Scenario Tree
A scenario tree is a diagram that maps out alternative paths events could take given different decisions, used to structure and guide analysis of complex problems.
THE IDEA
Exercise 21: Survey of Workers
A scenario tree lays out how decisions and events can lead to different outcomes. Its design depends on the question being analyzed: the “best” tree is the one that makes the relevant alternatives clear. Use the following survey report to sketch possible arrangements for employee participation. Try different designs if the first obscures an important distinction.
Groping Toward a Way to Share the Reins Major Survey Finds Most Employees Want Cooperation and a Voice, if Not a Union, on the Job by Frank Swoboda WASHINGTON POST STAFF WRITER
If most American workers don’t want to belong to a union, but they don’t really trust their boss to protect their interests, just what do they want? The answer may lie in the fog of statistics compiled in a new survey of employee attitudes toward workplace decision making. The authors interviewed 2,400 workers nationwide to find out whether employees want greater participation in the workplace; what kind of involvement and representation they desire; and whether they have any ideas for closing the gap between their desires to participate and the reality of their own jobs.
A major finding is the existence of a “participation gap” between the representation workers have on the job and what they want. According to the study, “most employees want more say in how their companies are run and how key decisions affecting them are made. They want more individual say, and more say as a group, and believe greater worker involvement in firm decision making is good for the company as well as for them.” While 40 percent said they would vote to join a union, the majority of workers said they believed it was essential to have employee work organizations on the job even if those organizations had no real power to determine the outcome of decision making.
But the survey shows a substantial majority of workers would prefer a weak employee involvement program that had management’s approval to a strong organization, such as a union, that management opposed. This simply reflects the reality of most modern work sites, where management sets the rules. It doesn’t mean the average worker wants to be a doormat. When workers in the survey were asked to specify the attributes they would like to see in an employee organization, “most employees want cooperative joint committees with some independent standing inside their companies, and many want unions or union-like organizations.” In a question format offering laws, joint committees, or unions that negotiate or bargain with management over issues, 63 percent chose joint committees, 20 percent chose unions, and 15 percent chose laws.
Asked to consider any kind of employee organizations on the assumption that it was the respondents’ decision alone to make and everybody went along with it, 85 percent opted for an organization run jointly by employees and management, and only 10 percent chose one run by employees alone. Union members involved in the survey split almost identically on the issue. How would workers involved in these joint committees propose settling decision-making disputes with management? Nearly 60 percent said in such cases an outside arbitrator should make final decisions. In a nutshell, the survey shows that most American employees want more involvement and greater say in their jobs, some form of workplace organization or policy that provides them with group as well as individual voice. Employees wish such organization or policy to give them independent input into workplace decisions.
For Exercise 21, distinguish the degree of employee involvement from the means of representation or bargaining. Then build a tree in four steps:
- Identify the problem you are trying to analyze.
- Identify the major factors or issues—the key decisions and events that will drive the different scenarios.
- Identify the alternatives for each factor or issue. Use Yes and No branches for genuinely binary questions. Use additional branches when the alternatives require them.
- Construct the tree portraying all the important alternative scenarios. At each branch, ensure that the decisions or events are mutually exclusive (no overlap between the branches) and collectively exhaustive (all possibilities are covered).
The book illustrates this process with the case of a middle-aged employee fired for alleged unsatisfactory performance. A week later, armed with an automatic rifle, he returned to the plant and shot his former supervisor to death. The employee pleaded innocent by reason of temporary insanity. Three major issues dominated his trial: (1) whether he was by nature prone to violence; (2) whether the supervisor’s allegedly cruel and unwarranted treatment could have destabilized his mind; and (3) whether, from the moment he seized the rifle until the killing, he was in such a state of dementia that he was unaware of his actions and unable to distinguish right from wrong.
A tree can place the three issues in sequence, with Yes/No branches for each. This separates the questions and shows which combinations of conclusions remain possible. For either side, the diagram can identify where the evidence is strong or weak; it does not establish what the evidence proves.
