logical structuring

©2005 Deloitte Inc.

Logical StructuringCase Competition TrainingStrategy and OperationsJanuary 8, 2008

2

Logical Structuring Agenda

Purpose and Objectives

Logical Structuring & Storyboarding

Quantitative and Qualitative Observations

Professionalism

Do’s and Don’ts

Appendix

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Purpose

The purpose of this session is to help prepare you for this week’s case competition.

Objectives

By the end of this session you should have a better understanding of:

How to logically structure a case presentation:

• Logical Structuring & Storyboarding

How to use quantitative and qualitative data to support your research

• Research Tips

• Example

How to execute a successful presentation:

• Professionalism

Examples of previous presentations:

• DOs & DON’Ts

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Professionalism

Do’s and Don’ts

Appendix

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Why does structure matter?

1. Makes the message precise Forces the writer to be “dead clear” about what they are

communicating to the reader, preventing messages that are unclear, unintended, or intellectually empty

2. Reveals gaps in thinking Enables the writer to identify gaps by anticipating and responding to

the reader’s questions before the communication is delivered

3. Provides clarity to the reader Prevents the reader from “working” to understand the message,

thereby eliminating the possibility that your message is misunderstood or ignored entirely

Memo AJohn Collins telephoned to say he can’t make the meeting at 9:00. Hal Johnson says he doesn’t mind making it later or even tomorrow, but not before 10:30 and Don Clifford won’t return from Frankfurt until tomorrow late. The conference room is booked tomorrow, but free on Thursday. Thursday at 11:00 looks to be a good time. Is that okay with you?

Memo BCould we reschedule today’s 9:00 meeting to Thursday at 11:00? This would make it more convenient for Collins and Johnson, and would permit Clifford to be present. It is also the only other time this week that the conference room is free.

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Governing Thought:States the answer to the question raised in the readers mind

Key Line:Major points which, taken together prove the answer

The Pyramid Structure

Support:Data and facts which support the key line

Explains how or why

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Opportunitiesand threats

Opportunitiesand threats

ABC should go onlineand the first priority should be to defend its current market share

ABC should go onlineand the first priority should be to defend its current market share

Primary benefitsof the internet

strategy

Primary benefitsof the internet

strategy

An Unstructured Communication

ABC’s current customers are more likely to shop online

than the general

population

ABC’s current customers are more likely to shop online

than the general

population

ABC’s competitors

are increasing their online

product assortment

ABC’s competitors

are increasing their online

product assortment

Without an online

channel ABC risks losing

some customers to competitors

Without an online

channel ABC risks losing

some customers to competitors

ABC’s online sales in 2005 could reach

$100mm

ABC’s online sales in 2005 could reach

$100mm

Defendmarket share

Defendmarket share

Growrevenue

Growrevenue

Develop deeper

relationships with

customers

Develop deeper

relationships with

customers

Support ABC’s operating strategy

Support ABC’s operating strategy

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Acme can reduce costs by $10mm in the next 2 years through some operational

improvements

Acme can reduce costs by $10mm in the next 2 years through some operational

improvements

Differentiate service levels to save $2mmDifferentiate service levels to save $2mm

Segment customers by value

Segment customers by value

Determine economic level of

service for each

segment

Determine economic level of

service for each

segment

Shift lower value

segments to lower

cost channels

Shift lower value

segments to lower

cost channels

Re-engineer core functions to save $5mm

Re-engineer core functions to save $5mm

Evaluate internal cost of core

function

Evaluate internal cost of core

function

Compare cost of

function to best-in-class benchmarks

Compare cost of

function to best-in-class benchmarks

Adopt best practices based on

benchmarks

Adopt best practices based on

benchmarks

Outsource non-corefunctions to save $3mm

Outsource non-corefunctions to save $3mm

Select non-core functions

Select non-core functions

Evaluate cost and service level of

potential partners

Evaluate cost and service level of

potential partners

Choose one

partner for each

function

Choose one

partner for each

function

A Structured Communication

Governing Thought:

Key Line:

Support:

Copyright © 2006 Deloitte Development LLC. All rights reserved. 9

1. Ideas at any level must be summaries of the ideas grouped below

– Derived from high-level ideas

– Point of a paragraph is a summary of the sentences it contains

2. Idea in each grouping must always be the same kind of ideas

– All ideas are from the same logical grouping

– Label idea with a plural noun

3. Ideas in each grouping must be in a logical order

– Deductively

– Chronologically

– Structurally

– Comparatively

Three Key Rules to Apply When Building a Pyramid

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AnswerAnswer

A statement about the subject with which you know the reader will agree

The complicating event that create the tension in the story

• Situation:

• Complication:

The implicit question that results from the complication

• Question:

Elements of the Introduction

Governing Thought:

Key Line:

Support:

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Acme must develop a value proposition tailored

to the coyote market.

