Often, some factors are more important than others. You must remember that it is not essential to have a number for each option – if none of them is good for a factor under consideration, you can rate them as 0 for that factor. As each option comes with its pros and cons, rating them is the best way to avoid the struggles of strategic decision-making. This step adds all the logical reasoning to your decision. For more options, opt for a 1-5 scale, where the highest number is the best. For little variations among options, use a scale of 1-3. The next step in building a decision matrix is to rate every consideration on a predetermined scale. Include the list of factors as the column headings. Preparing a grid for comparing important considerations between options requires you to list all of your options as the row labels on the table. These critical considerations help strike the optimal decision without any subjectivity.Ĭonsidering the example mentioned above, you will now acknowledge some important criteria for selection as pricing, customer support, experience, and customer reviews. Next, you must identify the important considerations to factor into your decision. You find three decent agencies and have to choose one amongst them. Therefore, identifying the options is the first step before building decision matrices.įor example, you have to launch a website and look for agencies that could create content and design. You have to approach the decision from a logical viewpoint rather than an intuitive or emotional one.Įvaluate the best option between alternatives based on various crucial factors and their relative importance, employing the following steps: Step 1: Finding the Alternativesĭecision matrices help decide the best option amongst a set of promising choices.The decision is to be made based on several criteria.A list of options has to be narrowed to one choice.

Given the above-mentioned decision matrix example, we can say that a decision matrix is generally used when: How would you make the final decision, considering several factors such as technology, service levels, contract lengths, and more? Such situations can be handled efficiently by employing a decision matrix. You will begin your research and shortlist several good options. Suppose your manager assigns you the task of selecting a new software supplier. The options are listed as rows on a table and the factors as columns. At first, a list of weighted criteria is formulated, and each option is assessed against that criteria. Decision Matrix is also called decision grid, Pugh matrix, problem selection matrix, selection matrix, criteria-based matrix, problem matrix, solution matrix, opportunity analysis, and criteria rating form.Ī decision matrix is a decision-making tool/method that assesses and prioritizes a list of options.

Software selection decision matrix