![]() ![]() Regardless of the scale chosen, it must be consistent across all cells in the matrix. One popular option is to use a 1, 2, 3 scale where 1 = low, 2 = medium, and 3 = high. To measure the value of each decision alternative/factor combination, establish a rating scale. 5 – Evaluate each decision against the criteria In the case of the airline company, the decision alternatives are the airports it has identified for possible expansion. 4 – Create the matrixĬreate the matrix such that the decision alternatives occupy rows, and factors affecting the decision occupy columns. Using the decision matrix, the airline assigns 6 points to airport taxes, 3 points to pre-existing competition, and 1 point to the average terminal wait time. Many businesses distribute 10 points among the criteria, with those deemed more significant attracting a higher share of the total points.įor example, consider a budget airline wanting to expand into new cities by creating a list of destination airports. To each criterion, assign a relative weight based on importance. If a consensus cannot be reached, consider using a method like multi-voting. Refine the criteria list according to factors that the relevant stakeholders deem important. To get a holistic interpretation, involve as many stakeholders as possible. 1 – Brainstorm the criteriaĬome up with a list of appropriate criteria. Creating a decision matrix in practiceĬreating a decision matrix is a relatively simple process. The decision matrix can also be used in task prioritization and to support or defend business cases where a decision has already been made. This allows businesses to identify the factors that matter most and then mathematically identify the most appropriate decision. A value is assigned to each cell in the matrix by weighting each variable based on relative importance. To assist in this process, the matrix evaluates a set of options against a set of criteria to visually compare potential solutions. When a business finds itself unable to make a choice, a decision matrix allows it to identify the best way forward. ![]() A list of criteria has been made manageable through the process of elimination.A decision must be made based on several criteria.A list of options must be trimmed to a single choice.Home PageĪ decision matrix is a decision-making tool that evaluates and prioritizes a list of options.Digital Business Models Podcast by FourWeekMBA.Business Strategy Book Bundle By FourWeekMBA.An Entire MBA In Four Weeks By FourWeekMBA.100+ Business Models Book By FourWeekMBA. ![]()
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