Your organization is running a multi-year digital transformation program with three competing implementation approaches. The steering committee wants to understand the risks, probabilities, and financial payoffs of each path before approving funding. Which analytic technique should the program manager use to visually map each decision point, the possible chance events, and the expected value of every branch so stakeholders can compare options?
Decision tree analysis constructs a branching diagram in which squares represent decision nodes, circles represent chance nodes, and each branch ends with a payoff. By assigning probabilities and values, the program manager can calculate expected results and identify the most beneficial path. Monte Carlo simulation assesses overall uncertainty but lacks explicit decision branches; stakeholder mapping and work breakdown structures organize information yet do not evaluate alternative strategies.
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PgMP
Benefits Management
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