B00PWE81VE Strategic Storytelling

Strategic
Storytelling
How to Create Persuasive
Business Presentations
Dave McKinsey
Copyright 2014 by SpeakingSherpa LLC. All rights reserved. Except as permitted under the United States Copyright Act of 1976, no
part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without
the prior written permission of the author.
In adherence with the fair use rule of United States copyright law, this book makes use of materials owned by the United States Postal
Service and created by McKinsey & Company, Accenture, and The Boston Consulting Group for the purpose of criticism and commentary
and for the purpose of providing a public good by elevating the presentation skills of business professionals. Though I have no direct
affiliation with any of these organizations, it is my hope that this book significantly increases the number of people exposed to these
organizations and their best practices. All company and product names mentioned herein are the trademarks or registered trademarks of
their respective owners.
ISBN: 1500594466
ISBN-13: 978-1500594466
CreateSpace Independent Publishing Platform
North Charleston, South Carolina
Contents
Contents
Introduction
Chapter 1: The Perfect Storm
Section 1: Persuasive Content
Chapter 2: The Situation-Complication-Resolution Framework
Chapter 3: McKinseys USPS Situation
Chapter 4: McKinseys USPS Complication
Chapter 5: McKinseys USPS Resolution
Chapter 6: The Approach-Findings-Implications Framework
Chapter 7: BCGs USPS Approach
Chapter 8: BCGs USPS Findings
Chapter 9: BCGs USPS Implications
Chapter 10: The Situation-Opportunity-Resolution Framework
Chapter 11: Accentures USPS Situation
Chapter 12: Accentures USPS Opportunity
Chapter 13: Accentures USPS Resolution
Chapter 14: The Pilot-Results-Scale Framework
Section 2: Data-Driven Design
Chapter 15: To Slide or Not to Slide

Chapter 16: Text
Chapter 17: Graphs
Chapter 18: Tables
Chapter 19: Images and Diagrams
Section 3: Confident Delivery
Chapter 20: Verbal Delivery
Chapter 21: Non-Verbal Delivery
Final Words
Strategic Storytelling Quick Reference Guide
Acknowledgements
About the Author
Introduction
When I look at the public speaking books piled high on my bookshelf, I notice two patterns and one
major gap.
The first pattern is that most public speaking books focus on keynote content and delivery. While
there is no strict definition, keynote speeches are highly rehearsed, one-way, motivational, and delivered
while standing on a podium in front of an unfamiliar audience. TED Talks and Toastmasters speeches,
presentation types on which I have written books, fall into this category.
The second pattern is that presentation design books also fall into the keynote speech category.
Two of my favorite authors, Garr Reynolds and Nancy Duarte, set the gold standard for how to craft
beautiful presentations. If you have not already, devour everything they have written.
The motivation for focusing on keynotes is compelling: Keynotes are complex, nerve-wracking
presentations. Many believe you can excel in any speaking situation if you can deliver an exceptional
keynote. However, this logic is flawed.
The truth is that most presentations are delivered at work in seemingly low stakes situations in
the hallway, in one-on-one discussions, and in small group meetings. They are (most of the time) lightly
rehearsed, two-way, fact-laden, and delivered while sitting down to a very familiar audience. In short,
they are precisely the opposite of keynote speeches.
But, arent there plenty of books on public speaking at work? Yes and no. The issue is that
business-centric public speaking books, as valuable as they have been to me, are often rather academic.
Excellent examples covering content and delivery include Stephen Lucass The Art of Public
Speaking and Barbara Mintos The Minto Pyramid Principle. Excellent examples covering design
include Gene Zelaznys classic Say It with Charts and Stephen Fews essential Show Me the
Numbers.
So, what is the gap I observe while staring at my bookshelf? I want to read a public speaking
book that is about the real speaking situations in which I find myself at work every day. I want to read a
public speaking book that is entertaining. I want to read a public speaking book that integrates content,
design, and delivery. And, finally, I want to read a public speaking book steeped in the principles of
storytelling, the most in-demand skill in business today.
I have wondered why this sort of book does not already exist or at least why I have yet to find
one. Here is the best explanation I could conceive: In contrast to a multitude of keynotes readily
accessible on YouTube, examples of exceptional business presentations, especially ones that are legal to
reproduce, are nearly impossible to find in the public domain. For instance, legend has it that Steve
Jobs, upon his return to Apple in 1997, went to a whiteboard and drew a simple two-by-two grid. The
rows were labeled Desktop and Portable and the columns Consumer and Professional. That
meeting transformed a company suffering under the crushing weight of over 300 products. The
underlying philosophy of minimalism now defines everything the company does. Since that meeting
was not recorded, we have no idea who was in the room, how the meeting was structured, or how
people interacted. Those types of meetings are highly confidential and companies only talk about them
(with rose colored glasses) years later, if ever.
Besides geeking-out on public speaking for the past two decades, I have also worked my way up
the ladder to become a senior executive in a company with nearly $2 billion in revenue; I craft and I
critique high-stakes business presentations every day. Since I cannot release my employers material,
non-public presentations, I considered a few options when I decided to author this book. First, I tried to
write a fictionalized tale of a new product manager introducing an electronic healthcare device in the
business parable style of Patrick Lencionis The Five Dysfunctions of a Team or Eliyahu Goldratts
The Goal. However, I found myself repeatedly violating the storytelling maxim that exposition should
always be the subtext of interaction between characters and never straight explanation. Fiction, or at
least my fiction, was simply too contrived and inefficient to explore persuasive business storytelling.
When that attempt failed, I asked myself: Where do the most compelling strategy presentations
come from? The answer, of course, is from top tier management consulting firms. I struck gold when I
realized that these firms are often required to release their presentations when they serve public
institutions. The gold mine turned to a diamond mine when I found an engagement that involved not
one, but three of the top ten consulting firms McKinsey & Company, The Boston Consulting Group,
and Accenture.
In Section 1 of this book, I deconstruct the best-practice narrative frameworks each of the
consulting firms followed to persuade their audiences. In Section 2, I extract world-class techniques for
data-driven slide design. Finally, in Section 3, I cover verbal and non-verbal delivery principles that
convey authority and authenticity in business settings.
With this backdrop, lets get started.
Chapter 1
The Perfect Storm

Sometime during the evening of January 26, 2009, a light freezing drizzle began to fall in central
Kentucky. Over the course of the next two days, as the storms reach broadened across the state, the
drizzle turned to rain, the rain to sleet, the sleet to snow, and the snow to ice. When the storm was over,
609,000 homes and businesses were left without power and 35 Kentucky residents had lost their lives. 1
2
Among the towns hardest hit was tiny Lowes, Kentucky which lost telephone, Internet, and
electricity service for three weeks. Supporting a population of merely 98 residents, Postmaster JoAnn
Bell and her Postmaster Relief Becky Goin understandably could have suspended mail delivery service
to tend to their own urgent needs. After all, more than 200 Post Offices were impacted across Kentucky.
However, Joann and Becky kept their 137-year-old post office running by relying on very old-school
technology including a vintage fan scale, a battery-powered adding machine, and an old-fashioned gas
stove.3 I can only imagine they were chanting the unofficial United States Postal Service creed
Neither snow nor rain nor heat nor gloom of night stays these couriers from the swift completion of
their appointed rounds in their minds as they skated their way through their delivery routes.
As the 2009 ice storm released its grip on the Central Plains and Midwestern United States, a
perfect storm was forming that would affect all 36,496 retail post offices with their 623,128 employees.
4 Some of the clouds on the horizon had been visible as macro-trends for years. The double whammy of
an aging workforce and increased healthcare costs was putting a burden on retirement obligations.
Additionally, the Internet had long since relegated the traditional mailbox to a repository for junk mail,
bills, and birthday cards.
The anvil that broke the camels back deep economic recession could not have been
predicted. After years of increases, volume dropped by 25 billion pieces of mail in 2009, resulting in a
nearly 10 percent decline in revenue. Despite pursuing aggressive cost-cutting measures, the
organization posted a net loss of just under $4 billion.
No stranger to outsourcing, the United States Postal Service turned to strategy consulting firms.
In exchange for a reported $4.8 million 5, Accenture, The Boston Consulting Group (BCG), and
McKinsey & Company (McKinsey) each examined a different part of the problem. BCG began by
building a model to project mail volumes through 2020. Using the BCG model as an input, McKinsey
crafted a set of strategic recommendations for the USPS mail business. In parallel, Accenture explored
the possibility of diversification into non-mail products and services to improve USPS profitability.
You might expect the remainder of this book to follow a chronological progression from BCG to
McKinsey to Accenture. That approach would be ideal if my objective were to reveal the development
of the USPS business strategy. However, the USPS strategy is merely the vehicle to help you understand
the best practices (and lessons to avoid) for creating persuasive, data-driven business presentations. In
service of that objective, I will start with the McKinsey presentation since it is, in my opinion, the one
that best exemplifies a strategic storytelling model.
Section 1:
Persuasive Content
Chapter 2
The Situation-Complication-Resolution
Framework
Among top-tier consulting firms, McKinsey is broadly regarded as best-in-class at constructing
persuasive business presentations. The firms maniacal focus on presentation structure can be traced to
one exceptional storyteller Barbara Minto.
Barbara Minto has many path-paving firsts to her name. After working as a secretary at a
railway company in the 1950s, Ms. Minto grew increasingly concerned about her job prospects as her
boss aged into his 70s. In response, she applied and was among the first eight women accepted into
Harvard Business School when it opened its doors to coeds in 1961. Upon graduation two years later,
she became the first female consultant hired by McKinsey & Company. In her ten years at McKinsey,
she developed her Pyramid Principle for logically structuring consulting recommendations. Since
1973, she has run an independent communications training and consulting firm of her own, Minto
International.
Ms. Mintos incredibly valuable contribution to effective business communications involved the
novel synthesis of a number of frameworks from other disciplines. At the risk of extreme
oversimplification, Ill attempt to summarize the precursors to her ideas and memorable takeaways from
her work in a few short paragraphs.
First, she translated elements of the scientific method including hypothesis testing, inductive
logic, and deductive logic into business-centric thinking. Ms. Minto advocates inductive logic for most
problem-solving exercises, stressing the importance of considering mutually-exclusive and collectively
exhaustive (MECE) sets of ideas.
Second, she combined the militarys bottom-line-up-front (BLUF) technique with journalisms
inverted pyramid narrative style to create a top-down approach to business-centric writing.
Third, and the thing for which she is most well-known, Ms. Minto recast 19th century German
playwright Gustav Freytags dramatic story arc into the situation-complication-question-answer
(SCQA) approach to drafting introductions to business communications. (Commentators who have not
closely read The Pyramid Principle mistakenly refer to SCQA and the Minto Pyramid Principle as one
and the same.) In my opinion, Freytags exposition is Mintos situation; Freytags rising action is
Mintos complication; Freytags climax is Mintos question; and, Freytags falling action and
denouement are Mintos answer. Of course, even Freytag stands on the shoulders of giants, dating at
least back to Aristotles three-part structure (protasis, epitasis, and catastrophe or more accessibly,
beginning, middle, and end) as described in his Poetics.

Again, Ms. Minto applied her SCQA framework to creating structured, concise, and compelling
introductions to written communications especially memos and reports. In story parlance, the situation
describes the recent context of Once upon a time and every day The complication includes the
inciting incident and its consequences or until one day and because of that The question
captures the most intense query raised in a readers mind in response to the complication often
why? or how? Note the question is often implied and therefore not typically written into the
introduction. Finally, the answer offers a solution to the problem set up by the situation and
complication inclusive of the climax and the aftermath, or until finally... and after that
As presentations replaced memos and reports, something curious happened to Mintos SCQA
framework. Instead of being used only to craft introductions, the framework became the organizing
principle for entire presentations. Since the question was silent, it got dropped. In addition, the term
answer was swapped with its synonym, resolution. The resulting situation-complication-resolution
(SCR) not only has a memorable rhyme to it, but also conforms to a beautiful three-act narrative
structure.
To the best of my knowledge, Barbara Minto was not directly involved in the USPS engagement.
However, the DNA of Ms. Mintos set of pyramid principle frameworks are readily apparent in
McKinseys presentation.
Before I show you any slides from their USPS engagement, I need to digress in order to show
you how McKinsey consultants visualize problem solving using storyboarding techniques. This will
take a little while, but I promise it will be worth your time.
Tip 1: Define the problem and make sure it is worth solving

Imagine you are a McKinsey partner and the Postmaster General of the United States approaches
you and asks, Can you help us reverse our drop in efficiency as measured by pieces of mail delivered
per full-time-equivalent? Before saying yes or no, you must take some time to define the problem and
to make sure it is worth solving.
Validate whether the problem as initially stated is framed at the appropriate level. To move up,
repeatedly ask what impact a problem has and then assess whether the impact is one that can be
addressed by the clients key decision maker.
At USPS, for example, the impact of low delivery efficiency is high workforce cost - certainly
within the remit of the Postmaster General. Continuing, high workforce cost is one component of high
total cost also within the control of the key decision maker. High total cost results in low profitability
still the Postmaster Generals responsibility. Catastrophic losses at the USPS could lead to rising
national debt accompanied by a drop in the credit rating of the federal government. That final increase
in the scope of impact is one step too far, since the President and Congress, not the Postmaster General,
are accountable for the nations credit rating. As this example illustrates, the only way to know if you
have gone high enough is to push yourself one step too far and then come back. If your path leads you
to the total annihilation of the known universe, so be it.
The McKinsey terminology for this process of problem scoping is called moving up the issue
tree. Issue trees can be visualized as outlines (see Figure 2-1) or as hierarchical graphs (see Figure 22). As the figures illustrate, associates are encouraged to express issues as questions in full sentence
form, since doing so encourages clear thought and facilitates clear communication.
Although I posed all the issues in this example as How...? questions, best practice allows for
any open-ended question. How? questions tend to be the most common since the answers offer
solutions in the form of steps or methods. Why questions are the next most common since the
answers explain root causes. Though What?, Who?, When?, and Where? are rare, use
them if appropriate.
Figure 2-1: Partial USPS issue tree in outline form
Figure 2-2: Partial USPS issue tree in hierarchical graph form
Tip 2: Identify constraints

In addition to validating whether or not the problem is scoped at the appropriate level, articulate
the more traditional components of scope including constraints (also known as guiding principles to
those who prefer a more positive spin.) Constraints may be organizational, but appear in other forms
such as financial, environmental, regulatory, etc.
The USPS has the following three interlinked constraints governing what the organization is able
to do without seriously impacting its core mission:
1.
Universal Service Obligation (USO): The USO obligates the USPS to provide
universal service at affordable prices and is broadly outlined in multiple statutes
and encompasses multiple dimensions: geographic scope, range of products,
access to services and facilities, delivery frequency, affordable and uniform
pricing, service quality, and security of the mail.6
2.
Private Express Statutes (PES): This group of laws gives the USPS a monopoly on
carrying letters for compensation. Letters are defined as messages directed to a
specific person or address recording on a tangible object. The PES allows for the
existence of private carriers as long as they abide by anti-competitive exceptions
such as requiring senders pay at least six times the price charged for a one-ounce
First-Class letter.
3.
Mailbox Access Rule: This rule states that mailboxes can only be used for the
receipt of postage-paid mail delivered by USPS personnel.
These constraints rule out certain solutions such as selling access to mailboxes to private
couriers, limiting delivery frequency in selected geographical areas, or selling alcohol or tobacco
products.
Tip 3: Build out the mutually exclusive and collectively exhaustive set of issues
It may be that delivery efficiency is the best lever the Postmaster General has to improve the
profitability of the USPS. However, you cannot be sure until you flesh out the issue tree by filling in the
mutually exclusive and collectively exhaustive (MECE: pronounced me-see) set of issues. Mutually
exclusive means the issues are independent of each other. In my experience, issues sometimes mildly
overlap, so do not get overly hung-up on perfection. Collectively exhaustive means all possible issues
are included.
The McKinsey best practice for filling out an issue tree is to fully complete each level (outsidein for outline form; top-down for hierarchical graph form) before going deeper. Though the hierarchical
graph form is prettier, I use the faster outline form.
In the USPS example, we have the top-level key issue of profitability defined. The next step is to
explore what other factors at the same general level as total cost are as important in their impact on
profit. There is just one mutually exclusive option total revenue. Going a level deeper, the components
of total cost include: workforce costs, retiree benefit costs, capital asset costs, etc. Staying at the same
level, the drivers of total revenue include traditional mail revenue and non-traditional revenue.
How broad and how deep should you go? There is neither a single answer to the ideal number of
issues per level nor a single answer to the ideal number of levels. The limiting factor on most consulting
engagements is a set of time constraints, including: the overall project deadline, a contracted quantity of
billable hours, and scheduled (often weekly) meetings with the client. Working backward, the project
planner will set an allocation for the number of hours devoted to creating an issue tree. You simply rack
your brain as much as you can in the time you have available. An issue tree is an amazing and highly
efficient tool for uncovering what matters so you can get a lot done in very little time. If the team
includes a consultant or client member with deep knowledge or prior experience with the same problem,
high-impact issue trees can be constructed with blazing speed.
Tip 4: Convert your issue tree into a hypothesis tree

Within one day to one week of an engagement kickoff, first-time McKinsey clients are often
startled when the consulting team shows up with what looks like a full set of solutions to the issues that
were just uncovered. They object, I paid you how much?! And you whiz-kids already think you have
all the answers when you havent even taken the time to do any real investigation?!
What appears to be a set of solutions is merely a set of initial hypotheses, proposed explanations
that now must be rigorously tested. A good problem solver will search for facts, all the while updating
the hypothesis. Great problem solvers not only seek information that confirms their hypothesis but also
mercilessly hunt for disconfirming information.
In statistics, a hypothesis can never be accepted. Rather, your only options are to either reject or
fail-to-reject the hypothesis. Statistics loves uncertainty and this treatment of testing your hypotheses
leaves an air of mystery. When you think about it, decisions in your personal or professional life are
pretty much that way, too. You can never know with absolute certainty that you are making the right or
best decision; you do the best you can with the information you have at the time.
A hypothesis tree is a set of decisive answers, represented in outline or hierarchical form, to the
issue tree questions. How can we improve profitability? becomes We can improve profitability by
; How can we lower total cost becomes We can lower total cost by ; and so on. To ensure
your hypotheses are testable, make them SMART just as we did with the overall presentation title in
Chapter 2. (So that you do not need to page back, SMART stands for specific, measureable, actionoriented, relevant, and time-bound.)
Tip 5: Prioritize your hypotheses for impact
The process of constructing an issue tree and of subsequently converting it to a hypothesis tree is
an efficient form of brainstorming. As such, each mutually exclusive and collectively exhaustive level
should be developed in a judgment-free manner.
At this stage, the team working on the engagement is going to have to do a lot of work in a
(usually) limited amount of time. Given the ultimate goal is to have the largest positive impact on the
clients business, you must prioritize your hypotheses. When, not if, you run out of time, you can rest
knowing your efforts were efficiently spent.
During your first pass at prioritization, gut feel or back-of-the-envelope calculations are
sufficient as you will have few facts from which to draw. McKinsey assists its consultants by giving
them the following guidance in such situations:
When prioritizing, it is common to use a two-by-two matrix e.g. a matrix featuring impact
and ease of impact as the two axes. Our focus on client impact makes it extremely likely that impact
will form part of any prioritization. Other prioritization criteria include urgency (but beware the danger
of being drawn into firefighting), fit with values and mission, strategic alignment, fit with capabilities,
and option value. Applying some of these prioritization criteria will knock out portions of the issue tree
altogether. Consider testing the issues against them all, albeit quickly, to help drive the prioritization
process.7
As we go through the remainder of the USPS presentation, we will see how McKinsey
prioritized solutions to the issues facing the organization.
Tip 6: Ghost out your story on paper using the situation-complication-resolution framework
The overwhelming majority of individuals responsible for developing presentations go directly
to design tools such as PowerPoint or Keynote. While these software products are valuable, the great
danger in using them too soon is that the resulting output is just a string of information.
McKinsey is very explicit that its associates get to paper quickly by building a rough draft
known as a ghost deck. Although paper is a loose term, most of the firms presentations really do
begin as post-it notes, index cards, or full-sized pieces of paper divided into grids. Each page in a ghost
deck includes a title at the top and the sketch of an exhibit, usually a graph or table, needed to prove the
title in the body. Designing in this manner helps show the storyline that connects all the information
together into a business narrative.
The dot-dash approach is a nice, electronic, McKinsey sanctioned design alternative to
storyboarding with pen and paper. In a dot-dash outline, the storyline arguments are carried by dots
(bullet points) and the supporting facts are sketched out with indented dashes (hyphens). For clarity,
express the dots and the dashes in complete sentences. The dots become the slide titles and the dashes
become the content in the body of the slide.
At a very high level, here is what the McKinsey USPS presentation looks like in dot-dash
format: (Note: In a fully developed outline, the situation, complication, and resolution are expanded into
many dots, and each dot may have many supporting dashes.)
Situation: USPS is experiencing unprecedented losses