Acme must develop a value proposition tailored

to the coyote market.

Understand the uniqueneeds of coyotes

Understand the uniqueneeds of coyotes

Adapt product line to meet coyote needs

Adapt product line to meet coyote needs

Educate coyotes on Acme’s ability to meet their needs

Educate coyotes on Acme’s ability to meet their needs

How?

Structuring a Response to How

Governing Thought:

Key Line:

S: Acme must increase its focus on the coyote market

C: Acme is not currently focused on the coyote market

Q: How can Acme focus on the coyote market?

Step 1 Step 2 Step 3

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DrugsRUs should spend $25 million to accelerate the approval process for

Antizak

DrugsRUs should spend $25 million to accelerate the approval process for

Antizak

The Antizak market is expected to top $1 billion

per year

The Antizak market is expected to top $1 billion

per year

Earlier approval allows DrugRUs more time

before patent protection expires, which is worth $200 million in profit

Earlier approval allows DrugRUs more time

before patent protection expires, which is worth $200 million in profit

Competitors are developing a substitute that may capture the

market if launched first

Competitors are developing a substitute that may capture the

market if launched first

Why?

Structuring a Response to Why

S: Approval for DrugsRUs new lifestyle drug Antizak is taking longer than expected

C: DrugsRUs can spend $25 million to accelerate the approval process

Q: Should DrugsRUs spend $25 million to accelerate the approval process?

Reason 1 Reason 2 Reason 3

Governing Thought:

Key Line:

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S: The plant is not meeting its widget production goals

C: The production line is frequently stopped because of insufficient partsQ: What should the plant do differently?A: The parts procurement process needs to be redesigned to reduce fulfillment time

S: Sow’s Ear Inc. developed a silk purse product line 2 years ago

C: Since then, the silk purse division has been unprofitableQ: What should Sow’s Ear do?A: Sow’s Ear Inc. should abandon its silk purse product line

S: ABC, a book retailer, is considering developing an online channel C: The online retail book market is dominated by 2 strong playersQ: Should ABC develop an online channel?A: Yes, ABC should go online

S: You have undertaken a number of initiatives to improve customer serviceC: Customer service continues to result in decreased customer satisfactionQ: How can we improve customers service?A: We must redesign customer service

Which Question is Raised - How or Why?

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Clarifying Grouped Ideas

List the PointsList the Points Identify the Type of Point

Identify the Type of Point

Summarize the Points

Summarize the Points Order the PointsOrder the Points

Synthesize findings from interviews, research and analysisCreate a list of key points

Put the points into categories by defining the kind of problem being discussed, attempting to use similar level of abstraction across categories

Write a sentence that states the “essence” of each category

Put the points in logical order, such as order of importance or time order

Activities:

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The Importance of MECE

MECE

MutuallyExclusive

Do any of the points overlap?

Example

Making Dinner:• Select menu• Buy ingredient• Prepare courses

CollectivelyExhaustive

Have all possibilities been covered?

Mobile Phone Types:• Analog• Digital• GSM

Reasons to acquire competitor ABC:• Complimentary customer base• Superior technology• Digestible size

Points across horizontal levels of the pyramid should be MECE (Mutually Exclusive, Collectively Exhaustive)

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Storyboarding

Creating a storyboard provides an outline for the presentation and the path you will follow:

Uses Pyramid Structure as a foundation

Maps out the storyline of a presentation

Establishes team and judging panel’s expectations about what is to be produced and delivered

Helps organize work and define data needs

Establishes evaluation frameworks and criteria used in the assessment

Facilitates greater productivity and higher quality

Keeps an engagement focused

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Creating the Storyboard

Cutting Edge Corporation should close its razor

manufacturing operation in Wisconsin and

manufacture razors in Mexico

Cutting Edge Corporation should close its razor

manufacturing operation in Wisconsin and

manufacture razors in Mexico

Overall costs in Mexico are 75% lower than in

Wisconsin, resulting in recovery of

moving costs in 6 months

Overall costs in Mexico are 75% lower than in

Wisconsin, resulting in recovery of

moving costs in 6 months

Key Line:

Governing Thought:

