STRATEGY CONSULTANTS’ TOOLKIT SELLING YOUR IDEAS WITH POWERFUL CHARTS.
-
Upload
isaac-fitzgerald -
Category
Documents
-
view
237 -
download
2
Transcript of STRATEGY CONSULTANTS’ TOOLKIT SELLING YOUR IDEAS WITH POWERFUL CHARTS.
STRATEGY CONSULTANTS’ TOOLKITSELLING YOUR IDEAS WITH POWERFUL CHARTS
2
Introduction
• In order to communicate complex business ideas and recommendations, a presentation needs to be clear, concise, and easily understood
• Strategy consultants do that by telling a story, most commonly through presentations
• These presentations are normally data-driven and chart-centric
• But making data easy to understand is HARD• This slide deck (presentation) will highlight the charts and visuals that top consulting firms and corporate strategists use to make their strategic insights clear and understood
3
How To Use the Toolkit• A Strategy Consultant’s insights normally address two key questions clients care about most:• How do I increase revenue?• How do I reduce costs?
• In all likelihood, that will be the focus of your presentation as well
• The slides in this toolkit will provide charting and data presentation ideas you can adopt for your own work• They are all data-driven (not drawn manually) using Mekko
Graphics; and you can copy, edit, and reuse them in your own presentations
• Plus, we will point you to other public domain examples you can borrow from as well
• How to get the required software, including a free trial, is outlined on the last page
4
Dividing up the Market
• Many business presentations start with a review of the current “status quo”
• So it is common to ask: How do I divide the client’s market or how to I categorize my client's revenues or costs?
• A simple single 100% stacked bar is a good way to categorize markets, revenues or costs.
• Make sure the categories are “MECE”—Mutually Exclusive and Collectively Exhaustive.
• If there are more than 10 categories, group some together or group the smaller ones in “Other.”
• In all slides with charts, include a tag line to present the key message, like the one to the left.
Revenue by Vertical
Financial Services 22%
Public Sector 20%
Manufacturing 19%
Communications 9%
Retail 9%
Services 7%Utilities 5%
Transporation 4%Healthcare 4%
$3,304M
Agriculture, Mining and Construction 1%
80% of revenue comes from the 5 largest verticals.
5
Drilling Down• Once you have an overall sense of the market, you will often want to ‘drill down’ into the details for a specific market, competitor or expense category.
• Charts are easiest to understand when you have 5-7 categories.
• Drilling down allows you to explode a specific category one more level.
6
0
20
40
60
80
100%
Revenue by Vertical
Vertical Markets
Financial Services $730M
Public Sector $651M
Manufacturing $617M
Communications $292M
Retail $303MServices $248M
Other Verticals $464M
$3,304M
Other Verticals
Utilities $167M
Transporation $144M
Healthcare $116M
$464M
Drilling Down—Exploding a Category
If there are more than 10 categories that are important or there is one key category that you want to subdivide, use a second bar to ‘explode’ a category from the first bar. Use color to further highlight a key category.
Drilling Down with Multiple Charts
1,186
USAA Alpinestaff and racesupport 264
Coaches'educationadministration126
General liabilityand participantaccident insurancepremiums 354
SkiRacingMagazine77
US SkiTeampipelinedev.costs 81
OtherUSSA-providedservices 148
GeneralUSSAadmin136
434
Regional staffoperations
anddevelopment
187
Championships,NDS, and racesupplies 126
Coaches education 42
Payments to FISon behalf of regions 44
Other services 35
Western
313
602
915
Rocky/Central
343
481
824
Eastern
434
1,186
1,620Direct regional expenses
Allocated USSA expenses
FY 2012 National Expenditures FY 2012 Eastern Regional Expenditures
Use multiple charts on one slide to divide a measure along a key dimension. In this case, we have expenses by region on the left. The horizontal stacked bars on the right provide the detail for the measure. In this case, we have expenses broken out in the largest region.
Source: http://media.ussa.org/Public/Communications/2013/McKinseyStudy.pdf7
8
Adding More Measures or Dimensions• So far we’ve looked at one key measure along a single dimension• For example, revenue by vertical market or expenses by
region.
• Add a second measure to examine both number of customers and total customer revenue by region or vertical market
• Add a second dimension to examine revenue by region and vertical market in the same chart.
• You can even add a third dimension to examine sales compared to both price and performance.
