Minto Pyramid Principle for writing Equity research reports, Business plan, Strategy reports and other consulting

Assignments
Logic in Writing, Thinking, & Problem Solving

Using Minto Pyramid Principle for writing Equity research reports, Business plan, Strategy reports and other consulting Assignments

Page 1

Contents
Introduction The Pyramid Logic Structure: What is It ? The Pyramid Logic Structure: Why Use It ? The Pyramid Logic Structure: Application Summary

Using Minto Pyramid Principle for writing Equity research reports, Business plan, Strategy reports and other consulting Assignments

Page 2

Traditionally, Presentations Lack a Cohesive Theme

Presentations are typically a summary of fact-based analysis

Major sections of document are not clearly linked together Individual slides are not clearly linked to each other or a common theme Individual slides lack a clearly defined or articulated main point or headline

Using Minto Pyramid Principle for writing Equity research reports, Business plan, Strategy reports and other consulting Assignments

Page 3

Presentations Require a Cohesive Theme To Be Persuasive and Inspire Action

Presentations should make a strong recommendation, provide facts
and conclusions in support of the desired option, and present the rationale for not selecting other alternatives Presentations should create client alignment around our recommendation and convince the client that action is necessary Presentations should convey information to build client knowledge regarding the desired outcome Presentations should become an integral part of the clients decision-making process

Using Minto Pyramid Principle for writing Equity research reports, Business plan, Strategy reports and other consulting Assignments

Page 4

A Hypothesis-Driven Logic Flow Will Help Create this Cohesive Theme

Introduce the Hypothesis

Directs the readers attention to the question that does or should exist in his/her mind States a hypothesis to answer that question Develops the context for the more detailed information to come

Develop the Supporting Arguments

Build the logic to support the hypothesis Introduce facts Draw conclusions

Summarize the Argument

Draw logical conclusions Prove the hypothesis

Using Minto Pyramid Principle for writing Equity research reports, Business plan, Strategy reports and other consulting Assignments

Page 5

The Pyramid Logic Structure: What is It ?

Using Minto Pyramid Principle for writing Equity research reports, Business plan, Strategy reports and other consulting Assignments

Page 6

This Hypothesis-Driven Logic Flow Is Referred to as the Pyramid Logic Structure (PLS)

* The pyramid will have as many levels as needed to support the logical hierarchy Source: Barbara Minto, The Pyramid Principle: Logic in Writing and Thinking (London: Minto International, 1996)
Page 7

Using Minto Pyramid Principle for writing Equity research reports, Business plan, Strategy reports and other consulting Assignments

In the PLS, Ideas Supporting the Hypothesis Are Related Both Vertically and Horizontally
xxx

Using Minto Pyramid Principle for writing Equity research reports, Business plan, Strategy reports and other consulting Assignments

Page 8

Vertical Relationships Support the Hypothesis by Establishing a Question/Answer Dialogue

Example of Vertically Related Ideas

xxx

Using Minto Pyramid Principle for writing Equity research reports, Business plan, Strategy reports and other consulting Assignments

Page 9

Horizontal Relationships Support the Summary Point by Logically Relating Facts or Ideas
xxx
Example of a Horizontal Relationship
Using Minto Pyramid Principle for writing Equity research reports, Business plan, Strategy reports and other consulting Assignments

Page 10

These Horizontal and Vertical Relationships Are Linked in the Pyramid Logic Structure
Summary Pyramid logic structure builds support for the main hypothesis by linking vertical and horizontal relationships Vertical relationships support the main hypothesis or summary point Horizontal relationships build the logic to support each summary point

Using Minto Pyramid Principle for writing Equity research reports, Business plan, Strategy reports and other consulting Assignments

Page 11

The Pyramid Logic Structure: Why Use It ?

Using Minto Pyramid Principle for writing Equity research reports, Business plan, Strategy reports and other consulting Assignments

Page 12

The PLS Complements the Thought Processes of the Human Mind

The mind instinctively sorts information into distinctive pyramidal groupings in order to comprehend it. A grouping of ideas is easier to comprehend if it arrives presorted into its pyramid.

Thus, every written document should be deliberately structured to form a pyramid of ideas.

