strategy consultants’ toolkit selling your ideas with powerful charts

23
STRATEGY CONSULTANTS’ TOOLKIT SELLING YOUR IDEAS WITH POWERFUL CHARTS

Upload: isaac-fitzgerald

Post on 23-Dec-2015

239 views

Category:

Documents


2 download

TRANSCRIPT

Page 1: STRATEGY CONSULTANTS’ TOOLKIT SELLING YOUR IDEAS WITH POWERFUL CHARTS

STRATEGY CONSULTANTS’ TOOLKITSELLING YOUR IDEAS WITH POWERFUL CHARTS

Page 2: STRATEGY CONSULTANTS’ TOOLKIT SELLING 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

Page 3: STRATEGY CONSULTANTS’ TOOLKIT SELLING YOUR IDEAS WITH POWERFUL CHARTS

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

Page 4: STRATEGY CONSULTANTS’ TOOLKIT SELLING YOUR IDEAS WITH POWERFUL CHARTS

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.

Page 5: STRATEGY CONSULTANTS’ TOOLKIT SELLING YOUR IDEAS WITH POWERFUL CHARTS

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.

Page 6: STRATEGY CONSULTANTS’ TOOLKIT SELLING YOUR IDEAS WITH POWERFUL CHARTS

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.

Page 7: STRATEGY CONSULTANTS’ TOOLKIT SELLING YOUR IDEAS WITH POWERFUL CHARTS

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

Page 8: STRATEGY CONSULTANTS’ TOOLKIT SELLING YOUR IDEAS WITH POWERFUL CHARTS

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.

Page 9: STRATEGY CONSULTANTS’ TOOLKIT SELLING YOUR IDEAS WITH POWERFUL CHARTS

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.

Page 10: STRATEGY CONSULTANTS’ TOOLKIT SELLING YOUR IDEAS WITH POWERFUL CHARTS

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.

Page 11: STRATEGY CONSULTANTS’ TOOLKIT SELLING YOUR IDEAS WITH POWERFUL CHARTS

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.

Page 12: STRATEGY CONSULTANTS’ TOOLKIT SELLING YOUR IDEAS WITH POWERFUL CHARTS

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.

Page 13: STRATEGY CONSULTANTS’ TOOLKIT SELLING YOUR IDEAS WITH POWERFUL CHARTS

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.

Page 14: STRATEGY CONSULTANTS’ TOOLKIT SELLING YOUR IDEAS WITH POWERFUL CHARTS

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.

Page 15: STRATEGY CONSULTANTS’ TOOLKIT SELLING YOUR IDEAS WITH POWERFUL CHARTS

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.

Page 16: STRATEGY CONSULTANTS’ TOOLKIT SELLING YOUR IDEAS WITH POWERFUL CHARTS

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.

Page 17: STRATEGY CONSULTANTS’ TOOLKIT SELLING YOUR IDEAS WITH POWERFUL CHARTS

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

Page 18: STRATEGY CONSULTANTS’ TOOLKIT SELLING YOUR IDEAS WITH POWERFUL CHARTS

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.

Page 19: STRATEGY CONSULTANTS’ TOOLKIT SELLING YOUR IDEAS WITH POWERFUL CHARTS

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.

Page 20: STRATEGY CONSULTANTS’ TOOLKIT SELLING YOUR IDEAS WITH POWERFUL CHARTS

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

Page 21: STRATEGY CONSULTANTS’ TOOLKIT SELLING YOUR IDEAS WITH POWERFUL CHARTS

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.

Page 22: STRATEGY CONSULTANTS’ TOOLKIT SELLING YOUR IDEAS WITH POWERFUL CHARTS

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

Page 23: STRATEGY CONSULTANTS’ TOOLKIT SELLING YOUR IDEAS WITH POWERFUL CHARTS

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