-
Complication: The Base Case leads to a loss of $33 billion and cumulative losses
of $238 billion by 2020
-
Profits in 2003 to 2006 have swung to steep losses in 2007 to 2010
Without action, unfavorable revenue and cost trends will continue
Resolution: USPS must pursue fundamental change in five areas

-
Change must occur in: Products & Services; Pricing; Service Levels;
Workforce; and Public Policy
Tip 7: Test your hypotheses and iterate your story

Problem definition and the dot-dash approach mark the end of the first phase in developing a
persuasive, data-driven presentation. This first phase must come before data collection and analysis
because knowing the problem you are solving and the story you expect to tell guides you to what data to
consider. While that may seem obvious, I find that most people jump to slicing and dicing data in a
million ways to find things to say about it. Searching for problems and solutions in this way is like
trying to find one fish in an ocean; there is simply too much information available inside and outside of
most corporations.
The data used to test hypotheses can be drawn from a wide range of sources. In the USPS
presentation, McKinsey primarily draws upon financial (e.g., net income) and operational (e.g., pieces
of mail delivered) metrics. However, data can come from a wide range of external sources including
competitors, suppliers, customers, as well as data aggregators such as governments and trade
organizations.
When most people think of data, they think of quantitative statistics. However, McKinsey
routinely draws upon qualitative data in its engagements and you should, too. While this is not a book
on data collection techniques, there is one technique bright spot analysis that is so valuable I feel
compelled to at least outline it for you here.
Bright spot analysis is designed to help you identify the best practice behaviors of the people
who have successful outcomes. Ill illustrate by way of example.
Imagine you want to increase the average annual sales for individual account executives in your
company by 25% from $100,000 to $125,000. An average leader working on this goal would come up
with and apply some new ideas, perhaps even a best practice of a competitor. A better than average
leader would inquire with a few trusted sales managers as to who their top performers are and then ask
those account executives what they do to cultivate and close a prospect.
A great leader, one who applies bright spot analysis, does not trust sales managers to know who
their top performers are. Yes, that is blasphemy, but sales managers are people too, and hold biases due
to personal relationships and past performance. The right first step is to stack rank account executives
by recent performance for instance, sales over the last two quarters. Next, divide the list into four
(quartiles) or five (quintiles) groups. Ensure the top group is well over the $125,000 sales goal to make
sure there is existence-proof for what you are trying to achieve. Take the time to eliminate outliers in the
top group who may have benefitted from special circumstances such as one massive transaction. Do the
same for the bottom group, again eliminating account executives that suffered due to uncontrollable
circumstances.
Now go out and interview the top ten performers. Rather than asking them what they do or what
they would do in the abstract, apply an anthropological approach by asking them to walk you step-bystep through a recent transaction they completed. How did they first identify the prospect? How did they
make first contact? What resources did they bring to bear during the sales process? Who was involved
in the decision? How did they close the transaction? As you interview multiple people, you will start to
hear patterns. Rather than asking the ineffective question, What are your best practices? you are
discovering best practices by listening for behaviors common among successful people.
Most bright spot analyses stop there. However, the best go through the exact same
anthropological interview processes with the bottom performers. That step is critical because bright
spots are behaviors top performers apply that bottom performers do not. Once you find the delta, you
can teach everyone what your top performers are doing and maybe even blow way past your goal of a
25% improvement.
Keep in mind the tremendous potential for bias tied to knowing ahead of time which
interviewees are top- and bottom-performers. To mitigate that bias, strive to ask open-ended, nonleading questions and spend the vast majority of the conversation as a listener.
For the sake of simplicity, I have made it seem as though the process of generating and then
iterating on a storyboard using problem-solving techniques is linear. In real engagements, consultants
move back-and-forth between problem definition, issue trees, hypothesis trees, and storyboards as they
gather and synthesize new information.
Also for the sake of simplicity, I have implied that this process is fully your responsibility or the
responsibility of your group. McKinsey strives to engage clients in co-creation to ensure the best
solutions are uncovered and to secure buy-in for the resulting change needed to turn recommendations
into action.
This chapter established the core problem solving and storyboarding techniques used to develop
persuasive, fact-based presentations. Now, let us dive into McKinseys USPS engagement, picking up at
the first part of its situation-complication-resolution story.
Chapter 3
McKinseys USPS Situation

The situation-complication-resolution (SCR) storytelling framework requires only that each of the three
components exist in the narrative. However, presenters can begin their stories with any one of the three
in order to affect the emotions of their audiences.
When listeners are extremely anxious, begin with the resolution. This is known in military
parlance as bottom-line-up-front (BLUF) and in consulting terminology as starting with the top of the
inverted pyramid. For this approach to have a soothing effect, you must be reasonably certain your
audience will easily understand and readily accept your recommendation as a compelling solution to its
problem. If not, you may end up doing more harm than good. Furthermore, giving away the ending at
the beginning kills all dramatic tension and makes for an extremely boring presentation. Due to the risk
of either extreme tension or zero tension, starting a presentation with a resolution should be reserved for
rare circumstances.
If your audience is overly complacent, begin with the complication to create a sense of urgency.
In dramatic storytelling, this would be like starting an action movie in the middle of an intense car chase
or at the moment the hero jumps off a cliff and into a helicopter in the nick of time. In typical business
meetings, decision makers are not complacent. Therefore, it is unwise to increase their tension too
quickly at the beginning of your presentation.
If starting with the resolution introduces (typically) too little tension and starting with the
complication introduces too much, starting with the situation is just right. The situation addresses the
question, What is going on and how did we get here? Because it provides critical context, this is the
conventional way of beginning a strategic story and is the way McKinsey began its USPS presentation.
Tip 8: Title your presentation with a so-what encapsulating your overall objective
McKinsey chose a rather bland what title, USPS Future Business Model for its presentation
as shown in slide #0 (Figure 3-1). What titles, technically noun phrases, lack the audience-focused
emotional punch you find in so-what titles describing outcomes. First and foremost, titles must orient
your listeners to your overall objective. Frankly, I am surprised this title slipped through McKinseys
tight quality control.
If you search the web carefully, you will notice consistency in the way McKinsey titles its
presentations. For instance, Sustaining Quality and Operational Excellence, Capturing the Full
Electricity Efficiency Potential of the U.K., and Evolving USSAs Alpine Domestic Development
System in Partnership with Clubs. Notice all three examples begin with a powerfuling verb. This verb
form, the present participle, is used to describe action that is still taking place.
Among the three consulting firms participating in the USPS engagement, McKinsey had the
juiciest piece recommending a high-level strategy to restore the postal service to profitability. Had the
firm used its own best practice, they might have titled this presentation, Evolving the USPS Future
Business Model. Using a variety of other verbs at the beginning such as optimizing, designing, or
transforming would have been equally effective.
Occasionally, you will find a McKinsey presentation with other types of titles. The most
common alternative to the so-what title is the question title. For instance, the McKinsey presentation
entitled, Quantum Leap What Will It Take to Double Serbias Economic Growth in the Next
Decade? I think better editors would have dropped the flowery quantum leap and turned the question
into the more direct, Doubling Serbias Economic Growth in the Next Decade.
Another unusual (for McKinsey) example I found was entitled, How Companies Can Capture
the Veteran Opportunity. Again, a good editor would boil this down to Capturing the Veteran
Opportunity.
Figure 3-1: McKinseys USPS presentation slide #0
Tip 9: Make your presentation title SMART

On the off chance that you have not come across the SMART framework in any of the countless
books on personal or professional goal setting, here is a quick refresher. SMART goals are specific,
measurable, action-oriented, relevant, and time-bound. McKinsey teaches its associates to evaluate their
overall objective, sometimes referred to as the basic question to be resolved, using this framework.
Consequently, best-practice presentation titles are SMART.
As an example, consider again, Doubling Serbias Economic Growth in the Next Decade. It is
specific in its reference to Serbias economic growth. It is measurable in its reference to doubling. It is
action-oriented, an attribute that comes for free when you use a powerfuling verb. Relevancy is
audience depending, but we can assume McKinsey created that presentation for Serbian officials or
another interested party such as the World Bank. It is time-bound in its reference to the next decade.
An important side note is that the A and the R in the SMART framework are sometimes
represented as accountable and reasonable. Accountability is often implied but can be made explicit
by mentioning the party responsible for achieving the goal in the title. Similarly, reasonableness is
implicit and in the eye of the beholder. Because of this fuzziness, action-oriented and relevant make
better checklist items.
So, how could McKinsey have made its USPS title SMART? In some ways, they were a little
stuck because the overall USPS project was called the USPS Future Business Model. However, if
they had more flexibility they could have used, Restoring the USPS to Profitability by 2020, which
was, as we will discover, the ultimate goal of this presentation.
Tip 10: Use an agenda slide to provide your audience with a roadmap
In dramatic storytelling, plots are designed to include long stretches of rising tension. To build
emotional intensity, writers keep their audiences guessing with delayed resolutions to questions such as,
What is going to happen next? While strategic storytelling has tension, business presentation
designers strive to keep tension short lived because their goal is persuasion.
Showing an agenda slide immediately after your title slide is one of the best ways to control
tension. First, audiences expect it. Second, by knowing where you are going, they are more likely to
hold questions until relevant sections.
Tip 11: Keep agenda slide titles short and sweet so they can be ignored
There are several elements to notice about McKinseys agenda slide shown in slide #1 (Figure 32), beginning with the slide title, also known as the slide lead. As in this presentation, the firm appears
to have standardized on Contents, though one can find two variations. The most common is
Agenda, which I find more appropriate when referring to a roadmap that will be delivered live rather
than read passively. The other variation I have found is an agenda slide title that echoes the overall
presentation title. For example, in the McKinsey presentation entitled, Achieving Sustainable
Development in Mining, the agenda slide title reads Sustainable Development in Mining. In the case
agenda slide titles, a degree of flexibility is appropriate. Unlike titles for content slides, titles for agenda
slides should be unobtrusive since the audiences focus should be on the body of the slide. To that end,
keep agenda slide titles short and sweet so they can be visually ignored. In theory, you could even do
away with the agenda title altogether, though that is not something you see in McKinsey presentations.
Figure 3-2: McKinsey USPS presentation slide #1
Tip 12: Limit agendas to no more than five short items

The set of bullets that comprise the body of the agenda slide is the next element to notice. Most
McKinsey presentations I have seen have three plus one agenda items. Why not just say four? The
reason is that the first three bullets encompass the full narrative of the story. The first bullet is the
situational background, referred to in the USPS agenda slide as Recent Context. The second bullet is
the complication, referred to in the USPS agenda slide as Base case minimal management actions.
The third bullet is the recommended strategy to solve the complication(s), referred to in the USPS
presentation as Addressing the challenge. Finally, in most McKinsey presentations, the plus one is
labeled Appendix. In the case of the USPS presentation, as we will explore later, the engagement
team elevated the Appendix to higher priority because of a burning recommendation they found that
was outside the context of the 2020 strategy.
Of course, you likely already noticed the bullets in the McKinsey USPS agenda slide are
extremely short at most five words. Moreover, there are no sub-bullets. While I have seen the rare
McKinsey agenda slide violate the single line agenda item rule, I have yet to see the no sub-bullet rule
violated. The reason for this simplicity is that the purpose of agenda slides is merely to guide the
narrative flow, not to impart information. To that end, you will rarely find footnotes or graphical
adornments on a McKinsey agenda slide.
Tip 13: Add creativity to agenda slide design

There is no rule requiring agenda items appear as numbered or bulleted text. If your
presentation, like most strategic stories, is structured hierarchically, consider representing the agenda
using an organizational chart. Similarly, if your presentation unfolds linearly, jazz it up by converting
bulleted text to process chevrons. Finally, you can get even more creative with graphical agenda slides.
Tip 14: Start agenda items with action verbs to signal in which mental mode you want your
audience
In McKinsey agenda slides, I have rarely seen parallel construction applied to bullet items in
which each phrase or clause has the same grammatical structure. As I am somewhat of a stickler for
grammar, this choice has always puzzled me. When I design agenda slides, I always apply parallelism.
In particular, I start agenda bullets with action verbs. In each section of a presentation, I find it best to
let my audience know in which mode it is.
Executives, being executives, have a natural prioritization of how best to use their time and
brains during meetings. Unless told otherwise, their default mode is decision making. When I want the
people I am presenting to in that mode, I start my bullet with Approve, Adopt, or
Authorize The second mode executives operate in is problem-solving mode. If you start a bullet
with Problem solve, Explore, or Brainstorm, your audience knows you are seeking
thoughtful input rather than a quick decision. Finally, the third mode in which executives operate is the
passive listening one. Spend the least time in this final mode because it is not an effective use of senior
leaders time. I begin agenda bullets with Review or Evaluate to signal to my audience that I
am about to share information.
Given this set of best practices, I would rewrite the agenda items as follows:
Review USPS operating environment
Evaluate 2020 base case assuming minimal action
Approve recommendations to restore profitability
Secure short-term financing to maintain solvency
It is perfectly acceptable to use the same action verb at the beginning of multiple bullets. At their
core, business presentations are about clarity and efficiency, not literary excellence.
Tip 15: Apply contrast to highlight the start of each agenda section
The McKinsey standard for highlighting the start of each agenda section combines bold, black
text and a colored, usually blue, box as reflected in slide #1 (Figure 3-2). I find that using one, or at
most two, treatments to draw out contrast is sufficient. Adding others, such as different text color,
underlining, or italics is overkill and may appear amateurish.
A presenter has two options for delivering this agenda slide. The short-form option is: Lets
begin with the recent context followed by an extended pause to allow the audience to read the
remainder of the roadmap. While that approach is perfectly fine, many presenters will be uncomfortable
with the required silence and will opt for a long-form approach as follows: Today, well review the
recent context describing the past and current profitability of the USPS. Next, well explore the base
forecast for profitability assuming minimal actions are taken to stem projected losses. Then, well
propose a set of recommendations to address the challenges we face. Finally, although not part of our
long-term strategy mandate, wed like to share a key short-term finding with you. Now, lets begin with
the recent context. This long-form version has a bit of embellishment around the bullets but does not,
and should not, reveal too much content nor trigger too much tension.
Tip 16: Start the situation with the current state of the fundamental issue
I find starting a business presentation is often the hardest part of the strategic storytelling
process. To make the job easier, I follow a few simple rules. First, the beginning must frame the current
state, including relevant history, of the fundamental issue. Second, the beginning should rely on facts
drawn from internal or external information sources. Third, the beginning should be uncontroversial in
the sense that your audience already knows the information, or at least can be assumed to have a sense
of it.
The beginning of a business presentation should orient the audience and not trigger strong
objections. Note that just because something is factual and uncontroversial does not mean it is
emotionally neutral. In fact, you want a mild degree of tension to hook your audience from the start.
McKinseys first situation slide (Figure 3-3) meets all three of these rules. Recall that a mounting
financial loss was the fundamental problem facing the USPS. To illustrate this issue, McKinsey wisely
chose to show the trend in net profits and losses for the organization. The mounting losses, although
emotionally negative, were factual and readily known by the audience.
Tip 17: To own the flow, each slide should trigger a question answered by the title of the next
slide
When you read the title USPS is experiencing unprecedented losses in slide #2 (Figure 3-3),
what question naturally comes to mind? For me, as I suspect it is for most people, the question is Why
are unprecedented losses occurring? or equivalently, What are the root causes of the losses?
While I might have chosen to answer this question on the next slide, Figure x actually provides
three answers in the Key drivers text panel. First, revenues declined due to a number of factors.
Second, non-operating costs to fund retirement health benefits (RHB) have been a major factor since the
Postal Accountability and Enhancement Act of 2006 (PAEA) was signed into law. Third, operating cost
savings has been insufficient.
The next question that arises is, What impact has each of these three key drivers had on the
mounting losses? The McKinsey team answers that on slide #3 (Figure 3-4), entitled, Losses have
been driven by volume declines, RHB pre-funding requirements, and limitations on cost savings. The
waterfall chart on the slide illustrates the impact of each of the three root causes on the decline in net
income in 2009 as compared to 2006.
Figure 3-5: McKinsey USPS situation through slide 3
Figure 3-5 show the situation part of the strategic story evolving hierarchically. Slide 2 triggers a
Why? question that is answered by a set of reasons, or root causes, on slide 3. Importantly, each
item is part of a mutually-exclusive and collectively-exhaustive set summarizing at a high-level
everything else to follow in the situation.
Barbara Minto refers to the enumeration in slide #3 (Figure 3-4) as a key line. Ill use the term
summary node which is more descriptive and more consistent with the tree-traversal process we will
explore in the next tip. Nearly every presentation has a summary node as either the first or second in
each of the situation, complication, and resolution sections; in addition, many presentations have
additional summary slides within sections to introduce new groups of idea.
Tip 18: Expand on the summary node with depth-first tree traversal
To understand how to sequence the remaining situation slides as you expand on the root causes
identified in slide #3 (Figure 3-4), lets turn briefly to the concept of tree-traversal from computer
science. Dont worry, I promise not to get too technical.
Figure 3-6: Depth-order and breadth-order tree traversal for the Janes Day story
For starters, think of your presentation as a tree and each slide as a node in the tree. Tree
traversal is simply the order in which you visit the nodes in the tree, or equivalently, the order in which
you show slides in the presentation.
Brilliant minds figured out two basic methods for tree-traversal, including depth-first and
breadth-first, as illustrated in Figure 3-6. Traversal in either method begins with the root node, node #1.
In depth-order tree traversal, any time you encounter multiple nodes at the same horizontal level, you go
down first and only go across when you cannot go down any more. In breadth-order, any time you
encounter multiple nodes at the same horizontal level, you go across first and only go down when you
cannot go across anymore.
For presentations, use depth-first traversal since this method progressively introduces concepts
and then peels the onion. Additionally, this method more closely approximates how stories are told.
This is painfully obvious when you consider telling a simple story of Janes Day in each of the two
ways as follows:
Depth-order: Jane woke up one morning and started her day (node #1). First, she ate breakfast
(node #2). Her breakfast included coffee (node #3) and oatmeal (node #4). Next, she went to work
(node #5). After work, she met her friend, Constance, at the park (node #6) and the two went for a run
(node #7).
Breadth-order: Jane woke up one morning and started her day (node #1). First, she ate breakfast
(node #2). Next, she went to work (node #3). After work, she met her friend Constance at the park
(node #4). Back when she had breakfast, her breakfast included coffee (node #5) and oatmeal (node #6).
Later, at the park after work, Jane and Constance went for a run (node #7).
Returning to McKinseys USPS presentation, the root node of the situation is slide #2 (Figure 33) and its only child node is slide #3 (Figure 3-4), a summary node outlining three root causes.
Following the depth-first tree traversal method, the next slide must explore something having to do with
revenue declines, but what? Once again, the content of the next slide is always the answer to the natural
question triggered by the current slide. Audience members will want to know, Why are revenues
declining?
The MECE set of root causes for declining mail revenues must consider changes in pricing and
changes in volume, precisely the two factors explored in the next slide in the series, as shown in slide #4
(Figure 3-7). The slide thoroughly explains the pricing problem the PAEA of 2006 limited increases
by anchoring mail pricing to the Consumer Price Index (CPI). However, the slide only introduces the
problem with mail volumes.
To explain why actual mail volume in 2009 was significantly below even the downside forecast,
we need to traverse one level deeper in the revenue decline part of the tree as shown in slide #5 (Figure
3-8). The shortfall is due to two factors. The first, economic recession, is reasonably well illustrated in
the chart. The second, e-diversion (i.e. the inevitable switch from traditional mail to email and instant
messaging), is mentioned only in the header and unfortunately not supported by proof in this or
subsequent slides.
Tip 19: Only go as deep as is needed to introduce the problem

