Inspiration for Success – Making Effective Decisions

12 June 2018

MHA Macintyre Hudson’s Business Strategy Group looks at ways clients can achieve their goals, whether it be in the workplace or as individuals.

In the previous edition of our Inspiration for Success articles, we looked at the interesting cognitive technique that is the Belief Behaviour Model. It develops the idea that underlying beliefs have a strong impact on behaviour.

In this edition Michael Murad ACA, member of the Business Strategy Group, has researched into another simple driver for success, being the Decision Matrix.

What is it?

The Decision Matrix puts the process of decision making through a selection filter, which reduces the subjectivity involved in making a decision.

Believe it or not, but when we make decisions, the factors that influence our decisions are not always weighted equally. For example, some people make a decision simply based on the fact that it is the quickest or easiest option – not because it is the most effective.

How it works – a step by step process

  1. Create a list of alternatives that can be implemented to resolve a problem - enter these across the top of the matrix
  2. Brainstorm the Criteria that impact on the decision to be made. Such examples are speed of implementation or the resulting impact on sales, profit or branding. The more criteria that you select, the better the decision (we suggest using no more than 10) - enter these vertically down the left side of the matrix
  3. Having chosen the selection criteria, you now need to weight them individually to jointly total 100. (See example table below in the Weight column)
  4. Now score each alternative option against the respective criteria. The scoring must not exceed the weighting of the criteria.  We recommend working across the table to gain a better understanding of how each possible decision impacts the chosen criteria.
  5. Discuss and agree the best decision based on the scores and how it fits in with your strategic goals. Please be aware that just because a score is the highest, it may not be jointly aligned with your strategic goals.
  6. Now develop specific action plans for your chosen option.

 

Example of a finished Decision Matrix

 

Alternatives

Criteria

Weight

Option 1

Option 2

Option 3

Option 4

Retrench

Sell Business

Grow Business

Merge

Profit

30

15

25

20

13

Future Sales

25

12

0

20

15

Brand Impact

15

8

8

12

14

Speed of Implementation

30

15

5

10

5

Total

100

50

38

62

47

 

Conclusion 

The best decisions are made when consideration has been given to all alternatives and affected criteria. Let’s face it, sometimes we are all guilty of making a decision because it is the quickest and easiest, but more often than not it will not be the most beneficial.

The Decision Matrix enables individuals or groups to make effective decisions, and in turn, ensures clear documentation of the reasoning in making that decision.

Final words

Our Business Strategy team at MHA MacIntyre Hudson can help at all stages of your business life cycle. If you think you or your team could benefit from this, please visit our page or contact Neil Stern. Alternatively, send us an online enquiry.

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