Decision Matrix

The decision matrix is an easy decision maker for evaluating and selecting the best option between different possibilities. This tool is especially useful when you are deciding between multiple options and need to consider multiple factors to make your final decision. You may have heard other names for a decision matrix - even though they all mean the same thing - easy decision maker. Some other names for decision matrix are: Pugh matrix, grid analysis, multi-attribute utility theory, problem selection matrix, decision grid. Use a decision matrix for this task: compare multiple similar options, narrow down different options to a final decision, weigh a variety of important factors, and hope you approach the decision from a logical standpoint rather than an emotional or intuitive standpoint. A decision matrix can help you determine the best option among several possibilities based on several important factors and their relative importance. Creating a decision matrix consists of three easy decision making steps: 1. Identify your alternatives The decision matrix is a helpful tool for selecting the best option from a set of similar options. Before you can create your matrix, you need to identify the options you need to decide between. For example, let us say you are introducing a new production chain. You need to decide on a contract manufacturer to make the components of your product. Right now, you have identified three companies, each with its advantages and disadvantages. 2. Identify important factors The second step in creating a decision matrix is to identify the important considerations that will play a role in your decision. These criteria will help you find the best decision and avoid subjectivity. Staying with our example, you have decided that the most important criteria when selecting a contractor are the following: Cost, experience, quality and previous customer reviews. 3. Give more weight to one factor Sometimes there are certain considerations that are more important than others. In such a case, use the weighted factors in the decision matrix to determine the best option for you. To continue our example, imagine that there is no way you can go over your budget, so cost is a crucial factor in your decision-making process. Customer reviews are also important as they give you an indication of how effective each agency has been in the past. To change the weighting of a factor in the decision matrix, use a selection wheel to enter your subjective percentage of importance. As the decision process continues, the Decision Matrix application multiplies the weighting factor with each consideration. Use the "Invert" option for factors that worsen the result when growing Finally: provide each option of the created Decision Matrix with the amounts of each factor in the column using a percentage wheel. The Decision Tree application does the rest for you: it calculates the weighted amounts, summarizes the amounts of all factors, and sets the result value of all factors for each option. The bar for the best option has a green color. To check the distribution of factors in your criteria, monitor a pie chart in the lower left corner. Each factor has a corresponding color in the chart. To align the criteria so that the weights of the factors are all equal, use the "Equal" button in the center of the pie chart. The Decision Matrix app supports an unlimited number of decisions. For each decision, you can consider up to four choices and twenty factors.