Okay, there are other ways to make decisions too, but I like the decision matrix. I learned this technique 35 years ago and have used it frequently over the year for many decisions. I like it because it gives me a quantitative bases to clarify my thinking.
I have here an example of how i made the decision to buy my Volvo from lease rather than buying or leasing a new one. To do this I set out my objectives for what i wanted to accomplish and gave each a weight of importance to me. Then on the top of the matrix i listed the alternatives i was considering, buy my current car our of lease or buy a new one. Then i evaluated each alternative giving it a value for how it accomplishes my objectives and multiplied the value by the objective weight to get a total for each. By summing the result i had an idea of what met my objectives best.
This is just the basis for starting the decision process. I could play with my model changing the objective weights and would get a different result. The value of meeting the goal is pretty fixed for the alternatives, so the real determinant is my objectives.
In this example i decided to buy my current car, mostly for total cost, it and it was available. I didn’t want to order one and I also wanted to keep the fire engine red Volvo i have!
Hope this helps someone!
|A||B||A X B||C||A X C|
|OWN VS LEASE||5||5||25||3||15||*|