With slide #5 (Figure 3-8), McKinsey went as deep as needed on the revenue part of the USPS
situation. It is enough to know that price increases are capped and that volumes have been hampered by
the recession and by e-diversion. In theory, one falls endlessly down the rabbit hole with increasing
levels of granularity. Why is Standard mail, which previously had the fastest growth, collapsing so
rapidly? And on and on
While there is no hard and fast rule on how many levels to go, I can offer a few guidelines. Go
as deep as you need to introduce the problem. There is one successful outcome to a persuasive business
presentation the decision maker approves your recommendation. To that end, there is no need to show
off your knowledge and your analytical prowess. In the situation, stop at the level of detail on which
you intend to build in the complication and which you intend to rectify in your resolution. If you still
want a rule with which to start, McKinsey often goes two levels deep as they did in the revenue
situation and will do in the third portion, the cost story, of the situation.
Tip 20: Repeat summary node slides when moving across after going deep
If you go very deep down a part of your tree, say three or more levels, you may want to repeat
the summary node to help reorient your audience. In this example, that would mean repeating slide #3
(Figure 3-4) in order to smooth your transition across to the retirement health benefits situation (RHB).
To change the focus, add visual emphasis to the RHB pre-funding requirement references in the slide.
In this case, perhaps since they only went two levels deep on revenue, McKinsey did not repeat
the summary node slide when transitioning to the lone slide on pre-funding of retirement health benefits
as shown in slide #6 (Figure 3-9).
As the summary node slide was not repeated in the transition to retiree health benefits, it was not
repeated in the transition to the cost situation in slide #7 (Figure 3-10). In such cases, it is incredibly
important that the slide title reorient the audience to where the speaker is in her story. Unfortunately,
Recent reductions in workforce usage have been significant, but pieces per FTE still declined in 2009
feels a little out of left field. The transitional flow would have been much smoother with a title
referencing cost savings, as in: Cost savings have been insufficient due to lower efficiency despite
workforce reductions.
Slide #7 (Figure 3-10) triggers the question, Why didnt you reduce the workforce faster?
Slide #8 (Figure 3-11) provides the answer. The USPS did as much as it could by eliminating non-career
employees and reducing overtime hours. Presumably, the next round of cuts must be deeper and,
although not mentioned, would require painful contract negotiations with the powerful American Postal
Workers Union (APWU), part of the even more powerful AFL-CIO.
We now have the complete context describing how the USPS found itself facing unprecedented
losses. Figure 3-12 nicely summarizes the situation and also illustrates how the McKinsey team
structured and sequenced this first act of the story. While it may be tempting to start thinking about
ways to return the USPS to profitability, we must first develop a picture for what the future is likely to
hold if no further action is taken.
Figure 3-12: Full McKinsey USPS situation
Chapter 4
McKinseys USPS Complication

Tip 21: Explore issues and/or opportunities in the complication section
McKinseys situation section explored the historical fact-base leading to the USPSs profit
predicament. The complication section, Act II of the strategic story, built tension in a controlled manner
by focusing on current and future forces of change. Though the word complication carries a negative
connotation, these forces of change can exacerbate problems or explore opportunities. In this case, the
vast majority of the USPS complication section, introduced innocuously enough as Base case
minimal management actions in slide #9 (Figure 4-1), plays to negative emotions by escalating a
predicament into a catastrophe.
Figure 4-1: McKinseys USPS presentation (slide #9)
Tip 22: Build up to contentious or counter-intuitive insights

The USPS complication section deviates from the bottom-line up-front approach used in the
situation section because the base case cumulative loss through 2020 is so extreme as to be contentious.
As a result, the audience needs to be taken there through a build-up of information that resonates. If the
base case were merely extreme but neither contentious nor counter-intuitive, then the complication
should begin with the top-level forecast and then drill into the details.
Tip 23: Explore the influence of dynamic trends on the factors discussed in the situation
Recall that the situation ultimately deconstructed the levers driving USPS profitability into four
components: the impact of volume on revenue, the impact of pricing on revenue, the impact of
retirement health benefits on costs, and the impact of workforce efficiency on costs. As shown in slide
#10 (Figure 4-2), the complication section starts by exploring the influence of dynamic trends on these
same factors.
Thinking in terms of story, profitability is the protagonist. The strategic business levers represent
the protagonists friends and foes. All of these characters were introduced during Act I, the situation.
Now, in Act II, the complication, we get to see characters with whom we are already familiar evolve
through conflict in the form of trends. Shrewdly, many of these trends, such as e-Diversion and capped
price increases, were already foreshadowed.
The limited amount of new information in slide #10 (Figure 4-2), a summary node, eases the
audience into escalating tension following the now familiar depth-first tree traversal approach to slide
order (see Figure 4-3).
Figure 4-3: Beginning of USPS complication section expanding on four trends impacting revenues and costs
We already observed in the summary section that Standard-mail and First-Class-Mail volumes
have been declining as a result of e-diversion and less advertising during the recession. Slide #11
(Figure 4-4) projects those negative trends forward in 2020.
Slide #12 (Figure 4-5) offers the one moderate piece of good news in the base case outlook for
USPS profitability. Due to inflation-driven price increases, revenue will actually increase slightly
despite the volume decline. From a story point of view, we move from negative (1.5% per year annual
volume decline) to positive (0.16% per year annual revenue increase). However, like any good story, in
Act II one step forward will soon be offset with two steps back.
Slide #13 (Figure 4-6) introduces the first part of the cost complication. The USPS is obligated
to provide a universal standard of service to which Americans have become accustomed including
access to post offices nearby and rapid delivery six days a week to nearly anywhere. These services rely
heavily on fixed-cost capital (post-office buildings, sortation plants, and large vehicles); consequently,
these costs will not fall as mail volume drops.
The outlook grows darker still in slide #14 (Figure 4-7) as work hour savings from reduced mail
volumes and fewer post offices are offset by work hour increases needed to deliver to additional
locations.
Unfortunately, flat total work hours does not translate into flat workforce costs because wages,
workers comp, and health insurance are projected to increase much faster than inflation as shown in
slide #15 (Figure 4-8).
On seeing slide #15 (Figure 4-8), an audience members most natural question is likely, Why
are health benefits rising so much faster than inflation? Slide #16 (Figure 4-9) reveals the root causes
as a combination of pre-funding retiree health benefits and normal premiums for current employees.
Tip 24: Deliver the collective impact of the complications on the fundamental issue
At this point in the complication section of McKinseys USPS presentation, we know the
following: (1) despite volume declines, revenue will rise slightly as a result of price increases; (2)
capital fixed costs will likely increase with the expansion in delivery points far surpassing the reduction
in post offices; and, (3) variable wage and benefits costs, on a flat base of total hours, will likely
increase faster than inflation.
So, revenues will rise slightly and costs will increase probably more than slightly. But, we do
not yet know by how much nor do we know the collective impact of these projections on profitability.
Now, it is time to put all the information together. Again, this build-up was slow because what is
about to come is so dire it is shocking. In fact, it is so dire that the central complication will take three
more slides to be fully clear.
First, slide #17 (Figure 4-10) combines all of the trends together into the revenue-impact and
cost-impact per piece of mail. It feels reasonable that costs per piece will increase 4% per year and
revenues per piece will increase 2% per year, given all of the similarly reasonable information disclosed
thus far.
Slide #18 (Figure 4-11) builds to the climax of the story, the end of Act II, in three parts. First,
the chart on the left hand side multiplies the forecasted per-piece costs and revenues by projected
volumes. Second, the middle chart subtracts the resulting total cost forecast from the total revenue
forecast to create the net profit forecast. Notably, losses accelerate nearly every year, eventually hitting
$33 billion! Of course, the forecast is highly sensitive to projected volume; nonetheless, the loss is a still
shocking $21 billion, even in the unlikely event total mail volume remains flat. Third, the chart on the
right hand side shows cumulative losses will reach $238 billion by 2020, fifteen times greater than the
$15 billion statutory debt ceiling.
Figure 4-11: McKinseys USPS presenation (slide #18)
Since slide #18 (Figure 4-11) proclaims catastrophe, some audience members will remain in
disbelief. They might ask, What were your critical assumptions and how certain are you about them?
Slide #19 (Figure 4-12) addresses this question and closes out the complication by exploring potential
upside factors and potential downside risks. While not quantifying the impact of each of these, one can
move the next part of the story, confident the $238 billion cumulative loss sits at a reasonable mid-point
of a range of potential outcomes.
Pause to think about the elegance of the storytelling in the complication section. The protagonist
established in Act I, USPS profitability, was affected by friends and foes met during her journey through
Act II. Notably, the story was tightly edited in the sense that every trend had a conclusive impact on
either revenue or cost; the trends converged to the storys climactic moment, leaving the audience
hungry to discover our heros savior.
Just how accurate were McKinseys projections? For 2010, the year already in progress when the
presentation was given, the firm forecast a $10 billion loss versus an actual loss of $17.6 billion. After
this larger than expected loss, the 2011 retirement health benefit payment was deferred into 2012. For
2011, the firm forecast a loss of $10 billion versus an actual loss of $8.7 billion. For 2012, the firm
forecast a loss of $15 billion versus an actual loss of $30.7 billion. Finally, for 2013, the firm forecast a
loss of $16 billion versus an actual loss of $11.6 billion. (Note: Actual losses include net operating loss,
retirement health benefits pre-funding expenses, and workers compensation expenses.)
Cumulatively from 2010 to 2013, McKinsey forecast a loss of $51 billion. The actual loss was
$68.6 billion. Firms like McKinsey strive for plus or minus 10% accuracy. In this case, the actual loss
was thirty-five percent worse than projected. At least as I type these words, the McKinsey forecast is, if
anything, highly conservative. Said another way, the complication facing the United States Postal
Service is truly catastrophic.
Here, at the end of Act II of our strategic story, our protagonist, USPS profitability, teeters
precariously at the edge of a cliff. The recommendations the organization chooses to apply from the
upcoming resolution section have existential consequences; in order to survive, the USPS needs to
fundamentally change how it makes and spends money.
Chapter 5
McKinseys USPS Resolution

As the agenda slide curtain (Figure 5-1) rises on the third and final act of McKinseys USPS strategic
story, lets take a moment to recap the action thus far. In Act I, the USPS our hero was struggling
with financial losses stemming from e-Diversion, recession, retirement health benefit funding, and
limited flexibility in reducing costs. In Act II, these forces were forecast to intensify, leading to a
projected $238 billion cumulative loss by 2020. Even the glimmer of a way out, due to potential upside
trends in the general economy, was tempered by equally strong potential downside risks. At this pivotal
moment, the audience has one natural question, How can the USPS get out of this mess?
Tip 25: Explore the mutually exclusive and collectively exhaustive ways to resolve the
complication
Generally, three levels of effort can be applied to solve any problem. The first level includes
standard, low-risk actions taken as ordinary business process optimization. The second level includes
radical, high-risk actions leading to fundamental innovation and change. The third level, one many
decision makers fail to consider, is maintaining the status quo; the decision to do nothing is indeed a
decision and can often be the best option.

Using these three levels of action as part of brainstorming opens up a wide range of possibilities.
Here, I use the term brainstorming broadly to include sourcing and synthesizing ideas from internal and
external sources either via observation or creative effort.
Tip 26: Place low-impact resolutions in the Appendix to show they have been considered but ruled
out
As shown in slide #21 (Figure 5-2), the McKinsey team decided to include a set of standard
actions and a set of radical actions. Rather unfortunately, the slide mixes two MECE ways of parsing the
solution space. One way is standard versus fundamental change. The other way is actions within USPS
control and actions outside of USPS control. Based on the remainder of the resolution section, the
orange outlined text box labeled Actions within Postal Service Control should have read Organic
Change or some other antonym of fundamental change.
Notably, the status quo future was already covered in the complication section, so it need not be
repeated. Had the status quo base case not been presented, it should have been placed in the Appendix
because a decision maker might ask about it, though it is not attractive enough as a recommended
option.
Tip 27: Prioritize recommendations in impact-, sequential-, or emotional order
Once brainstorming is complete, the storyteller must prioritize in order to determine which ideas
to put into the story and in which sequence. The decision makers in the audience not only are judging
the quality of the solutions offered, but also are judging the quality of the person offering the ideas. If
one includes too many low-impact ideas, one risks leaving the decision makers both overwhelmed with
content and underwhelmed with confidence. Starting with low-impact ideas will similarly destroy
decision maker confidence.
Choosing how to order actions in the resolution section is critically important. The default for
prioritizing solutions is in descending order, highest to lowest, of impact since this releases the anxiety
built at the end of the complication section as fast as possible. However, this default does not work
when the actions must be taken in sequence (i.e., phased) or when the audience needs to follow an
emotional path to accept the recommendation.
In McKinseys USPS presentation, there are two sets of recommendations one including
standard actions and one including fundamental change actions. Of the two, the more powerful is the set
of fundamental change actions. The two sets are an and not an or, in the sense that both can be
implemented to help improve USPS profitability. Additionally, one set need not be completed before the
next one, so sequential order is not required. However, fundamental change is a hard pill to swallow.
A key principle in storytelling is that characters always take the minimum conservative action
given the circumstances in which they find themselves. A hero will take radical, life-threatening actions,
but only if there are no viable alternatives. This principle determines ordering for the USPS resolution.
Organizations (almost) always start fixing problems by taking standard actions. They pursue
fundamental change (only) when the standard actions fail to achieve the necessary results. So, due to
risk aversion, McKinsey started with actions within USPS control, standard actions, as shown in slide
#22 (Figure 5-3).
The remainder of the resolution section is structured using most if not all of the key principles
used to structure the situation section including bottom-line-up-front messaging, story-centric

progression, and depth-order tree-traversal. Since there is considerable content here, I have broken the
flow up into two pieces. The hierarchy exploring standard change actions is provided in Figure 5-4.
Figure 5-4: Structure for the standard actions part of the USPS resolution section
Slide #22 (Figure 5-3) provides the bottom-line-up-front impact of reducing cumulative losses
from $238 billion to $115 billion through standard actions within USPS control. That information
triggers the question What standard actions achieve this and how much does each contribute to
reducing the loss? Slide #23 (Figure 5-5) provides the answer with four groups of standard actions plus
avoided interest due to reduced debt. I would have started with productivity improvements as they offer
the largest impact and sequential- and emotional- order are required here.
Slide #24 (Figure 5-6), slide #25 (Figure 5-7), and slide #26 (Figure 5-8), detail the key actions
to achieve, respectively: product and service initiatives; productivity improvements; and, workforce
flexibility and procurement optimization.
Though not strictly necessary, the standard actions within USPS control part of the resolution
section ends by repeating the bottom-line improvement in cumulative loss through 202o. This
recapitulation in slide #27 (Figure 5-9), a technique common in dramatic storytelling, helps bring the
audience out of the weeds and back to the main story progression. Actions within USPS control reduce
the cumulative loss from $238 billion to $115 billion. Now, the audience is emotionally ready to ask the
next question, Are there more radical actions the USPS can take to change losses to profits?
Paralleling the first part of the resolution section, the second part begins with the full impact of
fundamental change actions as shown in slide #28 (Figure 5-10). As illustrated, the additional actions,
together with actions within USPS control, should yield positive net income well ahead of 2020.
The remainder of the fundamental change part of the resolution section is outlined in Figure 511. Once again, the now familiar content organization best practices apply, including: bottom-lineupfront messaging, story-centric progression, and depth-order tree-traversal.
Figure 5-11: Structure for the fundamental change part of the USPS resolution section
Tip 28: Handle objections as they arise

As stated previously, characters in stories always take the minimum action required to address
issues. In McKinseys USPS presentation, the audience is primed to embrace fundamental change. But,
even in dire circumstances, people may object to solutions that are too extreme. To stave off a major
objection, the McKinsey team steps momentarily out of the narrative in slide #29 (Figure 5-12) to
acknowledge certain changes will require legislative action. Because such actions are far more complex,
legislative changes consistently appear after non-legislative changes on each of the coming slides.
Slide #30 (Figure 5-13) is the summary node for the remainder of the resolution section. It
frames actions in two dimensions, first by the categories already familiar to the audience (products and
services; pricing; etc.) and then by the new, more emotionally intense division of non-legislative versus
legislative.
The USPSs portfolio of products and services can be transformed in many ways. Recall that
McKinsey was not the only consulting firm hired for this engagement. BCG provided the mail volume
forecasts McKinsey used to model the base case. In addition, Accenture explored successful ways
foreign posts have expanded their offerings several of which are integrated in slide #31 (Figure 5-14).
The presentation goes into further detail on the most attractive subset of action in slide #32 (Figure 515).
Slide #33 (Figure 5-16), slide #34 (Figure 5-17), slide #35 (Figure 5-18), and slide #36 (Figure
5-19), complete the detailed fundamental change recommendations for, respectively: pricing; service
level; workforce; and, public policy.
Tip 29: Create an epilogue for critical information beyond the main storyline
Epilogues in dramatic storytelling appear after the main plot has ended and serve to reveal the
fates of characters, wrap up loose ends, or hint at a sequel. (Note: An epilogue is different than an
Appendix in that the former is presented while the latter serves only as reference material.) While
common in movies, they are rare in presentations because the content in an epilogue can easily diminish
the power of the recommendations just delivered.
After the transition in slide #37 (Figure 5-20), McKinsey delivers an epilogue in slide #38
(Figure 5-21). Recall, the primary storyline in the presentation concerns intermediate and long-term
actions needed to return the USPS to profitability by 2020. By that measure, discussion of short-term
concerns is out of context. However, this particular example illustrates that an epilogue is acceptable
when the information is critical. While there is still a risk of diluting the recommendations in the main
story, the McKinsey team must have felt a duty to inform the USPS decision makers of an imminent
threat and to recommend further options to remain solvent. Even in the last slide, McKinsey held true to
the practice of never showing a problem without suggesting a viable solution.
For senior decision makers and general audiences, the level of detail in McKinseys USPS
resolution is sufficient. For instance, the recommendations frame what must be done as change
delivery location to curbside or cluster mailboxes. However, there is insufficient detail to fully realize
the benefits of the recommendations.
I suspect that McKinsey also delivered a private project plan to the USPS, including the
following:
Owners of actions as well as key stakeholders
Mindset strategy required for changes to stick in the organizations specific environment
Leading and lagging key performance indicators (KPIs) to validate critical assumptions and
measure the impact of actions to the business
Timing of key milestones and critical activities
Required resources and dependencies given the USPSs current and needed capabilities
Potential people and process risks to be actively managed along with pre-mediated
contingency plans
Potential additional benefits which may be realized
Chapter 6
The Approach-Findings-Implications
Framework
Tip 30: Use the Approach-Findings-Implications framework for informative presentations
The previous chapters explored the powerful situation-complication-resolution (SCR)
framework approach to persuasive business storytelling. At its core, SCR is a general three-act story
structure establishing background in Act I, challenges and opportunities in Act II, and proposed
solutions in Act III. Stanford University communications professor Matt Abrahams generalizes the
model even further as What? So what? Now what? At the end of the day, any set of synonyms will do
as long as the problem-solution narrative remains.
By design, BCGs presentation to the USPS is light on persuasion and heavy on information.
The firms task was to build a model to predict the base case for Standard Mail volume through 2020.
Since its presentation describes the model and its result, BCG transformed SCR into approach-findingsimplications. Different words, same story.
Tip 31: Avoid presenting the random walk you followed in your research process
Occasionally, novice presenters build approach-findings-implications presentations that meander
linearly through their research process. Unless the entire point of your presentation is to detail the
discovery process, as in hunting for a cure for a debilitating disease, avoid sharing false starts, wrong
turns, and random bits of information. Give your audience only what it needs, no less and no more, to
comprehend your story, decide, and take action. Stanford University professor Matt Abrahams teaches
his students this tip using the following metaphor: Tell the time, dont build the clock. BCG, no novice
at presenting insights, did not fall into this trap.
(Note: Many scientific presentations require a rigorous overview of the methodology researchers
used to conduct an experiment. Moreover, there is often as much value in revealing tests that did not
work as there is in sharing tests that did. The overarching rule then, for academia and business, is to
give the audience what it wants in the order it expects.)
Chapter 7
BCGs USPS Approach

