Decision Tree Template

A decision tree is a flowchart that can be used to determine all possible outcomes of a decision. Each branch on the tree represents a choice that can be made.

Decision trees are scalable and driven by cause and effect. An outcome that leads to another course of action can extend a branch, which can then be extended further.

A decision tree template allows you to evaluate options and their outcomes before making a decision, so that you can make the best decision with the least downside and the most upside. By simulating a series of decisions, you can explore different outcomes without investing real-world time and resources.

Why are decision trees important?

The decision tree template is a powerful tool that you and your team can use to predict or describe outcomes. Decision trees allow you to visualize outcomes and play through scenarios without investing actual resources.

Enterprise and larger companies can use decision trees to test-drive options before presenting them to a broader team or a busy stakeholder. Startups and smaller companies might find decision trees especially valuable since resources are tight and it can be difficult to get financial buy-in.

Decision trees can help you figure out if a new product is viable, if a new market opportunity has opened up, or if an investment is worth considering. The possibilities are endless, and the tool is flexible. The only limit is your creativity.

Step 1: Define your question. Begin with a central theme or question you are trying to answer. For example, which company should we partner with?

Step 2: Add branches. Imagine a few possible choices you could make. In this example, you could partner with Company A or Company B. Each of these alternatives has a different set of possible outcomes. To visualize these outcomes, draw a line that begins at the node for the alternative you're considering and ends at the leaf node for each possible outcome.

Step 3: Add leaves. At each step, add a leaf node at the end of each branch and label it with a question or choice. Think about your alternatives as “if then” statements.

If you partner with Company A, you could either increase or decrease your total number of customers. If people have positive feelings toward Company A, then partnering with them could lead to more customers. However, if people have negative feelings toward Company A, then partnering with them could lead to fewer customers.

Again, conceptualize your leaves and nodes as “if then” statements, but this time for Company B.

Step 4: Add more branches. As you build your decision tree, be careful to label your branches and leaves so you don't lose your place.

Step 5: Terminate branches. You should have answered every question in the tree and worked through all "if then" statements you've encountered. Make sure you've completed all your branches.

Step 6: Double check with stakeholders. After you finish your decision tree, check that all your stakeholders agree with your decisions. The decision tree template is designed to show the real-world consequences of your choices. Use the tree to discuss every possible choice, find alternatives, and add more branches if necessary.

FAQ about decision tree templates

How can I make a decision tree?

Decision trees are a great way to map out the possible outcomes of a series of decisions. To stay organized, your tree should begin with a central theme or question you are trying to answer. Use a linking word and a line to outline the two options for this decision. Show the possible outcome with another box if that decision is going to be made. Continue this branching structure until you reach the final result.

What is a good decision tree?

Making decisions can be tough, but a good decision tree can help. By showing all the potential outcomes of each decision, it becomes much easier to choose what to do. FigJam's free decision tree template is a great way to get started - it's easy to use and can be customized to fit your needs.