In business and in life there are always decisions to be made with alternative options. Rather than relying on your gut instinct, the following decision matrix can be used to come to a more analytical answer.
Using this technique, I have regularly found the outcome isn’t what I might have initially expected. This technique is regularly taught in Thomas Cook’s management course in the UK and is relevant when making decisions in both business and/or life when more than one option is available.
This works when:
• purchasing a new car or home;
• looking at relocating for a better job;
• buying a new piece of equipment.
It can be even more powerful when 2 people are involved in the decision (e.g. with your partner when looking at buying a new home) and you can compare results.
Let’s say you are buying a new house and have 2 or 3 under consideration.
On the horizontal axis write each option. On the vertical axis write down the key criteria you want in a new home. For example:
The Ideal Features Your 1-10 point rating of each option
House 1 House 2 House 3
A separate study
All day sun
Two car garaging
Decks for entertaining
Boat parking area
(Include all the things that would make
up the ideal new home for you)
With your partner, independently rate each house against your chosen criteria in points out of 10 (with 10 being perfect, 1 being dismal!).
Total up the score for each house and see which rated the best against your criteria.
Compare your score with your partners score. Normally a clear favourite will emerge, but if not, you can then focus on the areas of difference.
A simple effective decision-making technique that works!