McKinseys overarching strategy presentation relied on two inputs from other management consulting
organizations. Accenture studied lucrative, non-mail products offered by postal services outside the
United States. The Boston Consulting Group (BCG), the focus of this chapter, projected US mail
volumes to 2020, assuming a business-as-usual scenario.
The title slide (Figure 7-1) makes it crystal clear that audience members should expect to see a
robust, ten-year projection of US mail volumes (and hopefully not much more).
Figure 7-1: BCGs USPS presentation slide #0
Curiously, and counter to the best-practice applied by McKinsey, BCG dives directly into Act I
of its strategic story without using an agenda slide to serve as a roadmap. While the section introduction
divider slide (Figure 7-2) signals a transition, the audience would benefit from knowing how the story
will unfold. The overall architecture of the presentation is as follows:8
Act I: Objectives and approach
Act II: Results (and benchmarks from other global posts)
Act III: Implications
Slide #2 (Figure 7-3) outlines the overall objective of projecting base case mail volumes to 2020.
Since base case may be unfamiliar, the phrase is immediately explained as the business-as-usual
scenario. This slide continues to answer questions as they arise by covering, OK then, what are you
assuming to be business-as-usual?
The natural next question is, What approach did you use to build the forecast? I feel it is
redundant to have previewed this on slide #2 (Figure 7-3) in the block of text entitled, Base case
forecast incorporates extensive, recent independent research since the answer is covered in complete
detail on slide #3 (Figure 7-4). The approach BCG used is typical of best-practice strategy consulting
engagements and includes quantitative and qualitative insights gleaned from internal and external
sources.
Slide #3 (Figure 7-4) looks a lot like a summary node slide. As such, a reasonable audience
member would expect the presentation to progress in one of two ways. First, if the approach were
covered in adequate detail, then the presentation can move directly to the results section (Act II).
Second, if the approach has further subtlety, then the presentation should progress through the additional
complexity in the approach to segmentation, interviews, industry insights, global benchmarks, and
projected revenues. In this type of presentation, I stress double-clicking on the approach only; any
actual findings belong in the next section.
At first, BCG appears to have chosen to explore the subtleties of its approach. Slide #4 (Figure
7-5) delves into the first item in the progression with an overview of segmentation into First-Class and
Standard Mail categories.
By revealing the actual quantitative segmentation, slide #5 (Figure 7-6) violates the rule to only
explore details of the approach. Moreover, the Objectives and approach section, and thus Act I, ends
abruptly without similar treatment of the other key findings areas, including: interviews, industry
insights, global benchmarks, and projected revenues.
Although deeper details in BCGs story feel somewhat incomplete, the audience does have a
high-level sense of the approach the firm used to develop a forecast for USPS mail volume though
2020. Now, we are ready to discover what they found.
Chapter 8
BCGs USPS Findings

BCGs strategic story moves into Act II with the Results section divider shown in slide #6 (Figure 81). Here, following the bottom-line-up-front best practice, I would have expected the section to start
with total forecasted volume through 2020. However, the section actually starts with what appears to be
another slide further detailing the approach to segmentation details in slide #7 (Figure 8-2).
Previously, BCG segmented mail into two categories, First-Class and Standard; in slide #7
(Figure 8-2), packages are introduced as an unexpected third category. Packages come and go randomly
throughout the remainder of the presentation. In dramatic storytelling, the analogy is of an important
character dropping in and out of the story with no rhyme or reason.
The slide goes on to mix apples (types of mail) with oranges (other metrics), compounding the
confusion. To make matters even worse, the Forecast details on slide #7 (Figure 8-2) cover near term
projections for the remainder of 2009 rather than what the audience is expecting, the forecast for 2020
as the slide title implies.
Slide #8 (Figure 8-3) gives the audience exactly what it was expecting had the previous slide not
derailed the story. Since the slide title discusses a drop of 15%, we must presume the sender perspective,
rather than the consumer perspective or the worst-case benchmark, represents the base case volume
forecast.
To properly carry the story forward, BCG must answer the most pressing question triggered by
slide #8 (Figure 8-3), Why is the volume projected to decline by at least 15% by 2020? To answer this
question the designer must choose between the Standard/First-Class Mail segmentation and the
sender/consumer/worst-case scenario segmentation as dominant. BCG chose the mail segmentation.
Given that mail categories were introduced as characters in Act I, this was the correct path as shown
in slide #9 (Figure 8-4).
Even without being able to assess the impact of each of the trends in slide #9 (Figure 8-4), one
gets the sense that the reason for the volume decline is a confluence of negative trends for USPS; in
total, there are nine red down arrows compared to five green up arrows. The story continues in an
effective manner by showing the result of these qualitative forces on the quantitative volumes for FirstClass Mail and Standard Mail in slide #10 (Figure 8-5) and slide #11 (Figure 8-6), respectively.
Following the preceding pair of slides, BCG logically continues the results section as shown in
slide #12 (Figure 8-7) with a complete detail of the mix of mail types within the First-Class and
Standard Mail segments.
Then BCG shifts, for reasons that defy explanation from a narrative flow point of view, from the
Standard Mail/First-Class Mail segmentation to the sender/customer/worst-case perspective
segmentation in slide #13 (Figure 8-8). While the sender perspective is most likely the base case
forecast, the results section needs the missing customer and worst-case perspectives to be complete.
Introduced by the divider in slide #14 (Figure 8-9), the information in the Benchmarks from
other global posts section is just another set of findings; therefore this next section is still part of Act II.
Though not immediately clear how the foreign post volume trends in slide #15 (Figure 8-10)
factor into BCGs mail volume model for USPS, the root-cause insight of broadband penetration
illustrated in slide #16 (Figure 8-11) is fascinating. The essence of this finding was already expressed in
slide #9 (Figure 8-4), which showed the positive and negative trends affecting USPS volume.
Consequently, the entire Benchmarks from other global posts section belongs in the Appendix.
Getting reoriented, Act I of BCGs strategy story described their approach for projecting USPS
mail volume through 2020. The just completed Act II shared the findings gleaned using this approach.
Next, BCGs story moves on to explore the implications of those findings.
Chapter 9
BCGs USPS Implications

BCGs presentation transitions to Act III at the divider in slide #17 (Figure 9-1). Given the section title
Implications presumably of the projected 15% decline in mail volume through 2020, two questions
arise: The first, How should the USPS respond (i.e., downsize) to the volume decrease? The second,
What, if anything, can be done to turn the negative volume trend around?
I would never expect a discussion of revenue per delivery point as shown in slide #18 (Figure 92) to begin this section since it is such a leap from the core theme of volume and requires pricing
assumptions not previously addressed. Again, using a story analogy, this is akin to introducing a major
character in the final act with zero foreshadowing a serious no-no in storytelling.
The BCG team must have sensed that the shift to revenue was out of context since their
presentation shifts back to volume in slide #19 (Figure 9-3). Of all the slides in the presentation, this
one bothers me the most. Now, I appreciate a good sensitivity analysis as much as anyone, however,
BCG already covered three scenarios in the form of the sender/customer/worst-case perspectives. Then
to insert a light-weight +/- 10% sensitivity analysis here significantly diminishes the credibility of the
work that went into developing the model.
Slide #20 (Figure 9-4) further erodes the credibility of the presentation and the model by
preemptively explaining why the BCG forecast may end up being wrong. (For the record, McKinsey did
this, too.) These overwhelmingly negative factors should have been inputs into the scenarios instead,
especially the worst-case scenario. However, I do not believe this degree of rigor was applied given the
location of this slide in the presentation.
The statement in the white box at the bottom of slide #20 (Figure 9-4) triggers the question,
How can we build significant labor flexibility? This question is answered with structural changes
enumerated on slide #21 (Figure 9-5), including examples adopted by posts outside of the United States
as detailed in slide #22 (Figure 9-6).
Slide #23 (Figure 9-7) would have been better placed at the beginning of the Implications
section where Act III could have effectively explored the recommended changes to the USPSs delivery
model, branch network, and labor model in response to the expected volume decline. Instead by being
placed at the end of the presentation, the slide ends up triggering questions. Dramatic stories only do
that when the producers have committed to releasing a sequel. In general, business presentations should
be completely self-contained with all questions resolved by the final slide.
I have hammered away pretty hard on the BCG presentation because it contains errors that
significantly disrupt the flow of the story. Since I do not like to criticize without proposing
improvements, I now offer the narrative progression I would have used:
Act 1 (Situation - Objective and Approach):

o
Our objective is to forecast USPS base case mail volume through 2020,
inclusive of Standard Mail and First-Class Mail segments.
Our partner on this engagement, McKinsey, will integrate this volume projection
with separately developed pricing and cost projections, to build an overall view
of USPS profitability.
Our approach consisted of building the overall forecast in bottom-up fashion

from forecasts for every mail sub-segment within the two major segments
The sub-segment forecasts are based on quantitative information (e.g., timeseries data models, foreign post data, etc.) and qualitative information (e.g.,
positive and negative macro trends, consumer and sender surveys, etc.).
Act II (Complication Findings):

o
Our base case forecast calls for a 15% decline in total mail volume through
2020.
The base case breaks down into the two segments as follows and further into
the subsegments as follows...
The base case forecast relies on the following critical assumptions referenced
in our approach Violation of the assumptions leads to the following best-case
(x% likelihood) and worst-case (y% likelihood) scenarios
Act III (Resolution Implications):

o
Given the expected 15% base case volume decline, we recommend the USPS
make the following structural changes to its delivery model, branch network,
and labor model.
The following key performance indicators KPIs) signal evolution toward the
best-case scenario. In that event, the USPS should take the following actions to
take advantage of the positive momentum.
The following key performance indicators KPIs) signal evolution toward the
worst-case scenario. In that event, the USPS should take the following actions
to mitigate the impact of the negative momentum.
Having seen best-practice storytelling in McKinseys USPS presentation and significant issues in
the narrative structure of BCGs, we can now apply what we have learned so far to Accentures
presentation.
Chapter 10
The Situation-Opportunity-Resolution
Framework
Each of the three strategy consulting organizations presented its findings to help the United States
Postal Service find a path toward profitability using a different framework.
McKinsey used the ubiquitous situation-complication-resolution framework. This should be

your go-to framework most of the time when you want to persuade business audiences.
BCG used the approach-results-implications framework, a worthy alternative when your

material is more focused on sharing information than on securing a decision.
Accenture, the focus of the next several chapters, used situation-opportunity-resolution

(SOR), a subtle variation on SCR that comes in handy when you want decision makers to
act in order to capture a set of benefits.
The storytelling function of the situation in SOR is identical to that of the situation in SCR to
establish the historical context that led to the current state, whether good, neutral, or bad.
In the SCR framework, the complication creates negative tension either by threatening a current
positive state or by exacerbating a current negative state. In McKinseys SCR-based story, the
complication is a set of forces or trends expected to turn a significant loss into a catastrophic loss. In the
SOR framework, the opportunity creates positive tension either by offering to propel a positive current
state to higher heights or by reversing a negative current state. You can create just as much story tension
by dangling a reward for a protagonist to win as you can by creating an obstacle for a protagonist to
avoid.
In both the SCR and SOR frameworks the resolution releases the tension. The former does so by
prescribing a solution to the complication and the latter by showing how to capture the opportunity.
While not always the case, the emotional tone in SCR shifts from positive to negative to positive
as the three acts of the story unfold. Comparatively, the emotional tone in SOR usually moves from
negative to positive to more positive. As such, SCR tends to be more emotionally intense and is
therefore the better choice when your audience does not know it has a problem. SOR, in contrast, starts
by acknowledging a problem with which the audience is often already familiar and quickly lets in the
sunshine. Since the USPS hired not one but three consulting firms to find a path to profitability, the
SOR framework used by Accenture is an excellent contrasting narrative choice.
Before I dive into Accentures presentation, I need to stress one last time that SOR is a subtle
variant of SCR. People familiar with SCR often treat the complication as something that disrupts the
situation either positively or negatively. I do this myself and encourage you to do the same.
Chapter 11
Accentures USPS Situation

Accentures title in slide #0 (Figure 11-1) nicely frames the pursuit of an opportunity: Is
Diversification the Answer to Mail Woes? The Experience of International Posts.
Figure 11-1: Accentures USPS presentation slide #0
Tip 32: Protect your intellectual property and limit your legal liability
Almost by definition, persuasive business presentations contain material, non-public information
valuable to any third-party looking to gain an edge, including investors, competitors, suppliers, and
even customers. For this reason, it is a good idea to include a notice of confidentiality and nondisclosure as Accenture did in slide #1 (Figure 11-2). Of course, as with all legal matters, consult an
attorney for language and required practices to adequately protect your intellectual property. For
instance, some jurisdictions may require specific language in the footer of every slide.
If your jurisdiction does not provide protection or if you waive your protection implicitly or
explicitly, there is no need to delay the start of your story with legalese. The deliberative process
privilege referred to by Accenture is a common-law principle that protects information concerning
internal processes from public disclosure even though taxpayer money funded the work. However, I am
able to reproduce their presentation here because I obtained permission from the consulting firm and
from the United States Postal Service. In addition, because my intent is republication for critical and
educational purposes, I am protected under the Fair Use provision of United States copyright law.
I mention this because you need to be very careful about reproducing material you find.
Attribution, though always required, may be insufficient. When in doubt, ask an attorney or find an
unambiguously legal alternative.
Titled About this document, slide #2 (Figure 11-3) protects Accenture from legal liability by
framing the presentation as information rather than advice. To that end, the title of Disclaimer would
be more accurate. I find this sort of hedge disingenuous (like fortune tellers claiming their services are
for entertainment purposes only or skydiving outfits requiring liability waivers). But if this tactic
provides legal protection in certain jurisdictions, far be it from me to recommend otherwise. Such
language is typically not required for presentations developed and delivered internally.
Tip 33: Do not include an Executive Summary at the beginning of your presentation
Books, plays, and movies take you on dramatic journeys. By the same token, the most
compelling business presentations are a form of strategic storytelling leading listeners down a controlled
path. To illustrate this, you find ample foreshadowing but no executive summary at the beginning of
Shakespeares Hamlet. It would be much harder to sit through the play if Horatio, one of the survivors
of the ensuing massacre, recounted the tale of the Danish princes demise to Fortinbras, the invading
Prince of Norway, at the beginning of the play instead of at the end.
A business presentation simply begins with a compelling, SMART title to tell the audience
where you are going. Executive summaries are often dense, bulleted lists of text spanning one or two
slides. If you have ever delivered one, you know how tedious they are to get through. Worse, they raise
more questions than can be answered in detail. Finally, once you deliver an executive summary you
might as well end the meeting since there is little more to share.
That said, I can think of only two times when an executive summary is appropriate:
First, at the beginning of a presentation designed for reading, not for delivery. By being
included in a document, the executive summary serves its purpose of giving readers all the
essential findings without having to spend time on details.
Second, as the last slide in a presentation. In that position, it serves as a recap which the
presenter may verbally deliver or, as is more often the case, simply let exist on screen while
answering questions and wrapping up the discussion. Putting the executive summary in the
Appendix is another variation of this exception to the rule.
The McKinsey USPS presentation did not contain an executive summary, similarly, the BCG
USPS presentation did not give away the bacon either. Conversely, as shown in slide #3 (Figure 11-4),
the Accenture USPS presentation does have an executive summary.
Figure x: Accentures USPS presentation slide #3
Accentures executive summary consists of two-parts. The first part is actually not an executive
summary at all but a set of three slides detailing the firms objective and approach as shown in slide #4
(Figure 11-5), slide #5 (Figure 11-6), and slide #6 (Figure 11-7). Although an objective can be
embedded in the presentation title and accompanying talk track, restatement is useful on a dedicated
slide when the material is to be shared as a report and when the scope of the work requires explanation
both of which hold in this case. Similarly, the approach should reside in the Appendix unless the target
audience needs it to have sufficient context for the story and confidence in the presenter. Accentures
approach provides for both needs because it conveys comprehensiveness in methodology and
thoroughness of coverage.
Slide #7 (Figure 11-8) and slide #8 (Figure 11-9) provide a dense and traditional executive
summary. In reading the slides closely you get the full situation-opportunity-resolution narrative in
compact form. If you are going to do an executive summary, this is the way to do it. I would have
moved these two slides to the end of the presentation (or to the Appendix) and renamed the section
Approach and Objectives. Furthermore, I imagine that Accenture did not include the two Key
Conclusions slides (or at least did not speak to them) when they delivered the presentation since doing
so would have taken too long and given away too much.
Like McKinsey, Accenture appears to favor the word context over situation, as shown in
slide #9 (Figure 11-10). Rather than using the lone word or the similarly vague Recent Context,
Accenture provides more clarity via specificity with International Postal Context. Best practice would
have required an action verb such as Review at the front of the bullet to put the audience in the right
mental mode for the section.
Figure 11-12 illustrates the complete organizing structure of Accentures USPS situation.
Figure 11-12: Outline of Accentures USPS situation
Accentures entire situation is expertly encapsulated in the title of slide #10 (Figure 11-13):
International posts are facing major challenges with their mail business. If the audience fully accepts
this statement, the presenter could move directly to the opportunity section. More likely, listeners will
want to know, Which major challenges? Since this summary node slide frames the remainder of the
situation, it outlines the key challenges.
Tip 34: Annotations at the bottom of a slide should only be used to transition to the next slide
Sometimes the title and content on a slide trigger more than one natural question. In those
circumstances, an annotation (also known as a call-out) at the bottom of the slide can make the
transition to the next slide explicit. Thus, it can play a critical role in the flow of the story.
Unfortunately, the annotation at the bottom of slide #10 (Figure 11-13) They pursue
diversification as a means to structurally address their challenges is doing the unexpected. The
annotation rather abruptly links the challenges to the solution; or stated in the terminology of our
framework, linking the situation to the resolution. This not only jumps the gun by prematurely
leapfrogging the opportunity section, it also breaks the narrative flow since the next set of slides has
nothing to do with diversification or other structural changes. Moreover, there is no ambiguity in what
should come next, a deeper discussion of the loss of relevance challenge. Consequently, this
annotation should be removed.
Tip 35: Prove bold claims

