The MECE framework is an exhaustive expression of information that must account for all conceivable scenarios. While the framework is used in categorizing information and data processing, it is commonly used in formulating problems and then solving them. The MECE framework is a means of the exhaustive grouping of information into categories that are both mutually exclusive (ME) and collectively exhaustive (CE).
The MECE framework argues that to understand and solve any large problem, potential factors must be sorted into two categories.
Mutually exclusive
Mutually exclusive means that each factor can only fit into one category at a time. In other words, there is no overlap.
Consider the example of a French cheese company, who is seeking to find the root cause of a problem with its distributionnetwork. A framework that is not mutually exclusive may identify two items: distribution networks in France and camembert productdistribution networks.
The reason for this lack of mutual exclusivity is that there is overlap between the two items. Since camembert is distributed in France, the item is counted twice.
Thus, a mutually exclusive problem may choose to analyze camembert distribution in France and camembert distribution in Italy. Here, there is no overlap between each item because they occupy different geographic areas.
Collectively exhaustive
Collectively exhaustive means that each factor covers all possible causes of a problem.
Returning to the cheesemaker with a distribution problem, simply looking at France and Italy is not collectively exhaustive. The company also exports to Spain and the UK, so assessing France and Italy in isolation may cause analysts to overlook the root cause of the problem.
Ultimately, the MECE framework allows businesses to investigate every potential cause in isolation. They do not have to worry that a specific cause may potentially influence the role of another cause in creating the same problem.
Five steps to developing a MECE hypothesis
Understand the problem in detail. What outcome does the business hope to achieve?
Write down the problem statement, ensuring that there is no room for ambiguity.
Then, list potential options (solutions) to the problem using a MECE idea tree. In the case of the cheesemaker, each option must be both mutually exclusive and collectively exhaustive.
With a list of potential solutions illustrated on the idea tree, consider the pros and cons of each individually. Remove any that seem illogical or add new solutions gleaned from greater insight into the problem itself.
Select the best option and then present it to internal or external stakeholders. At this stage, it’s important that the option is proven, not obvious, and can be performed with a set of predetermined actions.
Applications of the MECE framework
Several frameworks across various disciplines have MECE principles at their core, including the:
Cost-Benefit Analysis – which involves the systematic evaluation of the costs or benefits of a project, policy, or program.
4C Model – a tool for analyzing workplace psychology using core components of motivational theory.
MECE framework examples
To conclude this article, we’ll discuss some hypothetical MECE framework examples below.
Electronics company expansion
Consider the example of an electronics company that has the three major revenue streams of tablets, smartphones, and computers.
Imagine that the company now wants to sell televisions and has hired a consultant to determine which geographic market to enter first.
The consultant starts by listing the following categories: North America, South America, Europe, Asia, and Oceania. These geographical categories satisfy the requirements of the MECE framework since:
They are mutually exclusive. For example, there is no overlap between the European and Asian markets.
They are collectively exhaustive. This is because the five geographic regions cover every conceivable market in which televisions are sold.
To determine which of these markets should be entered first, the consultant collects data related to the following:
Growth of the television market (historical and predicted).
Profit margins.
Key competitors.
Customer segmentation.
Market size, and
Products.
With none of the geographic markets overlapping and each covering the entire global television market, the consultant can work with the company to compare these metrics to determine the most attractive market to enter.
Improving customer delivery times
The MECE framework can also be used in situations where a business wants to improve specific processes.
In this example, we have an eCommerce company that is looking to make its order fulfillment more efficient and decrease its delivery times.
Using the MECE framework, decision-makers break down the entire process into separate, distinct components to identify potential areas for improvement.
These components include:
Collecting customer delivery information from the online store.
Selecting the appropriate warehouse to ship from.
Picking the item from the warehouse and packaging the item.
Selecting a local courier service and delivery route the product should take.
Delivering the product to the customer’s residence or business.
At a very simplistic level, the framework enables the eCommerce business to assess every step in the process without analyzing any step twice.
MECE can be used for almost any process and may be particularly suited to those that are complex or require exhaustive analysis.
Developing a proposal for a new stadium
The MECE framework can also be used in situations where a large number of stakeholders need to be consulted or identified.
A construction company that wants to build a new city stadium, for example, can use the framework to systematically address each stakeholder group and develop strategies that cater to each.
Here are some of the stakeholders that will need to be consulted:
Local residents.
Professional sports teams.
Labor unions.
Financiers.
Environmental organizations.
Real estate developers, and
Government officials.
Further work will need to be done to ensure that stakeholder groups are mutually exclusive. For example, some real estate developers may also hold positions in government or sit on the board of professional sports teams.
Key takeaways:
The MECE framework allows businesses to assess large amounts of information according to mutual exclusivity and collective exhaustion.
The MECE framework forms the foundation of several other frameworks, but it is most commonly used in the rigorous and exhaustive solving of problems.
Solutions to problems derived from the MECE framework must have proven effectiveness and be realistically achievable. Crucially, they must not be the first or most obvious solution encountered.
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Gennaro is the creator of FourWeekMBA, which reached about three million business students, executives, and aspiring entrepreneurs in 2021 alone | He is also Head of Enterprise Sales for a high-tech startup, which he helped grow at a double-digit rate since the onset | In 2012 Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy.