9
Dividing the Market with Two Measures
0
20
40
60
80
100%
Number of Customers
Financial Services 10,072
Public Sector 15,404
Manufacturing 13,396
Communications 27,893
Retail 10,951
Services 23,655
Other Verticals 10,231
111,602
Total Revenue in $ Million
Financial Services 730
Public Sector 651
Manufacturing 617
Communications 292
Retail 303
Services 248
Other Verticals 464
3,304
$72K
$42K
$46K
$10K
$28K
$10K
$45K
Estimated Revenue
per Customer
One measure is often not enough. You can use two bars for related measures. In this example, the financial services vertical has high revenue relative to the number of customers and the chart highlights a potentially profitable sector.
10
0
20
40
60
80
100%
Revenue by Region and Vertical
USA & Canada
Financial Services 27%
Public Sector 16%
Manufacturing 16%
Communications 8%
Retail 10%
Services 11%
Other 13%
$1,031M
Europe
Financial Services 28%
Public Sector 23%
Manufacturing 14%
Communications 6%
Retail 9%
Services 8%
Other 12%
$976M
Asia Pacific
Financial Services 15%
Public Sector 17%
Manufacturing 24%
Communications 11%
Retail 9%
Services 5%
Other 20%
$820M
Rest of World
Financial Services 13%
Public Sector 27%
Communications 13%
Retail 9%
Services 4%
Other 12%
$477M Total = 3,304
Dividing the Market Along Two Dimensions
If you need to look at two dimensions in depth, the Marimekko chart lets you turn multiple charts into a single graphic. Keep the number of categories for each dimension under 10 and make sure they are MECE. Again, use color to highlight opportunities.
11
Adding a 3rd Dimension—Price, Performance and Sales
10000,
15000,
20000,
25000,
30000$ ,
100 150 200 250 300 350
50000, Units Sold
MSRP
Fusion 181668,
Focus 151549,
Taurus 49,886
Mustang 48879,
Fiesta 45831,
-C Max 23040,
50000, Units Sold
Horsepower
Use a bubble chart to compare your products to each other or to competitor products with respect to price and a key performance dimension. Price is on the Y axis. A key product characteristic (e.g., horsepower, size, efficiency) is on the X axis. The bubble size captures sales in units or dollars. The chart can help identify opportunities for new products or pricing changes.
12
Moving On To Trends• We’ve looked at one dimension and multiple dimensions, but our first few charts still only provided a snapshot of a single point in time, which as noted is where you will often start your story.
• However your story might next move on to illustrate trends over time and this gets harder to illustrate in most chart types, particularly when you have multiple dimensions.
13
Tracking Trends Over Time
0
1,000
2,000
3,000
$4,000M
Revenue in $M
Year1
Financial Services $741M
Public Sector $621M
Manufacturing $634M
Communications $286M
Retail $307M
Services $243MUtilities $163M
Transportation $146M
Healthcare $113M
Agriculture,Mining and Construction $39M
$3,293M
Year2
Financial Services $775M
Public Sector $657M
Manufacturing $666M
Communications $304M
Retail $321M
Services $258M
Utilities $173M
Transportation $154M
Healthcare $120M
Agriculture,Mining and Construction $40M
$3,468M
Year3
Financial Services $711M
Public Sector $627M
Manufacturing $613M
Communications $286M
Retail $298M
Services $243MUtilities $162M
Transportation $141M
Healthcare $113M
Agriculture,Mining and Construction $36M
$3,230M
Year4
Financial Services $730M
Public Sector $651M
Manufacturing $617M
Communications $292M
Retail $303M
Services $248M
Utilities $167M
Transportation $144M
Healthcare $116M
Agriculture,Mining and Construction $37M
$3,305M
Total Growth Year1-4 +0.36%
-0.50%
-1.74%
1.59%
-0.90%
0.69%
-0.44%
0.68%
0.81%-0.46%0.88%
Year1-4
CAGRTotal Growth Year1-4 +0.36%
One solution is the multiple stacked bar chart, which shows growth in each category. Note we have also included a CAGR column to the right to show annual growth in each category plus total growth in year 1 to 4 across the top.
14
Showing Mix Change Over Time
0
20
40
60
80
100%
% of Revenue from Each Vertical Year1-4
Year1
Financial Services 22.5%
Public Sector 18.9%
Manufacturing 19.3%
Communications 8.7%
Retail 9.3%
Services 7.4%
Utilities 4.9%Transportation 4.4%
Healthcare 3.4%
Agriculture,Mining andConstruction 1.2%
$3,293M
Year4
Financial Services 22.1%
Public Sector 19.7%
Manufacturing 18.7%
Communications 8.8%
Retail 9.2%
Services 7.5%
Utilities 5.1%Transportation 4.4%
Healthcare 3.5%
Agriculture,Mining andConstruction 1.1%
$3,305M
The 100% stacked bar we used before for two related measures, can also be used as it is shown above to show product or revenue mix changes over time. The comparison lines highlight individual changes. Include start and end year or all years in the chart. Use highlight colors to focus on large percentage gains or losses.