Mexico provides an operating environment that is as stable as Wisconsin,

ensuring continuity of operations

Mexico provides an operating environment that is as stable as Wisconsin,

ensuring continuity of operations

Manufacturing technology is more advanced in Mexico

than in Wisconsin, enabling Cutting Edge to leverageleading edge capabilities

Manufacturing technology is more advanced in Mexico

than in Wisconsin, enabling Cutting Edge to leverageleading edge capabilities

Support:

One page for each idea

Page 2

Page 1SituationComplication(Question)

Each requiresa set-up

page

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Professionalism

Do’s and Don’ts

Appendix

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Definition Examples Sources

Quantitative

•Numerical and statistical

•Most suitable when the objective is to measure or quantify data

•Answers the “what” questions

•Firm stock value

•Market share

•Net Present Value

•financial statements

•statistical studies

•surveys

•censuses

Qualitative

•Interpretive and insightful

•Most helpful when the goal is to understand situations or provide context

•Answers the “how” and “why" questions

•Pending lawsuits

•Consumer trends

•Market perception

•press releases

•annual reports

•industry white papers

•analyst reports

It’s important to use both quantitative and qualitative observations to support your recommendation

•Qualitative data and analysis is required as hard justification for your recommendation (e.g., dollar savings, head count reduction)

•Qualitative data can be used to support and explain the meaning of quantitative research

•Combining methods leads to a balanced, persuasive argument

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Research Tips

Structuring your research using a defined approach can help you research effectively in a short period of time

• Several models can be applied to help you structure your research. One example is Porter’s Five Forces

Your approach to case research should mirror the logical structuring of your presentation

• Governing Thought (Recommendation) Key Lines Support

But how do you know what your recommendations are before conducting your research?

Answer: Guess.• Based on your initial impressions of the case, generate some hypotheses on

what you think the company should do. Then, based on your hypotheses, look for supporting evidence

• The advantage of this approach is that it can dramatically reduce the amount of time spent on research. You will be focusing your efforts on facts that support your hypotheses

Begin by creating a research log• This is a file that documents all of the research sources that have been

reviewed and includes a summary of key findings, facts and sourcing information. A research log allows for easy dissemination of key findings saving time. Assign a format and owner up front

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Example

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Professionalism

Do’s and Don’ts

Appendix

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Professionalism – Execution of the presentation

There are two key avenues for case competitors to convey professionalism:

(1)The execution of the presentation

(2)The presentation materials

Assign roles early – subject matter experts and presenters

• Who answers questions on which topics? Rehearse the presentation to clearly define:

• Sequence – what order will the team members will present in?

• Duration – how long should each section take?

• Hand-offs – how will each section of the presentation smoothly and logically transition from one team member to the next?

• Contingency plan – which sections could be reduced or eliminated? Pay special attention to numbers, statistics, charts and analysis

• Inability to convincingly defend figures is a common pitfall

• Be able to recall sources and assumptions without having to use reference material

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Professionalism – Presentation Materials

Alignment

• Check text and object alignment to ensure a consistent look across slides

• Ensure headings and text boxes are in the same place, as you flip through your slides

Colour Scheme

• A muted colour scheme is generally recommended

• Avoid dark backgrounds, very bright colours or too many colours

• Ensure that your colour scheme both prints well and projects well

Font

• Sans-serif font styles tend to work best: Arial, Verdana, Tahoma

• Font size should be readable, but not too large (min ~12pt)

Consistency

• Be consistent with font size, font style and colour scheme

• Be consistent with punctuation at the end of bullets - Either use it or do not, but do not use it inconsistently

• Be consistent with overall structure—i.e. use of tag lines versus just headers

• Use the slide master to create a template to ensure consistency

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Professionalism

Do’s and Don’ts

Appendix

26

DOs & DON’Ts

DOs Brainstorm as a team to develop a strategy and agree to an execution plan Divide and conquer the work to efficiently execute on the plan

• Determine required tasks, dependencies and agree to roles for each team member

• Have each person create their slides based on an agreed upon template (designed in ‘Slide Master’)

Avoid ‘version control’ issues by having one person own the ‘master’ and others provide send over their slides for inclusion in the master

Proof-read your presentation for spelling, grammar, content and logic Recognize each others’ strengths in determining roles for the presentation

• Group members should present material they are most comfortable with

• Confident speakers can present larger portions of the presentation Leave time to rest the night before the presentation

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DOs & DON’Ts

DON’TS Don’t fall victim to ‘analysis paralysis’

• Instead, set a deadline for making a recommendation decision and stick to it

• You will not come up with a recommendation that is irrefutable and 100% supported by the facts, so at some point, your group must make a decision and run with it – spend the rest of the time supporting your decision and creating a compelling story

Don’t let disagreements impact your team’s dynamics

• Agree upfront on a conflict resolution method (e.g. vote or unanimous agreement)

• Disagreements can lead to productive discussions, so take a few minutes to hear each point of view and then make a decision on next steps

Don’t leave facts or figures unsourced – always include references in the research log for easy footnoting in your final presentation

Don’t leave formatting until the end

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Question

In early 2006, managers in technology and media companies around the world observed Google with awe, envy, and fear. The company’s opportunities seemed boundless. What would Google do next?

