What is a decision matrix? Well, as the name suggests, it has something to do with choosing options, making decisions. But how? How can a matrix, a table divided into rows and columns provide us with an accurate answer to our confusion? Let’s see.
A decision matrix is not just a common matrix consisting of rows and columns. The rows and columns hold great significance. Whenever we encounter a problem that is troublesome enough to confuse use about making a decision, it comes with certain factors.
These factors need to be broken down in order to solve them.
The rows and columns of a decision matrix consist of values that help analyze the performance of the available information. These values then move on to provide a concrete decision influenced by a set criteria.
Let’s find out how a decision matrix is made and how can we use it.
How do we use a decision matrix?
The creation of a decision matrix is fairly and simple. However, the usage of this simple process holds great importance.
Fret not, by following the steps given below you’ll be able to make decision matrices with your eyes closed.
The title of a decision matrix is actually the motive for which we perform the entire operation.
So we need to keep this in mind and make sure the whole process revolves around it, eventually ending up with a solution.
Create a matrix table
Create a table consisting of columns and rows for your preferred criteria and options, respectively. This step requires all possible options to proceed any further.
Set a criteria
Setting the criteria is the key factor here. Take a moment and select the possible factors that you would like to use in the matrix.
Generally, a decision matrix consists of one of these: cost, impact, resources, value, potential problems.
It is up to you to select your desired criteria that might fit your situation perfectly.
Evaluate the criteria
From this point onward, you are inching closer to a probable answer. This critical step requires you to perform an evaluation of your criteria against the available options in the table.
In this step, you have to quantify your evaluation by assigning a rate that can be from a scale of 1 – 5, or any other parameter that is easily understandable for you. The options match best with criteria from high to low.
Weight the criteria
You are done assigning numeric ranks to your options by the criteria. In this step, you need prioritize your options. How? Let me explain.
The criteria you select, let’s say cost, can be a significant parameter for you but it might not be for others.
For this reason, you should weigh all your requirements. Starting from the least level to the most important level. This way you will be able to measure the priority differences effectively.
Scoring the chosen options
Lastly, you multiply the weight of every criterion to its corresponding to calculate a final score for each option. Repeat the process for all available options.
By the end of this process, you should have a score in each box. Sum all boxes to get the individual rank of each row. The highest sum should be your decision.