Decision tree template
Visualize every possible outcome and easily identify the best course of action to take next based on the costs, probability, and benefits of each end result.
What is a decision tree?
A decision tree is a simple flowchart used to help users see their options by allowing them to visualize all of the potential outcomes of a decision. With each decision and outcome clearly defined, you and your team can make sure that you’re investing in the right outcome.
Laid out from left to right, the decision tree begins with a decision node at the “trunk” of the diagram, branching out into chance nodes, with final potential outcomes or end nodes as the tree’s “leaves.” Each branch represents a variety of information, including the probability of an outcome, success vs failure, and other variables. By following any single line in the chart, you can see the probability and ultimate result of any potential outcome at a glance.
In short, the decision tree is an efficient, zero-risk method for visually weighing out all the options before making any concrete decisions.
What is the purpose of a decision tree?
Decision trees typically play one of two roles: predicting or describing what to do in certain situations. In this case, the decision tree is used to predict what outcomes are possible, which outcomes are probable, and what those outcomes look like, based on a variety of factors.
Together with your team, you can use your decision tree to assess risk and test-drive multiple scenarios before investing precious time, money, and resources into your plan. This makes the decision tree an incredibly powerful tool when it comes to:
- Presenting an option’s potential from a variety of angles
- Examining possible investments
- Predicting a product’s viability
- Getting buy-in from stakeholders
- Allocating company resources responsibly
The decision tree can be used in limitless ways, in virtually any scenario, based on your team’s needs. Scale the decision tree to include as many potential outcomes as you need, so you can be confident that you, your team, and your stakeholders have a clear understanding of what’s possible.
How to make a decision tree online with Lucidspark
We’ve broken down how to use our decision tree template in six simple steps. Take a look:
1. Decide on a question or theme
Start your decision tree by defining the question, theme, or decision you’d like to explore. Use your question or theme to title your Lucidspark decision tree template on your whiteboard, as well as your decision node.
2. Label your branches
Think about your possible choices. Label the branches stemming from your decision node with each of your individual options. If you need to add additional branches, click and drag a line from the decision node.
3. Label leaf nodes
Label each leaf node with a question or choice. Think of each leaf node as a possible “If, then” statement. For example, if you invest in Option 1, then what will likely happen to your revenue, client base, etc? Do the same exercise for Option 2.
4. Terminate branches
Work through each question posed in your decision tree diagram, answering each “If, then” statement. Each branch should end at a leaf node labeled with the final potential outcome of a decision.
5. Run your findings past stakeholders
Once you’ve completed your decision tree, go through the results with collaborators and stakeholders to make sure it’s an accurate representation of real-life possibilities. Share your tree diagram with collaborators to add comments, make edits, or chat about your decision in real time.
With your completed decision tree diagram, you can use Lucidspark to take your plan into next steps with brainstorming sessions, visual workflows, project documentation, and more.