WRITING CLEAR AND INTERESTING SLIDES

2005 ， Shanghai

THE BOSTON CONSULTING GROUP

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WRITING CLEAR AND INTERESTING SLIDES

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 TODAY’S OBJECTIVE

To give you the tools to write slides that communicate the results of our
work in a way that helps clients understand, accept, and use those results

This session will help you through the process of writing slides
• From choosing the most appropriate slide type – words, tables,
graphics
• To writing a slide that is clear and interesting

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WHAT PUZZLES YOU OR CHALLENGS YOU THE MOST
WHEN WRITING SLIDES?

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WRITING CLEAR, SUCCINCT, AND INTERESTING SLIDES

Good slides, bad slides

How to use slides in a presentation

How to choose among words, tables, graphics

How to display information on slides effectively

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Example

STRONG GROWTH IN OTHER PRODUCTS

OFFSET BY PARTS’ DECLINE

1987-91
1991 Sales Sales CAGR GM GM GM
Product ($000) % of Total (Real %) (%) ($000) % of Total
Alarm & detection 2,551 18.3 31.9 37.6 958 17.2
Broad diffusion 5,303 38.3 10.9 45.3 2,400 43.1
IR sensors 2,372 17.1 13.8 34.9 827 14.8
Chloride 1,524 11.0 (28.5) 40.9 624 11.2
Bulk chloride 1,270 9.2 (4.0) 50.5 641 11.5
Parts 152 1.1 (36.2) (9.9) (15) (0.3)
Design 691 5 (2.9) 20.0 138 2.5
Total 13,863 100 (1.6) 40.2 5,573 100

Messages are buried in the data

Source: Annual Division Budget

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Example

THE REDESIGN PROCESS INVOLVES FOUR DISCRETE STAGES

Analysis Findings

Extensive customer analysis • Current contact model does not have capacity to serve all customers
• Customer service and support requirements adequately
Detailed internal diagnostic • Several low value areas consume time
Analysis:
• Time spent by activity by responsibility • TSE time consumed by activities which could be handled more
Identify
• Capacity of the system efficiently by other resources
opportunities
• No sales growth from current model
• Lots of opportunity to leverage other resources, like CAS
• Most customers receptive to recommendations that allow us to
leverage sales force time

Current Contact Model Proposed Contact Model

Customer
Technical Assistance
Team
Technical Assistance Ordering Leader Plant
Ordering
Technical ASP selling/implementation Quoting
ES Assistance ISP selling Availability
Quoting/cross-referencing
Expediting
Technical assistance in person
Rotational calls
CAS Technical TSE Availability CSR
Assistance Availability Remote
Customer CSR
Price Quoting TE
Concessions ISP cross-referencing
Expediting Ordering Price concessions Expediting
Price concessions
Expediting
DM Price Concessions
Evaluate Group Plant
Alternatives: Price TE
Concessions CAS
Opportunities Expediting
point to new
contact model
Current Organizational Structure Proposed Organizational Structure
VP, National Sales
VP and Director, MWS Division

VP, National Sales

CS Manager CAS Business Managers CAS Manager

Telemarketing Zone Managers (5)
(1) Manager
Manager (1)
(1)
CS Managers Financial Team Zone Operations CAS Reps
(10) Telemarketing Latrobe Analyst Leader Manager
ES District District CAS Reps (4)
TSRs Telemarketing Managers Managers
CSRs (65) (13) (9) (6) (30)

TSEs (186) Technical Remote Customer

ESs
TSRs (23) Engineers Technical Service
(46)
Engineers Reps

Too much information? 7

 Example

THE 36” LIFTER DOMINATES SALES AND PROFIT

1992 Product Family Profitability

12.0
CFROI
(%)
9.7

8.3

Discount
Rate 4.66%

0.85

0.02
36” 10” 96” 14” 12”

Lifter Bore (Volume)

Current Dollar G.I. ($M) 555 19 35 179 91
Revenues ($M) 349 17 19 60 30

Is the complexity necessary?

