Transcript

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INSTRUCTOR

There are often many competing factors to take into account when it comes to making a decision. And figuring out which of them should take priority isn't always easy. Decision matrix analysis helps you make a good decision when you need to weigh out many difficult to compare factors. To use this approach, first list all the options available to you as rows in a table. Then, list the facts that you need to consider as column headings. For example, if you're trying to choose between three suppliers, you might want to compare each one in terms of their location, price, and reliability.

Next, you need to figure out the relative importance of each factor. For example, is location more important than price? Is reliability what matters most? Go through your table again and decide on the importance of each factor using scores from 1 to 5. 1 means that the fact is relatively unimportant in the final decision. 5 means it's very important. Now go through the options in the table and score them against each factor. For instance, in our example, you give each supplier a score between 1 and 5 for how well they meet the location, price, and reliability factors.

Next, multiply these by the relative importance scores you've already entered for each factor. Then, total them up for each option. When you've completed this last step, the option with the highest score will be your best choice. Sense check this against your intuition. If this differs, consider why this is and reflect on the scores and weightings that you've applied. This may be a sign that certain factors are more important to you than you initially thought. To learn more about how to use decision matrix analysis, read the article that accompanies this video.

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