How to Use Decision Trees

Another effective way to illustrate decisions is by using a decision tree. This method allows you to visually represent the choices you've made. Each decision should have its own decision tree. Decision trees are great because they encourage you to think in a mutually exclusive and collectively exhaustive manner.

I prefer to place the main decision at the top of the tree, allowing you to clearly discuss the decision being made. It's also important to explain why other options were not chosen. Begin with strategic questions, and remember to create separate trees for each distinct decision.

For example, consider a strategic decision involving how to expand a business. This can be visually represented in a decision tree, showcasing the alternative actions and potential outcomes. In this case, the strategic question is: "How should the business expand?" The options are between a virtual model or a brick-and-mortar store. In this instance, the decision to go with the virtual model is highlighted in green, specifically through the use of an online catalogue, rather than an online auction.

By discussing this solution, you can explain your reasoning behind the chosen option and articulate why alternatives, such as the brick-and-mortar store or the online auction, were not selected.