Note: Width of bar is proportional to CDGI
*Valuation ROI - 3y median CFROI 8
Sources: LRP; HOLT Value Model
Example
PREMIUM LOW CALORIE SWITCHING OCCURRING WITHIN
PREMIUM SEGMENT, NOT NEAR PREMIUM
Halt the Leaks to Competitors

Client Competitor A Competitor B

Starting Starting Starting
Brand/Segment Base Won + Lost = Net Base Won + Lost = Net Base Won + Lost = Net
Total Super Prem. 60 (98) (38) 117 (61) 56) 91 (68) 23)

Product 1 198 (56) 142) 290 (32) 258) 267 (19) 248)
Product 2 6 (52) (46) 7 (50) (43) 5 (82) (77)
Product 3 25 (81) (56) 30 (37) (7) 31 (37) (6)
Other 153 (29) 124) 92 (11) 81) 109 (11) 98)
Total PFC 382 (218) 164) 419 (130) 289) 412 (149) 263)
Near Prem.
Product 1 97 (218) (121) 155 (98) 57) --- --- ---
Product 2 79 (224) (145) --- --- --- 98 (155) (57)
Product 3 --- --- ---) 224 (79) 145) 218 (97) 121)
Other 1 (55) (54) 5 (19) (14) 0 (21) (21)
Total PLC 177 (497) (320) 384 (196) (188) 316 (273) 43)

Other Segments
Segment 1 62 (104) (42) 69 (99) (30) 102 (90) 12)
Segment 2 110 (29) 81) 75 (7) 68) 75 (19) 56)
Segment 3 22 (69) (47) 34 (31) 3) 26 (33) (7)
Segment 4 324 (72) 252) 366 (46) 320) 312 (45) 267)

Total 2,836 1,137 (1,087) 50) 1,721 1,464 (570) 894) 1,866 1,334 (677) 657)

Raw data only, no analysis presented to support the conclusion (hypothesis)

1990 & 1991 Most Often Brand Switchers Within Last Three Years
Source: Continuous Tracking from Sample of 29,081; Consulting Analysis
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 WHAT DO YOU SEE IN A GOOD OR BAD SLIDES?

Good slides are: Bad slides are:

We will revisit toward the end of the session

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WRITING CLEAR, SUCCINCT, AND INTERESTING SLIDES

Good slides, bad slides

How to use slides in a presentation

How to choose among words, tables, graphics

How to display information on slides effectively

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 SLIDES ARE VISUAL AIDS

Focus the audience’s attention on message

• Help explain the message
• Provide another means for the audience to process the information
• Reinforce the message–aid to memory

Should not compete with the presenter

• Presenter is primary means of communicating
- difficult to read and listen at the same time

Calls for simple slides - simplicity means clarity in thinking

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SLIDES ARE ALSO A RECORD OF THE PRESENTATION

Left behind for clients to read

Creating tension between

• The need for a stand-alone explanation and
• The need for a simple visual aid

Appropriate compromise depends on the audience and the

purpose of the presentation

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 SEVERAL COMPROMISES ARE POSSIBLE

Prepare report or annotated slide book as leave-behind

Display information more effectively

Choice depends on
• Complexity of message
• Desired future use of presentation

Usually preferable to keep slides simple and select an alternative option

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 COMPROMISE MUST BE CONSISTENT WITH
AUDIENCE AND PURPOSE

Type of Level of Length of Presentation

Audience Detail Presentation Style

Client Case High 2-4 hrs. Participative

Team discussion

Business As necessarySource 1-2 hrs. Question and

Managers answer

Board of Low 20-30 min. Formal

Directors presenting

Source: Consulting Experience

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WRITING CLEAR, SUCCINCT, AND INTERESTING SLIDES

Good slides, bad slides

How to use slides in a presentation

How to choose among words, tables, graphics

How to display information on slides effectively

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FOUR WAYS TO PRESENT INFORMATION

Graphics

Tables

Word slides

Combinations of the above

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 BASIC GUIDELINES HELP YOU SELECT FORMATS

Do I need to illustrate a reasonably simple relationship?

• Use a table or a graphic
• Especially when showing numerical data

Do I need to illustrate a complex relationship?

• Use a table

Do I have something other than a relationship?

• Use a word slide or a conceptual graphic

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 BUT THE FINAL SELECTION DEPENDS ON THE
MESSAGE YOU WANT YOUR AUDIENCE TO TAKE AWAY

Use graphics if you want audience to

• Remember relative trends
• Picture the flow

Use tables when you want the audience to know or be able to refer to
• Specific numbers
• Methodology to calculate numbers

Use word slides if you want audience to understand

• Specific logic flow
• Recommendations

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GRAPHICS HELP THE AUDIENCE VISUALIZE THE POINTS

Help audience identify important points quickly

Best suited to display relationships, both quantitative and qualitative

• Where relationship is too complex for words
- not too simple
- nor too complex–multiple relationships can be obscured by
graphic
• Where visual impact will help convey message

