Training · CO-2 · Lesson 02 of 06
Structuring a problem
The rule
A good structure splits the problem into branches that do not overlap and together cover everything. Build it from the question, not from a memorised template.
MECE thinking
Structures should be mutually exclusive (no overlap) and collectively exhaustive (nothing missing). A MECE structure ensures you cover the problem without double counting.
Issue trees
An issue tree breaks the main question into sub-questions until each can be answered with data. Branches can be mathematical (profit = revenue − costs) or conceptual (market, company, competition, economics).
- Market attractiveness
- Size, growth, profitability
- Competition
- Players, shares, barriers
- Client capabilities
- Fit, resources, advantages
- Economics
- Investment, payback, risks
Hypothesis-driven structure
State an initial hypothesis and structure around testing it. For example: 'I suspect costs have risen; I'd check variable costs, fixed costs and volume changes.'
Avoiding framework recitation
Interviewers recognise memorised frameworks. Use them as raw material and adapt to the industry and question.
- ·Use industry-specific drivers (e.g. occupancy for hotels).
- ·Name concrete sub-questions, not generic labels.
- ·Prioritise branches explicitly.
Communicating structure
Present top-level branches first, then sub-points. Draw it neatly so the interviewer can follow. Say which branch you'd start with and why.
Hold onto this
- ·Revenue and cost trees, or customer, competitor, product and channel.
- ·Name the driver you will test first and why it is the biggest.
- ·Redraw the structure when new information changes the question.
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Education, not financial advice. Figures may be simplified for illustration.