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Minto Pyramid Principle http://www.caseinterview.com/minto-pyramid-principle/?action...

November 25, 2010

Minto Pyramid Principle


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Question:

Recently I came across a book called 'the minto pyramid', you might know this book, by
Barbara Minto, ex-McKinsey. Would you recommend me to use MINTO principle??? This
way i can show

the interviewer I am 100% hypothesis driven and I don't ask any irrelevant data.

Would you recommend this and what is your view about this as a past interviewer?

I was wondering what your view is on this method to apply to cases, this might help to form
a HYPOTHESIS and ASK ONLY data which you 100% need.

e.g.

example 1

company A faces profitability issues, please come up with strategies

minto method:

hypothesis 1

profitability can be increased

hypothesis 1.1 hypothesis 1.2

revenues can be increased costs can be decreased

hypothesis 1.1.1 hypothesis 1,1,2 hypothesis


1.1.3 hypothes 1.2.1 hypothesis 1.2.2

revenue a increase revenue b can be increased we can introduce a new product fixed
costs decrease variable costs decrease

hypothesis 1.1.1.1

price A can be increased etc….

e.g.

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example 2

carlsberg wants to enter the italian market, shall they do this?

hypothesis 1

Carlsberg should enter the italian market

hypothesis 1.1 hypothesis 1.2


hypothesis 1.3

the italian market is attractive the financial analysis indicates a significant profit per
year carls berg has the capability to enter

hypothesis 1.4

there are no signifiant risks/impact

hypothesis 1.1.1 hypothesis 1.1.2 hypothesis


1.1.3 hypothesis 1.2.1

the industry is attractive the threat of competition is ignorable the consumer likes
carlsberg the revenues are significant

etc etc etc

My Response:

Yes, Yes, Yes!

This is what we did everyday at McKinsey. On day 1 of an engagement, hour 1 of the first
day, we'd draw up an outline (we actually used a visual story board version of the outline) of
the final presentation–making lots of assumptions (essentially hypotheses).

Of course the outline was not yet factually supported. Next, we'd ask ourselves, "What data
do we need to test each part of the outline to either validate the hypothesis as correct or
incorrect?" Then we'd go to the travel department, book our airline tickets, and go get the
data (at the client site, visiting our client's client to interview them, etc…).

So yes, in general, the structured approach that's very hypothesis driven is a good one to take.

Minto Pyramid Principle

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