Decisions, decisions

For most of us, implementing a process management program across the entire business in one fell swoop is just not possible. There are too many processes to document and too few resources to plan and execute properly. Facing this reality means planning on multiple phases of implementation – which begs the question: What processes do you start with?

Deciding which processes to document first is critical to the long-term success of any process management program. For those who already have established process documentation, good decision making as it relates to process improvement projects becomes the key focus.

One temptation in decision making is to simply identify the squeaky wheel in the business – is there a certain department or group of people that are complaining about not having clear process documentation? If so, well, we should do their processes first. Another impulse might be to start with those teams or departments you are most familiar with. After all, why make process management implementation more difficult by trying to work with people with whom you have no existing relationship?

Although these approaches might seem natural, they do not necessarily prioritize the needs of the organization in the decision-making process.

Enter the decision matrix

A decision matrix is a tool that can help teams and leaders make business decisions based on factors most relevant to the needs of the organization or project. A decision matrix does not replace human judgment in decision making. Instead, it seeks to make those judgments more objective, leading to better decisions.

Here are four benefits of using a decision matrix to help guide your process prioritization efforts:

1. A decision matrix allows you to clearly link decision making factors with organizational strategy. If your organization has established KPIs, it should be natural to have those KPIs influence decision making. Factors in a decision matrix can be based on these KPIs and used to drive your process decisions. This also ties into item four below – decisions made based on objective criteria supportive of organizational strategy are decisions that can be more easily supported by the business.

2. A decision matrix forces objectivity in decision making. Too often, temperament and personal preferences get in the way of sound decision making. A decision matrix allows a team to stop operating on “gut feeling” and subjectivity by utilizing clear and measurable definitions for the identified factors.

3. A decision matrix creates a historical record of why a particular decision was made. Having a decision matrix scoring sheet as a receipt can help remind stakeholders of why certain processes were prioritized over others.

4. A decision matrix generates stakeholder buy-in around the decision outcome. Decision matrix factors which are aligned with organizational goals and KPIs become easy “rallying points” for project stakeholders. Personal preferences are put to the side and everyone can work towards a common organizational goal. 

A decision matrix can vary in complexity and often goes by many different names. However, in my opinion, a good decision matrix should have 1) factors that consider both impact and difficulty, 2) factors with objective definitions across a scoring scale, and 3) factors that are weighted.

Template and instructions

I have created a decision matrix template that you can download here: Decision Matrix Template – SimplifyingProcesses.com. This type of template is also known as an alternative analysis matrix.

Below I will outline the steps for customizing and putting this matrix into practice.

First, decide upon your factors.

Factors are the most important criteria a decision hinges on. “Impact” and “Difficulty” are two generally accepted broad categories of factors. Impact factors might include items related to the reach of the project, potential for cost or time savings, potential for defect reduction – essentially, how big of an influence will this project have on the organization? Difficulty factors typically reference things such as cost of implementation, expertise required, resources needed, time to implement – in other words, how challenging will this project be to execute? I suggest finding five to six factors that represent both the impact and difficulty categories.

Next, create objective definitions for each factor along the rating scale.

Objective definitions are what allows for objective decision making. Without them, a decision matrix will simply give a false sense of impartiality. One rule to remember here, you want to associate your most positive outcome with the highest rating on the scale. For example, if “cost” is a factor, then lower cost projects (the positive outcome) should score higher on the scale than projects with a greater cost (a less positive outcome). In this case, a project with an estimated cost of $100 will score lower on the 1-5 rating scale compared to a project with an estimated cost of $10.

Lastly, weigh each factor based on importance.

Not all factors are created equal. Your organization’s strategic objectives or KPIs will often shed light on which factors are most important to the business. Factors that are more important should influence decisions more than factors that are less important. Allocating a percentage weight to each factor reflects the level of importance. Remember that the total percentage of factor weights must equal 100%.

At this point, your decision matrix is ready to use. You can begin to evaluate each process or project and compare the outcome rating.

As mentioned above, a decision matrix does not replace human thinking in the decision-making process. Instead, it helps supplement that thinking with the addition of speed and objectivity. Although we have discussed the use of a decision matrix in the context of process prioritization, I believe most organizational decisions can benefit from this approach.