altMBA - Decision Tree
Purpose
Map decision paths and outcomes visually to improve strategic choices
How to Use
1. Use a decision tree to map a complex decision with multiple possible outcomes. 2. Start at the left with the initial decision point. 3. For each option, draw branches representing possible outcomes and their probabilities. 4. At the end of each branch, assign a value (payoff or outcome). 5. Work backwards to calculate the expected value of each option. 6. Choose the option with the highest expected value, weighted by your risk tolerance.
Created by Seth Godin / altMBA
When to Use
This tool is suited to the following coaching and facilitation contexts:
| Context | Relevant |
|---|---|
| Individual Coaching | |
| Team Coaching | |
| Leadership Development | |
| Facilitation / Workshop | |
| Online / Virtual |