Issue tree
Graphical breakdown for problem solving
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Through Problem solving
Issue trees are useful in problem solving to identify the root causes of a problem as well as to identify its potential solutions. They also provide a reference point to see how each piece fits into the whole picture of a problem.
Types
According to professor of strategy Arnaud Chevallier, elaborating an approach used at McKinsey & Company, there are two types of issue trees: diagnostic ones and solution ones. Diagnostic trees break down a "why" key question, identifying all the possible root causes for the problem. Solution trees break down a "how" key question, identifying all the possible alternatives to fix the problem.
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Rules
Four basic rules can help ensure that issue trees are optimal, according to Chevallier:
- Consistently answer a "why" or a "how" question
- Progress from the key question to the analysis as it moves to the right
- Have branches that are mutually exclusive and collectively exhaustive (MECE)
- Use an insightful breakdown
The requirement for issue trees to be collectively exhaustive implies that divergent thinking is a critical skill.
Applications
In management interviews
Issue trees are used to answer questions in case interviews for management consulting positions. A quantitative type of question, the market sizing question, requires the interviewee to estimate the size of a data group such as a specific segment of a population, an amount of objects, a company's revenues, or similar. The candidates are expected to use a structured and logical method of arriving at their answer, and using an issue tree provides a diagram to aid the candidate's logical reasoning. Issue trees are used for other types of case interview questions as well.