Decisions, Decisions!
Have you ever had a big decision to make?
Most of us have. What do you do when the
situation calls for it? In business, often our
decisions make a huge impact on our
business.Do you make a pros and cons list?
What if you have many options to choose
from? How do you know you a making the best
decision? The answer is something I learned
this week at SNHU.
I will use the example of renting a brick and
mortar building for business.
Let's say you have four prospects. Which one is the best?
You use a decision matrix! A what now?! A
decision matrix helps to make a good decision
based on numbers. It goes beyond the old pros
and cons list. You have requirements like
short commute, cost, and market to help you
create a score for each prospect.
Here's how it works:
you make a grid. Then use the verticle side to
list the atrribute or requirement.
Across the top you can
list each option, again the buildings we are
looking at. Beside each attribute write a value
from 0-5 according to its importance to you.
For example if your most important
requirement is a low rent, then it gets a value
or weight of 5. I will create one in excel and try
to paste it here. This will be easier to explain
with a visual.
I got this template from RFP Evaluation centers.
I have filled it in, but I will explain. Your next
most important maight be a short commute so
you give that a 4. The last requirement you
decide is just as important as the first so you give it a 5.
Now you have them weighted in importance
you can use that to evaluate each option. For
example Building A rates a 3 because it is not
as close as you'd like. Next you score the
options in each catagory by multiplying the
weight by the rating. Once all options have
scores, add up each and put the totals at the
bottom. Finally look at the totals. Which one
matches up the best? In our example, Building
B with 55, has the best score.
Anytime you are faced with a decision this
matrix can be employed! You can use it for a
wide number of applications. Try it! This is a
method used by a lot of executives who must
make decisions in stressful situations.
Recent Comments
10
I'v always used the Ben Franklin close, which is a pros vs com list. I use a horizontal line at the top of the page, write the decision I'm working on top of it, and a vertical line down the middle of the page. Heading on the left is "Pros", heading on the right is "Cons". Then I brainstorm everything I can think of and assign each item to its appropriate column. I tally up the pros and cons and usually make the decision, yay or nay, based on the numbers in each colunm. Sometimes I make the opposite decision based on other factors that are not on the list, but I usually go with the list on the paper. It usually matches my gut. I've used this method for many major decisions, but your Decision Matrix technique sounds like a good plan as well.
Hi Carol,
Yes pros and Cons is a good system too. However what if you have a lot of options that are all pretty similar? The decision matrix allows you give all of them equal consideration. However, it is not perfect either. What if the result is different than you pictured? You need to re-evaluate the weights you asigned, maybe something is more important to you than you originally put down. Anything is a work-in-progress. It is just whatever works for you, this just provides another option.
Have a blessed day,
Tina
Yes, it's whatever works for you. I think the matrix is more detailed and probably a better analysis of the question being asked.
Oh NO! it did not publish the matrix! Well, you can look at some examples on google images. There is also a video or two on You tube.
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Excellent tool! especially for those of us who like tools to help with things. Thanks tons, Tina.
Thank you Steve-Allen. When I learned about this tool in class I thought it would be a good fit for us here.