Surbhi Sooni A passionate product leader and strategist.

What is a decision matrix? Templates, examples, and types

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What Is A Decision Matrix? Templates, Examples, And Types

In the dynamic world of business, daily operations bombard entrepreneurs, business stakeholders, and product managers with a deluge of decisions. These choices, big or small, carve the trajectory of business growth. They range from prioritizing everyday tasks to assessing opportunities, creating processes, and far beyond. Often, the complexity weighs heavily on an organization’s success or failure.

One tool that can help you navigate this maze is the decision matrix.

Often, the plethora of choices business leaders must make generates decision fatigue, clouding objectivity and escalating subjectivity. The decision matrix comes to the rescue by distilling choices down to their core attributes, offering a simplified, objective perspective for comparison.

In this guide, we’ll show you how using a decision matrix can help you rise above the chaos, prioritize alternatives, and make insightful decisions with confidence and clarity.

Table of contents

What is a decision matrix?

A decision matrix, also known as a decision-making or weighted decision matrix, facilitates the evaluation and prioritization of multiple alternatives against diverse criteria. This universal tool finds use in varied domains, from business strategy and project management to product development.

At the heart of a decision matrix is a straightforward grid. This grid catalogues options as rows, while the criteria for assessment form the columns.

Let’s look at an example. Here, the options are three different software features:

  • User analytics
  • Mobile responsiveness
  • API development

The criteria for evaluating these options are customer need, development cost (where a lower cost is better, so it’s scored in reverse), and business value.

Each of these criteria is scored on a scale from 1 to 5. The total score is the sum of these scores for each option. This can provide an objective framework to decide which feature to focus on developing next:

Criteria/Options User Analytics Mobile Responsiveness API Development
Customer need (1-5) 4 5 3
Development cost (1-5, lower cost = higher score) 3 2 5
Business value (1-5) 5 4 4
Total score 12 11 12

Each intersection between an option and a criterion then houses a score that reflects how well that option fulfills the criterion. The total score for an option, calculated by aggregating these individual scores, acts as a crucial guidepost in making informed decisions. In essence, an option with a higher total score often indicates a more promising choice.

The charm of the decision matrix lies in its logical rigor. Instead of basing decisions on intuitions or assumptions, this tool fosters a methodical analysis, ultimately promoting more insightful choices. Here are some of the notable benefits:

  • Transparency — The decision matrix fosters impartiality by evaluating various options against a predefined set of criteria, adding a layer of transparency to the decision-making process
  • Clarity — By dissecting options based on their advantages and disadvantages, the decision matrix illuminates the path to informed decisions, bringing clarity and structure to the process
  • Logical reasoning — The tool provides a framework to juxtapose different options, scrutinizing the strengths and weaknesses of each, facilitating decisions rooted in logic and reason
  • Prioritization — A decision matrix enables effortless prioritization by quantifying the relative importance of each criterion for every option
  • Improved communication — Decision matrices aid in articulating the rationale behind decisions. By showcasing the logical evaluation process, it paves the way for easy communication with stakeholders and helps garner their approval

The decision matrix proves particularly potent in product management. It equips product managers to assess and balance customer needs, market trends, business objectives, and goals, thereby making informed, data-driven decisions.

6 types of decision matrices

Decision matrices emerge in diverse forms, each tailored for specific scenarios and decision-making processes. Some of the more prevalent variants are:

  1. Simple decision matrix
  2. Eisenhower matrix
  3. Analytical hierarchy process (AHP)
  4. Weighted decision matrix
  5. Pugh matrix
  6. Decision tree

1. Simple decision matrix

The simple decision matrix serves as the basic blueprint. It contrasts options against chosen criteria, enabling decision-makers to assign scores based on a predetermined scale:

Simple Decision Matrix Example
Source: SketchBubble

Typically, these scores are numerical, offering a straightforward method for comparison.

2. Eisenhower matrix

The Eisenhower Matrix, also known as the Eisenhower Decision Matrix, Eisenhower Box, and Urgent-Important Matrix, is a time and task management tool that helps individuals prioritize their tasks by considering two factors: urgency and importance.

To use the Eisenhower Matrix, first identify all the tasks you need to complete. Then, based on the urgency and importance of each one, place it in one of the four quadrants of the matrix:

Eisenhower Matrix

3. Analytical hierarchy process (AHP)

The AHP takes decision-making to a new level of complexity. Rather than merely contrasting options against criteria, the AHP introduces the concept of sub-criteria, granting a deeper level of analysis:

Analytic Hierarchy Process Example
Source: ToolsHero

Additionally, the AHP uses pairwise comparisons, allowing stakeholders to judge the relative importance of each goal. In this process, the AHP does not dictate a ‘correct’ decision. Instead, it illuminates the path to the decision that best aligns with the established goals.

