Decision Making Tree Analysis – Action Management Associates
Decision analysis that results in quality business decisions.
Structured decision analysis incorporating a proven methodology for evaluating and weighing all the criteria and alternatives involved in a decision is a proven way to reach a quality decision when addressing complex business challenges. Because all decisions involve an element of risk and require the use of judgment, organizational decisions based on simplistic or inadequate decision theory can often miss important factors that should be considered when making a quality decision. Those involved in decision analysis can overlook important issues because they lack a criteria-driven process for evaluating alternatives and making a decision that balances what is desired with what is practical
A systematic approach to decision analysis helps ensure that the right criteria are identified and defined and that all appropriate alternatives are considered. When individuals are taught a process for defining criteria, identifying alternatives, and making the decision process as objective as possible, they are much more likely to explore all the options and possibilities relevant to a particular decision.
A decision making tree is an effective questioning process that can result in a clearly defined decision statement. A decision tree is also an effective tool when making a YES/NO decision. More complex decisions are better served by a decision making model that includes a methodology for identifying and evaluating both criteria and alternatives. When managers are given a decision analysis process that incorporates both the rational and creative dimensions of decision making, they are more likely to pursue making the best decision over trying to make a perfect decision.