Making choices is part of everyday life in the corporate world. To make this job easier, check out the Decision Matrix and its main benefits.
The day-to-day of those who undertake or manage a team is based on making choices. Making the right decisions is essential, as it helps the team to carry out the right procedures to achieve the objectives. But how to do it in the best way? Please get to know the Decision Matrix and its main advantages.
What Is The Decision Matrix?
The Decision Matrix is a tool that allows you to make a quick analysis so that your decisions are made strategically. It considers the various factors involved in a given situation, so the choice is right.
Therefore, you can use the various evaluation criteria to analyze risks and opportunities, as well as being able to define which are the most relevant options. This model also helps to identify the strengths and weaknesses of each new project or action, which gives you more confidence for your next step.
In this way, you optimize processes, get important information to develop your strategic planning and organize your team so that the work is the best.
What Is The Decision Matrix Used For?
The Decision Matrix serves mainly to give more basis for your choices. Since it will be possible to make the correct analysis, however, it is very important to say that the Matrix works as a guide, not as an “absolute truth”, so it is necessary to carefully analyze all the criteria to take advantage of the best the tool offers.
Three Benefits Of The Decision Matrix
You can take advantage of several advantages with the Decision Matrix. Check out some of the main ones.
The Decision Matrix Compares Similar Options
Surely, you have already decided between two very similar options during your work. The Matrix will map the points of each one and give a broader view of them. This way, you can compare well and make a more informed decision.
Refine The Options
Another very common situation in the day-to-day life of a company is having too many options to choose from, which makes it difficult to make a decision. Using the Matrix will make it easier to understand each of the options, how they fit into the company and all the possibilities of success for the new venture.
This way, you will have data to conduct an assertive analysis and lead your company and team along the right path.
Make Accurate Choices
Making decisions usually involves your reason and emotion. The idea is to balance these two factors so that none stands out. You may often be focused on an idea but don’t have what it takes to make it work. On the other hand, the best option is not the one that pleases the most.
Using the Matrix, it will be possible to join these two points and find this balance so that the choices are made optimally for the company’s growth.
Now that you know the advantages, it’s time to build your Decision Matrix.
Step By Step To Make The Decision Matrix
To assemble your Decision Matrix, you must follow some important steps. But before that, it is important to know that defining evaluation criteria for each option will be necessary. Among the most common, we have:
- Impact: how this decision will impact your business, team or life;
- Effort: how much work and time will be needed to accomplish what was proposed;
- Financial return or profitability: what is the profitability that this decision will bring to your business;
- Vision: this idea fits into the company’s purpose, values and mission.
These are the most used factors that will help in your planning. Also, depending on the situation, you can work with different weights for each question; depending on the action, the impact, for example, maybe more important than the vision.
That said, let’s go step by step:
1 – List your options: in the left column, put all the possibilities and ideas. If possible, do not exceed five per Matrix;
2 – Fill in the columns: insert each of the positions referring to the criteria. Make a last one with “Total”, where you will have the results;
3 – Put the score: the most important time, decide the degree of importance of each criterion and idea. Use a scale of 1 to 5, from least to most important;
4 – Do the math: add Impact, Profitability and Vision and then subtract Effort. Consider the most viable option, the one with the highest value.
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