LOGICAL THINKING AS A CONSULTANT-2-DURING THE COURSE OF A STUDY TEAMS ARE CONTINUALLY MOVING FROM THINKING TO DOINGThe Problem Solving ProcessOrganisingThinkingDoingGenerate hypotheses/determine analytical paths/gather informationWriteworkplanWorking Slide 2Working Slide 1Draw conclusions from dataMap logical argumentFormulate recommendationsFinal Slide 2Final Slide 1Provide detailedfact base for presentationGather data,do analysisSlide Writing-3-DATA VS INFORMATIONData is .Information is .-4-WHAT IS DATA?One competitor has significantly lower overheadsBondexs market share is 40%Bondexs corporate policies not commonly applied across the divisionsCompetitors targeting middle segment have growing shareBondex has five divisionsData is a set of discrete pieces of informationHighLevelofAbstractionLow-5-WHAT IS LOGIC?Argument ABondex has five divisionsCorporate policies not uniformly applied across divisionsThis is creating conflicts in the way divisional performance is reportedNeed to align performance measurement for effective comparisons of performanceLogic is the system of relationships between those pieces of informationFlow of LogicArgument BBondex has five divisionsCorporate policies not uniformly applied across divisionsThis is because some policies run counter to key divisional objectivesCorporate policies need to be redrafted-6-IN A BROAD SENSE, ALL WRITTEN PIECES ARE LOOSELY STRUCTURED IN THE FORM OF A PYRAMIDExample Of A Written WorkBook TitleThe Zen MasterA Biography of Joe BlowChinas leading retail strategy expertThechildprodigyWorldwide business and expert authorReaching retail heavenChapterHeadingsSubsectionsParagraphsProgressively smaller, and more easily digestible pieces-7-ALL ELEMENTS OF EFFECTIVE COMMUNICATION ARE FOUNDED ON ONE SIMPLE PRINCIPLE . tailoring the information to your audiences perspective-8-WHAT IS THE COMMON PERSPECTIVE OF OUR AUDIENCES ?Your audience wants To be clear on the recommended path of actionTo take in what we are saying quickly and easilyTo have confidence in the validity of the materialThis is fulfilled by Action initiatives are immediately obviousTransparently clear progression of ideasAbsolutely convincing support-9-BUT, IN CONVENTIONALLY STRUCTURED DOCUMENTS CONCLUSIONS ARE BURIED AT THE ENDS OF SECTIONSA Conventional StructureTitle:Chapters:Subsections:Paragraphs:Sale of the siteRelocation of plant and machineryReallocation of staffAsset Deployment: Plant No. 7Sale of site will generate RMB x Bn-10-SOLUTION: CREATE A LOGICAL STRUCTURE - THE PYRAMIDFrom the Data .Golden Leaf Corp.Plant manager can replace retiring PM at Urumqi plantLocation provides valuable advantages to two prospective buyersPackaging machines can replace slower, low tech machines at UrumqiOperators can be absorbed at Artux where throughput is growingCentral For Double Happiness Inc. distribution outletsHarbin HoldingsThere are three prospective buyers for the sitesThese advantages are worth between RMB and RMB to eachMixing and filling equipment can be sold to private label suppliersSale of site will release RMB to RMB BnAdjacent to flour mill for Harbins bakery lineForemen and Chemist can be allocated to the new Beihai plantAll of No. 7 plants assets can be effectively redeployedAll staff can be retained for new positions in the new or higher capacity plantsDouble Happiness Inc.Therefore sale of site will release between RMB and RMB Bn Most plant and machinery can be sold or relocated . to the Storyline-11-THE LOGICAL PYRAMID IS THE BEST STRUCTURE FOR PRESENTING INFORMATION-BASED MATERIALThe essence of the argument is consistently extracted out of the body of detailConclusions raised prominently to the top of each sectionPresenting the material in a pre-interpreted form for easy assimilationEvery conclusion is grounded in a sound logical basis-12-CREATING A LOGICAL STRUCTURE FRAMEWORKKey message:Sections:Subsections:Paragraphs:Structure consists of a logical frameworkApplied Pyramid Structure-13-TO TEST THE SOUNDNESS OF YOUR PYRAMID STRUCTURE Are the groupings at each level mutually exclusive ? Does each summary point completely and validly summarise the components of the group below it ? Do the components of each group interrelate logically i.e. either . as a list of reasons, steps, pieces of evidence etcor. a chain of ideas that leads to a “therefore” conclusion-14-NOW ITS YOUR TURNGolden Leaf Corp.Plant manager can replace retiring PM at Urumqi plantLocation provides valuable advantages to two prospective buyersPackaging machines can replace slower, low tech machines at UrumqiOperators can be absorbed at Artux where throughput is growingCentral For Double Happiness Inc. distribution outletsHarbin HoldingsThere are three prospective buyers for the sitesThese advantages are worth between RMB and RMB to eachMixing and filling equipment can be sold to private label suppliersSale of site will release RMB to RMB BnAdjacent to flour mill for Harbins bakery lineForemen and Chemist can be allocated to the new Beihai plantAll of No. 7 plants assets can be effectively redeployedAll staff can be retained for new positions in the new or higher capacity plantsDouble Happiness Inc.Therefore sale of