What is the decision -making matrix?

Matrix decision -making is a quantitative method that the company can use to evaluate factors and choose the best opportunity between several options. This scientific approach is not necessary for all decisions. However, the main changes in business operations may require this process. Steps include defining the solution and setting of priorities, then the points are assigned, calculated, weighted and total. Using this method for each option checked results in the overall score for all options, the highest score shows the ideal one the company should choose.

The ideal solution is one that meets or almost meets all the needs and wishes of the company. Owners and managers have the task of defining the qualities they want on a new business opportunity. The decision -making matrix requires this as the first step, because here begins the framework for the remaining decision -making process. Internal and external factors can affect the ideal solution that the company is looking for to complete its business operations.This process can take the longest time because the owners and managers must have a clear vision for each option to choose.

Setting priorities with each option usually include weight settings on each first phase characteristic. The decisive matrix needs percentages for each characteristic to provide the final score for different options. These scales can be subjective; Owners and managers can place data like 10, 15 or 25 percent next to each factor. The most important factors have higher weights. All percentage weights should add 100 percent for each option in the decision -making process.

The company leader must assign points as the third part of the decision matrix. The basic scale is one to 10, with higher points indicating more favorable factors between different options. Each factor as a result of the decision must have a score. Assign one as a score to shobThe factors that bring the smallest value to the final result. The use of five means that the factor does not significantly affect the end result, because the inclusion of the factor is average.

With the assigned weights and numbers, the creators of the decision must calculate the score for each possible result. This includes multiplying a percentage against the assigned number for each factor. After completion, the total number of score is required. The result is a number that owners and managers can compare for all options. The possibility with the highest score is the best opportunity to decide, provided there is no distortion in the rating system of the decision -making matrix.