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Issue 16: Deciding with the Decision Matrix
Issue 16: Deciding with the Decision Matrix
"Choices are the hinges of destiny."
-Pythagoras
Welcome to our our sixteenth edition!
Let’s dive into the Decision Matrix method, a quantitative approach to making well-considered decisions by evaluating and prioritizing different options based on the criteria you deem important.
5-MINUTE STRATEGY
Identify your available options.
List criteria important for the decision. Assign weights to each criterion based on its importance.
For example, if you’re comparing vehicles for purchase- you might decide price = 5, style = 3, drive = 4, support/warranty = 5)
Rate each option against all criteria and multiply by the weights.
Take a look at the chart below
Sum these scores to identify the option with the highest total score.
According to our etched results, Car A is the winner!
Why this matters: The Decision Matrix removes ambiguity from decision-making, and gives you a clear, numerical basis for comparing and communicating options.
Next week's preview
Prepare to learn about the Cost-Benefit Analysis, a simple financial framework to evaluate the pros and cons of decisions.
We’ll show you how to quantify the costs and benefits of your actions to make and communicate smarter, more informed choices.
Until then,
Asia
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Bridgewell LLC - Strategy and Leadership