{"id":196457,"date":"2020-03-03T22:10:11","date_gmt":"2020-03-03T22:10:11","guid":{"rendered":"https:\/\/firmsconsulting.com\/build-hypotheses-mece-with-decision-tree\/"},"modified":"2024-06-26T21:02:37","modified_gmt":"2024-06-27T04:02:37","slug":"build-hypotheses-mece-with-decision-tree","status":"publish","type":"post","link":"https:\/\/firmsconsulting.com\/build-hypotheses-mece-with-decision-tree\/","title":{"rendered":"Using Decision Tree Consulting to Build MECE Hypotheses"},"content":{"rendered":"

\"how<\/p>\n

 <\/p>\n

How To Use <\/b>Decision Tree in Consulting<\/b> to Build MECE <\/b>Hypotheses<\/b><\/h1>\n

In today\u2019s post, we will explain the steps to <\/span>build hypotheses<\/span> in a more effective, methodical, and, for a lack of a better word, a more MECE (<\/span>mutually exclusive<\/span> and <\/span>collectively exhaustive<\/span>) way, using a <\/span>decision tree<\/span>.<\/span><\/p>\n

When we do cases with candidates, even our own clients, what always surprises us is how messy their <\/span>hypotheses<\/span> can be.<\/span><\/p>\n

It’s almost as if people are just throwing out <\/span>ideas <\/span>they have without any real understanding of how to <\/span>create<\/span> a structure, with the help of a <\/span>decision tree<\/span>, to ensure the<\/span> hypotheses<\/span> derived from the structure are on <\/span>point <\/span>and <\/span>MECE<\/span><\/a>.<\/span><\/p>\n

I think <\/span>most people<\/span> are primarily right-brain thinkers by nature. That means that they will throw out an <\/span>idea<\/span> first and then <\/span>decide<\/span> if it solves the problem they are trying to address. They are basically <\/span>brainstorming<\/span><\/a> in the traditional sense of the word, but in a very messy way without priorities and a link to the issue. This type of thinking can often lead to big breakthrough insights but it will not work during consulting <\/span>case interviews<\/span><\/a> or during <\/span>consulting engagements<\/span><\/a> as consultants are expected to think in a structured way.<\/span><\/p>\n

And what I find with most<\/span> hypotheses<\/span> is that they are very ill-considered, they have poor structure beneath them and most importantly they are not <\/span>collectively exhaustive <\/span>nor are they <\/span>mutually exclusive (MECE)<\/span>.<\/span><\/p>\n

And by their very nature <\/span>hypotheses<\/span> are difficult to make <\/span>mutually exclusive<\/span> or <\/span>collectively exhaustive.<\/span><\/p>\n

Think about it. You develop these <\/span>ideas <\/span>and then you have to explain why the problem exists, which is hard on its own. And then you have to compare each <\/span>hypothesis<\/span> with the next <\/span>hypothesis<\/span> you develop to make sure you have listed every possible <\/span>hypothesis<\/span>.<\/span><\/p>\n

You also have to make sure the issue you covered in one <\/span>hypothesis<\/span> doesn\u2019t overlap with another <\/span>hypothesis<\/span>. Trying to package issues into <\/span>hypotheses<\/span> while trying to get all the issues listed and in the right order is naturally going to be very difficult.<\/span><\/p>\n

This is not something that is taught in MBA programs or any training programs that we know of outside of leading <\/span>management consulting <\/span>firms.<\/span><\/p>\n

 <\/p>\n

This video\u00a0<\/span>teaches this entire process below in great detail.<\/span><\/p>\n