The Analyst's Path

SCQA framework

SCQA is a way to open a document or a presentation in four moves: situation, complication, question and answer. The pyramid answers a question, and SCQA is the device that makes the reader ask it. The situation is what the reader already accepts, and the complication is the fact that makes their current plan wrong, which forces the question your answer settles.

4 min readPart of The Executive Storyline: Minto Pyramid for Decks, SCQA and SCROpen in course mode

Advertisement

The pyramid answers a question. SCQA is the device that makes the reader ask it.

What are the four moves of SCQA?

It takes four moves. Situation states what the reader already accepts, in their own terms, with no new information in it. Complication introduces the thing that makes the situation unstable. Question is what the complication forces the reader to ask, and it should be the question your governing thought answers, word for word. Answer is the governing thought.

Situation is where most drafts go wrong, and they go wrong the same way every time. Writers use it to establish credibility. Nirala's first draft opens with the founding date, the four-city footprint and the compound growth rate. All true, and none of it accepted as relevant by the board, which has heard the founding date at every meeting for three years. A situation the reader wouldn't nod along to has turned into an introduction without anyone noticing. Now the reader is reading, and has stopped agreeing.

The correct situation for the Nirala board is one sentence they've already signed: the FY27 plan approved in March commits to 75 new dark stores and ₹86.25 crore of fit-out capital. Every director in the room voted for it. That's the platform the complication has to break.

Advertisement

How do you find the complication and the question?

The complication is the fact that makes the reader's current plan wrong. Look for it in three places, in the order that finds it fastest.

Start with a number that moved. Something in the world changed since the plan was made: a cost, a rate, a competitor's price, a maturation curve that came in slower than modelled. Next comes a decision that has become due. Nothing changed, but a date arrived, and continuing to do nothing is now itself a choice with a price. Last comes the one analysts under-use, a commitment that no longer holds: a covenant, an approved budget, a promise to a customer or an investor, which the current trajectory will breach.

For Nirala the complication is the third kind, and it's arithmetic. The approved plan spends ₹86.25 crore of fit-out capital, which is 89.8% of the ₹96 crore of cash on hand. Add twelve months of operating losses under that plan, and cash at the end of FY27 is minus ₹20.4 crore. So the company can't execute the plan its board approved. That sentence makes a director sit forward, and it does so without a single adjective.

The question then writes itself, and it should be the one the reader would ask. "What should we do instead of the approved opening plan?" is the question the complication forces. Notice how much narrower it is than "how do we get to profitability?" That was the question the analysts started with, and no board meeting can settle it.

SCQA example: a weak opening and a strong one

Put the two openings side by side. Read the weak one first. "Nirala operates 186 dark stores in six cities and has grown orders 46% year on year. The store P&L shows improving contribution. We have analysed three cohorts. The board should consider a revised opening plan."

Now the strong one. "In March the board approved 75 new stores and ₹86.25 crore of fit-out. At the current burn that plan ends FY27 with minus ₹20.4 crore of cash. So the question is what replaces it. And the answer is a two-quarter pause, which reaches breakeven in month 5.9 and ends the year with ₹88.3 crore."

Both are true. The first asks the board to assemble the argument, and the second hands it over already assembled. Its four moves fit in one paragraph instead of nine slides.

What goes wrong with a manufactured complication?

One caution about manufactured complications, because SCQA is easy to fake. If you have to invent urgency, there's a reasonable chance the decision isn't actually due. Then a one-pager will serve you better than a meeting. A complication that reads as a threat with no number attached, like "competitive pressure is intensifying", is a complication you didn't find, dressed up as one you did.

Advertisement

Part of the course

This page is part of The Executive Storyline: Minto Pyramid for Decks, SCQA and SCR (PR4.01), in Phase 4: Business models, competitive strategy and moats. The module's flashcards and its quiz are in the app.