MECE-Framework-for-Structured Thinking.ppsx

MECE Framework for Structured Thinking

1. MECE FRAMEWORK for STRUCTURED THINKING

2. What is the MECE Framework?
MECE stands for “Mutually Exclusive –Collectively Exhaustive”
It is a problem-solving approach that forces you to list down all possible options without double
counting.
•The Problem Statement is written down first.You must choose your words carefully while
writing this down to ensure that there is no ambiguity in understanding the problem.
•The Options to solve the problem are then listed down in a tree-like fashion. The options must
not overlap (Mutually exclusive) and no option must be missed out (Collectively exhaustive)
•Once the tree is built, the pros and cons of each path in the tree is discussed until the optimal
solution path is decided.
MECE is popular among business consultants to solve problems and communicate their solutions.
Problem Statement
Option 1 Option 2 Option 3
Option 1-AOption 1-B Option 3-AOption 3-BOption 3-C
The optimal
solution path

4. •MECE representation-A group of people below 50 years and another group of
50 years and above is MECE. No person can be in both groups -mutually
exclusive -but every person is in either one of them –collectively exhaustive.
•Non-MECE representation-A group of people below 50 years and another
group with people from 40 to 70 years is not MECE, as people from 40 to 50
years belong to both groups -they are not mutually exclusive –and people
above 70 are in neither one of the groups –they are not collectively
exhaustive.

5. Types of MECE

6. Management consultants use the MECE framework by creating visual decision
maps, called “issue trees,” that break down a problem into its constituent parts.
For “opening a coffee shop,” one issue tree might branch out intocost(rent,
equipment, staff, coffee beans) andrevenue(pricing, likely footfall in a given
location, number of sales).

7. Suppose you are an executive at Groww-an online investment platform -and
you have a customer retention problem. That means too many of your current
customers are unsubscribing from your services. How would you figure out
what’s causing this problem?

8. Now that we
have a full
map of Issue
Trees, it will
allow you to
divide the
problem and
work on it
one part at a
time. Here’s
an example of
how you can
divide the
problem into
tasks and
delegate its
parts -

9. Not only do Issue Trees let you have a “map” of the problem and help you create a
“route” on how to solve it, but they also give you the ability to anticipate a lot of
stuff that could happen along that route.
And anticipation = prioritisation.

10. The Boring Companycreates safe, fast-to-dig, and low-cost transportation, utility,
and freight tunnels. What problem are they solving?

11. The Boring Companycreates safe, fast-to-dig, and low-cost transportation, utility,
and freight tunnels. What problem are they solving?

12. MECE Illustration 1: A business case study
Problem Statement:My restaurant is not profitable

13. MECE Illustration 1: A business case study
Problem Statement:My restaurant is not profitable
Increase Revenue Reduce costs

14. MECE Illustration 1: A business case study
Problem Statement:My restaurant is not profitable
Increase Revenue Reduce costs
Increase # of ordersIncrease menu prices Reduce salary
expenses
Reduce raw
material expenses
Reduce
rental costs

15. MECE Illustration 1: A business case study
Problem Statement:My restaurant is not profitable
Increase Revenue Reduce costs
Increase # of ordersIncrease menu prices Reduce salary
expenses
Reduce raw
material expenses
Reduce
rental costs
Marketing
promotions
Change cuisine/
theme
Shift to a less
pricey
neighborhood
Shift to a
mall to get
more foot
traffic
Fire
redundant
workers
Change the
vendor
Better storage
facilities to avoid
wastage
Once a MECE Tree like this is built, each option can be analyzed for feasibility. The optimal solution can then be chosen.