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A basic example Plan

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.

Decision options

For our example risky project decision, we'll start by giving our Plan a name and listing the decision options as follows:

  1. Litigate
  2. Settle
Entering the initial Plan details for our risk project decision

In the Plan editor, we can see our decision options are laid out in a decision card that forms the foundation for our Plan.

A decision card in the Plan editor

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.

Adding a result - a financial cost - for proceeding to litigate

Predicting future events

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.

Adding a new chance card to our Plan

We can quantify what success and failure will look like in financial terms by adding results for each event in our chance card.

Our new chance card with results added to each event

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.

Setting chance card probabilities as a 50:50 chance

End results and insights

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:

  1. A chance of a financial gain if the decision is made to litigate
  2. A chance of a financial loss if the decision is made to litigate
  3. No financial outcome if a decision is made to settle.
Viewing the end results for our Plan

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.

Running the evaluation tool for our Plan

With the insights revealed from our completed Plan, a decision can now be made with clarity, accountability and confidence.

Next up in this series: Elements of a Plan