Decision Making Tools
Decision techniques, and guidance for selecting the right decision making tool
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Tools for Decision Making |
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Decision Matrix - Quadrant Chart aka PICK Matrix, Impact Effort Matrix The most popular decision making tool, Learn more about the Decision Matrix template, |
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Decision Matrix - Simple A simple way to apply a systematic approach Simply list the Objectives and weights of Importance in columns, Learn more about the Decision Matrix template |
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Values List aka Forced Choice, Paired Comparison, Values Ranking worksheet To prioritize a long list of choices especially when subjective personal preferences are very important. Often used to prioritize potential evaluation criteria
Learn more about the Values List Worksheet |
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Prioritization Matrix Can also be used to prioritize a long list of choices. The most thorough decision making method — Learn more about the Prioritization Matrix |
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Quadrant Chart To visually understand relationships between any two factors affecting an issue. There are many types of quadrant charts, including:
Learn more about the Quadrant Chart template |
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To Do List The To Do List has two (optionally unhidden) columns |
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| More decision making tools | |
It could be argued that every continuous improvement tool is actually a tool for making some type of decision. Here are a few that deserve special mention... |
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A3 Report Although the A3 Report is best known as a problem solving tool, and no matter which decision making tools and methods were used, an A3 Report provides a ideal way to 'tell your story' of what problems were faced, what root causes were identified, what goals and targets were chosen, what options were considered, why you made your choice, how your changes were implemented, and expected vs. actual measured results. All on one page. |
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Force Field Analysis Use your Force Field Analysis template to make better decisions based upon a better understanding of the psychological forces within the workplace. |
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Tree Diagrams A tree diagram is an excellent tool to graphically depict a decision tree |
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Decision Logic Flow Chart If the branches aren't so simple, |
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Matrix template A simple Matrix template can be personalized to analyze just about anything. |
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Cause and Effect Matrix The Cause & Effect Matrix is a special type of Pareto Chart |
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House of Quality – QFD The House of Quality QFD answers the same question but more thoroughly. And features a "roof" to identify Alternatives that reinforce or conflict |
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Scatter Plot X-Y Graph You can use the Correlation Analysis section of your Scatter Plot template to determine whether or not two decision-making variables might be correlated. |
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Histogram You can use yourr Histogram template to look for patterns within the observations of your data. |
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Strategic Planning Tools The biggest decisions are strategic. And these strategic planning tools provide structure and systems to focus |
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Value Stream Mapping Value Stream Mapping is a strategic tool to answer the all-important question: "Where should we focus our attention?" (What continuous improvement projects will yield the most benefits to our customers?) |
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Rating Scales You can use any of the following rating scales for just about any decision tool. Tip: You can optionally personalize your master template with your preferred rating scale — 1,2,3 or 1,2,3,4,5 On your DV worksheet (where you define your dropdown lists), 1,3,9 or 1,4,9 A popular method to increase differences between options Rank order Rank order all or specified number of options — Pugh Matrix Establish a baseline (perhaps current conditions, or one of the options...) For each criterion, rate each option in comparison to the baseline. –1 if worse 0 if same 1 if better You can optionally establish a finer scale — for example, –2 or –3, rather than just –1 |
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Decision Techniques
Selecting the right decision making process
Most of the following techniques can be used with or without a decision making tool.
Group Decision Making
In addition to the more systematic tools & approaches,
the three most popular simple decision methods are:
- Autocratic decision
The leader considers the options, and makes the decisions.
- Democratic majority vote
Either simple majority, or any moderating rules you come up with.
Sometimes results in hard feelings and/or sabotage. - Consensus
Everyone agrees to support a decision, even if not their personal top choice.
Brainstorming and
Root Cause Analysis
Before making a decision, it is often good practice to do brainstorming,
and/or root cause analysis.
List Reduction
The simple techniques for list reduction should always be used first.
If there are still too many options...
then you can use the Values List template or Prioritization Matrix to prioritize and narrow down your list,
and/or
one or more of the following decision making techniques.
Criteria Filtering
When to use
- To reduce a list of options to a smaller list, or...
- To select a final choice for a decision that is not worth the time for a more rigorous analysis.
How
- Brainstorm criteria for evaluating your options
and discuss to arrive at your final list of evaluation criteria.Ideally, questions are phrased to be answered with a "yes" or "no" — with "yes" being the desired answer,
but there can be exceptions to this. - Reach consensus to rank order the evaluation criteria — from most important to least.
- Create an L-shaped matrix of options and (rank ordered) evaluation criteria.
- Evaluate each option against each criterion.
Usually, by asking the question, "Does this option satisfy this criterion?"
If there is disagreement, tally votes.Start with the most important evaluation criteria, and work your way down.
You might reach consensus before wasting time on less important criteria. - Discuss, and reach consensus.
If unable to reach consensus, perhaps use a more rigorous decision-making tool and/or method.
Multi-voting
When to use
- After generating a list of options, and using the usual simpler methods to reduce the list
- To reduce a list of options to a smaller list, or...
- To make a decision based on group deliberation
How
- Display the entire list of options
Perhaps assign a number or letter to identify each item.
- Each team member selects five items (or other specified number of allowed choices)
Write all five on separate pieces of paper — along with priority ranking for each choice.
Highest number has highest priority.
- Tally the votes
Collect votes. Shuffle them. Write priority ranking number next to each item. Total the weighted votes.
- If decision is not obvious — discuss
To avoid hard feelings or sabotage, seek consensus, rather than simply outvoting the minority voices.
If agreement is not easy... either repeat multi-voting after discussion, or use a different decision making method.
Plus Minus Interesting (PMI)
When to use
- When evaluating an option
- Especially when the group (or an individual within the group)
seems able to see only the one-sided advantages or disadvantages of the option
How
On a flip chart... one phase at a time... (don't skip back & forth between pluses and minuses)...
- Brainstorm pluses — that favor the option
- Brainstorm minuses — challenges of the option
- Brainstorm interesting aspects of the idea — neutral aspects, or questions to investigate
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Suggested Reading and Resources for
Decision Making Tools
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These decision making tools come bundled with
priced low enough to empower every team member |