Such a tool proves invaluable in strategic decision-making contexts, such as succession planning or resource allocation.

4. Weighted decision matrix

This variation of a decision matrix introduces a sense of importance to each criterion. By assigning weights and scores to individual criteria, the weighted decision matrix helps discern the priority option:

Weighted Decision Matrix Example

A weighted decision matrix can be deployed in various scenarios, such as when evaluating product features or backlogs against criteria like time, effort, impact, and reach.

5. Pugh matrix

The Pugh matrix adds an element of reference to the decision-making process. It operates by selecting a benchmark option, then evaluates all other alternatives in comparison to this reference point:

Pugh Decision Matrix Example
Source: QIMacros

The Pugh matrix thus provides a relative analysis, facilitating informed decision-making.

6. Decision tree

When decision-making involves sequential dependencies, decision trees come into play. This tool graphically represents potential decisions and their outcomes in a tree-like structure. Every node in the tree depicts a decision point, and the branches signify different possible actions:

Decision Tree Example

By offering a visual exploration of decision paths, decision trees greatly simplify the decision-making process.

How to create a decision matrix (7 steps)

Building a decision matrix is a process that necessitates attention to detail and an understanding of the objectives at hand. The following steps serve as a road map for constructing an effective decision matrix:

  1. Define the objective — Clearly outline the decision that needs to be made. This could be selecting a vendor, prioritizing product features, or any other decision that requires a comprehensive evaluation
  2. Identify the criteria — Establish the measurable criteria that align with the decision objective. These criteria form the basis for evaluating the options at hand
  3. Assign weights — Allocate weights to each criterion to reflect its relative importance. This step helps differentiate the significance of each criterion and guides the scoring process
  4. Define the rating scale — Determine a scale to measure each option’s suitability against each criterion. This scale could be quantitative (such as 1-5) or qualitative (like poor, fair, good, and excellent)
  5. Evaluate options — Measure each option against each criterion and assign a score on the predetermined scale. Be sure to involve relevant stakeholders in this step to ensure a well-rounded evaluation
  6. Compute the scores — Multiply each criterion’s weight by the respective score given to each option. Then, sum these values to derive the total score for each option
  7. Make the decision — Review the total scores and select the option with the highest score. Remember, the decision matrix is a guide, not a dictator. It should inform and influence the decision, not solely determine it

Mastering the art of the decision matrix can be transformative. It can elevate an organization’s decision-making process from chaotic and ambiguous to structured and insightful. So, embrace this tool, navigate the decision labyrinth with ease, and accelerate towards your business goals.

Decision matrix templates

The templates below are designed to help you get started creating a decision matrix for your product or business:

Simple decision matrix template

You can fill out the following decision matrix template by following the instructions outlined above:

Criteria/options Option 1 Option 2 Option 3
Criterion 1 Score 1.1 Score 2.1 Score 3.1
Criterion 2 Score 1.2 Score 2.2 Score 3.2
Criterion 3 Score 1.3 Score 2.3 Score 3.3
Total score Total 1 Total 2 Total 3

Weighted decision matrix template

Fill out the score for each option based on each criterion, then multiply that score by the weight of the criterion to get the weighted score. Sum these up for each option to get the total weighted score:

Criteria Weight Option 1 Option 2 Option 3
Criterion 1 0.3 Score 1.1 Score 2.1 Score 3.1
Criterion 2 0.5 Score 1.2 Score 2.2 Score 3.2
Total weighted score Total weighted 1 Total weighted 2 Total weighted 3

Pugh matrix template

Use one option as a reference and fill out whether each other option is better, the same, or worse than the reference based on each criterion. This provides a relative comparison between options:

Criteria/options Reference (option 1) Option 2 Option 3
Criterion 1 Better/same/worse Better/same/worse
Criterion 2 Better/same/worse Better/same/worse

Challenges in using a decision matrix

While decision matrices offer considerable benefits, it’s crucial to remember that no tool is flawless. Recognizing potential pitfalls and challenges can help users mitigate their impact.

