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
2. Benefit of the MECE framework
The MECE framework is a useful model for analysing a business problem because it aids clear thinking in two ways:
- No overlap: categories of information should not overlap which helps avoid double counting; and
- No gaps: all of the categories of information taken together should deal with all possible options which reduces the possibility of overlooking information.
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 all possible options without leaving any gaps (collectively exhaustive).
4. MECE tree diagram
The MECE tree diagram is a way of graphically organising information into categories which are mutually exclusive and collectively exhaustive. 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”.
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 tackle this business problem by using a MECE tree diagram to help it locate the source of declining profitability.
5. Resources
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).
{ 4 comments }
Hi Tom,
Would you say this tool can be readily used for solving case interview problems? or would you say this is a more comprehensive tool, requiring careful consideration?
Keep up the great work
Ash
Ash,
My unconsidered answer is that the MECE framework can be used in case interviews but is also quite a comprehensive tool.
Hopefully, you will have considered all of the different types of case interview questions that you might be asked before you set foot in the interview. During this preparation time, think about how you might use the MECE framework to structure your ideas for each different type of problem (e.g. questions on declining profitability, expanding into new markets etc.).
I should have provided a worked case example in this post, and will try to do so soonish.
In the meantime, can anyone give us a worked case example using the MECE framework?
Hi Tom,
I read the Principle Pyramid book a couple of months ago and I never knew that such a tiny book would cost $150. I would have to agree with Victor Cheng that it is a book based on Mckinsey’s MECE framework although it very heavy on applying the principle to writing. It was definitely a good read and helped me better structure my thoughts with my writing.
Best,
Fahreza
Hi Tom
No doubt, it’s a comprehensive tool!
How MECE can replace KPI ( Key Performance indicator) in a big organization with different issues at different levels?
Is there a way to create a big logical tree from various small trees with common issues in the organization?
Khan Kam