Two Options

One option was to stay focused on the company’s distinctive competence: developing superior search solutions and monetizing those solutions through targeted advertising.

Alternatively, Google could branch into new arenas:

• Build Google into a portal like Yahoo! Or MSN by aggregating content into thematic channels

• Extend Google’s role in e-commerce beyond search into a more active role as an intermediary facilitating transactions

• Challenge Microsoft’s hegemony over the PC desktop by developing products to compete with Office and Windows

Last Year’s Case Competition Topic

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Evaluation Criteria

Recommendation

• Followed logically from analysis

• Dealt with all issues raised

• Used decision criteria

• Showed sounds business judgment

• End result was practical/realistic

Question & Answer

• Answered question posed

• Provided convincing explanations

• Admitted weakness

• Answered as a team

Analysis

• Identified key problems

• Used supporting facts/data

• Drew accurate conclusions

• Considered risk

• Offered original insights

Presentation

• Spoke clearly and concisely

• Structured storyline well

• Slides were visually attractive

• Showed enthusiasm and professionalism

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Last Year’s 2nd Place Case

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Bright Colour Scheme

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1. Communicate recommendation in the beginning of the presentation

2. Set expectations

38

Evaluate each recommendation against the 3 criteria

42

Data Sourcing

43

Pretty Pie Chart

50

Last Year’s Winning Case

Terry Huang

Aron Lau

Ke Zhang

Godmans Chow

Introduction New frontiers? Growth Strategy Growth Strategy Growth Strategy Implementation

What is the situation?

Question: What should Google do?

Complication: Company is facing boundless opportunities.

Stay focused with Google’s distinctive competencies.

Branch into new arenas.

Recommendation: Google should stay with its core competencies – providing superior search solutions

$6.5 billion by end of 2011 Agenda


Overview of the approach

What should Google do?

Branch into new areas

Extend Google’s core

search & targeting

competencies.

International Search

Mobile Advertising

NarrowcastingBuild Google into a portal

Extend Google’s role

into e-commerce

Develop Products to

Compete with Office & Windows

Use Pyramid Structure to Frame the Storyboard

Measurement Metrics:

•Market Potential

•Fit with Mission

Option 1 Option 2


Google should stay focus with its core competence

Driven by Company Philosophy It is best to do one thing really, really well – developing superior search

solutions

Market Potential Has opportunity to further monetize its search solutions through

targeted advertising

U.S. and International Internet Users Forecast(million users)

2003E 2004E 2005E 2006E 2007E 2008E 2009E

Time

U.S.

International

U.S. and International Paid Market SearchForecast ($ billions)

2.54.3

6.48

9.611.6

13.412.5

10.27.9

5.93.3

1.50.6

2003E 2004E 2005E 2006E 2007E 2008E 2009E

Time

U.S. Market International Market

Charts’ data sourced from provided Business Case Description


Google should not branch into new arenas. The three arenas proposed deviates from the company mission, or have tremendous risks (market potential).

Google’s mission - To organize the world’s information and make it universally accessible and useful.

Build Google into a portal

“We’re not in the portal business, we’re in the business of making all the world’s information accessible and useful.”

- Schemidt

Develop products to compete with Office and

Windows

“There is strategic leverage in building an

ecosystem around content and advertising that is an extension of our search mission.”

- Schemidt

Extend Google’s role in e-commerce

Acting as an intermediary facilitating transactions (Google

Checkout) is consistent with the mission of the

company.

Inconsistent Font


Google should not extend in e-commerce or develop products to compete with Microsoft due to the high risks (market potential) involved.

Extend Google’s role in e-commerce1. Strong competition:eBay has 39.2% of the e-commerce market. eBay facilitates eCommerce by

offering tools such as PayPal1.PayPal has 24% market share of U.S. online payments market. It is eBay’s

major electronic payment method1. 2. No incentive for PayPal users to switch to using Google Checkout3. Despite Google Checkout’s launch in June, 2006. PayPal posted revenues of

$417 million, a 37% growth rate compared with 2005’s fourth quarter2.

1 Wikipedia.org

2 CNN.com

Inconsistent Alignment


Google should not extend in e-commerce or develop products to compete with Microsoft due to the high risks (market potential) involved.

