Note: Thank you to Mimi Zou for bringing this analysis framework to my attention.

1. Background

MECE is one of the hallmarks of problem solving at McKinsey (The McKinsey Way by Ethan M. Rasiel). McKinsey consultants use the MECE framework when trying to think clearly about a business problem. Victor Cheng, former McKinsey consultant and creator of CaseInterview.com, indicates that:

The definitive book on this subject is the Pyramid Principle by Barbara Minto. It’s a book that describes an approach to communicating complex ideas in easy to understand ways. It is based on the MECE Principles and was a book often referred to and used while I was at McKinsey. (Note it’s a pricey book at $150/copy)

2. Benefit of the MECE framework

The MECE framework is a useful model for analysing a business problem because it aids clear thinking by ensuring that categories of information do not overlap, and by reducing the possibility of overlooking information by requiring that all of the categories of information taken together should deal with all possible options.

3. MECE explained

MECE is a principle which is used to organise information which is mutually exclusive and collectively exhaustive. Information should be grouped into categories so that each category is separate and distinct without any overlap (mutually exclusive), and all of the categories taken together should deal with the all possible options (collectively exhaustive).

McKinsey’s MECE framework can be applied to a lot of different business problems, for example, “what is the source of Coca-Cola’s declining global profitability?”.

Coca-Cola could use a MECE tree diagram to help them locate the source of declining profitability.  The diagram as a whole represents the problem at hand; each branch stemming from the starting node of the tree represents a major issue that needs to be considered; each branch stemming from one of these major issues represents a sub-issue that needs to be considered; and so on.

According to Ethan Rasiel, a major issues list should not contain more than five issues, with three being the ideal number. If you are not able to categorise a problem in 5 major issues there is always the option of creating a category of “other issues”.

5. Related articles

If you enjoyed this article, you may also want to read:

1. GE-McKinsey 9-Box Matrix
2. Product Life Cycle model
3. Five C analysis of borrower creditworthiness
4. Value Chain Analysis
5. Four P’s marketing framework
6. McKinsey 7-S model
7. NPV: Net Present Value
8. Porter’s Five Forces analysis
9. BCG growth matrix
10. SWOT analysis
11. Understanding the cost benefit analysis