Here are some challenges associated with using decision matrices:

  1. Subjectivity — Although decision matrices provide a structured approach, the scoring system inherently contains some level of subjectivity. Different stakeholders may assign different scores to the same option based on their perspective
  2. Complexity — Decision matrices can become complex, especially when dealing with a large number of criteria or options. This complexity could lead to confusion and increase the time needed for the decision-making process
  3. Overemphasis on quantification — Not all decisions can be adequately quantified or measured. Sometimes, the nuances of certain criteria may be overlooked when reduced to numbers. This is particularly relevant for considerations that involve emotions, values, or personal preferences

Despite these challenges, decision matrices can still provide a robust structure for decision-making. Here’s how you can manage the mentioned obstacles:

  1. Tackle subjectivity — Involve multiple stakeholders in the scoring process to create a more balanced and comprehensive evaluation. You can also use a consensus method for scoring, or average out individual scores to reduce bias
  2. Manage complexity — Make sure the criteria chosen are specific, measurable, and relevant to the decision at hand. Keep the number of options and criteria manageable. Remember, the goal is to assist the decision-making process, not to overwhelm it
  3. Balance quantitative and qualitative analysis — Use a decision matrix in conjunction with other decision-making tools. For instance, a SWOT analysis could help explore qualitative factors, while a decision matrix quantifies and prioritizes options. These tools can complement each other, providing a holistic view of the situation

Examples of use cases in product management

Product management involves making numerous impactful decisions. A decision matrix can aid product managers in various critical areas, including backlog/feature prioritization, vendor selection, roadmap planning, A/B testing, go-to-market (GTM) strategy, risk mitigation, and more. Here’s how:

  1. Feature prioritization — A decision matrix can help you evaluate and compare features based on criteria such as impact, technical feasibility, effort, demand, and strategic fit
  2. Market opportunity analysis — Using a decision matrix enables you to assess and compare multiple market opportunities and facilitate priority setting
  3. Vendor selection — A decision matrix help you can evaluate vendors on criteria like pricing, support, reliability, capacity, scalability, and alignment with the company’s values, assisting in selecting the most suitable and reliable vendors
  4. Roadmap planning — Evaluating factors such as customer value, business goals, technical feasibility, resource requirements, market trends, tech debt, bugs, and feedback can aid in determining which initiatives and features to include in the roadmap
  5. GTM strategy — A decision matrix can help you determine the best market entry strategy for new products and features by evaluating criteria like size, competition, customer segment, regulatory requirements, and available resources
  6. Risk assessment — A decision matrix can assist in assessing risks based on complexity, legal/regulatory compliance, financial issues, and market conditions. This allows the product team to anticipate high-risk areas and devise mitigation strategies
  7. A/B testing and experimentation — A decision matrix can guide the product team in deciding which variation of an experiment performed better, thus informing future iterations or decisions

These examples demonstrate the practical applications of a decision matrix, enabling product managers to leverage data throughout the product lifecycle.

Tips and best practices

As a product manager, every decision you make is a step forward in your product’s journey, and you want to make sure each step counts. By embracing a few best practices, you’ll ensure your decision matrix is not just a rote process but a powerful tool, enabling you to make strategic, data-driven decisions.

Here are some tips and tactics for product managers when using a decision matrix:

  1. Criteria and weights — Identify key criteria relevant to the decision and reduce any unnecessary ones. Keep the criteria specific and limited in number, adhering to the KISS principle (keep it simple, stupid)
  2. Seek inputs from stakeholders — Involving stakeholders provides multiple perspectives, diverse insights, and a more comprehensive assessment of options
  3. Validate assumptions — Verify the accuracy of the criteria to ensure the reliability of the decision matrix. This step reduces bias and improves the integrity of the decision-making process
  4. Analyze results — Consider the context and other factors before selecting the highest-scoring option. Conduct a sensitivity analysis by adjusting weights across the criteria to identify the factors most impacting the decision
  5. Review and revise — Update the decision matrix as factors and criteria change. Add new criteria as necessary. Remember, flexibility is key
  6. Trust your judgment — Use the decision matrix as a guide, but don’t disregard your instincts and expertise. Sometimes, intuition can play a critical role in decision-making


A decision matrix encourages objectivity over subjectivity in comparing options and identifying optimal solutions. While every tool has limitations, a product team can enhance decision-making by combining a decision matrix with other frameworks and tools, such as SWOT, RICE, and 2×2 prioritization.

The decision matrix approach allows for consideration of additional factors and contexts in decision-making. In essence, a decision matrix provides a systematic framework that, in conjunction with other tools, improves clarity and enables product teams to make informed, well-considered decisions.

Featured image source: IconScout

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Surbhi Sooni A passionate product leader and strategist.

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