Communicating a Profitability Structure for BCG

Question

I have been advised that the structure should be :

1. Concise

2. Specific to the problem

3. Have Hypothesis

For a profitability case, to cover the 3 goals, the structure spills into 4 layers and during communication, it does not appear articulate.

Are there any suggestions on how to communicate a complex profitability case structure while keeping the 3 goals in consideration? ( Please find attached a sample structure with 4 levels that I tried to communicate and ended up being incoherent )

Answer 1

Hi there,

There's so much to unpick here that a Q&A won't quite do it justice.

I don't see costs anywhere
You've limited yourself in your revenue structure (are performance and management fees the only way to make $?)
You've gone too many layers down
How physically communicate/articulate this is so critical (and something we cannot assess here)

Answer 2

Are you concerned about the structure or about how you communicate it? Here I have the structure, but no idea on how you present it. Also why do you say you are incoherent?

Regarding the structure, you have a relevant mistake in there. You have volume as a subset of management fee, but actually volume impacts performance fee as well. So you need a different structure.