The mind attempts to impose order on everything it perceives The mind tends to consider any sequence of things that occur together as belonging together (this also applies to listening to or reading ideas) The pattern for ideas is shaped like a pyramid

The pyramid states the logic of the relationships of ideas Ideas are grouped into a logical hierarchy and the logic of the relationships is shown A thought at one level suggests the thoughts below it Thoughts at one level suggest the idea above them There is a limit to the number of ideas a person can comprehend at any one time The mind cannot hold more than about seven items in its short-term memory at any one time (some can hold as many as nine, others can hold only five -- a convenient number is three)

It meets the mind's needs to stop at the "magical" number seven

Using Minto Pyramid Principle for writing Equity research reports, Business plan, Strategy reports and other consulting Assignments

Page 13

All Mental Processes Utilize Pyramids To Categorize Information

The mind instinctively sorts information into distinctive pyramidal groupings in order to comprehend it. A grouping of ideas is easier to comprehend if it arrives presorted into its pyramid.

Thus, every written document should be deliberately structured to form a pyramid of ideas.

All mental processes (e.g., thinking, remembering, problem-solving) utilize the grouping and summarizing process Information in the mind can be considered as organized into a large conglomeration of related pyramids To communicate most easily to another mind, it is best to ensure that the message fits somewhere into existing pyramids

The reader can clearly grasp the reasoning The reader can focus more on whether he/she agrees with it than on trying to comprehend it The reader can more easily raise logical questions regarding the message

Using Minto Pyramid Principle for writing Equity research reports, Business plan, Strategy reports and other consulting Assignments

Page 14

The Effectiveness of Communication Is Improved by the PLS

xxx

The mind instinctively sorts information into distinctive pyramidal groupings in order to comprehend it. A grouping of ideas is easier to comprehend if it arrives presorted into its pyramid.

Thus, every written document should be deliberately structured to form a pyramid of ideas.

The structure helps the reader to "see" the groupings of ideas the same way the author intended, increasing communication effectiveness Use of the pyramid structure provides other benefits for the writer and reader as well

Reduces time needed to produce a quality final draft Decreases the length of final drafts

Ensures that the argument and

support are complete and logical

Using Minto Pyramid Principle for writing Equity research reports, Business plan, Strategy reports and other consulting Assignments

Page 15

Thus, the Pyramid Logic Structure Results in a Well Organized, Persuasive Presentation
xxx
Pyramid Logic Structure
Using Minto Pyramid Principle for writing Equity research reports, Business plan, Strategy reports and other consulting Assignments

Page 16

The Pyramid Logic Structure: Application

Using Minto Pyramid Principle for writing Equity research reports, Business plan, Strategy reports and other consulting Assignments

Page 17

Using the Pyramid Logic Structure Requires Separating the Thinking and Writing Processes
xxx
Separate Thinking and Writing Processes

Complete the thinking and develop logical structure

Write the document

Use a format which reflects the logical structure and appears professional

Using Minto Pyramid Principle for writing Equity research reports, Business plan, Strategy reports and other consulting Assignments

Page 18

When Thinking About a Presentation, Use the Pyramid Logic Structure To Create an Outline
xxx

Using Minto Pyramid Principle for writing Equity research reports, Business plan, Strategy reports and other consulting Assignments

Page 19

This Outline Should Organize the Facts that Support the Resolution
xxx
Pyramid Logic Structure
Using Minto Pyramid Principle for writing Equity research reports, Business plan, Strategy reports and other consulting Assignments

Page 20

Using this Outline, a Storyboard Should Be Created To Begin Writing the Presentation
xxx

Using Minto Pyramid Principle for writing Equity research reports, Business plan, Strategy reports and other consulting Assignments

Page 21

The Introduction Should Convey the Situation, Complication and Resolution

Situation:
Revenue growth for the Regional Bell Operating Companies (RBOCs) has been slowing over the past five years The majority of the RBOCs revenues come from access fees paid by long-distance service Providers Complication / Question: The FCC is considering an auction of additional radio spectrum to be used for short-distance cellular telephone service (personal communication service -- PCS) This additional radio spectrum will allow long-distance carriers to bypass the RBOCs in gaining access to customers The RBOCs must improve their growth prospects to increase their stock price Resolution / Hypothesis*: The RBOCs should invest in the PCS market to improve their growth prospects and avoid losing additional market share

