Decisions, Decisions!

Last Update: March 11, 2021

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.

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Steve-Allen Premium
Excellent tool! especially for those of us who like tools to help with things. Thanks tons, Tina.
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TM9055 Premium
Thank you Steve-Allen. When I learned about this tool in class I thought it would be a good fit for us here.
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JeffreyBrown Premium
Very nice, Tina! Another tool for the toolbox!

Jeff
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TM9055 Premium
Thank you Jeff. I thought it might be helpful. I am using it on a project in class.
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JeffreyBrown Premium
Awesome, Tina! These sorts of things can always be helpful!

Jeff
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CarolMeador Premium
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.
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TM9055 Premium
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
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CarolMeador Premium
Yes, it's whatever works for you. I think the matrix is more detailed and probably a better analysis of the question being asked.
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TM9055 Premium
I fixed it! I simply saved it as an image instead.
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TM9055 Premium
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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