Introduction to Pyramid Principle

8/12/2019 Introduction to Pyramid Principle

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INTRODUCTION TO PYRAMIDPRINCIPLE



Why this course

How to efficiently

communicate

Improve the effectiveness

of communication:

Communication means

solve the problem, theremust be clear and

valuable ideas

Improve the efficiency

of communication:

Communication to

let each other quickly

andaccurately understand

what you mean to

grasp the key points



• Writing Backwards -- The Pyramid

• The Governing Thought (TOPS)

• Logical Arguments

• Logical Groupings

• No Gaps, No Overlaps (MECE)

AGENDA



EVOLUTION OF STRATEGIC WRITING

Writing

sentences

Writing

stories

Writing

backwards

I

II

III







Dear Shirley . . .

I hate you

Reason #1 Reason #2 Reason #3

WRITING BACKWARDS (PYRAMID PRINCIPLE)



SOLVING THE PROBLEM

Facts Analyses Conclusions Recommen-dations

COMMUNICATING THE SOLUTION

Recommendations Actions/steps/reasons Facts/ analyses

What should be done? How or why should it bedone?

How do you know therecommendations are sound?



DEVELOPING A STRUCTURE FOR "WRITINGBACKWARDS"

Governing thought

Key line support

Support

Support



AGENDA

• Writing Backwards --The Pyramid


• Logical Arguments• Logical Groupings




"IF YOU WERE TO BOIL YOUR BOOK DOWN TOA FEW WORDS, WHAT WOULD BE ITSMESSAGE?"



GOVERNING THOUGHT

T O P STargeted to our

audience

Over-

arching

Powerful Supportable



GOVERNING THOUGHT -- IS IT TOPS?

The company has

potential in the A, B, and

C market segments

The company should enter

emerging market

segments aggressively to

preempt competition



AGENDA








Governing thought

Key line

support

Governing thought

ARGUMENT GROUPING



ARGUMENT STRUCTURE (DEDUCTIVEREASONING)

Key line

support

Governing thought

Non-controversial statementabout situation Comment on situation

Implication of situationand comment("therefore" point)



LOGICAL ARGUMENT - EXAMPLE

To improve sales, Dynamo should take immediate

steps to develop and execute a more targeted

marketing plan for the LX 20

As you suspected, some

manufacturing flaws have hurt

sales of Dynamo’s new system

LX 20

However, major cause of

disappointing sales is

Dynamo’s unfocused

marketing effort

Therefore, Dynamo should

take immediate steps to

develop and execute a more

targeted marketing plan



SOME ARGUMENT PATTERNS

Success requires X

Success requires X

You are pursuing X

You thought X was a

problem

Performance is not asexpected

You are not equipped to do

X

You are not focusing on X

Y would be better

Further investigation shows it

Underlying cause is X

Therefore, develop capability

for X

Therefore, shift focus to X

Therefore, change directionto Y

Therefore, shift focus to Y

Therefore, take steps to fixX



PROS AND CONS OF ARGUMENTS

Key line

Governing

thought

Noncontroversial statementabout situation

Comment on situation Implication of situation andcomment ("therefore" point)

Pros

Cons

• Demonstrates that no other avenue will work

• Can be particularly effective with resistant audiences

• If audience disagrees with "situation" or "comment," argument will fail to persuade

• Requires audience to remember much information before getting to "so what"



AGENDA








GROUPING STRUCTURE (INDUCTIVEREASONING)

Key line

Governing thought

Same kind of idea: • Reasons

• Examples• Actions



LOGICAL GROUPING EXAMPLE

To improve sales, Dynamo should take immediate stepsto develop and execute a more targeted marketing plan