After the summary node slide, Accentures USPS presentation explores the first challenge facing
international posts loss of relevance. Since that is a bold claim, an audience will ask, What proof do
you have? The proof is the analysis in slide #11 (Figure 11-14) showing letter volume has recently
become disconnected from GDP growth.
The audience now knows letter volume has become disconnected from GDP after many years of
trending together but does not yet know why. Slide #12 (Figure 11-15) provides the answer. The
historical drivers linked to GDP growth such as population expansion, increasing per-capita income, and
increased mobility still exist; however, two forces are overwhelming those drivers. First, technological
advances such as electronic payment and digitization of information are eliminating printed account
statements and catalogues. Second, shifting consumer behavior related to environmental concerns,
security, and convenience are compounding the problem for snail mail.
Tip 36: Use ellipses in slide titles to support the flow of the story
In slide #13 (Figure 11-16) and slide #14 (Figure 11-17), the situation transitions to the next
challenge - loss of postal monopoly. The use of ellipses () at the end of one slide title and the
beginning of the next is a technique usually reserved for instances where the second slide answers a
question triggered by the first. In this instance, however, as at the beginning of slide #14 simply
indicates that an additional independent factor is at play. You can see this if you reverse the order of the
titles as follows: Lower cost competitors are gaining share from legacy postal operators in liberalized
markets as the elimination of the postal monopoly is likely to exacerbate the structural decline
of mail volumes. Since the two factors could be reordered, I presume Accenture discusses the
shrinking reserved area before low-cost competition because the former is the bigger issue.
Slide #15 (Figure 11-18) outlines the profitability struggles with which international posts are
dealing in the face of rising Universal Service Obligation (USO) costs. This slide is a nice story-withina-story, showing mitigation tactics are not curbing costs quickly enough.
Figure 11-18: Accentures USPS presentation (slide #15)
Postal services around the world are struggling with loss of relevance, loss of monopoly, and
rising costs for their Universal Service Obligation (USO). The answer to What should posts do to
address these challenges? is the focus of the next Act in Accentures strategic story.
Chapter 12
Accentures USPS Opportunity

Back on slide #10 (Figure 11-13), Accenture foreshadowed diversification into non-mail products and
services as the opportunity postal services around the world must embrace to address their common set
of challenges.
Though rigorously structured and easy to understand, Act II of Accentures USPS diversification
story is rather involved. As represented in slide #16 (Figure 12-1), Accentures opportunity section,
aptly named Postal Diversification, contains three subsections. In story terms, think of these as three
scenes we expect to be connected together progressively by tension tied to open questions. The first
scene, Lay of the land, introduces diversification as an effective means of addressing the challenges to
profitability. The second section, Modality, begins by sharing the mutually-exclusive and collectivelyexhaustive set of diversification options available and ends by prioritizing the most attractive subset. (I
am not a huge fan of the term Modality since few audience members will intuitively know what that
means; Review diversification options would have been far clearer.) Finally, the third section,
Challenges, explores structural changes required to successfully diversify. (Accentures choice for the
sub-section title is also puzzling here; Explore diversification requirements would have been
superior.)
Figure 12-2 illustrates the structure for the Lay of the land subsection. Accenture used the set
of techniques for strategic storytelling with which we are now thoroughly familiar, including: bottomline-up-front messaging, summary nodes, depth order tree traversal, and the question-answer-narrative
flow.
Figure 12-2: Structure of Accentures USPS Lay of the Land subsection
Tip 37: Give each slide an independent title

Slide #17 (Figure 12-3) and slide #18 (Figure 12-4) provide the bottom-line-up-front message:
international posts are already well diversified. The first of the two slides provides conclusive proof by
showing not only that the majority of posts derive 40% or more of their revenue from non-mail, but also
that non-mail represents the majority of revenue across the entire sample. The second of the two slides
reveals which posts are included in their sample.
The one nit I have to pick with this pair of slides lies in repeating the title. I would keep the
existing title for slide #17 (Figure 12-3), minus the (I). Slide #18 (Figure 12-4) could have many
titles, but the right title should answer a question raised by the previous slide and trigger a question
to be answered by the next one. The column chart on the left-hand-side of the prior slide leaves the
audience wanting to know, Which international posts are in each diversification range? The next slide,
#19 (Figure 12-5), establishes the case that diversification correlates with profitability. Hence, slide #18
(Figure 12-4) should raise a question that prompts this case. I would go with the title, Diversification is
a Global Phenomenon. (Note: Using The USPS Is Under-Diversified Relative to Global Benchmarks
is an excellent title, but not here since this part of the story is not about the USPS.)
Just because international posts have diversified and are now deriving the majority of their
revenue from non-mail products and services does not necessarily mean diversification is a good thing.
To prove it is a boon, Accenture frames the three-part case in slide #19 (Figure 12-5).
The remaining slides in the Lay of the land subsection, slides #20 to #23 (Figures 12-6 to 129), offer quantitative proof that higher levels of diversification lead to sustainable revenue and profit
growth as well as efficient use of capital.
Accentures USPS opportunity continues in the Modality subsection as shown in slide #24
(Figure 12-10). This title means the way in which something is done or, in this context, the non-mail
products and services to which international posts have turned. Again, I wish the section had been more
clearly titled, Review diversification options.
At first glance, the slide #25 (Figure 12-11) looks like a summary node. Given everything we
have learned so far, as well as the fact that Accenture has already relied on this proven technique, we
should expect to progress sequentially through each of the five platforms transportation, retail
services, mail-related services, emerging services, and government services. A longer presentation (or
report) would drill into each of the areas comprising the platforms in depth-order tree traversal fashion.
However, as shown in the outline in Figure 12-12, Accenture keeps the platformarea concept broad
and instead goes deep with a specific prescription: focus on developing capabilities in one key area at a
time. Since Figure 12-12 provides the questions that drive the narrative flow, Ill simply leave it to you
to browse the remaining slides #26 to #30 (Figures #13 to #17) in the Modality subsection without
further explanation.
Figure 12-12: Structure of Accentures USPS Modality subsection
Lets get our bearings in the overall strategic story once more. Accentures situation section
established that international posts face a number of challenges. The first of three opportunity
subsections proved diversification is a profitable answer to the challenges and the second subsection
established how to diversify. While the end of the second subsection highlighted business-as-usual
requirements to succeed at diversification, the third opportunity subsection, ushered in by slide #31
(Figure 12-18), brings structural requirements to the forefront as critical to success.
Accentures presentation returns to the summary node approach beginning with slide #32 (Figure
12-19). This slide sets up the three sub-plot lines including the needs for resources, time, and business
model alterations as illustrated by the second level of the outline in Figure 12-20.
Figure 12-20: Outline of Accentures USPS Challenges subsection
Slide #33 (Figure 12-21) is the start of the first subplot and follows a linear progression into
resource needs for new capabilities and assets. The question, How should we acquire those resources?
is answered by slide #34 (Figure 12-22). The next question, How many acquisitions are necessary to
succeed?, is answered by slide #35 (Figure 12-23). The subplot concludes in slide #36 (Figure 12-24)
by answering the question, What specific companies did leading international posts acquire?
Slide #37 (Figure 12-25) kicks off the second subplot, time. Although spanning only two slides
as compared to four, the second subplot is structured as a linear progression just as the first one was. In
this case, the first slide proffers Accentures position that establishing a sizeable presence in non-mail
markets will take time. Recall that the USPS is in financial crisis mode. Consequently, one would
expect the audience to respond, But, we dont have time! What can we do generate profit sooner?
Slide #38 (Figure 12-26) answers that question directly the USPS can expect to generate profit even
during the building phase.
Thus the business model alteration subplot unlike the prior two contains not one but two threads.
The first thread is related to staffing and the second related to government considerations. As such, the
slide that begins this section should serve as a summary node. However, slide #39 (Figure 12-27) takes
the unconventional, and I would argue ill-advised, approach of diving right into staffing considerations.
The problem with skipping a summary node for the business model alteration subplot is that
slide #40 (Figure 12-28) switches the narrative from staffing to government considerations with no
context. Slide #40 (Figure 12-28) contends that posts have successfully diversified without needing to
resort to privatization. However, the posts need to have flexibility in adjusting their business model as
shown in slide #41 (Figure 12-29) and in relaxing their universal service obligation as shown in slide
#42 (Figure 12-30).
The end of the opportunity section, like the end of any Act II, is the climax of the strategic story.
Now that Accenture has identified the opportunity; it is time to find out how the USPS can capitalize on
it.
Chapter 13
Accentures USPS Resolution

In this situation-opportunity-resolution presentation, Accentures first Act explored the profitability
crisis facing international posts as a result of loss of relevance, loss of monopoly, and rising costs of
universal service obligations. The second act offered diversification into selected non-mail products and
services as the best way out of the crisis for posts in general. The final act, labeled Implications for the
U.S. Postal Service in slide #43 (Figure 13-1), describes how the USPS in particular can capture the
opportunity.
Resolutions are ordinarily very direct do this, then do that; final acts generally require little in
the way of background context because all the characters and sources of tension are already known.
However, Accentures USPS presentation is somewhat unique in that the focus shifts from international
posts in the first two sections to the USPS in the third section. Because of that shift we need to know a
little about what is going on with the USPS in order to accept that the diversification resolution is the
correct one for the organization.
We already know that the best way to apply a set of recommendations to a new context using
strategic storytelling principles is to use the situation-complication-resolution format! This is precisely
what Accenture does when they embed a complete SCR as the third act. It is also unusual since focus
shifts at the end of a story are (and should be) rare, but here it works.
The mini-situation begins on slide #44 (Figure 13-2) which serves as the now very familiar
summary node slide. The USPS is in a very unfavorable position due to low diversification and
declining mail volumes. Slide #45 (Figure 13-3) proves the low diversification point and slide #46
(Figure 13-4) proves the declining mail volumes point.
The mini-complication is presented in its entirety on slide #47 (Figure 13-5). To remain selffunding, the USPS needs to offset a massive, $7.8 billion loss, spun euphemistically as a profit
shortfall.
From a storytelling standpoint, all Accenture needed to share on this slide are the near-term
challenges facing the USPS. Applying the SCR framework, it is too early to discuss diversification and
structural change as solutions. Moreover, I would eliminate the hyperbolic comparisons to creating 13
Fortune 500 companies and building an e-commerce business 8x the size of Amazon.com. In
addition, everything we know so far is about international posts. So, why bring in new characters in
the form of other, non-governmental industries? If music publishing, video rental, and so on were the
source of diversification best practices most applicable to postal services, then we should have heard a
lot more about that before.
After a questionably designed mini-complication, Accentures USPS presentation ends on a

strong note with the mini-resolution in slide #48 (Figure 13-6). The four actions the USPS must take to
restore profitability through non-mail diversification mirror the international post best practices
enumerated in the opportunity section.
Chapter 14
The Pilot-Results-Scale Framework

Before exploring the visual component of strategic storytelling, you need to consider one more strategic
storytelling framework, pilot-results-scale (PRS). As you might have guessed, this is simply another
variation on SCR where the pilot (or small test) is the situation, the results of the pilot are the
complication, and the recommendation to scale-up is, well, the recommendation.
Recall Accentures ultimate recommendation on slide #48 (Figure 13-6) that the USPS is likely
to be most successful with diversification into either mail-related services (document management,
integrated marketing, and logistics. By way of further reminder, mail-related services on slide #25
(Figure 12-11) include document digitization, archiving, printing, customer response management, and
a range of related services. Logistics includes warehousing, freight forwarding, and so on.
Imagine for a moment the expected investment of time, money, and energy, as well as the
expected return on investment are identical for the mail-related services market and the logistics market.
Moreover, imagine the USPS could only handle one major non-mail diversification initiative at a time.
In the old days, decision makers in this situation would have gone with their gut and chosen the one
that felt right. Armies of people and truckloads of money would have been invested in building a
comprehensive business plan and then building out massive infrastructure. While that still happens
occasionally, most of the business world is rapidly moving toward lean innovation techniques.
While there are some outstanding books on the topic (including my favorite, The Four Steps to
the Epiphany by Steve Blank), Ill grossly simplify the whole process down to three steps for designing
a minimum viable product, testing it with real customers who have paid real money, and integrating
what you learn into the next design. Piloting is the simple name for this rinse-and-repeat process.
Stated another way, the days of building the whole enchilada and seeing if they will come are over. The
new era of building a prototype just good enough to excite early adopters and scale up through rapid
iteration is here.
Getting back to our hypothetical scenario, imagine the USPS embraced lean innovation and
created two project teams, one tasked with exploring mail-related services and one tasked with
exploring logistics. Taking just one as an example, the non-mail services team brings an SCR to
persuade USPS leadership to approve a pilot as follows:
Situation: We, the USPS, are facing a financial crisis. Accenture has identified mail-related
services as a profitable area for non-mail diversification. Moreover, we are highly likely to
succeed because of synergies with our existing assets and capabilities. At scale, we expect
to make $() per year at a () times return on investment.
Complication: Mail-related services is a broad category including but not limited to

integrated marketing and document management. We have hypotheses about the subservices our potential customers value and about the return on investment on those subservices, but possess no first-hand experience.
Resolution: We propose a pilot to answer the following open questions () with the
following scope () over the following timeframe () and with the following human and
financial resources (). The pilot will be judged a success if we achieve the following on
our key performance indicators ().
The pilot-results-scale strategic story comes into play after the pilot is complete. Act I is a
reminder We conducted a pilot to answer the following open questions Act II shares the results of
the pilot. Rarely do the results fully confirm or fully refute the hypotheses you set out to test. More
frequently you will end up confirming a few things, refuting a few others, and discovering valuable new
insights. Finally, Act III is a request for more time, money, and energy to scale the pilot either up
another notch or to a full-scale line of business. Just as the SCR request to pilot, the PRS request to
scale should come with a solid business case detailing scope, timeframe, resources, expected return on
investment, and key performance indicators.
Finally, note the PRS framework can be generalized to serve as a template for any project status
update. Too often, professionals deliver bland updates to their superiors and wonder why praise, raises,
and promotions are not forthcoming. Valuable employees do more than update or inform, they lead with
the overarching business objective and a review of what they set out to do. They then share their results
without sugar-coating or hiding anything. Finally, they recommend a plan for what to do next.
Section 2:
Data-Driven Design
Chapter 15
To Slide or Not to Slide

Before diving into the nitty-gritty of the slide-design techniques that support strategic storytelling, lets
pause for one chapter to consider when and how to use slides.
Just as persuasive content structure traces to a one-time McKinsey employee, so too does
persuasive content design. While his mentor Barbara Minto focused on structure, Gene Zelazny
concentrated on design and delivery. More than 50 years after they met, they still run in these two
distinct lanes. Mr. Zelaznys core concepts for the visual display of quantitative information remain
keenly relevant even though his books were published more than a decade ago.
Tip 38: Use slides only when they accelerate decision-making

While this tip may seem obvious, I find that business people create slides every time they deliver
a presentation without taking the time to consider whether or not slides accelerate decision-making. The
urge to build a PowerPoint deck is so strongly ingrained that I think people have lost, or never
developed in the first place, the ability to present without technical accompaniment or even understand
that there are times when slides do more harm than good. From the point of view of the speaker, the
only outcome that matters in a persuasive business presentation is approval to implement a
recommendation. (Yes, the decision to take a different and better course of action constitutes success,
too.) If slides help you get to yes, use them. If not, dont.
When do slides hurt? I can think of at least three instances, starting with engaging a hostile
audience due to risk aversion or the all-too-common personality conflict. If you put slides in front of
skeptics, they will assume a whole range of negative motivations including the possibility that you do
not care for their input or that you want to claim all the credit for the ultimate results. For coworkers,
especially peers, to support an initiative, they must be invested from the earliest stages of a project and
that investment begins with dialogue, not input on slides.
Slides are a barrier not only to collaborating with a hostile audience, but also to brainstorming
with a friendly one. Guiding the entire ideation process with slides risks closing peoples minds, the
second instance of slides doing more harm than good.
There are three appropriate uses for slides during a brainstorming session:
The first is to clearly establish the problem you want solved. The problem definition may
include the ultimate objective as well as any guiding principles or constraints in effect. Any
debate over which problem to solve and whether it is worth solving to begin with should be
resolved long before you assemble a group of people in a room. You may go so far as to
establish the current state (situation) and the desired state (opportunity) so that ideation can
focus on bridging the gap (resolution).
The second is to share the procedure to be used for the brainstorming session, including any
ground rules.
The third is for on-the-fly capture of ideas. It does not matter whether the meeting scribe
captures information electronically, on whiteboards, or giant pieces of paper stuck to the
wall, the point is to give the audience the visual confirmation it needs to confirm its input
matters.
The third instance of when the excessive use of slides can do more harm than good is during
corporate training. Since this book is about persuading higher-ups to approve recommendations
packaged as strategic stories, corporate training is beyond the scope of this book so I cannot go into too
much depth about it, however, I will say that the best framework I have seen for training is to take
students through the see one, do one, teach one cycle. Slides are fine during the see one phase, but
should be avoided during the other two phases, except perhaps to set-up the exercise. As in the
collaboration and brainstorming cases, training success demands dialogue.
The situation-complication-resolution framework, as well as the variations I have discussed, is a
persuasive concept based on strategic storytelling that works in any form of communication including
conversations, slide-less presentations, presentations with slides, emails, written reports, and so on.
Choose the right medium for the message based on your objective and the best way to engage your
specific audience.
Tip 39: The larger the audience, the simpler the slides
Even in the many instances where slides have the potential to accelerate decision-making, many
speakers make the mistake of designing slides that are far too densely packed with content. Sometimes
this happens because the speaker wants to show off how much they know and the vast amount of work
done. Other times, speakers create dense slides that function as speaker notes. Either reason is poor;
slides must be designed as simply as possible in service of the audience.
Notice that I added in service of the audience. When seeking to persuade a highly technical,
detail oriented decision maker one-on-one, then extremely dense slides are likely the best choice. On the
other hand, when delivering a keynote address to thousands, then slides with vivid, full-screen
photographs are a suitable choice.
In the forthcoming chapters, I will focus on designing slides for the typical business audience of
five to fifteen people, give or take a few on either end. For such groups, slides with clear titles
supported by light to moderate amounts of information are appropriate and effective.
Tip 40: The content in the body of the slide must unambiguously prove the slide title
To prove unprecedented losses as shown in slide #2 (Figure 15-1), McKinsey appropriately
included a chart with ten-years of financial history plus the expected loss in the current year. A column
of text addressing Key drivers for the losses supplements the chart. Indeed, four consecutive years of
multi-billion dollar losses qualifies as unprecedented, though a stickler would want proof this never
happened in the long history of the USPS. An extreme stickler would want to see that greater losses had
not been experienced by other national postal services, either.
Tip 41: Match the design treatment in the slide body to the message in the title
To support a given message, a speaker can draw from a range of design treatments, including:
text, graphs, tables, diagrams, and images. Though each of these five treatments has infinite variations,
each form typically serves a specific function. Text is best suited for drawing attention to key insights.
Graphs convey time-series trends, composition (including rank and share), distribution, and correlation.
Tables are an alternative to graphs when precision is required, the quantity of data is minimal, or when
data is non-numeric. Diagrams illustrate processes and relationships. Finally, images function in
opposite ways. Either they pair nicely with emotional speeches, or they convey extremely complex,
often technical, information that would otherwise take a thousand words to explain (just imagine
assembling furniture using an instruction manual without images).
Tip 42: Design each slide so that it can be covered in three minutes or less
Presentation design software makes it easy to include multiple design treatments on a single
slide. If you find yourself adding multiple instances of one treatment or mixing treatments (excepting
text) on a single slide, there is a good chance you are loading too much on it and should consider
presenting the information in two or more slides. It takes no more, and possibly even less, time to
present the same content spread across multiple slides as it does to review all of the content on a single
slide. Your audience will thank you for this because slide changes create energy by engaging the visual
cortex and signaling progress toward the end.
Perhaps the best test of whether you have too much content on a slide is if it takes you more than
three minutes to deliver what is on it. Most of the business meetings I attend range from thirty minutes
to one hour. To ensure an on-time ending, I recommend creating enough slides to fill twenty-five
minutes of content for a thirty-minute meeting and fifty minutes of content for an hour-long meeting.
The extra time serves as a buffer for latecomers on the front end, for summarizing actions and decisions
on the back end, and for handling questions. Also, to my knowledge, no one has ever been fired for
chronically ending meetings early. Applying the three-minute-per-slide rule-of-thumb, creates at most 8
content rich slides for a half-hour meeting and 16 for a one-hour meeting. If you tend to linger on title
slides, agenda slides, and divider slides, a practice I do not recommend, then include them in your
count, as well.
Tip 43: Use animation sparingly (if at all)

