How to Use a Decision Matrix

When presenting a decision, it's important to illustrate how that decision was made. One effective method for doing this is by using a decision matrix. This matrix can clearly display the alternatives and the criteria used to evaluate them.

Here are some key points to consider when creating a decision matrix:

1. List Alternatives: The alternatives should be listed across the top of the matrix.
2. Decision Criteria: Each decision criterion should be listed along the side. I typically prefer binary decisions (i.e. yes or no) rather than numerical ratings. Numerical scores can be difficult to justify; for example, it can be challenging to explain why one alternative scores a one and another scores a four, especially when the scores are close, like a two and a three.
3. Highlighting the Decision: Once you've discussed the alternatives and criteria, it’s useful to visually highlight the chosen decision—perhaps with a green box or another method—so that it stands out.
4. Justifying the Decision: When discussing the chosen alternative, be sure to explain why this decision was made and why the other options were not selected. This can help to discredit the alternatives that were considered.
5. Criteria Limitations: Aim to use no more than five criteria, and preferably three or four. These criteria should be linked to the company’s values and mission, should be self-explanatory, and should be ranked from most important to least important.
6. Scale Use: If you decide to use numerical scoring, clearly present the scale on the slide (for example, a score of one could signify poor performance, while a score of five could indicate excellent performance).
7. Visual Indicators: You can also utilise a low, medium, or high model, as seen in some examples. The best alternatives can be marked in green, while the worst can be in red, with yellow indicating a middle ground. Highlight the best option clearly, such as the Brownfield investment mentioned, as it receives the highest score based on the criteria evaluated.

Utilising these strategies can make your decision-making process more transparent and easier to understand.