Level Up Your Decision Making With This Simple (and Free!) Tool
What if I told you there's a secret weapon that can help you make better decisions, avoid costly mistakes, and influence others with clarity and confidence? Intrigued? Let me introduce you to one of my favorite tools—the Decision Matrix.
In business (and in life), making the right decisions is crucial. We know this, and yet—or maybe therefore—we often struggle to make decisions or make irrational ones. The Decision Matrix offers a structured way to approach decisions, bringing objectivity and rigor to the process.
Creating a decision matrix minimizes our very human tendency to rely on gut insticts or fall into cognitive biases. It can be used for any decision you need to make from selecting a vendor or deciding between job candidates, to figuring out where to go on vacation. The applications are endless and once you get used to using it, you will wonder how you ever lived without it.
Build a Decision Matrix in 3 Simple Steps
Decision Matrices are simple to create and incredibly effective. Here’s how to build one in three simple steps:
1. List Your Options: First, write down all the options you are considering.
For example, if you're trying to select a vendor for a project, list your potential vendors.
2. Weight Key Criteria: Start by listing the criteria that matter to you and assign a percentage that reflects its influence on your decision. Typical criteria include Benefits, Costs, Risks or Issues, and Feasibility. Ensure that the total weight of all criteria adds up to 100%.
For example, if you're selecting a vendor, you might allocate 30% to cost, 30% to feasibility, and 20% each to benefits and risks.
3. Evaluate Each Option Against Your Criteria: Rate each option on each criterion on a scale of 1 to 5, where 1 is poor and 5 is excellent. Then, multiply each rating by the criterion’s weight and add up the scores for each option.
The option with the highest score wins.
Sample Weighted Decision Matrix
As you can see, Option C is the winner.
Imagine how much easier this will make your decision-making! No more second-guessing, relying on intuition, or rash decisions.
Use Your Decision Matrix in a Business Case
Decision matrices aren't just handy tools for personal decision-making; they're also powerful ways to influence and align in professional settings. How many times have you tried to convince someone to accept your recommendation and found yourself met with skepticism or resistance? With a decision matrix in hand, you have a structured and objective framework to present your case.
Moreover, decision matrices offer an additional layer of value when used proactively, even before you begin building your case or formulating your recommendation. Imagine sitting down with your team, stakeholders, or clients, and collectively defining the options, criteria, and weightings before any decisions are made. By aligning perspectives upfront, you set the stage for smoother decision-making processes and reduce the likelihood of disagreements or pushback later on.
This proactive approach not only saves time but also enhances trust and collaboration among all parties involved. By laying the groundwork for success from the very beginning, you ensure that everyone is invested in the outcome and committed to achieving the best possible results—solidifying your reputation as a strategic and inclusive leader.
Of course, sometimes you won’t have that alignment ahead of time. In these cases, I find it helpful to build a Decision Matrix calculator so I can quickly and easily see the impact of changing rating and weightings in real-time. Exploring how your recommendation adapts to varying weightings and ratings equips you to engage in debates about the relative significance of criteria.
Free Decision Matrix Calculator
If you’re thinking, this sounds great, but also that you’re not likely to go through the work of building a weighted Decision Matrix Calculator, you’re in luck! I’ve already built one for you—and it’s fully automated.
Better yet, get a free guide and workbook to help you build a business case using a Decision Matrix. Just enter your name and email below and I’ll send it straight to your inbox.👇🏻
So there you have it—the Decision Matrix, your secret weapon for making better decisions and influencing others with confidence. By following a simple yet structured approach to evaluating options, you can minimize the impact of bias and intuition, leading to more informed choices.
Ready to Make Smarter Decisions with Confidence?
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