Executive Summary

What is an Executive Summary ?

🔷 An executive summary previews the main points of an extended business document

🔷 It is written for nontechnical readers who don't have time to read the whole document or interest readers to read the whole document

🔷 It contains enough information for a reader to get familiarized with what is presented in the full document without having to read it

4

Features:

Sufficient information Providing an overview of a long document or presentation with a clear enough understanding that the reader can make a decision based alone

Intrigue readers Creates value for the reader as a first impression and generates interest in viewing the rest of the content

Can Stand Alone Conveying key points and conclusions

Keep Simple & Short Usually no more than 5~10% of the main report

5

7

Write the summary after you write or familiarize the main report, and make sure it is no more than 5～10% the length of the main report

7 Steps : Write a simple declarative and appealing sentence for each of the main points, as directly as possible

Capture the purpose and the main conclusions or recommendation(s) in one or two sentences

List the main or key points the summary will cover in the same order they appear in the main report

Close with a brief summary and reiteration of the main idea

Read the summary slowly and critically, making sure it conveys your purpose, message and key recommendations. Make sure the readers to be able to skim the summary without missing the point of the main report

Double check for errors of style, spelling, grammar and punctuation. Ask help to proof read and edit the document

1

3

4

5

6

7

2

8

An Example

Problems Facing Ford

Executive Summary The environment in which the automobile industry operates is continuously evolving. Perhaps no one knows this better than Ford Motor Company. Until recently, Ford was able to operate with a fundamentally flawed business structure; however, its failure to reconcile weaknesses was highlighted because of increased competition and gas prices. Going forward, Ford needs to focus on strengthening its fundamentals and streamlining its business processes, as well as developing technology to better serve the growing demand for greater fuel economy.

Problems Facing Ford The fundamentals that Ford failed to execute include managing costs, maintaining good supplier relations, utilizing internal resources, and planning for the future.

• In 2006, Ford spent $3.5 billion on insurance benefits for 570,000 current and past employees, adding $1200 to the ticket price of each car.

• Rather than striving for a mutually beneficial relationship with its suppliers, Ford takes the “crush their bones” approach, forcing unrealistic price reductions that squeeze the suppliers, often driving them into bankruptcy. This approach is detrimental because Ford’s high expectations can lead to lower quality goods as suppliers try to meet Ford’s requirements.

• Until 2006, Ford was structured so that each regional unit operated autonomously. This breakdown of communication made business inefficient.

• The unprecedented growth in models vying for customers in the U.S. has ended the Big Three as we know it. In 2002, there were 215 models and a 50 percent increase is expected by the decade’s end.

Recommendations for Ford It is necessary to develop a set of best practices and capitalize on opportunities for future growth by doing the following:

• Adopt an open book management approach when negotiating with unions and employees to reduce its employee health care and pension costs.

• Benchmark Toyota’s supplier relations and production line efficiency. • Capitalize on its reputation as America’s number one selling truck for the past

31 years, by incorporating hybrid technology into its light truck segment.

Conclusion Ford’s fundamental weaknesses include cost management, supplier relations, utilization of internal resources, and planning for the future. To address these problems, Ford needs to adopt an open book management approach, develop a set of best practices that parallels the business processes of efficient industry players, and become the number one producer of hybrids in the light truck segment.

Title

Introduction Paragraph

Statement of main problems and explanation

Concluding Paragraph

Statement of main recommendations

9

An Example

The environment in which the automobile industry operates is continuously evolving. Perhaps no one knows this better than Ford Motor Company. Until recently, Ford was able to operate with a fundamentally flawed business structure; however, its failure to reconcile weaknesses was highlighted because of increased competition and gas prices. Going forward, Ford needs to focus on strengthening its fundamentals and streamlining its business processes, as well as developing technology to better serve the growing demand for greater fuel economy.

Problems Facing Ford

Introduction Paragraph

10

An Example The fundamentals that Ford failed to execute include managing costs, maintaining good supplier relations, utilizing internal resources, and planning for the future.

In 2006, Ford spent $3.5 billion on insurance benefits for 570,000 current and past employees, adding $1200 to the ticket price of each car.

Rather than striving for a mutually beneficial relationship with its suppliers, Ford takes the “crush their bones” approach, forcing unrealistic price reductions that squeeze the suppliers, often driving them into bankruptcy.

This approach is detrimental because Ford’s high expectations can lead to lower quality goods as suppliers try to meet Ford’s requirements.

Until 2006, Ford was structured so that each regional unit operated autonomously. This breakdown of communication made business inefficient.

The unprecedented growth in models vying for customers in the U.S. has ended the Big Three as we know it.

In 2002, there were 215 models and a 50 percent increase is expected by the decade’s end.

Problems Facing Ford

Statement of main problems and explanation

11

An Example It is necessary to develop a set of best practices and capitalize on opportunities for future growth by doing the following: Adopt an open book management approach when negotiating with unions and employees to reduce its employee health care and pension costs. Benchmark Toyota’s supplier relations and production line efficiency. Capitalize on its reputation as America’s number one selling truck for the past 31 years, by incorporating hybrid technology into its light truck segment.

Problems Facing Ford

Ford’s fundamental weaknesses include cost management, supplier relations, utilization of internal resources, and planning for the future. To address these problems, Ford needs to adopt an open book management approach, develop a set of best practices that parallels the business processes of efficient industry players, and become the number one producer of hybrids in the light truck segment.

Concluding Paragraph

Statement of main recommendations

A Few Tips

1 The Executive Summary is all about getting critical information into a boss’s hands so s/he can make a decision. Keep it as short and as complete as possible.

2 Keep your main points in mind as you write the summary. You do not need to include every point in the summary, but ensure that the major ideas are covered succinctly.

3 No need to cite references, but if you are summarizing another work, introduce the document in the opening paragraph. Provide enough reference information for your reader to easily find the original document.

12

4 The most important outcome of an Executive Summary is that the reader would be able to make a decision based exclusively on the information presented in the Executive Summary.

A longExecutive Summary – 2 pages

A lo ng

Exe cuti

ve

Sum mar

y – 2

pag es

PPT Executive Summary

• Highlights • Easy for “quant.” analysis

19

Remember

Executive Summary is a Potential Winner!

The most important outcome of an Executive Summary is that the reader would be able to make a decision based exclusively on the information presented in the ExecutiveSummary.

Executive Summary precedes your business plans, resume, documents of great importance, etc. Thus, it is of utmost importance that the executive summary is full- proof without any error and contains only important matters.

20

21

Assignment #1 -- Executive Summary

Ø Max 1 Page; Font 12 with double space; Ø Due: Feb 2 (Wed) by 12pm (noon)