Decision Matrix: A simple and practical method for making better choices

Every day, business owners face important decisions. From choosing suppliers to defining investments, the right choices can lead to growth, while the wrong ones can cause losses. But how can you decide with more confidence?

The good news is that there’s a simple and objective method for this: the Decision Matrix.

What Is the Decision Matrix?

The Decision Matrix is a tool that helps compare different options in a clear and rational way. Instead of relying on intuition, this method allows you to assign scores and weights to evaluate each alternative.

Benefits

• Simple to apply, with no need for complex calculations.

• Helps compare alternatives objectively.

• Reduces the risk of decisions based solely on emotion.

How to Use the Decision Matrix Step by Step

Let’s apply the Decision Matrix to a real case: choosing a supplier for the company.

1. List the available options
   The company needs to choose among three suppliers:
   Supplier A
   Supplier B
   Supplier C

2. Define the evaluation criteria
   Before making a choice, it’s important to know what matters most in the decision. In the case of suppliers, these might be:

   • Price

   • Product quality

   • Delivery time

   • Ease of communication

3. Assign a weight to each criterion
   Each criterion can have a different weight depending on its importance. Example of weights:

   • Price – 30% (0.3)

   • Product Quality – 40% (0.4)

   • Delivery Time – 20% (0.2)

   • Ease of Communication – 10% (0.1)

4. Score each supplier
   Now, rate each supplier from 1 to 10, where 1 is the worst and 10 is the best:

    

   Criterion	Weight	Supplier A	Supplier B	Supplier C
   Price	30%	8	6	9
   Product Quality	40%	7	9	6
   Delivery Time	20%	6	8	7
   Ease of Communication	10%	9	5	8

5. Calculate the final score
   Multiply each score by its criterion’s weight and sum the results:

   • Supplier A → (8×30%) + (7×40%) + (6×20%) + (9×10%) = 7.1

   • Supplier B → (6×30%) + (9×40%) + (8×20%) + (5×10%) = 7.4

   • Supplier C → (9×30%) + (6×40%) + (7×20%) + (8×10%) = 7.1

   The conclusion is that Supplier B has the highest score and, therefore, is the best choice.

Why Does This Method Work?

• It removes uncertainty by comparing different options.

• It prevents emotional factors from influencing the decision.

• It can be used for any type of business choice, such as suppliers, investments, or hiring employees.

Conclusion

Decision-making doesn’t have to be a confusing process. The Decision Matrix allows you to choose the best alternative in a structured way, increasing confidence in the final decision. Next time you need to decide something important for your business, try this method and see how much easier it becomes to make a secure choice.