Business Storytelling II — Frameworks
In my recent blog, I discussed the principles of business storytelling. To make your pitch more compelling, you need to organize your story in a structured, easy-to-follow manner. But with so much information, it can be overwhelming to decide what to include and which order to present it.
To simplify things, persuasive storytelling frameworks like Situation-Complication-Resolution, Approach-Findings-Implication, and Context-Results-Next can save the day. Choosing the right framework depends on the type of communication you need. So, pick the one that fits best and use it to increase your odds of getting your leadership or stakeholders aligned.
The Situation — Complication/Opportunity — Resolution (SCR) Framework
The SCR framework is a good fit for pitching a strategy or solution to decision makers. The situation means the current state of relevant space. The complication part explains the problem and the consequences if it is not solved. The resolution part talks about the proposal. I’ll use the McKinsey USPS presentation as an example to apply the framework.
Situation
In crafting the opening of a discussion, it’s crucial to start by laying a familiar foundation that won’t cause immediate pushback from your audience, although it’s fine to have mild tension as the hook. A successful introduction outlines the issue’s current landscape, drawing on historical context and reliable data sources. This ensures that the information presented is recognized and accepted, setting the stage for deeper exploration without alienating listeners. McKinsey, for example, often effectively employs this strategy by delving two levels deep into the subject matter, as demonstrated in their analysis of revenue dynamics and forthcoming in their examination of costs for USPS. By incorporating enough detail to establish a shared understanding, the stage is set for introducing complexities and proposing solutions that resonate well with the audience, keeping them engaged and eager to learn more.
Complication
The complication section, or Act II of our narrative, creates negative tension either by threatening a current positive state or by exacerbating a current negative state. In McKinsey’s SCR-based story, the complication is a set of forces or trends expected to turn a significant loss into a catastrophic loss. Tensions intensify as we examine the interplay between current and future business landscape changes.
You should build up contentious or counter-intuitive insights. If insights are extreme, build up the information to bring your audience along. Otherwise, begin with the top level insights and then drill into details (i.e. following principle 3 — start with a summary, then expand with depth-first traversal).
The objective here is to dissect problems (find the root cause) and uncover opportunities. Explore the impact of trends discussed in the Situation section. Thinking in terms of story. For example, let’s say profitability is the protagonist. The strategic business levers represent the protagonist’s 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 evolve through conflict in the form of trends. Doing so sets the stage for a climactic resolution, aligning each trend with a definitive impact on revenue or costs and compelling the audience to anticipate how our protagonist will overcome these challenges in the forthcoming conclusion.
Resolution
Now you have created the tension, you should focus on problem solving. Before constructing your story, explore mutually exclusive and collectively exhaustive solutions. This ensures all potential solutions are considered without overlap. Below are some tips for presenting the resolution section:
- Order Recommendations by Impact: Present solutions starting with the highest impact. However, if certain actions need to be sequential or if the emotional engagement of your audience is crucial, adjust the order accordingly.
- Limit to a few Recommendations: Avoid cluttering your narrative with too many low-impact ideas. These can be briefly noted in an Appendix, showing they have been considered but are not part of the main recommendation.
- Show Direct Action Plan: Typically, a clear, direct action plan — “do this, then that” — is most effective after setting the context. This might include switching focus from competitors to your own company with a brief contextual reset.
- Start with Conservative Action: Like the characters in a story, businesses often start with the least disruptive solutions, escalating their actions only when simpler measures fail.
- Preempt Objections: Anticipate and address objections as they arise. Sometimes, stepping out of the narrative to acknowledge the need for broader changes, such as legislative action, can preempt major pushbacks.
Lastly, consider adding an epilogue to your strategic narrative to tie up loose ends, outline the outcomes of implemented solutions, or set the stage for future initiatives.
Situation — Opportunity — Resolution Framework
You can adapt your storytelling approach by replacing a Complication with an Opportunity, transforming the SCR into the SOR framework. This change introduces positive tension, either by elevating an already positive situation or transforming a negative one. Just as obstacles add drama by challenging the protagonist, opportunities add tension by offering a potential reward.
The SCR framework navigates emotions from positive to negative and then back to positive, making it suitable when the audience is unaware of the underlying problem. On the other hand, the SOR framework shifts from negative to positive and ultimately to an even more positive state. It works best when the audience recognizes the problem, as it brings a sense of hope and optimism.
Approach — Findings — Implication Framework
When crafting informative presentations, you can use the Approach-Findings-Implication (AFI) framework. Focus on letting your audience understand issues, make decisions, and take action without getting lost in the minutiae of the research process.
Act I: Objectives & Approach
Start by clearly outlining the objectives of your presentation. What are the goals, and what approach are you taking to achieve these goals? It’s crucial in this section to set the stage without diving into the findings. This part is about setting expectations and providing a clear roadmap of what is to be discussed, ensuring the audience understands the direction and purpose of the presentation.
Act II: Results or Findings
This is the core of your presentation, where you reveal your research or analysis outcomes. Present the findings clearly and consider double-clicking on different scenarios — such as base, worst, and best-case — to provide a comprehensive view. This approach adds depth to your presentation and prepares the audience for various possibilities, enhancing their understanding and engagement.
Act III: Implications
The final act answers the question, “What can we do with these findings?” Here, you should discuss the implications of the results and recommend actions. It’s important to maintain a consistent theme; for instance, if the presentation has focused on volumes, avoid abruptly shifting to a different theme, such as revenue. Summarize key points at the beginning of each section to reinforce understanding and ensure the presentation is self-contained. All questions posed during the presentation should be resolved by the final slide, giving the audience a clear understanding of the next steps.
Context — Results — Next Framework
Effective communication in project updates is vital for keeping teams aligned and informed. However, valuable employees understand that they are there to lead, guide, and propose actionable steps based on their findings. Here’s how to elevate your project status updates to reflect overarching business objectives and actionable insights.
Context: Setting the Stage
Begin every project update by reiterating the overarching business objectives and reviewing what the project initially set out to achieve. Remind your audience of the project’s objectives and open questions it aims to answer.
Results: Summarize the Findings
Share the outcomes, highlighting both confirmations and refutations of the initial hypotheses and any new insights gained in this section. When sharing results, honesty is key. Avoid sugar-coating or hiding details, regardless of whether they meet, exceed, or fall short of expectations. Transparency builds trust and is crucial for making informed decisions moving forward.
Next: Proposing Next Steps
Conclude the update with a clear recommendation for the next steps. Whether it’s continuing the course, adjusting strategies, or ramping up efforts, provide a well-defined plan that includes specific actions, resources needed, and expected outcomes. Detail the scope, timeframe, resources needed, expected ROI, and KPIs for the next phase.
By using this structured approach, updates become more than just informational — they become a strategic tool for decision-making and project advancement.
I hope this blog offers some useful tools for you to leverage based on your specific communication needs.