What is MECE ?

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MECE stands for Mutually Exclusive, Collectively Exhaustive. It’s a powerful problem-structuring principle used in consulting, strategy, and analysis to break down complex problems into clear, manageable parts.

🔹 Mutually Exclusive

Each category or item in your breakdown should be distinct—no overlaps.

  • ✅ Good: "Online sales", "Retail sales", "Wholesale"
  • ❌ Bad: "Online sales", "Digital marketing", "Retail" (overlaps possible)

🔹 Collectively Exhaustive

All parts together should cover the entire problem space—nothing should be left out.

  • ✅ Good: If you're analyzing revenue, include all sources (e.g., product sales, subscriptions, services).
  • ❌ Bad: Leaving out a revenue stream like "consulting services" would make it incomplete.

✅ Why MECE Matters

  • Clarity: Avoids confusion and duplication.
  • Efficiency: Helps teams divide and conquer.
  • Thoroughness: Ensures no part of the problem is missed.

🧠 Example: Declining Profits

Breakdown using MECE:

Cost Side

  • Raw materials
  • Labor
  • Overhead
  • Logistics

Revenue Side

  • Product A
  • Product B
  • Services

Each category is:

  • Mutually Exclusive: No overlap between cost types or revenue streams.
  • Collectively Exhaustive: Covers all areas affecting profit.

 

Location: India

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