What are some practical examples of the application of the MECE Principle?

The MECE Principle, which stands for Mutually Exclusive and Collectively Exhaustive, can be applied in various practical scenarios. One example is in problem-solving where you can define the basics of your problem and list all of your Mutually Exclusive (ME) items, as well as all of your Collectively Exhaustive (CE) items. This helps in ensuring that all possible solutions are considered and there is no overlap between them. Another example is in the creation of a Profitability Tree. This is a type of issue tree that is created with the sole intent to run a thorough analysis of the company profits. The MECE principle ensures that all aspects of profitability are considered without any overlap.

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First and foremost, use this slide to define the basics of your problem and list all of your Mutually Exclusive (ME) items, as well as all of your Collectively Exhaustive (CE) items. Then communicated these items to your team or stakeholders. With slides, such as this one, you can create and share with your team a Profitability Tree. Profitability trees are a type of issue tree that is created with the sole intent to run a thorough analysis of the company profits.

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McKinsey MECE Principle

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