The book describes the defense as establishing that the defendant had not been prone to violence. In the proposed tree, that would remove the “Yes” branches under the first issue. It then describes evidence that the supervisor’s treatment could have caused temporary derangement, leaving the defendant’s state of mind during the killing as the central question. The reported verdict was not guilty. The tree illustrates how accepting evidence can narrow the scenarios; the diagram itself neither proves the facts nor explains the verdict.
For the workers’ survey, sketch the main alternatives before judging which arrangement is preferable. Evaluating one attractive scenario too early can cause you to neglect other possibilities. Keep the initial tree focused on factors relevant to the question, then revise it if closer analysis reveals a missing alternative or an impossible combination.
To “diagram” a problem usefully, explain what each branch means and why the alternatives matter. A tree can reveal missing options, dependencies, and questions that require evidence. It cannot make an incomplete set of assumptions exhaustive merely by displaying it.
When to use it
Strategic planning for a new product launch, considering different market responses.
Risk assessment for a business investment, accounting for economic and regulatory changes.
Project management decision points, such as choosing between development approaches.
Policy analysis with multiple outcomes, evaluating the impact of different regulations.
Separating factual questions and alternative interpretations when preparing an argument about a disputed event.
Testing whether a proposed strategy remains workable if a competitor responds differently than expected.
Organizing alternative explanations for a problem and identifying the observations that would distinguish them.
Assigning contingency actions to project paths that would otherwise leave the team without a plan.
Analyzing employee participation options in a company (as in the survey example).
Planning when to reassess a product launch as demand information arrives.
Checking whether a policy proposal omits an affected group or a plausible implementation outcome.
Personal decision making: weighing career options with different possible scenarios.
FROM THEORY TO EVERYDAY LIFE
In practice
Market Entry Decision
A company maps possible competitor responses and economic conditions before deciding whether to enter a market. The tree helps compare strategies across combinations; the value of each strategy still requires evidence and explicit assumptions.
Project Risk Assessment
A project manager maps out potential risks and decisions in a software development project, such as whether to adopt a new technology or stick with a proven one, and how delays might cascade. The tree clarifies trade-offs and contingency plans.
Disgruntled Employee Case
The book uses a fired employee’s killing of his supervisor to illustrate a tree separating prior disposition, the supervisor’s treatment, and the defendant’s state of mind. It reports a not-guilty verdict. The tree shows how the issues can be organized; the account does not establish that using the diagram secured the verdict.
Employee Participation Survey Analysis
A company can distinguish employee involvement from the form of representation, then map possible arrangements and methods of resolving disputes. The survey describes worker preferences; the tree makes the proposed choices and their dependencies explicit.
New Product Launch Decision
A company considering a new product can construct a scenario tree with branches for market response (high demand, moderate demand, low demand) and subsequent strategic decisions (aggressive marketing, conservative rollout, or cancellation). This helps identify potential risks and opportunities.
A MOMENT TO REFLECT
Put it to work.
How can you ensure that the branches in your scenario tree are mutually exclusive and collectively exhaustive?
Think of a recent decision you made. How could a scenario tree have helped you consider more alternatives or foresee potential outcomes?
What are the limitations of using a scenario tree in highly uncertain situations with many unknowns?
Think of a complex problem you are currently facing. What are the two or three major factors that determine the outcome? Try drawing a scenario tree with yes/no branches.
How does a scenario tree help you identify your strengths and weaknesses in a negotiation or argument?
For a disputed case, which branches represent factual questions and which represent judgments about what follows from the facts?
Which branch in your current tree depends on an assumption you have not checked?
How can the temptation to start analyzing pros and cons of individual scenarios before completing the tree lead to biased decision-making?
What are the trade-offs between simplicity and comprehensiveness when constructing a scenario tree? How do you decide which details to include?
CONTINUE THE CONVERSATION
Source texts
- The Thinkers Toolkit by Morgan D Jones
- The Thinkers Toolkit by Morgan D Jones
- The Thinkers Toolkit by Morgan D Jones