Page 22

Using Minto Pyramid Principle for writing Equity research reports, Business plan, Strategy reports and other consulting Assignments

The Introduction Sets the Tone for the Presentation Consider Three Alternatives
xxx

Using Minto Pyramid Principle for writing Equity research reports, Business plan, Strategy reports and other consulting Assignments

Page 23

The Slide Titles Should Tell the Main Story by Developing Horizontal Relationships
xxx

Using Minto Pyramid Principle for writing Equity research reports, Business plan, Strategy reports and other consulting Assignments

Page 24

There Four Possible Logic Groupings for Building these Horizontal Relationships
xxx

Using Minto Pyramid Principle for writing Equity research reports, Business plan, Strategy reports and other consulting Assignments

Page 25

The Two Horizontal Logic Groupings Used Most Frequently Are Inductive and Deductive Logic
xxx

Using Minto Pyramid Principle for writing Equity research reports, Business plan, Strategy reports and other consulting Assignments

Page 26

The Body of Each Slide Should Develop the Supporting Story for the Slide Title
xxx

Using Minto Pyramid Principle for writing Equity research reports, Business plan, Strategy reports and other consulting Assignments

Page 27

There Are Three Basic Types of Content Slides To Help Develop this Supporting Story

Text Exhibits: Convey specific facts or ideas Eliminate errors in interpretation of the information presented Summarize information on previous or subsequent slides Organize large amounts of information Diagrams: Convey cause / effect, sequential relationships between observations Organize information Explain conceptual ideas Graphs: Summarize numerical data Draw attention to specific facts Explain trends in underlying data

Slide Categories

Using Minto Pyramid Principle for writing Equity research reports, Business plan, Strategy reports and other consulting Assignments

Page 28

Text Exhibits Are Useful for Organizing Large Amounts of Information

xxx
Text Exhibit Slide Types
Using Minto Pyramid Principle for writing Equity research reports, Business plan, Strategy reports and other consulting Assignments

Page 29

Diagrams Are Used To Demonstrate Sequential, Cause andEffect and Dependency Relationships
xxx
Diagram Slide Types
Using Minto Pyramid Principle for writing Equity research reports, Business plan, Strategy reports and other consulting Assignments

Page 30

Graphs Help Draw Attention to Underlying Trends or Relationships in Data Series

xxx
Graph Slide Types
Using Minto Pyramid Principle for writing Equity research reports, Business plan, Strategy reports and other consulting Assignments

Page 31

The Selection of the Appropriate Graph Is Critical To Accurately Conveying the Message

Message

Identify the specific point you want to make Should be clear and distinct

Comparison

Message selected implies one of five types of comparison: Component Item Time series Frequency distribution Correlation

Chart Form

Select the graph to best depict the comparison you are trying to make There are several alternative chart forms

Using Minto Pyramid Principle for writing Equity research reports, Business plan, Strategy reports and other consulting Assignments

Page 32

The Message Drives the Selection of a Specific Type of Comparison

xxx

Using Minto Pyramid Principle for writing Equity research reports, Business plan, Strategy reports and other consulting Assignments

Page 33

. . . and the Comparison Drives the Selection of the Graph Type Used in the Presentation
xxx

Using Minto Pyramid Principle for writing Equity research reports, Business plan, Strategy reports and other consulting Assignments

Page 34

Regardless of the Graph, There Are Several Presentation Guidelines Graphs Should Follow
Data Graphing Rules of Thumb

The

selected graph should be as simple as possible to convey the message Axis labels should all be horizontal to enable easy reading Zeros should omitted from axis scales and legends No more than one decimal point of detail should be presented in graphs Colors (or darker shading) can be used to emphasize points of interest and increase the effectiveness of the graphic selected (the same color or shading should be used for each company throughout the presentation)

Using Minto Pyramid Principle for writing Equity research reports, Business plan, Strategy reports and other consulting Assignments

