Decision matrix examples: 7 steps to build yours fast

Decisions, decisions, decisions. Making good decisions can help you steer your team in the right direction and hit your goals, but how do you know which decision is the right one? When faced with two seemingly equal choices, do you flip a coin? Roll the dice? Ask a Magic 8-Ball for help?

Decision-making is a critical part of good business planning, but it can be tricky to know which option is the right one. The key is making a quick decision without being hasty and making the right decision without losing velocity.

If this sounds like an impossible conundrum, don't worry, it isn't. With a decision matrix, you can quickly address the pros and cons of each option, weigh different variables, and make a good decision quickly and easily. In this guide, you'll learn what a decision matrix is, explore different types, discover when to use one, and follow a step-by-step process to create your own.

What is a decision matrix?

A decision matrix is a structured evaluation tool that helps you compare multiple options against a set of weighted criteria to identify the best choice. By assigning scores to each option based on factors like cost, quality, or risk, you transform subjective decisions into objective, data-driven outcomes.

You may have heard a decision matrix called by another term, even though they're all talking about the same thing. Some other names for a decision matrix include:

• Pugh matrix

• Grid analysis

• Multi-attribute utility theory

• Problem selection matrix

• Decision grid

Types of decision matrices

Not all decision matrices work the same way. Depending on your situation, you may want a simple comparison or a more detailed weighted analysis. Here are the most common types:

When to use a decision matrix

You don't always need to use a decision matrix. This process is powerful and relatively easy, but it's most effective when you're deciding between several comparable options.

If the evaluation criteria aren't the same between your different choices, a decision matrix likely isn't the right tool. A decision tree analysis may be better suited for sequential or branching decisions.

For example, it won't help you decide on a direction for your team next year because those options aren't directly comparable.

Use a decision matrix if you are:

• Comparing multiple, similar options

• Narrowing down various options into one final decision

• Weighing a variety of important factors

• Hoping to approach the decision from a logical viewpoint, instead of an emotional or intuitive one

If a decision matrix isn't right for your current situation, learn about other decision-making approaches below.

Benefits of using a decision matrix

A decision matrix does more than organize information. It changes how your team approaches complex choices. Here's why teams rely on this tool:

• Reduces bias: By scoring options against predefined criteria, similar to how a risk matrix evaluates threats, you minimize the influence of gut feelings or personal preferences.

• Creates transparency: Everyone can see how you reached your decision, making it easier to get buy-in from stakeholders.

• Speeds up alignment: Instead of debating opinions, your team focuses on data and agreed-upon priorities.

• Documents your reasoning: When someone asks why you chose a particular vendor or direction, you have a clear record to reference.

• Handles complexity: The more options and criteria you're juggling, the more valuable a structured approach becomes.

How to create a decision matrix in 7 steps

A decision matrix can help you evaluate the best option between different choices, based on several important factors and their relative importance. There are seven steps to creating a decision matrix:

1. Identify your alternatives

Decision matrices are a helpful tool for selecting the best option among a set of similar choices. Before you can build your matrix, identify the options you're choosing between.

For example, let's say your team is launching a new brand campaign this summer. You need to decide on a vendor to create the visuals and videos for the design. Right now, you've identified three design agencies, though each has its pros and cons.

2. Identify important considerations

The second step to building a decision matrix is to identify the important considerations that factor into your decision. This set of criteria helps you identify the best decision and avoid subjectivity.

Continuing our example, your team has decided that the essential criteria to factor in when selecting a design agency are: cost, experience, communication, and past customer reviews.

3. Create your decision matrix

A decision matrix is a grid used to compare key considerations across your options. At Asana, we build our decision matrices directly in our work management platform, which helps teams organize and execute work.

For example, here's what your decision matrix skeleton looks like in Asana if you're deciding between three agencies and factoring in cost, experience, communication, and customer reviews:

If your team needs to compare features, pricing, or vendor options side by side, a comparison chart template can give you a starting point before turning that data into a full decision matrix.

4. Fill in your decision matrix

Now, rate each consideration on a predetermined scale. If there isn't a large variation among the options, use a scale of 1-3, with 3 as the best. For more options, use a scale of 1-5, with 5 as the best.

This is where the advantages of a decision matrix really start to shine. Without one, comparing agencies might look like this:

• Agency 1: Cost-effective, but limited experience. Average communication and reviews.