Graphic format should be considered first;

if a graph is not optimal, then consider words or a table

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Example

CHINA COMMERCIAL BANKING SECTOR IS LARGE

WITH STEADY GROWTH

Steady growth of banking assets Lending balance keeps stable

Banking(1) asset at the end of the period(2) Lending outstanding balance at the end of the period(3)
(USD BN)
(USD BN)
0% YoY: 0%
-99): 1
GR (9 7- 00): 7.9% 1,893 CAG R(9 7
CA 1,068 1,067
1,678 997
1,521
1,491 829

1997 1998 1999 2000E 1997 1998 1999 2000E

1. Excluding post office finance, urban and rural credit cooperatives

2. 2000 is an estimate, assuming ICBC, CCB and BOC accounting for 60% of the banking sector asset
3. 2000 is an estimate, assuming the 4 major banks accounting for 72% of the banking sector loan outstanding balance
Source: China Financial Almanac; IMD; Lit. search; BCG analysis 21
Example
MARKET PROJECTION PRIMARILY BASED ON COUNTRY
STATISTICS AND CONSUMER RESEARCH
Projection Methodology

Volume Revenue Growth

China
market
potential

Parameters # of % on Average Average price by Weighted Future trend of parameters

babies X BF X consumption product type X volume

Drivers • Birth rate • Income • Product by • Share • Birth growth rate

• Population • Age of baby stage • BF usage trend
• Geography • Usage behavior • Manufacturer • Price trend
ownership
• Package type

Source • Statistics Bureau • Store checks • Consumer research

• Consumer research • Trade interviews • Cross-country comparison
• Desk research • Statistics Bureau
• ERC report • Competitive analysis
• Competitive interviews

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 WHAT DO YOU WANT TO SAY?

Descriptive Explanatory
Column
Pie Line Stacked Column Map Bubble
Relationship Multiple Pie Area Bar Spider Scatter

Changes over time

Parts of a whole

Comparison of
several items or
places

Relationships
between variables

Simple information Complex information

When to use what?

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 SOME BASIC RULES FOR DESCRIPTIVE GRAPHICS
For Time Series, Use a Column or Line Chart

Western cultures read time as moving from left to right

• Common convention

Use a column or stacked column chart if

• Fewer than ten or so time periods
• Data is accumulated in discrete occurrences
- e.g., periods of production

Use a line or area chart if

• More than ten or so data points/periods
• Data is continuous or cumulative
- e.g., number of stores, stock prices by days
• Trends (i.e., slopes) are the point you want to make

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Example

GROWTH IN TRADE FINANCE SLOWED AND WILL REMAIN SLUGGISH

Trade finance expected to decline 10% in 1998

Total trade 30
CAGR
finance (US$B) 4% 25 -10% 92-97
25 9% 24
22 23
16%
19 14%
20
27%
15% 15
15 13

10

0
1992 1993 1994 1995 1996 1997 1998E

Trade volume 13% 24% 17% 3% 2% -5%

growth

• Slow-down in external trade has contributed to the decline

• Expected trade set back in the near future will further make trade
finance decline

Source: HK banking industry; Paribas Asia Securities; HK Monetary Authority 25

SOME BASIC RULES FOR DESCRIPTIVE GRAPHICS
For Item Comparisons or Comparison of Parts of a Whole, Use a
Bar Chart or a Stacked Column Chart

Use a bar chart for

• Market research survey responses
• Competitor comparisons
- reserves column charts for time series comparisons
- leaves room for long labels on the left axis

Use a stacked column chart for

• Cost structures or cost structure comparisons
• Regional market share comparisons
• Changes or differences in mix across time or
competitors

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Example

MOTHERS WILLING TO BREASTFEED BUT WOULD USE INFANT

FORMULAE AS A SUPPLEMENT

Why do you choose baby formulae?

Supplement baby
food

Baby food better

for baby

“Cannot”
breastfeed (not
enough milk)

Do not have time

Total
to breastfeed (e.g.
work reasons) 0-6 month
6-12 month
1-3 year

Others(1)

0 200 400
(1) Typical other reason: baby likes it 27
Source: Survey results; BCG analysis
Example

FOREIGN PLAYERS ALREADY HAS A STRONG FOOT INTO

FOREIGN CURRENCY BUSINESS
Share of foreign currency loans
(As at the end of 1999)
Foreign banks

Other local banks

22%

4 major state-owned banks 13%

3% 2%
100%
44%

6%
10%
ICBC ABC BOC CCB Bank of Other regional Foreign banks Total
Communications banks

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SOME BASIC RULES FOR DESCRIPTIVE GRAPHICS
For Complex Spatial and Temporal Comparisons,
a Range of Mapping Techniques Are Available

