What Is An Executive Summary?

Introduction

An executive summary is a critical piece of a business document, providing a snapshot that entices readers to delve deeper. This summary should ideally be approximately one page for a written report and a maximum of two slides for a presentation. Here’s a breakdown of what you should and shouldn’t include:

What Should Be Included in an Executive Summary:

Overview: Begin with a brief introduction to the subject of the document. If it’s a business plan, introduce the business. For a project proposal, describe the project’s primary objective.

Objective or Purpose: Clearly state the purpose of the document, whether it’s seeking investment, proposing a project, or introducing a new product.

Key Findings or Points: Highlight the main conclusions, findings, or elements that are important for the reader to understand the essence of the document.

Methodology (if relevant): Briefly touch upon the methods used to arrive at the findings, especially if it’s a research or analytical report.

Results or Benefits: Emphasize the positive outcomes, benefits, or value proposition. Why should the reader care? What’s the ROI or impact?

Recommendations or Call-to-Action: If the document is meant to persuade or recommend, summarize the key recommendations or what you want the reader to do next.

Financial Snapshot (if relevant): For business or investment proposals, include a concise financial summary, including potential ROI, growth projections, or other critical metrics.

What Should NOT Be Included in an Executive Summary:

Technical Jargon: While some specific terms are inevitable, aim for clarity. The summary should be understandable to someone unfamiliar with the subject.

Excessive Details: An executive summary is just that—a summary. Dive into specifics and intricate details in the main body.

Undefined Acronyms: If you use acronyms, ensure you define them first. Not every reader will know industry-specific abbreviations.

Overly Complex Charts or Tables: While a key chart or graph can be effective, avoid cluttering the summary with complex visuals.

Lengthy Background Information: While some context is essential, don’t delve too deep into the history or background. Stick to what’s immediately relevant.

Biased or Unsubstantiated Claims: An executive summary should be objective and grounded in facts. Avoid making claims you haven’t substantiated in the main document.

Irrelevant Information: Every sentence should serve a purpose. If a piece of information doesn’t directly support the main objectives of the document, it’s probably best left out of the summary.

Remember, the primary goal of an executive summary is to engage and inform the reader quickly. Think of it as a trailer for a movie; you want to provide enough compelling information to pique interest without giving everything away.

Here is an example of an executive summary for an investment memo: