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Don’t get lost in the terminology

Issue trees, logic trees, “how” trees, “why” trees, decision trees, fact trees, hypothesis trees… Your favorite consultancy has its own terminology and so does the rest of the world. Unfortunately, they don’t coincide, so here is an attempt at making things clearer.
The short answer is that there isn’t a clear nomenclature that everyone uses. At Accenture, we called both “why” and “how” trees “issue trees”. That’s because both types raise and answer questions or issues—we used the two terms interchangeably. McKinsey talk about “logic trees” in the same way.
Then you’ll hear people talk about hypothesis trees and fact trees or data trees. The first ones are useful to uncover the root causes of a problem and the other two help identify potential solutions. But that, in my opinion, is misleading: indeed, both hypotheses and facts are present in all types of trees, so calling a tree by the type of elements it contains doesn’t really help. Instead, I think it makes more sense to call them by what they do.

Call your tree what you want it to do

So here is what I think makes the most sense:
1. There are two types of trees: “why” and “how”. A “why” tree is a diagnostic tree: its objective is to identify the root causes of the problem. A “how” tree is (almost) a decision tree: its objective is to identify various ways in which one can solve the problem. (A “how” tree is not entirely a decision tree because, these, usually, end up with the expected value of each branch; that is not a common feature in a “how” tree.)
2. Both types of trees are logic trees or issue trees. The aim of both types of trees is to bring logic in the problem, helping us be MECE, so it makes sense to call them logic trees. But both types of trees are also question- (or issue)-based, so it makes sense to call them issue trees as well.
3. Both trees raise questions and include hypotheses. Furthermore, both trees spell out the analysis needed to test these hypotheses and uncover facts. When asking “how do I get from NYC to London?”—which is a “how” tree so, one would think, a fact/data-tree—I need to make hypotheses. By plane, by boat, by submarine, swimming, etc. are all possible solutions and, indeed, must be included in the tree but until I have validated that they are indeed potential acceptable answers to my original problem they remain hypotheses.
4. You can’t mix “why” and “how” questions in one same tree. Because a tree’s functionality is either to understand the root causes of the problem or to identify potential ways to solve it but not both at the same time, you can’t have both types of questions in the same structure. I am not saying that you should answer only why or how questions in your analysis; indeed, in general, a complete analysis requires to first develop a “why” tree and then develop a “how” tree. I am saying that both these types of questions are important, but they don’t come at the same time in the analysis. So, first, you understand the real problem (e.g. do I have a headache because I’m dehydrated, because I have brain cancer, because of another reason) then you solve it (e.g. I’ll take an Advil vs. I’ll start chemotherapy).
A classification of issue trees / logic trees

Use the right type of tree for the right action.

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Use your issue tree as a decision tree

Problem solving is about bridging the gap between where you are and where you want to be. Decision making is identifying the path you want to follow in bridging that gap. In that sense, decision making is part of the problem-solving process.

One of the popular tools to help managers in the decision-making process is a decision tree.

Now an issue tree isn’t a decision tree in the formal sense but it is related—in fact, it is all a decision tree is and more—and it can provide invaluable assistance in the decision-making process. Here is how.

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Be more MECE (mutually exclusive and collectively exhaustive)

We’ve talked about how thinking in a mutually exclusive and collective exhaustive way is central to effective problem solving. But this is such an important concept that we should talk about it more.

First, be CEME, not MECE. In fact, be CEME-CEME-CEME

To solve a problem in a MECE way you need to consider all possible solutions exactly once. To do that, it is usually simpler to first think about all possible solutions and then to arrange them so that you only consider them once. So it’s really about being CEME rather than MECE.

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Use Standard Issue Trees – Part 1 – A Profitability Tree

Teaching my course in problem solving I realized that many people face the same business problems. Although you should design each issue tree with your specific situation in mind, you shouldn’t have to start it from scratch.

This is what this series of posts is about: we’ll develop standard trees and post them here as an effort to help you jumpstart the development of your own issue trees.

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Learn to build issue trees by watching

Matthew Juniper, at Cambridge, demonstrates how to build issue trees. His approach is very similar to ours and he has an excellent video to describe it so you might want to watch it; here are the highlights I like best.

Work on one specific question. Matthew starts his issue tree based on one question, not several. I think he is absolutely right: first you have to identify the specific question you need to answer.

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Be perspicacious

Issue trees have four rules. Three are absolute and one is highly situation-dependent: being perspicacious. Let’s talk about that one.

Follow the rules

We’ve talked about it, to build effective issue trees, you only have to follow four rules. That sounds easy enough, especially for the first three.

Effective issue trees obey four rules.

Effective issue trees obey four rules.

First, you have to remain consistent: if you start a root-cause analysis tree—i.e. a “why” issue tree—don’t change it mid-way to a solution/”how” issue tree and vice-versa.

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Case study: cables negotiation — part 4/8 — Test your hypotheses

This entry is part of a multi-post case study.

So we’ve developed our ‘why’ tree: we’ve identified all the potential reasons why we’re having our problem and we’ve organized these reasons in such a fashion that they only appear once in the tree. Next we need to test these hypotheses. That requires you to do four things: -1- plan out how you’re going to test each hypothesis, -2- identify in which order you’ll test them, -3- conduct the actual test, and -4- conclude what are the root causes of your problem.

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Case study: cables negotiation — part 3/8 — Build a why tree (2/2)

This entry is part of a multi-post case study.

So, we’re back to our cables negotiation. We’ve defined the problem and identified the basic framework for breaking down the key question. Next we need to build our logic tree. We’ll do that in this post.

Building the logic tree essentially means breaking the key question into parts (or issues) and breaking these parts into smaller parts (sub-issues), all the while remaining MECE in our thinking.

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Use existing frameworks wherever possible



In a thorough problem-solving process you’ll have to build two logic trees: one “why” to find the root cause of your problem and one “how” to identify potential solutions.

Logic trees must be mutually exclusive and collectively exhaustive (MECE) and perspicacious. Building them is hard work (if it isn’t, you’re probably doing it wrong). So consider using existing frameworks wherever possible. Just make sure that the frameworks you are considering truly are MECE (they often aren’t) and useful for your problem.


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Be MECE (mutually exclusive and collectively exhaustive)






A central tenet of analytical problem solving is your considering all the possible solutions to your problem exactly once; that is, your approach must be mutually exclusive and collectively exhaustive (sometimes written as “mutually exclusive and completely exhaustive”)—or MECE (pronounced “me see”).

MECE thinking is very popular with strategy consultancies, including the McKinsey, Bain, and BCG of the world. In fact the case interview that these companies filter their applicants with are designed to test whether you can think in a MECE-way. It is understandable: MECE thinking is both efficient and elegant; so let’s look at what it means and how you become an effective MECE thinker.


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