What is a Decision Matrix?
Also known as: decision-making matrix, solutions prioritization matrix, cost/benefit analysis matrix, problem/solution matrix, options/criteria matrix, [pic][pic]vendor selection matrix, criteria/alternatives matrix, RFP evaluation matrix, COWS decision matrix, C.O.W.S. decision matrix, supplier rating spreadsheet, comparison matrix template, importance/performance matrix, criteria-based decision matrix, importance/performance-based decision matrix, weighted score matrix, proposal evaluation matrix, criteria/alternatives matrix, software selection matrix, or bid decision matrix.
Decision Matrix Definition
A decision matrix allows decision makers to structure, then solve their problem by: 1. specifying and prioritizing their needs with a list a criteria; then 2. evaluating, rating, and comparing the different solutions; and 3. selecting the best matching solution.
As is, a decision matrix is a decision tool used by decision makers as part of their Decision-Support Systems (DSS) toolkit. It's a tool that acquirers use to address requirements that an acquisition plan template worthy of the name defines for selecting the contractor best matching their needs, as part of the acquisition life cycle. In the context of procurement, which is the solicitation and selection process enabling the acquisition of goods or services from an external source, the decision matrix, also called scoring matrix, helps determine the winning bid or proposal amid all those sent in response to an invitation to do so that, depending of the best-suited solicitation process, could either be a: • Request for Proposals (RFP),
• Invitation for Bids (IFB),
• Invitation to Bid (ITB), or
• Invitation to Tender (ITT).
A decision matrix is basically an array presenting on one axis a list of alternatives, also called options or solutions, that are evaluated regarding, on the other axis, a list of criteria, which are weighted dependently of their respective importance in the final decision to be taken. The decision matrix is, therefore, a variation of the 2-dimension, L-shaped matrix. The decision matrix is an elaborated version of the measured criteria technique in which options are given, for each criterion, satisfactory or compliance points up to a maximum (usually from 0 to 100) that is predefined per criterion and may vary between criteria depending on its relative importance in the final decision.
Decision Matrix Activity
Should you be involved in creating a decision matrix, here is the activity you will be engaged in. Use the COWS method, shown below, that describes all the information you should come up with in order to make an impartial decision: |C | |Criteria. | | | |Develop a hierarchy of decision criteria, | | | |also known as decision model. | |O | |Options. | | | |Identify options, also called | | | |solutions or alternatives. | |W | |Weights. | | | |Assign a weight to each criterion | | | |based on its importance in the final decision. | |S | |Scores. | | | |Rate each option on a ratio scale by assigning it | | | |a score or rating against each criterion. |
Decision Matrix Example
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