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Do you want a simple and easy tool for making an important decision? The simplest “tool” is a heuristic<\/a>. A short-cut like “take the default” or “do what everyone else is doing” may be fine for selecting a restaurant entr\u00e9e or route to the grocery store. But what about more important decisions like taking a job offer, choosing a home or selecting an investment? That calls for a more powerful tool, like a decision matrix or decision tree. Since we’ve already discussed the decision trees<\/a>, let’s take the red pill<\/a> and dive into the Decision Matrix.<\/p>\n

“You take the blue pill, the story ends. You wake up in your bed and believe whatever you want to believe. You take the red pill, you stay in Wonderland, and I show you how deep the rabbit hole goes.”
\n\u2015Morpheus, to Neo<\/p><\/blockquote>\n

A Decision Matrix is simply a table where you list your criteria and score each alternative for each criterion. For example, “Anonymous” recently asked me on Quora, “How should I decide what job to choose?<\/a>” This lucky person had two job offers and wanted help analyzing the decision. Here’s a more complete answer to how to do that:<\/p>\n

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  1. Define the decision opportunity, e.g., which job offer to take<\/li>\n
  2. Find a quiet spot and mindfully, i.e. non-judgmentally, attend to the facts and feelings surrounding the decision. Be aware of potential biases <\/a>and noise<\/a><\/li>\n
  3. Identify the relevant stakeholders. Who is affected, besides Anonymous? Family, friends, current clients, future clients, even the environment may be included in the analysis<\/li>\n
  4. List the stakeholders’ interests as criteria. Anonymous may be concerned about how well he likes management, the pay and the location for himself. A longer commute could disadvantage loved ones who spend less time with Anonymous and the environment which will be polluted more.<\/li>\n
  5. Add weights to the criteria so that the weights total 100 percent<\/li>\n
  6. Give each job a score, on a scale of, say, one to five for each criterion<\/li>\n
  7. Calculate the weighted average score for each alternative by multiplying the scores by the criteria, summing up these products. You can see how the calculations work in this little spreadsheet (which you can download):
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