• Agency 2: Mid-range cost with solid experience and great reviews, though communication has been lacking.

• Agency 3: Most expensive with the most experience. Average communication and good reviews.

It's hard to pick a winner from these descriptions alone. Here's what the same information looks like in a decision matrix, ranked from 1-5:

5. Add weight

Sometimes, specific considerations are more important than others. In such a case, use a weighted decision matrix to identify the best option for you.

To continue our example, imagine you absolutely can't go over your budget, so cost is a critical factor in your decision-making process. Customer reviews are also important, since they give you a baseline sense of how effective each agency has been in the past.

To add weight to a decision matrix:

• Assign a weight: Give each criterion a number (1-3 or 1-5) based on its importance.

• Multiply later: You'll multiply each score by its weight to get the final weighted score.

Here's what that looks like in our example:

6. Multiply the weighted score

Once you've applied your rating scale and assigned a weight to each consideration, multiply the weight by each consideration. This ensures that the more important considerations receive greater weight, which will ultimately help you select the best agency.

To continue our example, here's what it looks like when you apply the weighted scores to each consideration for each agency:

7. Calculate the total score

Now that you've multiplied the weighted score, add up all of the considerations for each agency. At this point, you should have a clear, numbers-based answer to which decision is the best one.

For example, this is what the finished decision matrix looks like:

Agency 2 has the highest score, making it the clear winner. Even though Agency 1 was cheaper, Agency 2's balance of cost, experience, and stellar reviews makes it the best choice. All that's left is to contact them and move forward with your campaign.

Decision matrix example

Decision matrices work for any choice involving multiple options and criteria; they don't have to be business-critical. For example, you could use one to decide which chair to buy for your work-from-home setup, weighing comfort, cost, and reviews across four options.

Decision-making alternatives

If the decision matrix method isn't quite right for your choices, try:

Eisenhower matrix

An Eisenhower matrix is a 2x2 grid to help you prioritize tasks by urgency and importance. This matrix is helpful if you are juggling a variety of non-similar tasks and need to decide which to work on first.

• In the upper left-hand corner, list urgent and important work: These tasks are a top priority. Do them now, or as soon as possible.

• In the upper right-hand corner, list less urgent but important work: To ensure you get to these tasks, schedule them into your calendar, or capture the due date in a project management tool.

• In the lower left-hand corner, list urgent and not important work: These tasks need to get done, but there is probably a better person for the job. Delegate this work if possible.

• In the lower right-hand corner, list less urgent and not important work: Defer these tasks, or don't do them. Clarifying your priorities and letting team members know that you can't work on something right now is one way to reduce burnout.

Stakeholder analysis map and RACI chart

One of the most important decisions you have to make during the project planning process is to decide which stakeholders should be included, consulted, or informed. For this decision, create a stakeholder analysis map. This map helps you categorize stakeholders based on their relative influence and interest.

There are four categories in a stakeholder analysis map:

• High influence and high interest: Involve these stakeholders in the project planning and decision-making process.

• High influence and low interest: Let these stakeholders know about the project and monitor their interest in case they want to become more involved.

• Low influence and high interest: Keep these stakeholders informed about the project. Add them to your project status updates so they can stay in the loop.

• Low influence and low interest: Touch base with these stakeholders at regular checkpoints, but don't worry too much about keeping them informed.

Once you've figured out your key stakeholders, you can also create a RACI chart. RACI is an acronym that stands for Responsible, Accountable, Consulted, and Informed. RACI charts can help you decide who the primary decision-maker is for each task or initiative.

Team brainstorming session

Sometimes the best way to make a decision is through group decision-making, like a good old-fashioned team brainstorm. Hold a whiteboard brainstorming session or share ideas in a project management tool.

At Asana, we like to use Kanban boards for flexible brainstorming sessions. Here's how it works:

• The facilitator creates a Board where team members add ideas or feedback.

• Each team member "likes" their favorite suggestions.

• The team discusses the top-voted ideas and decides which to move forward with.

Make confident decisions

Making quick decisions is an important part of good project planning and project management. Whether you use a decision matrix to make a complex decision or a simple one, these tools can help you consider different factors and make the best decision for your team.

Ready to bring structure to your team's decisions? Get started with Asana to build and track your decision matrices alongside your projects, so you can move from evaluation to action without missing a beat.

Frequently asked questions about decision matrices