In addition to making content overload too easy to perpetrate, presentation design software in the
wrong hands can allow for the triumph of style over substance. Specifically, speakers should use builds
and slide transitions sparingly if at all.
Builds reveal slide content progressively either on click or after a user-specified time delay.
One could simulate a build by adding content one piece at a time to a sequence of slides, but that poses
the challenge of keeping everything identical during updates and edits.
In special circumstances, builds aid strategic storytelling. For instance, imagine you wanted to
show a four-step process leading to a single outcome. If each step requires detailed explanation, it
behooves you to use a build. I can think of several other reasonably good opportunities to use builds,
including but not limited to:
Starting with a cause and then revealing its effect
Showing the history of a time-series and then adding a forecast
Showing the full slide content and then adding transition question text at the bottom (this is
most useful when the slide content triggers simultaneous questions or when the question is
not obvious)
My biggest objection to builds is that they draw attention away from the speaker every time
content is revealed. In most circumstances, it is better to show all of the content, let people mentally
process it, and then allow time for their eyes to shift back to you.
Builds have other disadvantages. First, they delay discussion since listeners, out of respect for
the speaker, wait for all of the content to appear. Second, by allowing content to appear and disappear,
builds allow designers to layer content. If your slide does not look good when all content elements are
shown, you are probably abusing the build feature.
Just as builds draw attention away from speakers, so too do animated slide transitions. As a rule,
I never use them. They are particularly unprofessional in smaller business meetings, precisely the type
in which you are most likely to find yourself. If you must use a slide transition, keep it subtle and short.
From-right wipes, where the new slide covers the old, is the best choice. Smooth fades, where the new
slide appears while the old slide disappears, is also an acceptable alternative. Avoid special variations
on these two transitions, as well as all other transition types, unless you are a trained professional. It is
also important to keep transitions to a half-second; less than that is too abrupt and more is boring.
Finally, eschew sounds at transitions unless you are in second grade and the whole point is to dazzle the
other kids with your PowerPoint prowess.
Tip 44: Lay out body content from left-to-right and top-to-bottom
Look closely at dramatic storytelling and you will find three-part narrative structures repeated
like fractals. The overall story has a beginning (Act I), middle (Act II), and end Act III). Each act has a
beginning, middle, and end, too. The main difference between the overall story and an individual act is
that tension is left unresolved at the end of Act I and Act II. Next, each Act is made up of (typically)
five to ten sequences and each sequence contains a number of scenes. And, you guessed it, sequences
and scenes have their own three-part structures.
I bring all this up because these same principles apply to presentation design. A strategic story
has three parts: the situation, the complication, and the resolution usually in that order. Each part tells
its own partial story with tension left unresolved at the end of the situation and the complication.
Similarly, each slide needs to be viewed as a scene and should tell a story all its own.
Laying a story on a slide from left-to-right and top-to-bottom is the style that mirrors the manner
in which English language speakers read. McKinsey placed the financial history chart as the first
element in the upper left because it is the strongest proof of unprecedented losses and because it is the
beginning of the story the slides reveal.
Tip 45: Maintain strict design consistency

In order to effectively execute with the form over function theme I keep harping on, strive to
maintain strict design consistency. From slide to slide, stick with the same:
Fonts, inclusive of type, slide, and color
Alignment and placement of elements such as titles, charts, and text boxes
Colors and textures used in images, charts, etc.
Every design element - colors, fonts, etc. has meaning. Sometimes these meanings are
culturally predetermined, such as the color red signaling danger in Western cultures and good fortune in
Eastern cultures. More often, however, design elements take on their own meaning from the first time
you use them. For instance, when you show a revenue trend line using a solid black line for historical
numbers and a dashed grey line for forecasted values, your audience subconsciously expects a
consistent treatment in all future trend line graphs. If you change the formatting, or worse reverse it, you
slow comprehension.
Before moving on to best practices for using text in strategic stories, I offer one more caveat.
The ease of use and bells and whistles in presentation design software makes it very easy to overdesign. Keep your story front-and-center and remember that great design is best when it is not noticed.
Chapter 16
Text
Text is the most used and most abused design treatment ven in data-driven presentations. Fortunately,
McKinsey, BCG, and Accenture applied a full array of best practices that you can leverage in your own
strategic stories. In this chapter we will start with a simple bulleted list and progress toward more
creatively designed text slides. Through it all, bear in mind that dazzling design is only valuable insofar
as it helps listeners make informed decisions.
Tip 46: Maximize contrast between the text and the background
The first thing to notice about Accentures slide #7 (Figure 16-1) is the degree to which the text
stands out against the background. Black text on a white background is so familiar that we do not even
think of it as a design choice. Yet, it is a choice; a choice that connotes neutrality and simplicity.
White text on a black background has just as much contrast as the reverse, as shown in Figure
16-2. However, white text is harder to read. Even the bold International posts are already welldiversified stands out much better in black text than in white. Consequently, white text on a dark
background should be reserved for instances when you want to draw attention, as when using labels or
titles. Recall BCGs presentation in which the orange slide titles worked nicely against the dark green
background, but the white bullet text in the body against the same background ultimately grew tiresome.
Figure 16-2: First bullet from Accenture slide #7, text and background colors reversed
Tip 47: Use solid colors for slide backgrounds

While we are on the subject of effective backgrounds, notice that Accentures slide #7 (Figure
16-1) has a solid background. Any pattern or image in the background, no matter how subtle, draws the
readers eye away from the text and makes it less readable. If a textured background has critical
meaning, by all means use it, but if it is purely decorative eliminate it. Once again, Im going to fault
BCG this time for embedding its company logo in a massive font into the background of every slide.
The USPS paid for this presentation to address its plight, so this seems an inappropriate design choice,
conveying no small amount of hubris. In contrast, Accenture placed a diminutive version of its logo in
the slide footer, a best practice of maximizing readability while gently reminding the reader of the
slides creator. The bottom right and the bottom left are the subtlest locations to place a logo. (Note:
Footers should also include page numbers, unless you are delivering a keynote presentation.)
Tip 48: Use large, standard fonts

Unless you are an expert designer, use exactly two standard fonts in your presentation, one for
slide titles and one for body text.
Slide titles, critical as they are, demand attention in a large, bold, high-contrast, sans-serif font.
Standard sans-serif fonts like Ariel, Helvetica, and Century Gothic lack the little tails that help connect
letters. Throughout the USPS presentation, Accenture used standard capitalization for slide titles. I
prefer title capitalization (Key Conclusions instead of Key conclusions), but either stylistic
treatment will do. Since slide titles should be stated as complete sentences, they may span up to two
lines.
Body text should be in a more readable serif font since there is usually much more of it
compared to title text. Standard serif fonts include Times New Roman and Georgia.
Use fonts large enough to be read. If you project your presentation on a screen, words must be
legible to people seated in the back of the room. In most cases, this means title text of at least 36 point
and body text of at least 24 point. Go as large as possible while maintaining the roughly 12-point delta
between the two. Accenture appears to have dipped below this font size considered the minimum for
projected presentations. Giving the firm the benefit of the doubt, perhaps Accentures presentation is
really a report intended for close reading and, therefore, warrants this smaller size font.
Tip 49: Keep text short

The opening bullet in Accentures slide #7 (Figure 16-1) is much easier to read than the final
bullet. The reason, obviously, is length; the initial bullet point spans two lines of text as compared to the
closing bullets four lines, six if you include the sub-bullet.
But, brevity is not the only reason the first bullet is easier to read, because it also leads with the
lead placing the most important information at the front of the text. Even though the other three bullets
use boldface type to pull out keywords, none are as easy to comprehend as the first bullet point.
As complete sentences, all of the bullets follow the best practice of applying parallel
construction, however complete sentences are more suitable for reading, not presenting to an audience.
Tip 50: Apply a consistent format to your slide header

To uncover other best practices for using text in strategic stories, lets turn to McKinseys slide
#24 (Figure 16-3). McKinsey presentation slide headers use one or more of the following three
elements, including: section titles, slide titles, and slide headlines.
The first element is the section title, here. This optional element is most useful when used in
longer presentations to help the audience stay focused and not lose track of where you are in the story. If
you use a section title, allow it to drift into the background by giving it a very light treatment as
McKinsey did with Actions within Postal Service control: Productivity in a small, light-orange font.
McKinsey violates the rule of total consistency by varying the color of the section title as the
story progresses. Breaking a rule is always acceptable when it helps the audience follow the story as it
did in this presentation. The color shifts even suit the emotional tone of the content. The situation
section carries the light-grey section title Recent Context conveying factual and emotional neutrality.
The complication section carries the red section title Base Case conveying trouble. The resolution
section title starts with light-orange for Actions within Postal Service control signaling that attention
is required, then shifts to green for Fundamental Change underscoring that these final actions will
restore the USPS to full financial health.
The second element is the slide title, sometimes referred to as a lead. This element is required as
it contains the primary information content in the slide and carries the narrative. In McKinseys slide
#24 (Figure 16-3), the title is The Actions within Postal Service control case includes product and
service initiatives above the baseline to grow volume. Ill cover more on the content of well-articulated
slide titles in the following tip.
The third element is the headline. These are optionally found in slide headers below the title and
are complete sentences that provide an additional level of detail. While not found in this presentation,
they are common in McKinsey presentations. Slide headlines, being less important than slide titles, are
usually in moderately smaller, slightly lower contrast fonts.
This is a good place to mention that you do not necessarily need to have a slide header. Used
sparingly, slides lacking headers draw attention to themselves. Although rare in everyday business
presentations, slides with large images are more powerful when they do not contain headers. Dramatic
slides with only a few words of text do not need headers either.
Tip 51: Craft each slide title as a so-what

Each slide title, like the title of the presentation, should reflect a so-what rather than a what.
In the case of this slide, an inferior what title would be Product and Service Initiatives. Though a bit
long, McKinseys The Actions within Postal Service control case includes product and service
initiatives above the baseline to grow volume is a well-crafted so-what.
One of the guiding principles in creating strategic business stories is having your audience
perform as little cognitive work as possible. Do not make them figure out what you are trying to say;
instead use a so-what title to tell them what you are saying. That way, individuals can focus all their
mental energy on making a decision. If you are pinched for time, you can read through the titles only,
one after the other, and still give the complete picture a nice side benefit!
In general, I do not recommend using questions as slide titles since they make the audience do
the work. The actual title is superior to What actions within USPS control can increase volume? One
reasonable exception is asking a question in the title one slide and then answering it in the title of the
next one, but use this technique sparingly.
A better alternative is to span a title across multiple slides using ellipses. For instance, USPS
should pursue volume boosting initiatives followed on the next slide by by taking critical
actions leading to ~$2 billion of incremental net income in 2020. This approach helps a presentation
feel more like a cohesive story.
Tip 52: Convert bullet lists into columns

By labeling and grouping the key actions, McKinseys slide #24 (Figure 16-3) is visually more
interesting than Accentures slide #7 (Figure 16-1), despite the blue box surrounding the latters
standard vertical list. Accenture gains back the upper hand in slide #19 (Figure 16-4) by converting into
columns information that otherwise could have been represented as a bland list. This technique is called
chunking and was taught to me by presentation design guru Nolan Haims.
Figure 16-4: Accentures USPS opportunity slide #19
In the hands of an expert designer, chunking is quite elegant with blocks of text placed
creatively rather than simply in boring rows or columns. While not reaching the level of artistic use of
text one would find in a professionally designed advertisement, McKinseys slide #10 (Figure 16-5)
adds additional visual variety through the use of chunking. Reading the slide from outside in, there are
four chunks of text, one each for volume, price, USO obligation, and workforce costs laid-out in a grid.
Next, notice that each chunk has its own so-what volume is declining steadily; price is rising
but capped; and so on. Finally, the innermost label summarizes the confluence of the four trends. This is
an effective and visually pleasing format to convey the impact of multiple forces on a business and
anyone can design it.
Tip 53: Use real quotes that you obtained directly

Lets now turn our attention to how to best use quotes in business presentations. Most problem
solving processes that culminate in strategic storytelling include qualitative interviews of key
stakeholders, including customers, suppliers, fellow employees, etc. Among the three managementconsulting firms, only BCG gets credit for including such quotes in its presentation. In BCGs slide #13
(Figure 16-6), all five quotes prove the title Senders tell us that they see their use of mail declining
sharply. Moreover, all sources appear highly credible.
Designers have at least three options when including quotes in a strategic story. The first, as
illustrated in BCGs slide #13 (Figure 16-6), is the overwhelming force approach. The sheer volume of
diverse, highly credible sources quoted means the audience can get the message without reading every
quote in detail. The second option is to add contrast to one of the quotes most representative of the
group. The third and most radical option is to show only the most representative quote. Nine times out
of ten, I follow the third approach, relying on the principle that less is more, even with extremely
analytical decision-makers; I would rather increase the odds that my audience reads one powerful quote
than overwhelm them with volume.
Finally, apply the highest ethical standards to quote selection. If you interview enough people,
somebody is bound to make the perfect statement to support the argument you want to make, but if that
one statement is an aberration you have a duty to disregard it as an outlier and instead share a quote
supporting the majority opinion. Additionally, if you show multiple quotes representing different,
possibly conflicting, findings, ensure the physical space occupied by quotes supporting each finding
matches the prevalence of each type of statement across all interviews.
The source material I drew from for this chapter was extremely text-dense because all three
presentations were designed for a reader to comprehend even in the absence of an expert speaker. Most
business presentations do not need to travel in this manner and should have significantly less text per
slide than any of the examples in this chapter.
Fortunately, the examples graphically involved in the next chapter offer ready-to-adopt templates
for any data-driven presentation.
Chapter 17
Graphs
The phrase data-driven storytelling immediately conjures visions of graphs dancing across a screen.
In this chapter, we will explore the following types of graphs: trend, composition (including rank and
share), distribution, and correlation. Along the way, I will interweave general graph design practices as
we encounter them.
Tip 54: Use column charts for trend data with up to ten values
After framing its story with a title slide and an agenda slide, McKinsey immediately turned to
trend data (also referred to as time-series data) in slide #2 (Figure 17-1) to establish the USPSs
situational context. Although McKinsey could prove the slide title message of unprecedented losses
with one of the other treatment types, it is reasonably safe to say that a column chart representing the
trend of financial performance over time is the most compelling choice.
With a limited time-series of around ten values, a column chart (also known as a vertical bar
chart) is most effective. Column charts are elegant and easy to read as long as the columns and labels
are not squeezed too closely together.
McKinsey pushed the upper boundary with eleven data points in the trend chart in slide #2
(Figure 17-1). In order to legibly squeeze in that number of values, the designers took the fairly unusual,
though acceptable, step of removing the leading 20 from the x-axis labels for the years 2001 to 2009.
Tip 55: Title graphs with a what rather than a so-what

My recommendation for using a so-what to title the overall presentation and each slide can
apply to many different types of titles, however graph titles are not one of them. Graph titles should
merely explain the function of the graph because it is the visual representation that matters.
The best practice for titling graph titles is to describe the y-axis followed by the x-axis. In a trend
chart, y over time or y versus x is sufficient. In other types of charts, good choices include,
Dependence of y on x, Relationship between y and x, and Comparison of y across x.
Given this best practice, why didnt McKinsey label the trend chart in Figure x Net profit/loss
over time? While the presentation designer certainly could have, minimalism trumps all else in slide
design. Since it is obvious the x-axis is time, dropping over time is a reasonable choice.
Tip 56: Remove all unnecessary elements from graphs

Compare the net profit/loss chart McKinsey actually designed to the one in Figure 17-2. The
actual version is much more professional because it removes all the unnecessary elements.
Figure 17-2: Net profit/loss trend chart with too many graphical elements
While there is no strict definition of necessary, consider the elements that McKinsey removed
in order to apply the design principles of minimalism, clarity, and low audience cognitive load. By
removing unnecessary elements, the designer created whitespace for information rich annotations. First,
the y-axis label disappears since it is explained in the title. Second, the vertical y-axis and its horizontal
grid lines are removed as profit values are provided above and below the columns. Third, the x-axis
label is deleted as it is clear the values are years, a rare exception to the best practice of labeling each
axis with its units of measure. The horizontal x-axis itself remains because there are positive and
negative profit values and it is useful to know where zero is; however, the x-axis tick marks are
removed since white-space is sufficient to separate each bar. Fourth, the legend vanished as there is only
one category of values.
Tip 57: Use chart annotations in the body of a slide to explain critical inflections
The net profit and loss chart contains three annotations, including two call-outs and one
embedded micro table, to explain critical inflections in the data.
From 2002 to 2003, the USPS shifted from a loss of $0.7 billion to a profit of $3.9 billion. Any
reasonable observer would want to know why, as that root cause might offer a solution to the
organizations current woes. The annotation No rate increase 2003-2006 does little to explain the
positive shift in 2003, though perhaps it addresses the declining profits through 2006. As such, I find
this call out ambiguous and would replace it.
The call-out labeled Postal Act 2006 signed into law and the embedded RHB pre-funding
table work together to explain the losses commencing in 2007. The Postal Accountability and
Enhancement Act (PAEA) of 2006 called for pre-funding of retirement health benefits (RHB); as the
embedded table reveals, these contributions are a significant root cause of subsequent losses.
As a final note on this topic, I recommend numbering annotations in order to guide the audience
through the flow of your story. This practice is especially critical if you need annotations read in any
order other than left-to-right or top-to-bottom.
Tip 58: Apply high contrast to chart data that directly supports the slide title
The net profit/loss chart applies uniform formatting to all columns (except the 2010 forecast with
which we will deal in the next tip). To reinforce the header, the slide designer might have shaded the
large losses incurred between 2007 and 2010 with a different, perhaps dark red, color.
Designers typically apply high contrast to just a single element in a chart. In addition to using a
more dramatic color, other options to draw the viewers eye include arrows and enclosures (for instance,
putting a rectangular outline around a column).
Tip 59: Use a more subtle treatment for forecast data