And Projections?
15
• Projections are a variation of trends.• However, it can be useful to use slightly different charts to keep your presentation livelier and hence more compelling.
16
0.0
1.0
2.0
3.0%
Projected Growth Rate Year1-4
Average Growth 1.3%
2.5%
1.5%
1.1%
Public Sector
0.8%
Retail
0.5%
Manufacturing
0.4%
$120M $40M $140M $70M $200MMarket Size
Average Growth 1.3%
Financial Services
Services
2.3%
Communications Other
$90M $160M
Projected Growth Versus Market Size
Similar to the Marimekko, the Bar-Mekko shows two dimensions, for example market growth and market size. The bar widths are proportional to the value in the data row.
17
Estimate the Impact of Proposed Changes
Or you can show the impact of proposed changes in a Cascade chart. Start with current state, add a bar for each change and use multiple total bars to show changes over multiple years.
300
310
320
330
340
350
360
$370M
Projected Profit
Year1 Profit
$314M
Projected Growth
$12M
Financial Services
Campaign
$15M
Year2 Profit
$341M
Projected Growth
$14M
Manufacuring Campaign
$8M
Year3 Profit
$363M
And “Non-Numeric” Data?
18
• Some data you will want to use to communicate your story may not lend itself to being expressed in numbers as easily.
• But with some creativity, data can often be re-imagined as a chart that is far clearer than mere numbers.
19
0 2 4 6 8 10
Average: 8.4
Overall Customer Satisfaction
Average: 8.4
Q: What is your overall satisfaction with the company?(1-10; 10 = very satisfied)
Displaying Customer Feedback
“If I don't see a lot of returns here in purchasing, if there are no headaches, and if teachers keep going back to the supplier, it's a 10 as far as I'm concerned.”
“I give them a 10 because we have an excellent contact, Shirley. She is there anytime we need something. She helps us stay in our price range and accomplish what we set out to do. You don't get that kind of service anymore. It makes people want to go back and spend more money. She makes us feel like we're #1.”
“They have excellent customer service. When we were just starting up, they helped us select equipment, cleared up some delivery issues, and even came over and helped us open boxes. That was invaluable to us.”
“Well, they are definitely cheaper than other suppliers, but that's both in price and product quality. It doesn't do us any good to have to return half of what we purchased.”
Commentary
For example, use a ½ page horizontal stacked bar to show customer feedback. You can show the distribution of answers for a specific question or the answers on several questions and then use the right half of the slide to display key quotes.
20
Summarizing Findings in a Table
SkiingSwimming
Gymnastics
Figure Skating
Cycling Fencing
US Medals 21 of 120 (18%)
31 of 102 (30%)
6 of 42 (14%) 2 of 12 (17%) 4 of 55 (7%) 1 of 30 (3%)
Multi-sport
Club sport
NCAA sport
Total Revenue, $M
Membership, ‘000s
Revenue per member, $pp
$24M $30M$18M $13M $12M $5M
40K
353K125K 173K
71K 20K
$604
$85 $144 $76 $163 $262
Tables are great for comparing business units along a set of dimensions. Use check boxes or Harvey Balls (stoplights) to show whether the dimension (e.g., NCAA sport) applies to the business (e.g., skiing). Add simple bar charts to mix qualitative and quantitative data in the same table.
Source: http://media.ussa.org/Public/Communications/2013/McKinseyStudy.pdf
21
Plan Your Engagement with a Gantt Chart
Task
Design•Meet with users•Write document
Build•Code•Integrate
QA•Internal Test•User Test
Reviews
Month1 Month2 Month3 Month4
W1 W2 W3 W4 W5 W6 W7 W8 W9 W10 W11W12 W13W14W15 W16
Use a simple one slide Gantt chart to communicate your project plan to your clients. Multiple level tasks allow you to show project details. Add milestones for key meetings or review points.
22
Learn More• A great presentation tells a story clearly
and succinctly– But it has to be supported by compelling
data, presented in a clean and understandable way
• Great charts will help ensure your presentation’s success
• Luckily, the same great software used by leading management consultant’s and Fortune 100 strategy experts is available to you too
23
Get Mekko Graphics Today!
• Mekko Graphics is available via the web, including as a FREE 30-day trial– It is the perfect opportunity to try before
you buy– You can license for a single person or
your entire organization
• Visit the Mekko Graphics website today at http://www.mekkographics.com