site will release between RMB and RMB Bn Most plant and machinery can be sold or relocated-15-IN LOGICAL STRUCTURES THE HEADINGS ARTICULATE THE KEY CONCLUSIONS WITHIN EACH PARTICULAR SECTIONLogic Structure For Plant No. 7Key Message:Sections:Subsections:Paragraphs:Sale of the site will release RMB Bn?All plant and machinery can be relocated at other minesAll staff can be retrained for new positions in the expanding divisionsAll of Plant 7s assets can be effectively redeployedStructure consists of a logical framework-16-THE LOGIC PYRAMID FOR PLANT NO. 7All of Plant No. 7s assets can be effectively redeployedSale of site will release RMB to RMB BnMost plant and machinery can be sold or relocatedAll staff can be retained for new positions in the new or higher capacity plantsThere are three prospective buyers for the sitesThe location provides valuable advantages to two buyersThese advantages are worth between RMB and RMB to eachTherefore sale of site will release between $ and $Mixing and filling equipment can be sold to private label suppliersPackaging machines can replace slower, low tech machines at UrumqiGolden Leaf Corp.Harbin HoldingsDouble Happiness Inc.Central For Double Happiness Inc. distribution outletsAdjacent to flour mill for Harbins bakery linePlant manager can replace retiring PM at UrumqiForemen and Chemist can be allocated to the new Beihai plantOperators can be absorbed at Artux where throughput is growing-17-HOW TO CONSTRUCT A POWERFUL PYRAMID LOGIC1.Begin by addressing the question that generated the project or module. Position the answer to that question at the top of your storyline2.Group your ideas into “MECE”Mutually exclusive . collectively exhaustive groupingsand formulate assertions which summarise each group of ideas3.Map out the thought line in a logic tree4.Link the ideas within each grouping viaInductive or . deductive lines of reasoningClarity of argumentSoundness of argument-18-THE LEAD THOUGHT SHOULD DIRECTLY ADDRESS THE QUESTION WHICH GENERATED THE PROJECT/MODULEProcess For Determining The Leading Thought Of A PyramidWhat is the subject I am considering?What is the central question my audience poses about that subject?What is my answer to that question?My answer to that question forms the leading thought which governs my pyramid and the structure of my presentationClosure of Plant No. 7Can Plant No. 7s assets be redeployed effectively after closure?YesPlant 7s assets can be redeployed effectively after closure of the mine-19-THERE ARE TWO FORMS OF REASONING TO APPLY (I)Inductive ReasoningDeductive Reasoning-20-A list of steps, reasons, pieces of evidence etc. for a statementWe must reduce our delivery time Customers are demanding it- 70% would pay more for less than 3 day service- 60% will switch suppliers for 30% increase in speed Competitors are providing it- Yukohmana can deliver in 1.5 days- Hawazaki can deliver in 2 daysWe must reduce costs to protect profits World cotton prices will remain low for 2-3 years With these prices, we will be unprofitable at current cost levels Therefore we must take steps to reduce costsTHERE ARE TWO FORMS OF REASONING TO APPLY (II)Inductive ReasoningDeductive ReasoningA series of ideas and evidence leading to a therefore conclusion-21-CONCLUSIONS AT EACH LEVEL MUST COMPLETELY AND VALIDLY SUMMARISE THE MATERIAL LYING BELOW THEMMost plant and machinery can be sold or relocatedPlant manager can replace retiring PM at UrumqiForemen and chemists can be allocated to the new Beihai plantOperators can be absorbed at Artux where throughput is growingKey Message:Section:Subsections:All of Plant 7s assets can be effectively redeployedSale of the site will release RMB Bn?All staff can be retrained for new positions in new or higher capacity plants-22-LEARNINGS FOR RESULTING STRUCTURE OF PRESENTATIONSExample: A Presentation Outline. . . .1st Slide1st Slide1st SlideMarket Summary (map)Executive Summary1993 Performance Review1994 PlanMajor Issues DiscussionSuccinct summary of plans ability to improve current performanceSuccinct summary of performanceKey supporting points substantiating conclusion above and road map to following slidesSuccinct summary of planSupporting points and road map. . . . . . . . . .(as above)(as above)CREATING HIGH IMPACT PYRAMID STRUCTURES IN YOUR DECKSMany Views - One Humble Managers Point of View “Go into seclusion and think deep thoughts”Who is your target audience (think also about the cultural setting)What is the message you want to convey (e.g. to convince, to motivate, to report out)What is the best way to get the message across (e.g., analogies, tricks, presentation effects) Write the story earlyDo not get lost in the data jungleFormulate your key hypotheses, write just titles, no slidesKeep it simple and straightforward (make the 15 second elevator test)Discuss it with your PL/Manager Determine the appropriate analyses and then slot in slides to bring your story to life Ask yourself throughout the process: Have I structured my output such that it is clear, accessible and logically transparentWhat does my pyramid logic look like can I easily construct itWHAT DO YOU THINK AND WHAT WORKS FOR YOU ?Techniques & Approaches