1. Strong competition: Microsoft2. Difficult for new entrant: OpenOffice currently only has 14% of the enterprise

software market as of 2004 – Hard to convince user to switch to new desktop applications1

3. Relatively small potential revenue The market for Office is only an annual revenue of $1 billion1

Too small of a market size comparing to Google's currently advertising business (140 million vs. 6.1 billion)

Develop products to compete with Office and Windows

1 Wikipedia.org


Google should continue to strengthen its expansion into the international online advertisement market.

Online Ads Spending Growth Rate Chart

0

50

100

150

200

250

1999 2000 2001 2002 2003 2004 2005 2006

Time

Gro

wth

Rat

e (%

)

North America

WesternEuropeAsia

Latin America

Australia/New ZealandTotal

U.S. vs International Internet Users (in millions)

183 203 219 235 251 266 274

500597

687769

854939 986

2003E 2004E 2005E 2006E 2007E 2008E 2009E

Time

U.S.

International

U.S. internet user is 30% of all users in the world.

By 2009, it will decrease and become 27.7%.

U.S. online ads spending slowed down recently while online ads spending from the

international market are increasing at a faster speed.

eMarket.comeMarket.com

The Winning Case Used Extensive DATA to Back

Up its Statement


International Online Advertising Entry Analysis

Who is the competition?

How do their products &

services differ

What are the potential

barriers to entry

How does Google become a player?

What are the risks

Yahoo, MSN, Local search

engines (Baidu)

Google's competitors entered the

market earlier, and tailored

products to adapt to local

customers.

Perhaps government regulations (censorship

issue in China)

Partner with local companies, leverage our

leading technology, and adapt to local

environment.

Late to the game. Lack of

understanding of the local environment


We believe the emerging mobile advertising market is a fit for both Google’s technological expertise and philosophies.

The potential of the mobile user base is promising, projected to rise to 1 billion

users of 3G data services by 2011.

Mobile Ad Revenues

$2,900.00 (millions)

$1,400.00 (millions)

2006 2011

3G User Base

100 users (millions)

1,000 users

(millions)

2006 2011

Mobile advertising revenues is expected to reach $2.9 billion

dollars by 2011.

Asia – Europe Business: 3G in the world : June 20th 2006 TVweek.com: Nov 15th 2006

More Data!!


Mobile advertising market analysis before entry.


We believe the emerging narrowcasting market is a fit for both Google’s technological expertise and philosophies.

Online Gaming Ad Worth

$500 (million)

$100 (million)

2006 2010

US Narrowcasting Revenue

$450 (million)

$750 (million)

2006 2009

Narrowcasting revenue in the US is projected to reach $1.2 billion by

2009 - >$700 million in network/software operations.

Targeted online gaming advertising worth is projected to be worth $0.5 billion by

2010.

CapV InfoStats March 2005Businessweek Jan 2007

Even More Data!!!


Narrowcasting market analysis before entry

Who is the competition

?

How do their products & services

differ

What are the potential barriers to entry

How do we become a player?What are the risks?

EK3, Scala, ipSigns

Current infrastructure of fixed targeted

content that is not user targeted

Privacy concerns, government billboard regulations, aesthetic

trends

Partner with existing players, leverage Google’s user targeted

algorithms for more targeted ads.

Inaccurate forecast of market.

Changing government regulations on public

ads.


Google can approach to enter the international online searching and advertising market with relative ease.

To continue strength its expansion in the international online advertisement market

Identify potential international market to expand its service

Conduct market research to understand customer behavior

Develop localized applications and adapt to taste of local customers

Cooperate with local business (partnership, M&A)


Google can approach to enter the narrowcasting and mobile advertising market with relative ease

Tie into the current and emerging markets with Google’s current technology and infrastructure.

FroogleGoogleMaps

GoogleMobile

GoogleNews

Blogger

GoogleServer

Targeted UserGroup/Individual

SystemIntegrator

Advertiser/Contents

RetailCorporateHospitalityServices

Public Spaces____

Gamers____

Mobile device users

San Fran Wifi____

Game developers____

Mobile service providersAnyone

Inconsistent Font


Google’s projected growth in the next 5 years

Mobile Advertising :

$1.0B(assuming 1/3 market

share)

Narrowcasting: $0.5B

(assuming 1/3 market share)

International Search

$4.98B ($2.4B market with 20% annual growth)

Combined revenue growth of an additional

$6.5B by the end of 2011.

Clear Visual Representation

Recommendation Again Backed Up

by DATA!

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