A decision making matrix is simply a list of critical values in rows and columns which enables an analyst to effectively, systematically, and analytically identify, analyze, evaluate, and ranking the performance of key relationships among key information and data. The matrix also shows decisions depending on certain criterion. For instance, in a matrix, a value could be either equal to one or greater than one. It is important to note, though, that in most cases, a decision must be consistent with all the data. In other words, the matrix will always be “queued” or in a “states-of-the-art” condition.
What Most People Think?
Most people would consider this type of analysis to be a tool for decision making. But, it is also considered an essential element in business intelligence (BI). A strong decision making matrix allows analysts to explore relationships among critical decision factors such as financial data, strategic priorities, marketing and advertising programs, human resources, internal operations, and other areas. In essence, the decision matrix not only provides information concerning outcomes, but it also provides information regarding the actions required to reach those outcomes.
The Purpose Of The Matrix
When using a decision making matrix, it is vital to keep in mind the purpose of the matrix – to guide and direct managers. While managers are concerned primarily with reaching predetermined outcomes, it is also of paramount importance to allow the decision-making process to be driven by the manager’s judgments and criteria. Thus, a decision making matrix may not necessarily serve the decision-maker well. On the other hand, a decision making matrix that is poorly designed will do the decision maker a world of good.
It is important to recognize the primary goal of the decision making process – reducing risk. In many organizations, the decision-making process is not effectively running due to poor decision making. Poor decision making often results in poor outcomes. By applying a decision making process that drives towards the best outcomes, managers can free up resources for other critical functions. The most effective decision making processes to drive towards the purpose of minimizing risk.
Effective Decision And Outcomes
A decision making process must incorporate both effective decision making and effective outcomes. Ineffective decisions often result in poor outcomes, but they also rarely provide a return on investment. Poor decisions are rarely the product of poor decision making; instead, poor decisions are usually the result of poor outcomes. In most cases, managers know that to make effective decisions and also achieve good outcomes, managers must make decisions that are grounded in principles of decision making, which include the ability to act based upon the facts, and considering broader perspectives than a singular point of view.
A decision making process that is not effectively capturing the key inputs necessary to guide business decisions is prone to a host of costly errors. Making sure that you capture the right decision making process inputs and outcomes is essential to a successful business plan. Having an effective decision making process will not only help you manage decision risk better but also ensure that your business delivers the key inputs necessary for optimal decision making. A robust decision making process is like a muscle; if it isn’t working well, then it can be quite expensive to have to throw away.