When a trend chart contains a mix of actual and forecast data, use a more subtle treatment on the
forecast data to indicate that it is an estimate. McKinseys slide #2 (Figure 17-1) uses a dashed, light
blue rectangle for this and even goes one step further by including a footnote regarding the source of the
data.
Tip 60: Footnote sources, critical assumptions, and details too granular for the body of the slide
Footnote all sources to increase the credibility of the data. This practice also benefits you and
your team when you quality check your numbers.
When chart data is obtained through quantitative modeling rather than direct measurement,
document critical assumptions in the footnotes. To believe your estimates, audiences will want to know
that your assumptions are reasonably conservative.
At times, an audience member may question at a deeper level of granularity than what you show
on a slide or on the subsequent slide. To help you answer this type of question, place granular details in
a footnote. For instance, in the net profit/loss chart, you might expect a question on the two components
of profit, revenues and costs. If your data is too detailed for a footnote, include it in an appendix slide at
the end of your presentation.
Tip 61: Design stacked column charts to show an overall trend and its components
The stacked column chart in McKinseys slide #6 (Figure 17-3) is a convenient way to show an
overall trend and its composition. The overall, highly volatile trend is as discernable as it would be if
the components were not broken out.
Showing any extra information comes at a cost. Besides making out the overall trend, the
audience can accurately interpret only the trend in the component adjoining the axis. Hence, selecting
which component to place where is an important design decision. Why did McKinsey put Employer
premiums and not PAEA scheduled pre-funding requirement against the x-axis? Because doing so
shows regular employer premiums are small and stable as compared to the pre-funding requirement.
When reading the trend in both components simultaneously is important, then the clustered
column chart shown in Figure 17-4 is the best choice. This change, too, comes with a cost gaining the
ability to discern both trends sacrifices the ability to see the overall trend. There is no right or wrong;
choose the style based on the message you want to convey.
Figure 17-4: Graph from McKinsey slide #6 converted to clustered column style
In a column chart, the columns for each category - each year in this example - should be
separated with whitespace to aid viewer comprehension. Within a category, allow columns to touch but
not overlap. (There is a type of overlapping column graph called a bullet chart but it is complex to
design and often even more complex to comprehend). Also, avoid column borders as there are plenty of
ways to visually distinguish each series. I find color provides the best contrast for columns, so avoid
patterns as well.
Tip 62: Orient and order legends the same way data series are oriented
Standard, single data-series column charts do not need a legend since the graph title conveys the
metric and unit of measure. In stacked or clustered column charts, orient and order legends the same
way data series are oriented. McKinseys slide #6 (Figure 17-3) illustrates this best practice with the
legend labels stacked in the same direction and in the same order as the data series. To show why this
matters, I intentionally violated this rule in my clustered column chart (Figure 17-4). The legend in that
chart would have been much easier to read if PAEA scheduled pre-funding requirement were
immediately to the right of, rather than below, Employer premiums. Space permitting, you can do
away with legends in stacked and clustered column charts by directly labeling the components in the
rightmost category.
Tip 63: Use line charts or scatter charts for trends exceeding ten values
With larger sets of time-series data, a line chart is preferable when there is a clear trend and a
scatter chart works better to highlight variability.
In keeping with one of the recurring themes in this book, use every opportunity to highlight the
key message with simplification and clarification. Starting with line graphs, leave off symbols unless
they provide information critical to the story. If you have multiple time series, differentiate lines with
color variation as a first choice and with line style (e.g. solid versus dashed) as a second choice. Shift to
scatter plots, choose symbols that are easy to distinguish such as circles, squares, triangles, plus (+)
signs, or Xs. Next, enlarge symbols and remove the fill.
Avoiding certain graph types that are inherently challenging to interpret. The area chart for
example, the line chart cousin of the stacked column chart, has the same limitation as its relative
namely that one can perceive volatility in the total and in the component touching the x-axis at the
expense of correctly interpreting the other components (see McKinseys slide #11 - Figure 4-4).
Tip 64: Stick to one set of axes per graph

The standard convention for designing graphs calls for putting the independent variable on the xaxis and the dependent variable on the y-axis. By way of refresher, an independent variable is the input,
cause, or stimulus. Time is the prototypical independent variable. A dependent variable is output, effect,
or response.
The choice of variables determines the units of measure on the axes: Time - the independent
variable - measured in years. Revenue - the dependent variable - measured in billions of dollars. While
it should be done only in rare circumstances, it is possible to have this one set of axes support multiple
dependent variables; both revenue and cost can appear on the same graph.
It is also possible to add a second axis, most commonly a second y-axis as Accenture did on
slide #11 (Figure 17-5). Though a good reason to do this must exist, I have not been able to come up
with one.
With two y-axes, the viewer needs to spend mental energy figuring out which axis describes
which data series. In the leftmost graph in Accentures slide #11 (Figure 17-5), the point is to convey
that international posts have experienced a steady decline in mail volume since 2002. Accenture had
two other options available rather than using two y-axes. First, the firm could have just chosen one
series; I would have chosen the growth curve since that best supports the point. Second, the firm could
have split one chart into two, but that is the inferior design choice here since there is not enough room to
tell the remaining two parts of the slides overall message.
The two-axis problem is a symptom of trying to cram too much information into too little space,
thus placing a mental tax on the audience. For this same reason, strive to avoid any type of chart that
demands effort to comprehend. My favorite example of a good idea gone badly is the bubble chart in
which data is represented not as a point (or other simple symbol) but as a circle whose area represents
yet another, usually independent, variable. For instance, imagine a graph with time on the x-axis,
revenue growth percentage on the y-axis, and the area of each data point representing total market
capitalization. Just because you can do something does not mean you should.
Tip 65: Maintain design consistency across similar graphs in a presentation

Each graph contains a language unto its own consisting of variables and their units of measure,
data series formatting, axis orientation, meanings of colors, labeling, etc. As such, each time a viewer
encounters a graph, you need to spend a few extra moments explaining how to read that graph so the
viewer can understand subsequent graphs more and more quickly. Hence, it is crucial to maintain design
consistency across similar graphs throughout a presentation to avoid switching languages on your
audience. So when possible, place graphs on different slides rather than cramming multiple graphs with
multiple languages on the same slide.
The left and right graphs in Accentures slide #11 (Figure 17-5) illustrate best- and worstpractice design in action. By way of best practice, the two graphs are visually aligned and consume
approximately the same area. Moreover, the x-axis in each graph is identical in every way including the
time span of 1998 to 2007, the physical width, the font, and the convention of using only the last two
digits of the year. Unfortunately, this is where the best practices end.
The y-axes in both graphs appear to measure the same dependent variable, letter post volumes in
billions of pieces. However, there are many differences that may confuse a viewer:
The axis labels are different; one reads Letter Post volumes and the other Volumes.
Although the axes are the same height, one ranges from 0 to 120 and the other from 0 to 126.
Mail volumes are represented by columns in the left graph and by a line in the right graph.
The word growth confuses matters and should be removed from both annotations in the
right graph to correctly read Actual letter volume and Letter volume @ GDP rate.
Tip 66: Do not distort graphs

Presenters have a responsibility to design graphs that faithfully reveal the insights in their data.
Viewers must never be manipulated into drawing specious conclusions from distorted graphs.
The biggest worst practice in Accentures slide #11 (Figure 17-5) is the break that occurs in the
y-axis. Looking closely, each tick mark appears to signal a difference of seven billion pieces. However,
the placement of this break allows the first tick mark to span 105 billion pieces! Breaks are a method of
zooming in on the data and have the effect of increasing the perceived volatility in the data. The left
graph, whose y-axis follows the best practice of starting at zero and continues without breaks, shows
that mail volume between 2002 and 2007 has actually been trending in a very tight range between 106.6
and 105.7 billion pieces, a mere 0.8% difference. By zooming in, the graph on the right makes the
change seem much more dramatic.
Breaks are not the only way to use graphs to manipulate the message. Stretching the width of a
graph decreases the appearance of growth and volatility and stretching the height of a graph
accomplishes the reverse. For axes with positive and negative values, placing the zero crossing
anywhere other than the mid-point causes distortions, too (see the YOY growth axis in the left graph of
slide #11 Figure 17-5).
Most numerical transformations are difficult to comprehend by people other than experts. The
best example is the logarithmic transformation used for semi-log and log-log graphs, which decreases
perceived growth and volatility.
Other transformations live in more of a grey area. Any businessperson should be able to quickly
understand a graph of profit over time. Converting the graph to cumulative profit over time by adding
the profit for a given year to the sum of all prior profits adds complexity and must be explained
carefully so that it is not misinterpreted. The same goes for normalized profit over time where each
value is divided by a baseline value (typically the first one) as well as for profit growth over time.
Tip 67: Pie charts are acceptable for composition snapshots of up to five categories
Lets now turn our attention to best practices for designing composition charts. Just like trend
charts, composition charts display actual, ranked values or normalized, share values. Since composition
charts can only focus on one snapshot at a time, I like to think of composition charts as a way to zoom
in on a single column of a stacked column chart.
Pie charts such as the one in McKinseys slide #8 (Figure 17-6) are an acceptable composition
chart option. Many presentation gurus vehemently object to pie charts, but I find them useful in certain
circumstances as detailed below.
The stacked column chart on the left side of McKinseys slide #11 (Figure 17-6) does a nice job
of showing the -12% reduction in work hours. However, the nature of the chart makes it very difficult to
answer the naturally triggered next story question, How much of the reduction came from each of the
three sources? That, of course, is where the pie chart on the right comes in.
McKinseys pie chart is easy to read for five reasons:

1.
Every slice uses the same color shade as the category in the left graph.
2.
Every slice is clearly labeled. (Avoid legends in pie charts because they require too much
work to interpret.)
3.
There are not many slices. (Pie charts work best for two to five categories.)
4.
The slices are placed in clockwise, descending order.
5.
Every slice contains the actual number and percent contribution of reduced hours, making
interpretation instantaneous.
Tip 68: Consider treemaps as an alternative to pie charts

Presentation gurus hate pie charts partly because they are so often abused; I have to admit that
rainbow wheels do not do it for me either. Nonetheless, gurus also revile them even when every design
best practice is followed because the human brain cannot detect small differences in the areas of semitriangular slices.
Treemaps are an elegant alternative to pie charts and mitigate the perception problem by sizing
rectangular tiles in proportion to their data values. BCGs slide #5 (Figure 17-7) is a nice, albeit busy,
application of a treemap. Though decades old, treemaps are still part of most presentation design
software packages. To create one, you may need an add-in, a standalone software tool, or a lot of
patience to do it yourself by calculating rectangle sizes.
Tip 69: Rely on bar charts to depict composition

Bar charts are a foolproof type of graph for depicting composition inclusive of share and rank.
While column charts can serve the same function, bar charts allow more space for labels, which is
important because text should always be oriented horizontally for better readability.
Accenture relied heavily on bar charts in its USPS presentation, for example the chart on the left
side of slide #35 (Figure 17-8).
The biggest challenge in designing bar charts is figuring out how to order the categories. The
short answer is that categories should be ordered in the way that is most logical to viewers and that
supports your message. Of course that short answer does not help you much, so here is a longer one.
Determine if sorting in descending value from top to bottom works. This is the best approach if you
want to highlight the largest value or one of the values in between the largest and smallest. If you want
to highlight the smallest value, sort in ascending value from top to bottom.
Instead of sorting by value, sort labels in descending alphabetical order (as Accenture did) if you
expect people to look up particular categories.
If the audience is accustomed to a particular logical ordering of labels, such as by region across a
country, sequence in the manner it expects.
Tip 70: Use waterfall charts to show the cumulative effect of changes
Though it looks like a column chart, the chart in McKinseys slide #12 (Figure 17-9) is actually a
waterfall chart used to show the cumulative effect of expected volume and price changes of USPS
revenue. To get from $68.1 billion in 2009 to $69.3 billion in 2020, the USPS faces decreases of $11.8
billion from volume decline and $3.8 billion from a mix shift, decreases that are offset by an increase of
$16.8 billion from a price increase. Though McKinsey did not do so, I prefer positive changes and
negative changes to be shown in different colors for easy interpretation.
Waterfall charts should only be used to explain changes from one level or balance to another the same way as this McKinsey example. Most presentation gurus would argue, and I agree, that the
way Accenture used the waterfall on the right side of slide #35 (Figure 17-8) is incorrect. The
Accenture chart should be converted to a standard bar chart with the bar for the total removed and
added back as an annotation (n=166).
You will likely need to purchase a third-party plugin to design waterfall charts as most
presentation design software does not yet include native capability. I recommend ThinkCell for
Windows and Aploris for Mac.
Tip 71: Use distribution charts to show the frequency with which phenomena occur
Distribution graphs showing the frequency with which phenomena occur in defined ranges are a
special enough case of composition graphs to deserve to stand on their own. Here, we rely on the
distribution graph on the left side of Accentures slide #17 (Figure 17-10) to uncover best practices
including:
Using ranges equal in size (Accenture broke this rule with 0% and >60% since the other
ranges span twenty percentage points. Separating 0% adds value here and in many other
instances, but the >60% bin feels sloppy.)
Limiting the number of ranges to no more than ten
Avoiding overlap in range labels to prevent ambiguity (Since Accenture used <20%, the next
label should read 20% to <40%, and so on.)
Tip 72: Use correlation charts to illustrate the interrelationship between two variables
BCGs slide #16 (Figure 17-11), showing the interrelationship between mail volume growth and
household penetration, is an outstanding example of a correlation chart. The variable that appears to be
the independent variable is on the x-axis; the variable that appears to be the dependent variable is on the
y-axis. Since an interrelationship is present, the graph includes a trend line that does not extend beyond
the range of the actual measurements.
Note that trend charts are a special case of correlation charts revealing the relationship, if any,
between a dependent variable and time.
The chart title Total mail CAGR as function of 2008 broadband penetration (underline
added) - is the honest way to refer to correlation since interrelationship does not imply causation. That
is worth repeating correlation does not imply causation because any actual cause and effect must be
validated through other means. Until that happens, acceptable language includes as a function of,
points to, or is (not) related to.
The graph also includes the annotation R-squared equals 0.57, and means that the linear model
explains 57% of the variation in the data, a rather high percentage pointing to a strong interrelationship.
The graph types in this chapter comprise the full-set I recommend for designing data-driven
presentations. While software allows you to build more exotic charts (bubbles, doughnuts, radars, etc.),
I urge caution. The same warning applies to three-dimensional charts of all kinds because it is so easy to
accidentally or intentionally distort the data. Stick to the basics and use only charts that are easy to
understand and enhance the strategic story.
Chapter 18
Tables
Using tables in persuasive business presentations is rare because, unlike well-designed graphs,
tables demand vast amounts of an audiences mental energy to grasp the so-what. As proof, BCGs
and McKinseys USPS presentations (if you count McKinseys slide #23 in Figure 5-5 as a table) each
contains a solitary table. Only Accentures presentation contains several tables, further confirming my
suspicion that its presentation is really a report intended to be read.
Tip 73: Rely on tables when the audience needs exact values
Viewers can rapidly discern trends and patterns from a well-designed graph. The downside of
this benefit is that it is nearly impossible to determine the value of a data point with any real precision,
especially sitting ten or more feet away from a screen. If only a few precise values matter, stick with a
graph and just add data value annotations. However, when the audience needs to know a larger number
of values with precision, tables are your only choice. BCG must have felt exact values for real revenue
per delivery point were critical to the audience since it devoted its only table for this purpose in slide
#18 (Figure 18-1).
BCGs table illustrates two additional benefits of using tables. The first benefit is the ability to
simultaneously show detailed data and summary statistics. In the table, the First-Class Mail and
Standard Mail numbers are the detail. There are two forms of summary statistics, the Total Mail values
as well as the 09-20 change percentages. (It is odd that first-class and standard mail do not sum to the
total; as a best practice, the detail should foot with the summary.) The second benefit is the ability to
mix data with different measures, here average pieces per delivery point per delivery day and real
(inflation-adjusted) revenue per delivery point per day (current $).
Tip 74: Use tables when you need to combine text, data, or images
Tables are also the only option when you need to mix text, data, and images as illustrated in
Accentures slide #37 (Figure 18-2). The formatting of this table allows us to explore several table
design best practices as follows:
Left align words and phrases; right align numbers; center images (including icons, pictures,
Harvey balls, checkboxes, etc.) as well as single characters of text
Numbers should contain commas and equal precision beyond the decimal point.
Numbers should be rounded to the simplest number of digits while preserving required
accuracy.
Data symbols such as percent signs and dollar signs are optional, provided the rows and
columns are unambiguously labeled. For extra clarity, add at least the symbol to the
topmost (or leftmost) value in the column (or row).
Avoid or minimize the use of gridlines. In slide #37, Accenture used alignment to eliminate
vertical gridlines and used ultra-thin, light colored horizontal gridlines.
Tip 75: Prioritize the order of table information from top-to-bottom and left-to-right (in Western
cultures)
Table information should be ordered the way audience members eyes scan the slide, top-tobottom and left-to-right. Accenture closely adhered to this best practice in slide #37 (Figure 18-2). The
slide title communicates the core message of the slide Establishing sizeable market presence takes
time From a storytelling point-of-view, the table must prove the message. Hence, from top-tobottom, the first and second rows immediately address when specific international posts began to
diversify. The remaining rows provide extra detail with Comments relegated to the bottom where they
belong. From left to right, the four Sizable diversification areas get preferential treatment in both
location and shading. Though Accenture did not need to do this, switching the text in the Business
services column would further deemphasize this last area.
Finally, note that eyes naturally gravitate to objects in close proximity. To use this physiological
principle to your advantage, space rows very closely together if you want people to read top-to-bottom
first, and space columns very closely together if you want people to read left-to-right first.
Chapter 19
Images and Diagrams

Neither images nor diagrams feature prominently in persuasive business presentations, but for
different reasons. Images, particularly vivid emotional images prominent in keynotes, are considered
too lightweight. Diagrams are perceived as too abstract, too complex, or not data-driven.
For all these reasons, images and diagrams are nearly absent from the three USPS presentations.
Nevertheless, the rise of the graphically elegant speaking at venues like the TED Conference is likely to
infiltrate strategic storytelling at work, so now is the perfect time to assimilate best practices for
designing images and diagrams.
Tip 76: Ensure that images add constructively to your story

Images, more than text or tables or graphs, are the first elements on a slide your audience will
notice, so it is your duty to ensure all images add constructively to the story you are telling. If not, leave
them off.
Many years ago, office supply stores stocked shelves filled with CD-ROMs of clip art images.
These types of images became so popular that thousands of them ultimately came bundled with
presentation design software. Today, most people over the age of 10 would not dream of including a clip
art image, and certainly not in a persuasive business presentation.
And yet, the more things change, the more they stay the same. The modern version of randomly
placing clip art on a slide is randomly copying and pasting images from the Internet that literally or
metaphorically represent a concept. As much as I appreciate McKinseys storytelling and expert graph
design, slide #13 (Figure 19-1) exemplifies the merely decorative use of images.
Tip 77: Put text on image slides rather than images on text slides
The lasting legacy of clip art is that presentation designers got used to putting images on text
slides rather than text on image slides. Since none of the three USPS presentations do this, I will
illustrate by redesigning the Delivery Network part of McKinseys slide #13 (Figure 19-1). Despite
the fact that my resume has the word marketing on it, I was trained in semiconductor physics.
Consequently, my drawing ability starts and ends with equations and stick figures. So, if I can do this,
anyone can. (Giving credit where credit is due, I learned many of these techniques from the talented
presentation guru Nolan Haims).
Tip 78: Obtain royalty-free images licensed for commercial use

To start, I need a royalty-free image. Since my photography skills are as poor as my drawing
skills, my go-to sources are paid stock photo repositories such as 123RF and iStockPhoto, both of which
have great search capabilities and reasonable prices. As a free alternative, most search engines
(including Google and Bing) allow you to filter for images that are free to use commercially.
To ensure images are crisp on the screen, try to obtain PNG files rather than JPEGs. For novices,
stock photo size choices can seem bewildering. You need the image resolution to match at least the
screen on which you are presenting; purchasing a higher resolution image is a waste of money. Since
technology is changing faster than I can write, find out the resolution of the screen on which you intend
to present. As I write this, projectors in corporate conference rooms are going the way of the dinosaur
and being replaced by 720p flat panel displays with a resolution of 1280 pixels x 720 pixels.
It is worth taking a moment to think about what sort of image to use. I already know to avoid
cheesy, posed stock photos such as a group of beautiful, ethnically diverse, impeccably dressed
businesspeople jumping in the air while smiling and holding hands. Recall, McKinseys message on
slide #13 is that the USPS is struggling to pay the fixed cost of delivering to almost every address in
America. The right image should evoke the tone of hard times and of delivering mail unprofitably to
remote locales. Figure 19-2, which I licensed from 123RF for $10, captures the sentiment perfectly.
Figure 19-2: Photo of vintage mailboxes in a rural setting licensed from 123RF
Tip 79: Resize images to fill the entire slide

As a best practice, images should fill the entire slide. Unfortunately, the image I licensed has an
aspect ratio of 3:2 and most presentation software has an aspect ratio of 4:3. This means the slide will
have horizontal bars in the slides background color at the top and the bottom of the image when the
photo extends from the left edge to the right edge.
To get rid of the horizontal bars, I first make the image oversized so that it extends from the top
of the slide to the bottom. Since I am very careful to maintain the aspect ratio so as to not distort the
image, the photo is now too wide. To fix the overhang, I crop the image on the more visually dense lefthand side to preserve neutral parts of the photo for placing text. The result is shown in Figure 19-3.
Figure 19-3: Mailbox image resized and cropped to fill a slide with a 4:3 aspect ratio
The remaining issue with Figure 19-3 is that there does not seem to be enough neutral space in
the sky at the top or the road at the right to pace text. A clever and not overly complex fix is to stretch
an unimportant part of the image. If you have sophisticated image manipulation software, which I do
not, this is probably straightforward. Here is how I stretched the road natively in PowerPoint:
Copy the original image
Paste the copied image directly on top of the original image
Crop left side of the pasted image to just past the black, rightmost mailbox
Crop the right side of the original image to the same point, just past the black, rightmost
mailbox
Stretch the pasted image by dragging its left edge even more to the left
Move the original image to the left so that its right edge aligns with the left edge of the
pasted image
Crop the left side of the original image so that it aligns with the left slide of the slide
The result of all this copying, pasting, cropping, and dragging is shown in Figure 19-4. This is a
bit of a distortion, but a small price to pay.
Figure 19-4: Mailbox image with stretched road
Tip 80: Place high contrast text on images