for the LX 20

Explicitly identify

high-priority

segments and their

needs

Develop tailored

promotions and

sales aids

Establish

appropriate

customer contact

and follow-up

guidelines



IS THIS A GOOD GROUPING? -- 1

The division should takeseveral steps to improve

profitability

Shift strategic focus Reexamine salesforce

incentives

The improvement program

has important implications

for the organization




Planning for the

future

Implementing the

proposed planning system

will be costly and time-

consuming

It is not clear that the new

system will correct the major

weaknesses of the existing

system

Importance of good

planning

IS THIS A GOOD GROUPING? 3




Accounting system needs to

be modified

Retail stores have

not suffered major

profit decline

Variations in product

line profitability by

region not well

understood

Southern Region

only moderately

more profitable

Present store P&L

leads to wrong

decisions at store

level

PROS AND CONS OF GROUPINGS



PROS AND CONS OF GROUPINGS

Key line

Governingthought

Pros

Cons

•Major points easy to remember

•Very effective for action-oriented audiences

• If one point rejected, remaining points may still persuade

•Could be too forceful for some audiences



As you suspected,

some manufacturing

flaws have hurt sales

of Dynamo’s new

system LX 20

However, major cause

of disappointing sales

is Dynamo’s unfocused

marketing effort

Therefore, Dynamo

should take immediate

steps to develop and

execute a more

targeted marketing plan

Explicitly identify

high-priority

segments and their

needs

Develop tailored

promotions and

sales aids

Establish appropria

customer contact

and follow-up

guidelines

Dynamo should take immediate steps to

develop and execute a more targetedmarketing plan for the LX 20

Dynamo should take immediate steps to

develop and execute a more targetedmarketing plan for the LX 20

ARGUMENT GROUPING

Need for action vs. Actions

AGENDA



AGENDA

• Writing Backwards ?The Pyramid







Mutually Exclusive/Collectively Exhaustive

(No overlaps) (No gaps)M E C E

IS IT MECE? 1



IS IT MECE? -- 1

We should sell our house

• We need more room

• The house is old, and needs expensive basic repairs

• The kitchen is too small

• The furnace is broken

• There is too much traffic on our street

IS IT MECE? 2



IS IT MECE? -- 2

Entry barriers are low

• Minimal start-up costs

• No regulatory restrictions

• Little need for proprietary technology or expertise

• Qualified personnel readily available

IS IT MECE? 3



IS IT MECE? -- 3

The company should adopt an invest/grow strategy inthis business

• The market is favorable

• The business is strong

• Financial and market performance has been excellent

• The sales and financial outlook appears good

• Innovative marketing strategies have proved successful

BUILDING OUR PYRAMID



BUILDING OUR PYRAMID

• What is our main message (governing thought)? Is it TOPS?

• Should we use an argument or a grouping?

• Does our final structure pass the relevant logic test?

–For groupings, are the points logically the same (e.g., all steps, all problems, all benefits) andin the logical order?

–For arguments, does the second point comment on the first point in a way that leads to thethird point and only the third point?

–Do both arguments and groupings support their summary in a MECE way?

· Mutually exclusive (ME): Is each point used only once and in the best place?

· Collectively exhaustive (CE): Do we have all the points we need to support or defend thesummary idea?

GROUPING AND SUMMARIZING



GROUPING AND SUMMARIZING

1. Fix hole in roof

2. Get new floormats

3. Write newspaper ad

4. Get new overhead light

5. Fix the dents

6. Get rust spots painted over

7. Make sign for rear window

8. Write announcement for bulletin board

9. Vacuum interior

What do I need to do to sell my old car?

UNSCRAMBLE THE FOLLOWING



UNSCRAMBLE THE FOLLOWING

1. Kewpie has introduced a better-tasting sauce at a cheaper price

2. Ragu changed its sauce recipe and customers don’t like it

3. The US "pasta boom" is over

4. Competitor’s products are gaining favor

5. Trendsetters now prefer wild rice to spaghetti

6. Heinz has successfully launched an innovative new "Italian Prima" sauce

7. Ragu added more spices to the sauce

8. Spaghetti is once again perceived as a low-budget, starchy, and unexciting food

9. Hunt has increased its market share with its premium-quality "Donello" line

10. Ragu reduced the amount of meat in the sauce

11. US sales of Ragu spaghetti are declining as a result of adverse product development and

environmental trends



SOLUTION

GROUPING AND SUMMARIZING --SOLUTION



GROUPING AND SUMMARIZING --SOLUTION

1. Fix hole in roof

2. Get new floormats

3. Write newspaper ad

4. Get new overhead light

5. Fix the dents

6. Get rust spots painted over

7. Make sign for rear window

8. Write announcement for bulletin board

9. Vacuum interior

Get bodywork done(at bodyshop)

Spruce up interior

(at gas station)

Prepare

advertisements

(at home)

GROUPING AND SUMMARIZING - PYRAMID



GROUPING AND SUMMARIZING PYRAMID

Prepare to sell the

car

Fix hole inroof

Fix dents Repaintrust spots

Getfloor-mats

Get light Vacuum Write news-paper ad

Make sign Writeannouncment

Get bodywork doneSpruce up interior

Prepare

advertisements

RAGU SOLUTION



RAGU SOLUTION

US sales of Ragu spaghetti sauce are declining as a result of adverseproduct development and environmental trends

Ragu changed its saucerecipe and customersdon’t like it

Competitor’s products aregaining favor

US "pasta boom" is over

Ragu addedmore spicesto the sauce

(3)

Ragu reducedthe amount ofmeat in thesauce

(10)

Heinz hassuccessfullylaunched aninnovative new"Italian Prima"sauce

(6)

Trendsettersnow prefer wildrice to spaghetti

(5)

Spaghetti isagain perceas a low-budstarchy, andunexciting fo

(8)

Hunt hasincreased itsmarket share withpremium-quality"Donello" sauce

(9)

Kewpie hasintroduced abetter-tastingsauce at acheaper price

(1)

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Introduction to Pyramid Principle

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