Before we proceed any further in this discussion, let's quickly recall what you have learnt so far. You started by understanding the importance of framing the problem statement correctly. We also discussed the various activities that you must carry out to ensure that you arrive at the correct problem statement. Next, you learnt how to analyse a problem by forming hypotheses and test them using issue trees. But we have not yet discussed the good practices that you must keep in mind while framing a hypothesis.

So, let’s hear from our expert, who will help you understand the best way to frame your hypotheses:

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In this video, you learnt that all your hypotheses must adhere to the MECE principle. MECE, which stands for Mutually Exclusive and Collectively Exhaustive, is a method of grouping information into elements that are mutually exclusive and collectively exhaustive. You also went through a detailed example to understand the MECE principle, where out of three students who were assigned the task of creating the classification of grades based on the marks received by the students, only Sam created a classification that adhered to the MECE principle. He ensured that no students fall in the range of two different grades at once and that all the students are covered in the grading.

In the next video, you will learn about the different approaches that you can adopt to ensure MECEness of the hypotheses that you have framed.

Let’s look at some of these approaches in the next video:

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In this video, you learnt about a few approaches that you can use to solve a problem and ensure that all the possible solutions adhere to the MECE principle. Some of these approaches have been summarised in the table provided below.

Approach	Explanation
Apply a formula	Let’s say the profits of your company are falling. You can easily think of potential reasons by simply analysing the formula that profit equals total revenue minus total cost. From this formula, you know that profits can decline due to either a decline in revenue or an increase in costs. Clearly, this approach helps you ensure that you are considering all the possible solutions that are MECE in nature
Follow the value chain	This approach to ensure MECEness is useful when you are looking to improve the overall efficacy of your business, which involves several processes. In order to determine MECE solutions to a problem, you have to ensure that you follow the value chain
Follow know processes	In order to ensure the MECEness of a solution, you can follow a set of know processes or funnel. A funnel is a series of actions that a user does on a particular product in a flow in order to reach a goal
Go with the established list	It is the approach where you adhere to an established list, which ensures the MECEness of your solutions

So, these are some of the approaches that you can follow to ensure the MECEness of the solutions that you identify for your problem. You need to keep a few other important considerations in mind while framing and testing your hypotheses. We will discuss them in the next segment.

Additional Resources:

A Detailed Document on MECE Approach