MECE
Over the years I have had the pleasure of hiring McKinsey to help with some big stuff. And during those times I worked with some amazing people.
I learned a lot. One of the things I learned that has stuck with me was the concept of MECE - its stands for Mutually Exclusive, Collectively Exhaustive. The concept refers to the logic assuring that when you map out logic, solution sets, that as you "tree" out your logic, everything ends up tying back and nothing is missed. It also assures there is no double-counting at any level of analysis. For example, say you are mapping out general and adminsitrative cost structure. Your cost is $1mm. That cost is made up of salaries, benefits, travel & entertainment, rent and office supplies (i'm simplifying here). As you "tree out" those sub categories of cost,If those subcomponents don't add up to $100mm then your exercise is not MECE. (some cost component is missing - we like to call that bucket "other"!)
I think about MECE all the time. Whether I am problem solving costs, revenues, or thinking through solution sets. I do my sanity check and assure myself that I have considered all elements and have left nothing out.
I learned a lot. One of the things I learned that has stuck with me was the concept of MECE - its stands for Mutually Exclusive, Collectively Exhaustive. The concept refers to the logic assuring that when you map out logic, solution sets, that as you "tree" out your logic, everything ends up tying back and nothing is missed. It also assures there is no double-counting at any level of analysis. For example, say you are mapping out general and adminsitrative cost structure. Your cost is $1mm. That cost is made up of salaries, benefits, travel & entertainment, rent and office supplies (i'm simplifying here). As you "tree out" those sub categories of cost,If those subcomponents don't add up to $100mm then your exercise is not MECE. (some cost component is missing - we like to call that bucket "other"!)
I think about MECE all the time. Whether I am problem solving costs, revenues, or thinking through solution sets. I do my sanity check and assure myself that I have considered all elements and have left nothing out.
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