Use territory map for

• Market attractiveness
• Competitor penetration

Use a process or time map for

• Efficiency measures
• Time lines
• Process flows

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 SOME BASIC RULES FOR EXPLANATORY GRAPHICS
For Regressions and Causal Relationships

Use an XY scatter chart for

• Point regressions
- do not show regression line if slide is for exploratory
purposes
- but include it if you are sure of the point you want to make

Use a bubble chart for regressions where

• A third dimension is required
- e.g., assets or sales
- bubble size should always refer to size-related variable
(e.g., assets, but not profitability)

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 Example

AFFLUENT IS AN ATTRACTIVE SEGMENT, GENERATING HIGHEST

CONTRIBUTION PER CUSTOMER
Segment breakdown of contribution per customer

Annual contribution per customer (US $)

7000

50000

Affluent
40

2500

Upper
150 Mass
80
-5
15

Size of market (m)

(No. of customers)
-2500

ource: Press literature, AC Nielson, Business-On-Line, Ministry of Commerce, BCG case experience and analysis = Total contribution (B) 31
 SOME BASIC RULES FOR EXPLANATORY GRAPHICS
For “Novel” Comparisons

Use a spider chart for

• Gap analysis along multiple dimensions simultaneously
- perceptions vs. reality
- client vs. competitors

Use “novel” graphics where an unusual point needs to be made

• Difficult to devise
?
• But sometimes nothing else works

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TABLES ARE ALSO USED TO DISPLAY QUANTITATIVE AND
QUALITATIVE DATA

Use a table when

• You have too many relationships for a graph
• You want to make your calculations overt
• You want to emphasize individual values
- either words–types of distributors
- or numbers

Do not use tables for most other applications

• Tend to be cluttered and difficult to read, obscuring the message

Tend to use it as backup or appendix

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 WORD SLIDES HAVE SEVERAL USES

To lead audience through logic flow

• Not used for proof, except for interview quotes

To summarize findings, recommendations

To present qualitative information

• Most concepts can be effectively presented in words

To present very simplistic data

• But don’t bury numbers in slide–difficult for audience to grasp the
meaning

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COMBINING FORMATS CAN MAKE MESSAGE STRONGER

Presents the message both visually and verbally

• Usually best with simple data or conceptual graphic

However, make sure the slides do not become too confusing

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Example

CUSTOMER INTERACTION FAR FROM IDEAL

35% of all customer service calls

are transferred or referred Customers are frustrated by process
“I’ve been back and forth, back and forth (between
% of 80 Billing and Customer Service) about six times.”
Calls - Customer of Granada Hills
65 Customer Service when asked if
60 he would like to be transferred
to Billing

40 “I’ve finally spoken with someone with some

intelligence—after about six conversations.”
25 - Irate customer of Granada Hills
20
Customer Service
10
“It would be so much easier if we could just look at
0
the bill.”
Handled Transferred Referred - Customer Service rep to Billing
Handled Transferred Referred
rep when calling to get
information for customer

Sources: Call Monitoring (Granada Hills, Ohio, Louisville, Indiana, Garland); Consulting Analysis

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 FOLLOWING EXAMPLES PRESENT SAME DATA
IN DIFFERENT FORMATS

Quantitative data
• Sales and profit over time
• Comparison of features for products in market
• Two options for technical specialist deployment

Qualitative data
• Flow of presentation
• Segmentation

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Exercise 1

PROFITS GROWING FASTER THAN SALES - 1

Sales have grown by 11% per annum since 1989

• Company X sold $60 million in 1989
• Sales expected to be $90 million in 1993

Profits have grown more rapidly at 17% per annum

• Company X had profits of $16 million in 1989
• Profits expected to be $20 million in 1993

Source: Abco Data

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Exercise 2

PROFITS GROWING FASTER THAN SALES - 2

Sales Profit
1989 60 10
1990 66 12
CAGR (%)
Dollars 100
1991 73 15
($, million) 1992 81 18
Sales 11
1993 90 20

Profits 19

10
1989 1990 1991 1992 1993

Source: Abco Data

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Exercise 1

PROFITS GROWING FASTER THAN SALES - 3

Sales ($, Million) Profit ($, Million)

1989 60 10

1990 66 12

1991 73 15

1992 81 18

1993 90 20

CAGR (%) 11 19

Source: Abco Data

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Exercise 2

FOCUSING ON SMALL CUSTOMERS WILL

PROVIDE THE MAXIMUM LEVERAGE - 1

A technical specialist spends more time with large customers

• An average of 8 hours in person per call for large customers,
versus . . .
• 15 minutes on phone per call for small customers

Consequently, a single specialist can cover more small customers

• Can only serve one large customer per day
• Can serve 8 small customers per day

Source: Phone Co.

