2017-5-10 Barbara Mintos Pyramid structure for conclusions and recommendations

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applying the Pyramid Principle
Interview First Aid
Use the pyramid structure to provide syntheses and
Starter's Guide to Case Prep
recommendations at the end or in-between your case interviews
Crack the Case Interview
The Pyramid Principle is a structure to present your synthesis in an e ective and

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Master the Problem Solving
Case Cracking
Identify your Case Type
convincing manner. Here, you present your results rst and then how you got there.
This principle is of crucial importance in a consulting context where you need to bring
across the most important messages as quickly as possible. Remember that due to
time constraints a CEO is primarily interested in the "answer" and not about the
process behind the answer.
The Pyramid Principle consists of three parts:

Structure your Thoughts What Why How

Issue Tree What: Theory, hypothesis, recommendation or conclusion

MECE Principle Why: The reasons

How: Elaborate on how you want to implement it

Pyramid Principle

Porter's Five Forces

4C Framework

4P Framework

2x2 Matrices and the BCG matrix

Practice your Basics

Business Concepts

Useful Business Analysis To

Common Terms of Business

Structure of a recommendation in a pyramid format

Try to have 3 explanations for your recommendation supported by data. First, state
the recommendation. Second, provide 3 reasons. Third, provide information on how
to implement the recommendation.

Example 1
Question: our client wants to increase pro ts, how should they do it? [Assume you
have gone through the case and the analysis is complete]

Conclusion, after analysis in a pyramid format:

What:

Our initial analysis suggests a cost reduction for your supplies

Why:

(1) Benchmarking with competition shows lower purchasing costs in the industry
Questions or Feedback?
(2) For the basic products, cheaper and lower quality supplies are su cient
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2017-5-10 Barbara Mintos Pyramid structure for conclusions and recommendations
(2) For the basic products, cheaper and lower quality supplies are su cient
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(3) Market outlook and the current products do not allow higher prices
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How (next steps):
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Benchmarking/sourcing: A detailed analysis of competitors' suppliers and
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costs should be conducted that would allow to nd cheaper suppliers. This
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information could also allow you to renegotiate with current suppliers. Bulk
orders are another option because you have high storage capacity

Supplies: The suppliers quality has improved over the last years. Low cost
suppliers have products with su cient quality to ful ll our needs. Furthermore,
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products
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Pricing: The current products are not su ciently di erentiated for higher
prices. Also, the current brand positioning hinders premium pricing. Therefore,
a cost leadership position would make more sense as supported by the analysis

Example 2
Just as the above example, assume we have completed the analysis [note that the
numbers in the example are hypothetical]

Question: Should the Whole Foods Market enter India?

Conclusion, after analysis in a pyramid format:

What:

Yes (notice that it is extremely important to answer the clients question which is
primarily a YES/NO answer, be direct!)

Our initial analyses show that the Whole foods Market should enter the Indian
market, speci cally, they should concentrate on the urban areas of India.

Why:

(1) Market for organic/healthy food is growing at a rate of 10 % annually, which is

faster than most developing countries of the world

(2) Increasing disposable incomes of the customers aligns well with the premium
pricing of the companys products

(3) The concept of organic food is getting a lot of in uence from the western world,
leaving more than ~1.5 billion dollars of untapped opportunity in India

How (next steps):

Partnership with locals

Analysis of governmental regulations

Pilot study

You can also mention that the next steps would need further analysis to determine
the most attractive option

Key takeaway for the Pyramid Principle

Remember: What Why How

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2 Comment(s)

Questions or Feedback? March 08, 2015 21:19 - ritika

Hi Thuy, we have added a couple of additional examples to ensure the non business
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2017-5-10 Barbara Mintos Pyramid structure for conclusions and recommendations
Hi Thuy, we have added a couple of additional examples to ensure the non business
Leave us a message...
background candidates also understand the concept. Let us know if you have more
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questions.
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Select category September 08, 2014 20:39 - thuy

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I think that the "Pyramid principle" presented here is very useful in many
situations, yes, especially, in structuring a case. I really appreciate that
"preplounge" summarized and presented it in a concise way. Personally, I
also very much like the example given above. On the other hand, as a person with
I'm not a robot non-business background, I would feel more "Got it", if there are more
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examples of how the principle works in more cases. But thanks a lot for outlining the
Send principle here :)

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