To see how Litigaze Plans work in practice, we're going to create a basic example Plan.
For this Plan, we'll be considering a settlement decision for a generic litigation.
Working through this example Plan is a great way to learn the basics, so you can quickly get up to speed on making your own customized Plans.
For our example risky project decision, we'll start by giving our Plan a name and listing the decision options as follows:
In the Plan editor, we can see our decision options are laid out in a decision card that forms the foundation for our Plan.
Now let's consider the possible outcomes for each decision option.
If a decision is made to settle, the case will come to an end with a known outcome.
If a decision is made to litigate, the outcome of course won't be so simple. First, deciding to litigate will mean committing to a cost for running the litigation. This costs can be easily added to our Plan by adding a financial result in "litigate" option for our decision card.
Looking further ahead, we know that deciding to litigate could lead to a range of different outcomes depending on various uncertainties we don't have full control over.
We can represent all these uncertainties by adding more cards to our Plan, working in chronological order from left to right.
First, let's add a chance card to our "litigate" option to make it clear that, if a decision is made to litigate, there's a chance of wining or losing on a key issue of liability.
We can quantify what success and failure will look like in financial terms by adding results for each event in our chance card.
We can also adjust the chance card probabilities based on how likely we think each event is. In this case, we'll set the predicted likelihood as a 50:50 chance.
Our Plan is looking good! In a few simple steps we've been able to capture key information for making a decision to settle or litigate.
Now lets take a step back to look at some other insights our Plan has revealed.
We can see that our Plan contains three potential end results:
Reviewing end results is a great way to quickly get a sense of the overall stakes for a decision.
In this case, we can see the best end result could be achieved by deciding to litigate. But deciding to litigate could also lead to the worst end result. So how can a rational decision be made in the face of this uncertainty?
Using Litigaze's evaluation tool, we can utilize the power of decision science to evaluate the relative values of the decision options in our Plan. Running the evaluation we see that the "litigate" option has a higher evaluation compared to the "settle" option, which provides a rational basis for deciding on the "litigate" option.
With the insights revealed from our completed Plan, a decision can now be made with clarity, accountability and confidence.