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Exercise

FOCUSING ON SMALL CUSTOMERS WILL

PROVIDE THE MAXIMUM LEVERAGE - 2

On-site Time with On-phone Time with

Large Customer Small Customer

Time spent per

service call 8 hrs. 15 min.

Number of
customers served
1 32
in one day

Source: Phone Co.

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Exercise 2

FOCUSING ON SMALL CUSTOMERS WILL PROVIDE

THE MAXIMUM LEVERAGE - 3

Time Spent Possible

8 hrs. 32
per Service Calls per
Call Day

15 min. 1
Large Small Large Small

Source: Phone Company

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Exercise 3

AGENDA

Order taking
• Customer conversation
• Order entry into system

Manufacturing
• Scheduling
• Production

Distribution
• Packaging
• Shipment

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Exercise 3

AGENDA

Order Taking Manufacturing Distribution

• Customer conversation • Scheduling • Packaging

• Order entry into system • Production • Shipment

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TO DISPLAY INFORMATION EFFECTIVELY, YOU NEED TO

Focus on your audience and what they need/want to know

• Start with their concerns
• Tell their story, not your story

Focus on key concepts and characters

• From audience’s perspective
• To make text more coherent
• To provide context for the audience

Organize slides around the audience and the important concepts, characters

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 THE SLIDE—THE BASIC BUILDING BLOCK

TITLE Main point of the slide

BODY Support for main point

• Words • Schematic
• Table • Graph(s)

TAKEAWAY, OR TRANSITION TO May be oral

NEXT SLIDE

Notes, Source

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 HOW TO MAKE SLIDES USER FRIENDLY

Title
• Context at beginning
• New information at end

Body
• Consistent subjects for main points
- the concepts and characters
• Simple grammatical structure and parallel style

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THE TRANSITION RELATES THIS SLIDE TO THE NEXT ONE

Keeps the story going

Summarizes the slide, reiterates the main point, or draws out

implications

Can be written or oral

The slide's exclamation point

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THIS IS WHERE THE TITLE (ALL CAPS) IS POSITIONED
The subtitle follows with only an initial cap

The body of a word slide follows an outline format, beginning with main
points which start with a capital letter
• The second level is called a bullet point; it also begins with a
capital letter
- the third level is called a dash point; it begins with a
lowercase letter
· the fourth letter is a dot point (no cap); it is best to avoid
these

No end punctuation follows any of these points

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 Backup

RECOMMENDED FORMAT FOR TABLES AND BOXES

Type of assignment Client Goal of the study

Corporate strategy Major German brewer Strategic alliances in

Europe

Major U.S. brewer Acquisition strategy

Scottish brewer Strategy development

Various Acquisitions in brewing

and soft drinks in Spain

Marketing strategy Major European brewer European brand

development

Australian wine & spirits Brand extension

company strategies

Major U.S. brewer Brand positioning

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 Backup

THIS IS THE FORMAT FOR TABLES

Sales Efforts Driving Growth

% Due to 1989-90
Market Share CAGR
Chain Segment Growth Gain Total (%)
Off-premise 4.8 6.9 11.7
• Supermarket 6.2 7.1 13.3
• C-store 2.0 2.0 4.0
• Drug 7.0 0.1 7.1
• Gas 5.6 27.7 33.3
• Liquor/Other 6.0 10.7 16.7

On-premise 2.0 24.5 26.5

Total 4.6 7.1 11.7

Source: Market Research

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 Backup

RECOMMENDED GRAPH FORMAT

Graph heading 16 point, capital letter for first word

Y label 100
centered in
12 point

75

Text inside graph flexible Legend in

(12 or 14 if possible) 12/14 with
50 box*

25

(14x9)
0
1980 1981 1982 1983 1984

Scale in 12 point X label in 12 point

*Optional

Source:

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 USE THESE QUESTIONS TO REVIEW YOUR SLIDES

How does this slide contribute to the story?

How does it help the audience to address their needs?

Does management want/need to know what's on this slide? Everything on

the slide?

Is the point of this slide clear? Is it clearly laid out in the title?

Is the title closely connected to the body of the slide?

Is the body of the slide easy to read? Is it parallel? Does it contain any
unneeded material?

This will lead to the Pyramid Thinking / Logic in our next session
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 RECAP: WHAT DO YOU SEE ON A GOOD SLIDE

Logical and interesting storyline

Simple, to the point (no more than 6 key points on one slide)

• Catch your eye

• Key message stands out

Conclusion always supported by (appropriate) data and analysis

Data always stated with source

Consistent format and color schemes

No typos

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