Book about Decision Tree Templates: The Thinking Manager’s Toolbox

Decision Tree Template For Thinking Managers in a book!

“The Thinking Manager’s Toolbox: Effective Processes for Problem Solving and Decision Making”

By: William J. Altier

Publisher: Oxford University Press, USA,

240 pages

Templatesforlife Rating: Best in Decision Tree Templates and Analysis category

Focus of this book:

  • Decision Tree Templates and Analysis

  • Problem Solving

  • Critical Thinking and Reasoning

Main Points of Decision Analysis for Decision Tree Template:

  • The root of the business failure is usually ineffective decision-making processes, and ultimately, bad decisions.
  • With the right set of tools and right people you can overcome any business problem
  • Even a meeting can be a productive tool for solving a problem
  • The major concept steps of Decision Tree Analysis and Template are:
    • Define the Decision Statement: purpose and level. A Decision Statement should start with a verb such as “select,”determine,” or “develop.” The choice of which of these three words to use can be important because it can have a subtle yet significant impact on the process.
    • Establish Objectives:  results, resources, checklists. An objective is a specific, singular description of a desired result or output to be achieved or avoided, or a desired resource or input to be used or avoided.
    • Value Objectives: weight.
    • Generate Alternatives for Decision Tree Template Analysis.
    • Compare and Choose: Satisfaction Scales, Weights x Scores, Total Weighted Scores.

When you need Decision Tree Analysis and Templates:

  • Selecting a location and an organization structure.
  • Determine how to stifle a cash flow problem that is threatening a division’s life.
  • Determine how to standardize widely varying accounting procedures in an organization’s worldwide operations.
  • Develop the optimum specifications for a new machine that will extend the product line’s range.
  • Decide which government agency should administer a new program.
  • Develop an order of attack to resolve a myriad of problems in a new acquisition.
  • Decide how to restructure manufacturing operations to eliminate excess capacity brought about by the implementation of a new technology.
  • Choose which competitors’ products to license in order expand a product line.
  • Decide the best type of sales organization to use in overseas markets.
  • And much more!

Buy the book about Decision Tree Template – The Thinking Manager’s Toolbox on Amazon.

Decision Tree Template

Decision Tree Template Basics

A decision tree template  gives the ability to see options and estimated outcomes before decisions are made. Such template can be used by almost any type of organization, to make simple or complex decisions, on a qualitative or quantitative basis. These diagrams might be used to establish a pricing policy, decide the size of a new plant, determine which research projects to pursue, or decide which proposal to accept.

This method is helpful in planning a project or making a series of related decisions. It is used to look ahead at the various possible outcomes and map the specific decisions needed and their impact on outcomes. It relies heavily on management judgment, providing structure to the normal judgmental decision-making process. The method is easily used and, once mastered, is a useful back-of-the-envelope technique. It is also useful in presenting a project or problem to a group in a structured manner to get feedback on a decision or the assumptions on which the decision is based.

Decision Tree Template Creation

Follow these four steps when designing a decision tree.

1. Identify all of the feasible alternatives—the different decision options available to you. Also identify the different situations that might prevail after the decision, focusing on a variable (or several) of relevance to the ultimate outcome of your decision.

Example: You must decide how much to spend on a new product launch. The marketing department presents three alternatives: low, medium, and high advertising and sales support. These are your feasible alternatives. You see two likely situations after introducing the product: (1) no competition and high demand or (2) a similar product introduction by a competitor and lower demand for your new product.

2. Draw a decision tree illustrating the decision alternatives and the situations.

Decision Tree Template Example 1

Decision Tree Template

3. To calculate the possible financial returns from each combination of decisions and situations, enter the costs of each decision on the diagram (negative numbers) along with the incomes (positive numbers) from each situation and total them to calculate the payoffs. Write the payoffs (outcomes) at the right side of the diagram.

Decision Tree Template Example 2

Decision Tree Template

Use decision tree templates to:

  • Identify the options and potential outcomes of a decision or series of related decisions.
  • Assign probabilities to events and calculate the likely returns from alternative decisions.
  • Structure the decision task to identify where and how research should be used.

Fill in the Decision Tree Template with your own data and thoughts!