Page 35

. . . and Several Slide Writing Rules of Thumb

Action titles and subtitles should be short and punchy

Target should be 7 +/- 2 words for the length of your title Limit all forms of the verb to be (am / is / are; was / were) to save room Focus on the core message of each slide Points conveyed should be a high level summary of detailed information Titles should be all caps, except for prepositions and connectors All verbs are capitalized, including is, are, can and be If to is part of a verb (To Reengineer) it is capitalized; If to is part of a preposition (to the client) it is not capitalized

Slides should be limited to three or fewer key messages Slides should be organized hierarchically

Logic should flow through slide, from general premises to specific implications Move from easy-to-grasp ideas to hard-to-understand ideas Make logic parallel Select words carefully, know your audience
Page 36

Using Minto Pyramid Principle for writing Equity research reports, Business plan, Strategy reports and other consulting Assignments

These Additional Rules of Thumb Should Be Considered When Writing Slides

Graphs and diagrams should be used to convey points where possible
Attempt to move beyond basic bullet point slides Think about alternative ways to present information All sources of data, ideas, and quotes should be identified Attributing sources builds credibility for the presentation Sources should be identified with enough detailed to enable specificity if asked Footnotes should be used to provide additional detail or explanation for a point made in the body of the slide Most commonly used to supplement quantitative analysis Including footnotes builds credibility for the presentation Bulleted text outlines are easier to read when written as columns Always ensure consistency of font type, font sizes on a page (when possible), table shadings, table style, line and arrow thickness, shadows off-setting, shadow color, font color throughout any document

Using Minto Pyramid Principle for writing Equity research reports, Business plan, Strategy reports and other consulting Assignments

Page 37

Summary

Using Minto Pyramid Principle for writing Equity research reports, Business plan, Strategy reports and other consulting Assignments

Page 38

Using the Pyramid Involves Checking the Vertical and Horizontal Relationships
Ensure that sub-points fit their summary point (check vertical relationships)

Sub-points must answer the question the summary point raises, amplifying, clarifying or providing context for the summary point The answers to "why" questions are reasons The answers to "how" questions are steps Sub-points must provide necessary and sufficient logical support to show that the summary statement follows from the sub-points In chart documents, exhibits also must support their headlines Class groupings must be properly defined and grouped No misfit ideas - those that are at a different level of abstraction or that do not point to the same conclusion No overlaps (confused logic) No gaps (incomplete thinking) Order of the grouping must be validated Opportunities for further grouping must be explored (esp. if there are more than six points in an inductive grouping or four points in chained deductive argument)
Page 39

Ensure that the groupings are logical (check horizontal relationships)

Using Minto Pyramid Principle for writing Equity research reports, Business plan, Strategy reports and other consulting Assignments

There Are Two Ways To Communicate Ideas and Their Groupings in the Pyramid Structure
xxx
Communication Methods
Using Minto Pyramid Principle for writing Equity research reports, Business plan, Strategy reports and other consulting Assignments

Page 40

The Pyramid Logic Structure Alone Will Not Ensure a WellOrganized Presentations
Create a story line and outline before you write new slides
Tips for Effective Presentation Writing

Storyboard the presentation Focus on developing logic to reach the so what Remember: All of your analysis does not have to be included Draft slide titles to tell the story Create blank slides with titles, fill in exhibit or text when available

Use the storyboard to drive the presentation

Be aware of your audience

Identify hot buttons Adapt presentation style to the clients culture (e.g., data vs. clip art)
Detailed graphics do not work well on overheads Some colors do not appear well on overheads or data displays (e.g., yellow)
Page 41

Be aware of your medium

Using Minto Pyramid Principle for writing Equity research reports, Business plan, Strategy reports and other consulting Assignments

These Slide Writing Conventions, with the Pyramid Structure, Will Improve Presentations
The
Final Thoughts
Pyramid Logic Structure enables persuasive, hypothesis-driven presentations to be written A storyboard of each presentation should be created before any slides are written to build the logic for the Pyramid Structure The slide titles should tell the complete story by laying out the horizontal logic of the Pyramid The information included in the body of each slide, as well as the groupings of these slides into sections, should create the vertical logic of the Pyramid Following these slide writing and graph selection rules of thumb will ensure a persuasive, actionable presentation is created

Using Minto Pyramid Principle for writing Equity research reports, Business plan, Strategy reports and other consulting Assignments

Page 42