Stanford Strategic Decision and Risk Management

Modeling for Strategic Insight (XSDR321)

This course gives participants both the understanding and skills needed to build useful models in strategic decision situations and to use them to draw powerful insights into the decision. The course topics range from conceptual, such as how to define the goodness of a model, to practical, such as best practices in laying out the structure of a model in Microsoft® Excel.

The course consists of the following sequence of lessons:

Introduction to decision modeling
Planning the model structure
Review of Excel skills
Best practices in decision modeling
Case exercise in creating a decision model
Debugging models
Software tools for probabilistic analysis
Drawing and communicating insights.

In this highly interactive course, many of the lessons include hands-on experience for the participants to cement their grasp of new skills. In the case exercise, participants build a complete decision model under the guidance of instructors. Each participant is expected to have a laptop computer with Excel installed. Some of the software tools used in the course are given to participants, and demonstration versions of other software packages are downloaded to their computers for use during the course.

Because this workshop builds on the core courses Decision Quality in Organizations and Decision Analysis, we strongly encourage participants either to have completed them or have passed the exam for each course. In addition, participants are expected to be familiar with but not necessarily expert in using Excel.

Course Syllabus