White text usually provides the highest amount of contrast when placed on an image. However,
text of virtually any color will fail to stand out on the image in Figure 19-4 since the photo is neither
bright nor dark and contains a huge variety of color even in the more neutral areas.
In the final version of the Delivery network slide (Figure 19-5), I used two techniques to help
text stand out on the image. The slide title uses the easier of the two techniques, a textbox with a
semitransparent background.
To allow the delivery network text pop, I darkened the right side of the image using another
clever but not overly complex technique. Although artistically imperfect, it is more than adequate for
standard business presentations. The trick is as follows:
Create a borderless, black rectangle that covers the entire right half of the slide
Change the fill from solid to a linear gradient with each end set to black (at this stage, you
will still have a black rectangle)
Set the angle of the gradient to zero degrees
Set the left side of the gradient to 100% transparent
Set the right side of the gradient to 40% transparent
The size and location of the rectangle, as well as the precise setting, will of course change
depending on the image and where you wish to locate text.
Figure 19-5: Final version Delivery network slide
Tip 81: Stick to a single metaphorical system across all images in a presentation
I see many presentations where the designer clearly searched for a succession of phrases and
included a sequence of rich, but disconnected metaphorical images; disembodied hands shaking to
symbolize trust, a blue sky to symbolize infinite opportunity, and so on. This is the visual equivalent of
mixing metaphors and is a big no-no.
Instead, adhere to a single metaphorical system across all images in a presentation. Given my
choice for the Delivery network slide, I should use only images with a nostalgic, rural, late-Fall feel
in a muted palette. Note, if everything is perfect except for the color, there is a good chance the recolor
feature included in all presentation design software packages will do a good enough job.
Tip 82: Use diagrams to represent processes, relationships, and geospatial information
Despite the existence of countless standard and custom diagrams, none of the three managementconsulting firms used even a single one in their USPS presentations. However rare, there are several
diagrams that are extremely useful for conveying certain messages, including:
Chevron lists: To illustrate sequential processes of flows
Organizational charts: To illustrate any hierarchical relationship, not only those among
people
Venn diagrams: To illustrate overlapping interrelationships between same sets of items
Network diagrams: To illustrate structural, but non-hierarchical interrelationships between

components in a system
Maps: To illustrate the distribution of data by geospatial location
In this chapter, I intentionally did not share tips on using video since this media is not often used
in persuasive business presentations. While I am smart enough not to say this will never happen, I
expect it will be a while until video finds its way into the boardroom for three reasons. First, videos,
especially longer ones, allow decision-makers to zone out. Second, videos make presentations feel
overly produced. Third, when videos fail due to equipment glitches it reflects poorly on the speaker. Use
video sparingly, if at all, until attitudes change and technologies improve.
Section 3:
Confident Delivery
Chapter 20
Verbal Delivery
Tip 83: Engage your audience in intelligent, authentic conversation
When I write about verbal delivery in keynote speaking, I focus heavily on word choice,
repetition, humor, vulnerability, volume modulation, pacing, and other methods to ensure a speakers
voice matches the emotional tone of his or her content from moment to moment. However, this degree
of emotional variation and precise language would come off as too over-the-top when delivering a
persuasive business presentation. In strategic storytelling, you simply need to allow your knowledge and
your authentic, confident belief in your ideas to flow into your conversation.
Here, I stress the word conversation even though I have loosely used presentation and
storytelling throughout this book (and will continue to use those three words interchangeably). Business
presentations designed to drive a decision should never be memorized nor read off slides or a script. To
gain agreement, get the people in the room -particularly the decision-maker(s) talking early and often.
Seek input frequently by asking open-ended questions. Actively read body language as you would in
ordinary conversation and ask for confirmation to resolve confusion or objections before they fester.
While you need not know everything, you must actively facilitate to draw knowledge, anecdotes,
and stories from the experts in the room. One of the best pieces of advice I ever received from one of
my managers was to be comfortable redirecting a difficult question back to the audience (this takes guts
but works like a charm.)
Tip 84: Project the verbal authority of a peer

When presenting, speakers get to choose the level of authority they command independent of
rank. This means that to secure approval for a business recommendation, behave as a respectful peer.
More junior people can raise their authority by: using pauses to eliminate filler words, feeling free to
ask questions, slowing verbal pacing, and increasing vocal projection. More senior people must be
mindful not to interrupt others, deliver monologues, or speak in a tone that leaves no room for
disagreement. Finally, one particularly important but often forgotten practice by all levels of people is to
verbally acknowledging others within the organization that helped with specific parts of the analysis.
Tip 85: Take every opportunity to hold the audiences attention when presenting over the phone
Any discussion on confident verbal delivery during business presentations would be incomplete
without best practices for holding the audiences attention during a conference call. First, stand while
speaking and increase your expressiveness by imagining you are talking to the most senior decisionmaker on the line. Second, keep people on their toes (and out of their email and Internet browser) by
asking questions of specific individuals. Just give those individuals fair warning by saying, Hey Jane, I
have a question for you After she unmutes her phone and acknowledges you, ask your question in a
way that does not assume she has been paying attention. Using this technique intermittently during a
call will ensure everyone stays engaged. Finally, use slides. In fact, use more slides than you would in a
face-to-face presentation as slide changes draw attention.
Chapter 21
Non-Verbal Delivery
Tip 86: Manage your fear
Even after working on my public speaking for nearly two decades, I have to admit that managing
speaking anxiety is easier said than done. I still feel my heart beating quickly and begin breathing more
rapidly before an important business presentation or keynote speech. On my journey, I have found the
following best practices liberating.
First, accept that speaking anxiety is perfectly natural and normal. Faster breathing and rapid
heart rate pump oxygenated blood to your brain, helping you perform at a higher level. The extra buzz
helps you better recall information and answer questions more rapidly. Let go of the expectation that
fear ever goes away and redirect that nervous energy into your performance.
Second, accept that you do not need to know everything. All you can do is prepare as well as
you can given the time and resources available to you. As mentioned earlier in this chapter, there are
many other experts in the room to turn to for support, hopefully including your boss.
Third, release your expectations regarding the long-term consequences of a given presentation.
Anxiety, by definition, is rooted in uncertainty. If you start thinking about the impact any single
presentation will have on your likelihood of receiving a raise or a promotion, then you are fueling your
fear. Focus on getting to the best answer to solve the immediate problem or capture the immediate
opportunity, even if the answer is not your exact recommendation.
Fourth, rehearse within reason. Since business presentations are guided conversations, rehearse
to internalize the logic and off-slide anecdotes. Additionally, I role-play or ask a colleague to role-play
the other individuals I expect to be in the meeting so that I can formulate answers to questions and
objections. After I role-play, I pre-syndicate the presentation with as many of the key decision makers
and influencers as I can. This is also a golden opportunity to confirm the decision-makers expectations
for the meeting. I know from experience that nothing lowers stress as well as going into a meeting with
the deck already stacked heavily in your favor.
Fifth, arrive early to remove the uncertainty of tools and technology. Test your slides in
presentation mode to make sure everything displays as desired; this is extra-critical if your presentation
includes audio or video. If your meeting requires flip charts, make sure the pens are working. Last, if
you will be standing rather than sitting, find a base position outside the projectors- and the audiences
line-of-sight to the screen.
Tip 87: Project the non-verbal authority of a peer

The previous chapter outlined behaviors that project the verbal authority of a peer, but to carry
them off, those behaviors must also be complemented with non-verbal best practices as well.
More junior speakers have a number of options at their disposal to increase their authority,
starting with how formally they dress. In addition, more authoritative people give the illusion of
occupying more physical space through using larger gestures and by reducing interpersonal distance
(for instance, moving toward the people who ask questions).
Where your seat is located and how you sit in it also matter. Imagine the power in the room the
last time you were in a business meeting. She was probably seated at the head or near the head of a long
rectangular table, showing her hands, and maybe even leaning a little back in her chair.
The way people take notes is also a major sign of respect and authority. Having a scribe take
notes projects more seniority, especially if you are standing while presenting. If you take notes, be
mindful of the tools you use. In most corporate environments, pen-and-paper notebooks signal the most
seniority, followed by tablet computers, and lastly notebook computers, which create a physical barrier.
Finally, take pride in your slides. Developing a presentation takes tremendous research,
synthesis, and design work. To ensure you never have to rush through, or worse, skip slides, make every
slide count and delete nonessential material or put it in the appendix.
Final Words
The ultimate measure of success of a persuasive business presentation is whether or not the decision
reached at the end of meeting is the best one for your company and stakeholders. I hope I have made it
clear that strategic storytelling is mostly about what you do before you actually speak to a group. While
traditional intelligence (IQ) plays some role, I believe emotional intelligence (EQ) plays a far greater
role. High EQ, which can be developed, is what makes you a more persuasive public speaker.
Unfortunately, social networking and always-on media have conspired to rob business
professionals of verbal communication ability, especially young people joining the workplace. The
upside of this modern plague is that individuals such as you, who choose to master the skills of strategic
storytelling, can gain a massive advantage in the workplace.
Being a more persuasive speaker is the fastest way to transform your ideas into positive
outcomes. And, positive outcomes lead to the trappings of career success raises and promotions. The
future of your company and your career are in your hands.
Strategic Storytelling Quick Reference Guide
SECTION 1: PERSUASIVE CONTENT
Tip 1: Define the problem and make sure it is worth solving

Tip 2: Identify constraints
Tip 3: Build out the mutually exclusive and collectively exhaustive set of issues
Tip 4: Convert your issue tree into a hypothesis tree
Tip 5: Prioritize your hypotheses for impact
Tip 6: Ghost out your story on paper using the situation-complication-resolution framework
Tip 7: Test your hypotheses and iterate your story
Tip 8: Title your presentation with a so-what encapsulating your overall objective
Tip 9: Make your presentation title SMART
Tip 10: Use an agenda slide to provide your audience with a roadmap
Tip 11: Keep agenda slide titles short and sweet so they can be ignored
Tip 12: Limit agendas to no more than five short items
Tip 13: Add creativity to agenda slide design
Tip 14: Start agenda items with action verbs to signal in which mental mode you want your audience
Tip 15: Apply contrast to highlight the start of each agenda section
Tip 16: Start the situation with the current state of the fundamental issue
Tip 17: To own the flow, each slide should trigger a question answered by the title of the next slide
Tip 18: Expand on the summary node with depth-first tree traversal
Tip 19: Only go as deep as is needed to introduce the problem
Tip 20: Repeat summary node slides when moving across after going deep
Tip 21: Explore issues and/or opportunities in the complication section
Tip 22: Build up to contentious or counter-intuitive insights
Tip 23: Explore the influence of dynamic trends on the factors discussed in the situation
Tip 24: Deliver the collective impact of the complications on the fundamental issue
Tip 25: Explore the mutually exclusive and collectively exhaustive ways to resolve the complication
Tip 26: Place low-impact resolutions in the Appendix to show they have been considered but ruled out
Tip 27: Prioritize recommendations in impact-, sequential-, or emotional order
Tip 28: Handle objections as they arise
Tip 29: Create an epilogue for critical information beyond the main storyline
Tip 30: Use the Approach-Findings-Implications framework for informative presentations
Tip 31: Avoid presenting the random walk you followed in your research process
Tip 32: Protect your intellectual property and limit your legal liability
Tip 33: Do not include an Executive Summary at the beginning of your presentation
Tip 34: Annotations at the bottom of a slide should only be used to transition to the next slide
Tip 35: Prove bold claims
Tip 36: Use ellipses in slide titles to support the flow of the story
Tip 37: Give each slide an independent title
SECTION 2: DATA-DRIVEN DESIGN
Tip 38: Use slides only when they accelerate decision-making

Tip 39: The larger the audience, the simpler the slides
Tip 40: The content in the body of the slide must unambiguously prove the slide title
Tip 41: Match the design treatment in the slide body to the message in the title
Tip 42: Design each slide so that it can be covered in three minutes or less
Tip 43: Use animation sparingly (if at all)
Tip 44: Lay out body content from left-to-right and top-to-bottom
Tip 45: Maintain strict design consistency
Tip 46: Maximize contrast between the text and the background
Tip 47: Use solid colors for slide backgrounds
Tip 48: Use large, standard fonts
Tip 49: Keep text short
Tip 50: Apply a consistent format to your slide header
Tip 51: Craft each slide title as a so-what
Tip 52: Convert bullet lists into columns
Tip 53: Use real quotes that you obtained directly
Tip 54: Use column charts for trend data with up to ten values
Tip 55: Title graphs with a what rather than a so-what
Tip 56: Remove all unnecessary elements from graphs
Tip 57: Use chart annotations in the body of a slide to explain critical inflections
Tip 58: Apply high contrast to chart data that directly supports the slide title
Tip 59: Use a more subtle treatment for forecast data
Tip 60: Footnote sources, critical assumptions, and details too granular for the body of the slide
Tip 61: Design stacked column charts to show an overall trend and its components
Tip 62: Orient and order legends the same way data series are oriented
Tip 63: Use line charts or scatter charts for trends exceeding ten values
Tip 64: Stick to one set of axes per graph
Tip 65: Maintain design consistency across similar graphs in a presentation
Tip 66: Do not distort graphs
Tip 67: Pie charts are acceptable for composition snapshots of up to five categories
Tip 68: Consider treemaps as an alternative to pie charts
Tip 69: Rely on bar charts to depict composition
Tip 70: Use waterfall charts to show the cumulative effect of changes
Tip 71: Use distribution charts to show the frequency with which phenomena occur
Tip 72: Use correlation charts to illustrate the interrelationship between two variables
Tip 73: Rely on tables when the audience needs exact values
Tip 74: Use tables when you need to combine text, data, or images
Tip 75: Prioritize the order of table information from top-to-bottom and left-to-right (in Western
cultures)
Tip 76: Ensure that images add constructively to your story
Tip 77: Put text on image slides rather than images on text slides
Tip 78: Obtain royalty-free images licensed for commercial use
Tip 79: Resize images to fill the entire slide
Tip 80: Place high contrast text on images

Tip 81: Stick to a single metaphorical system across all images in a presentation
Tip 82: Use diagrams to represent processes, relationships, and geospatial information
SECTION 3: CONFIDENT DELIVERY
Tip 83: Engage your audience in intelligent, authentic conversation

Tip 84: Project the verbal authority of a peer
Tip 85: Take every opportunity to hold the audiences attention when presenting over the phone
Tip 86: Manage your fear
Tip 87: Project the non-verbal authority of a peer
Acknowledgements
I am indebted to the elite group of individuals who have dedicated their professional lives to
sharing techniques for delivering persuasive business presentations, including: Barbara Minto, Gene
Zelazny, Stephen Few, Nolan Haims, Matthew Abrahams, and Edward Tufte. Similarly, I have been
heavily influenced by thought leaders in the field of keynote presentations including Nancy Duarte and
Garr Reynolds.
This book would not have been possible without the encouragement of my super-agent, Jackie
Meyer, and the skills of my brilliant editor, PJ Dempsey.
Last and most important, thank you Irene you are the love of my life. I wish I would write as
well as you do and I am fortunate you volunteer to edit my first drafts.
About the Author

Dave McKinsey worked in a consulting firm for over sixteen years and is now a writer and
business communications trainer. Please use the contact form speakingsherpa.com to reach him.
1 http://www.crh.noaa.gov/lmk/?n=jan_2009_ice_and_snow
2 http://en.wikipedia.org/
wiki/January_2009_Central_Plains_and_Midwest_ice_storm
3 http://about.usps.com/news/state-releases/ky/2009/ky_2009_0313.htm
4 https://about.usps.com/who-we-are/postal-facts/decade-of-facts-and-figures.htm
5 http://money.cnn.com/
2010/03/02/news/economy/usps/
6 http://about.usps.com/universal-postal-service/usps-uso-executive-summary.pdf
7 Ian Davis, David Keeling, Paul Schreier, and Ashley Williams. The McKinsey Approach to Problem Solving. A McKinsey
published staff paper. 2007.
8 BCGs presentation also has an extensive Appendix not included here

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Strategic

Chapter 15: To Slide or Not to Slide

The Perfect Storm

beginning, middle, and end) as described in his Poetics.

Tip 1: Define the problem and make sure it is worth solving

Figure 2-1: Partial USPS issue tree in outline form

Figure 2-2: Partial USPS issue tree in hierarchical graph form

Tip 2: Identify constraints

Tip 4: Convert your issue tree into a hypothesis tree

Tip 5: Prioritize your hypotheses for impact

Situation: USPS is experiencing unprecedented losses

Profits in 2003 to 2006 have swung to steep losses in 2007 to 2010

Without action, unfavorable revenue and cost trends will continue

Resolution: USPS must pursue fundamental change in five areas

Tip 7: Test your hypotheses and iterate your story

McKinseys USPS Situation

Figure 3-1: McKinseys USPS presentation slide #0

Tip 9: Make your presentation title SMART

Figure 3-2: McKinsey USPS presentation slide #1

Tip 12: Limit agendas to no more than five short items

Tip 13: Add creativity to agenda slide design

Review USPS operating environment

Evaluate 2020 base case assuming minimal action

Approve recommendations to restore profitability

Secure short-term financing to maintain solvency

Figure 3-3: McKinseys USPS presentation slide #2

Figure 3-4: McKinseys USPS presentation slide #3

Figure 3-5: McKinsey USPS situation through slide 3

Figure 3-7: McKinseys USPS presentation slide #4

Figure 3-8: McKinseys USPS presentation slide #5

Tip 19: Only go as deep as is needed to introduce the problem

Figure 3-9: McKinseys USPS presentation slide #6

Figure 3-10: McKinseys USPS presentation slide #7

Figure 3-11: McKinseys USPS presentation slide #8

Figure 3-12: Full McKinsey USPS situation

McKinseys USPS Complication

Figure 4-1: McKinseys USPS presentation (slide #9)

Tip 22: Build up to contentious or counter-intuitive insights

Figure 4-2: McKinseys USPS presentation slide #10

Figure 4-4: McKinseys USPS presentation slide #11

Figure 4-5: McKinseys USPS presentation slide #12

Figure 4-6: McKinseys USPS presentation (slide #13)

Figure 4-7: McKinseys USPS presentation (slide #14)

Figure 4-8: McKinseys USPS presentation (slide #15)

Figure 4-9: McKinseys USPS presentation slide #16

Figure 4-10: McKinseys USPS presentation slide #17

Figure 4-11: McKinseys USPS presenation (slide #18)

Figure 4-12: McKinseys USPS presentation slide #19

McKinseys USPS Resolution

Figure 5-1: McKinseys USPS presentation slide #20

decision and can often be the best option.

Figure 5-2: McKinseys USPS presentation slide #21

Tip 27: Prioritize recommendations in impact-, sequential-, or emotional order

Figure 5-3: McKinseys USPS presentation slide #22

used to structure the situation section including bottom-line-up-front messaging, story-centric

Figure 5-5: McKinseys USPS presentation slide #23

Figure 5-6: McKinseys USPS presentation slide #24

Figure 5-7: McKinseys USPS presentation slide #25

Figure 5-8: McKinseys USPS presentation slide #26

Figure 5-9: McKinseys USPS presentation slide #27