Question
The MECE principle, which stands for Mutually Exclusive and Collectively Exhaustive, is inherently related to math formulas. This is because math formulas are designed to be MECE. They break down complex problems into smaller, non-overlapping components (Mutually Exclusive) that, when combined, provide a complete solution to the problem (Collectively Exhaustive). For instance, the formula for calculating company profits (Profits = Revenue - Costs) is MECE. It breaks down the problem into distinct, non-overlapping components (Revenue and Costs) that together provide a complete solution to calculating profits.
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Using a math formula can work really well to break down a framework in a MECE way because math formulas are MECE by nature, the consultants say. For example, to calculate company profits, keep in mind that Profits = Revenue - Costs, where Revenue is Units sold and Price per unit and Costs is Fixed cost and Variable cost.
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