editor The four key components of Strategy Analysis are principles, practices, techniques, and skills. They play an essential role in identifying and validating the organization’s strategic needs, defining suitable solution approach(es) and solution(s), and planning, monitoring, and engaging stakeholders to achieve the organization’s strategic objectives. Techniques describe a step-by-step approach to conducting Strategic Analysis activities.
Need a technique to identify key decision points and evaluate the various outcomes of each decision? Here is a Strategy Analysis technique to achieve that. This blog will look at a technique called Decision Tables with examples.
Decision tables have been used for strategy analysis since the early 1900s. They were first developed by Frederick Winslow Taylor as a way to analyze and make decisions in manufacturing processes. In the 1930s, they were adopted by the U.S. Army to create decision tables for logistics and supply chain management. By using decision tables, you can set yourself up for success by ensuring that your decision-making process is transparent, consistent, and well-documented. Since then, decision tables have been used to evaluate and make decisions in a variety of business areas, including finance, marketing, project management, and operations.
In the 1950s, decision tables were adopted by the computer science field. Early computer scientists used decision tables to build decision support systems, which allowed them to make decisions quickly and accurately. Decision tables are still used today in computer science, but they have also been adapted for use in fields such as risk management, inventory control, and decision-making in the face of uncertainty.
Decision tables have become increasingly popular over the past few decades due to their ability to represent complex decision-making processes easily. They can be used to identify key decision points and evaluate the various outcomes of each decision. They can also help to identify potential risks and opportunities, as well as optimize strategies. Decision tables are a powerful tool for strategic analysis and are used across a wide range of industries. Check out more information about cbap training at this link.
Purpose
Decision tables depict a series of decisions and the outcomes they lead to. Decision tables are often used to model business rules. Decision tables show how repeatable business decisions are made using data and knowledge.
Description
Decision tables use a tabular format where the upper rows represent the decision points, and the bottom rows represent the outcomes. The decision table consists of four areas as follows:
- Condition stub: Lists all the possible conditions in the process or activity being analyzed.
- Conditions: Indicate which conditions are met.
- Action stub: Defines the possible actions because of the process or activity being analyzed.
- Actions: Indicate which actions are taken because of the conditions that are met.
Here is an example of Decision Table:
| Criteria | Graduate | Postgraduate | PhD |
| Scored > 50% | Not eligible | Not eligible | Eligible |
| Scored > 60% | Not eligible | Eligible | Eligible |
| Scored > 75% | Eligible | Eligible | Eligible |
Figure 24: Sample Decision Table
Usage considerations
Decision tables help to model complex business scenarios in an easily understood format. It is best suited for business rules that have multiple conditions and are useful for testing, requirements management etc.
Advantages of Decision Tables as a strategy analysis technique
1. A decision table is a powerful and simple tool for analyzing complex problems and making decisions. It is a visual representation of the problem and all the possible solutions, so it is easier to understand and explain.
2. It is an organized and systematic way to organize data, which can help to reduce the complexity of a problem and make it easier to analyze and identify the best solution.
3. Decision tables can be used to identify potential risks and benefits associated with different decisions, which can help to reduce the risk of making bad decisions.
4. Decision tables can also be used to evaluate the trade-offs between different decisions and identify the most cost-effective solution.
5. The use of decision tables can help to reduce the amount of time spent on analyzing a problem and make decisions faster.
6. Decision tables can also be used to compare different solutions and identify the best one.
Weaknesses of Decision Tables as a strategy analysis technique
1. Decision Tables are limited to a single decision problem and cannot incorporate multiple decision problems.
2. Decision Tables are difficult to debug and fix when rules become complex.
3. Decision Tables may not be suitable for complex decision problems as they become too cumbersome and difficult to read.
4. Decision Tables require extensive knowledge of the decision problem and can be difficult to understand for people not familiar with the problem.
5. Decision Tables are static and cannot incorporate changes in the decision problem.
6. Decision Tables are prone to errors and inconsistencies when rules are not properly maintained.
Relationship of Decision tables with other strategy analysis techniques
Decision tables is often used in combination with other strategy analysis techniques, such as game theory, decision trees, and sensitivity analysis. By combining these methods, decision-makers can gain a better understanding of a problem and the potential outcomes of each decision. Decision tables can help you overcome stage fear by providing a structured approach to identifying and managing your triggers and responses. Additionally, decision tables can help identify any potential risks associated with a decision, as well as identify any blind spots in the overall analysis. Ultimately, decision tables allow decision-makers to make more informed decisions by providing a comprehensive analysis of the potential outcomes.
Future of Decision Tables as a strategy analysis technique
The future of decision tables as a strategy analysis technique is very promising. Decision tables offer a powerful and efficient way to analyze complex problems and make decisions in a wide range of situations. This technique is relatively easy to learn and use and provides a systematic approach to strategy analysis.
As organizations increasingly rely on data-driven decisions, decision tables can become a valuable tool for strategic planning and decision-making. Additionally, advances in technology are making it easier to collect and manage data, which in turn will make decision tables even more useful. Therefore, decision tables are likely to remain a popular and effective strategy analysis technique for the foreseeable future.
