’s question
To communicate in a structures
way with a busy executive you Group, summarize
Insert your And order logically
should start with the answer to In Answer
the executive’s question first and your supporting
then list your supporting arguments
arguments
Why or How?

Insert your supporting Insert your supporting Insert your supporting

In
argument # 1 argument # 2 argument # 3

Why or How? Why or How? Why or How?

Insert Insert Insert Insert Insert Insert Insert Insert Insert

your your your your your your your your your
In
Supporting Supporting Supporting Supporting Supporting Supporting Supporting Supporting Supporting
Argument Argument Argument Argument Argument Argument Argument Argument Argument
# 1.1 # 1.2 # 1.3 # 2.1 # 2.2 # 2.3 # 3.1 # 3.2 # 3.3
 Create a pyramid with your answer and supporting arguments- Example
How can the company reduce its cost by 10%?

The company can reduce

its cost by $5 millions
through some operational
improvements

Simplify core
Outsource non-core Review supplier cost
functions
Functions to save $3 To save $1 Million
Processes to save
Millions
$1 million

Select Evaluate Choose Design Compare Adopt best Select and Evaluate Renegotiate
Non-core Cost and One Current Current Practices Review Cost of Supplier
functions Service level Partner processes Process to Based on Current Potential Contracts
In Of potential for each Best-in- benchmarks Supplier Alternative And/or
partners function Class costs suppliers Choose
benchmarks 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

Ensure a vertical logic by In this example, each category only

Answering the question “why” or contains 3 subcategories, which is the
“how” ideal number for clear communication

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

Company X should
Conclusion outsource its non
core functions

Company Y
Company X is not Company Y is outsources its non
profitable profitable core functions

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

Company X
Conclusion should invest in
Industry Y

Industry is Competition Entry Barriers

attractive 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 supporting argument #1 Insert supporting argument #2 Insert supporting argument #3

Insert Key Message #1 Insert Key Message #1 Insert Key Message #1

Insert Key Message #2 Insert Key Message #2 Insert Key Message #2
Insert Key Message #3 Insert Key Message #3 Insert Key Message #3
Based on your pyramid, identify the slides you need to produce
1 2
Introduction
(Situation,
Answer
Complication &
Question)
Why or How?
3 4
Supporting Supporting
Argument Argument
#1 #2

Why or How? Why or How? 1

5 6 7 8 9 0

Supporting Supporting Supporting Supporting Supporting Supporting

Argument Argument Argument Argument Argument Argument
#1.1 #1.2 #1.3 #2.1 #2.2 #2.3
Then create a storyboard to have an overview of your presentation

1 Company’s profits 2 We should Outsource 3 Competitor X is

are decreasing profitable

4 Company X has 5 But Company X has 6 50% of it’s core

same revenue as us lower cost 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 3 Key Message #3

Vertical Logic: Texts , diagrams and

charts should support the key messages
Lets do this case
THANK YOU