How McKinsey Uses the SCR Framework for Powerful Slide Outlines

Top consulting firms like McKinsey use the SCR (Situation-Complication-Resolution) framework for writing engaging slides. It is a powerful tool that uses storytelling to break down complex situations, identify challenges and propose clear actionable solutions.

This article shows how to apply the SCR framework with practical examples.

Sections

• The SCR framework
• Situation - What is at stake?
• Complication - What is challenging?
• Resolution - What can be done?
• Download SCR Framework Template

The SCR framework

The Situation-Complication-Resolution (SCR) framework organises your key messages into three acts:

1. Situation: The starting point that explains why action is needed by asking, “What is at stake?”
2. Complication: Highlights why the situation is challenging and what obstacles need addressing.
3. Resolution: Provides a clear answer to the complications, outlining actionable steps.

Within each SCR act, use the Dot-Dash method to write an action-oriented title that clearly conveys the message (Dot) and includes a data point or message to support it (Dash). Each Dot-Dash will become a slide within each act.

Now, let’s apply this with a real-world example. Imagine you need to present a strategic review of Netflix’s growth strategy. Here’s how the SCR framework can be applied.

Situation - What is at stake?

In the first act of the SCR framework, we define the situation by addressing the stakes involved.

For Netflix, it has emerged as a global streaming giant off the back of heavy strategic content investment. The stakes are important because it has created high expectations for growth and profitability in a highly competitive market.

Situation - What is at stake?

Netflix dominates global streaming through heavy content investment.

• Netflix dominates the global streaming market
  • Netflix streaming revenue has grown from +$1bn to +$38bn over the past 15 years
  • Netflix has the most subscribers globally growing from 9m to 278m households over the same period
• Driven by heavy investment in original content
  • Reinvesting 90% of all revenue back into content pre-covid

Complication - What is challenging?

In the next act, we explain some of the challenges facing the current situation and why it may require thinking through.

For Netflix, growth has reached a ceiling in its core US market. It has relied on growing profitability by increasing US subscription pricing while investing less on content. In a competitive environment, relying on this strategy alone is risky.

Complication - What is challenging?

US growth ceiling and rising competition.

• But, it has reached a growth ceiling in its core US market
  • Flat household subscriber growth in North America
• Content spending has reduced while pricing has doubled
  • Content spend has halved post covid while US prices have doubled in the past decade. Is this sustainable?

Resolution - What can be done?

In the final act, we provide clear answers and options to address the challenges.

For Netflix, while US growth is close to a ceiling, international markets are growing faster with greater opportunity to win market share and increase pricing. Netflix’s local originals strategy is working and could be the answer to sustaining growth while spending smarter on content investment.

Resolution - What can be done?

Leverage international pricing and tailored content.

• International has outpaced US with big opportunity to grow subs and pricing
  • International is now 70% of global subs and +55% of revenues
  • International pricing remains 45% below US
• Local originals strategy is working
  • Non-english titles generated 30% of watch time, but also popular in other international markets (Squid game, Lupin, Physical 100)

Download SCR Framework Template

Download Situation-Complication-Resolution (SCR) framework template - SCR Framework Template (Google Doc).