Although issue trees and question maps have the same objectives maps have more structured. Why maps and how maps. A closely related animal is the question map which is at the heart of our problem solving approach and therefore a recurrent theme on this site there are two types of maps.
Management consultants use issue trees to help them structure how they solve complex problems. And skillfully using profitability trees is the most efficient direct way to understanding how a business makes profits and why it s not making more. Even more every business needs profits.
Every business wants profits. And here s why they re so important. Profitability trees are a special kind of issue tree that is created with the sole intent of analyzing the profits of a company.
They are favored at mckinsey because they 1 break problems down into manageable parts 2 enable solving the larger problem by solving the component parts 3 align the team on the nature of the problem and how to solve it and 4 provide insight into missing elements. Issue trees start with the problem statement and break it down into its component parts issues and sub issues. Starting from the key question on the left it breaks it down between revenues and costs and break these down into further details.
It looks at different ways in which a company can increase its profitability. A profitability tree is an example of an issue tree. An issue tree showing how a company can increase profitability.
Another way to look at an issue tree is as a logical argument that can be tested with data. The term issue tree comes from the way this framework looks when diagrammed on paper like a tree on its side. An issue tree lays out a set of logical conditions that if proven correct prove the hypothesis correct.
The framework is notably used at mckinsey where data from clients businesses is organized on the.
Issue tree framework examples. An issue tree is a customized framework used to analyze the root causes of problems in a case during interviews you will be given case problems that you would need to solve on the spot. Use a graphical issue tree or logic tree method to break a complex problem down into its component parts. This particular issue tree example is usually referred to as the profitability framework. Issue trees can be used for profitability issues but can also be generalised to many other kinds of business problems.
Factory production issues marketing funnel issues customer retention issues etc. Issue trees also known as logic trees and hypothesis trees are the most fundamental tool to structure and solve problems in a systematic way. Mastering them is a requirement if you want to get a job in a top consulting firm such as mckinsey bain and bcg. Mckinsey issue tree example 1.
Problem solving and decision making this report is solely for the use of client personnel. No part of it may be circulated quoted or reproduced for distribution outside the client organisation without prior written approval from mckinsey company. Strategy consultants use the mece framework issue tree decision tree hypothesis tree to segregate a client s problems into logical data categories that can be analyzed systematically and minutely by their staff involved with the project.
Strategy consultants use the mece framework issue tree decision tree hypothesis tree to segregate a client s problems into logical data categories that can be analyzed systematically and minutely by their staff involved with the project. No part of it may be circulated quoted or reproduced for distribution outside the client organisation without prior written approval from mckinsey company. Problem solving and decision making this report is solely for the use of client personnel.
Mckinsey issue tree example 1. Mastering them is a requirement if you want to get a job in a top consulting firm such as mckinsey bain and bcg. Issue trees also known as logic trees and hypothesis trees are the most fundamental tool to structure and solve problems in a systematic way.
Factory production issues marketing funnel issues customer retention issues etc. Issue trees can be used for profitability issues but can also be generalised to many other kinds of business problems. This particular issue tree example is usually referred to as the profitability framework.
Use a graphical issue tree or logic tree method to break a complex problem down into its component parts. An issue tree is a customized framework used to analyze the root causes of problems in a case during interviews you will be given case problems that you would need to solve on the spot.
