What is a Decision Matrix?
Also known as: decisionmaking matrix, solutions prioritization matrix, cost/benefit analysis matrix, problem/solution matrix, options/criteria matrix, vendor selection matrix, criteria/alternatives matrix, RFP evaluation matrix, COWS decision matrix, supplier rating spreadsheet, comparison matrix template, importance/performance matrix, criteriabased decision matrix, importance/performancebased decision matrix, weighted score matrix, proposal evaluation matrix, criteria/alternatives matrix, software selection matrix, or bid decision matrix.
Use templates and samplesprovided in your FREE RFP Letters Toolkit to create your own Decision Matrix.
Decision Matrix Definition
A decision matrix allows decision makers to structure, then solve their problem by:

specifying and prioritizing their needs with a list a criteria; then

evaluating, rating, and comparing the different solutions; and

selecting the best matching solution.
As is, a decision matrix is a decision tool used by decision makers as part of their DecisionSupport Systems (DSS) toolkit.
In the context of procurement, which is the solicitation and selection process enabling the acquisition of goods or services from an external source, the decision matrix, also called scoring matrix, helps determine the winning bid or proposal amid all those sent in response to an invitation to do so that, depending of the bestsuited solicitation process, could either be a:

Request for Proposals (RFP),

Invitation for Bids (IFB),

Invitation to Bid (ITB), or

Invitation to Tender (ITT).
A decision matrix is basically an array presenting on one axis a list of alternatives, also called options or solutions, that are evaluated regarding, on the other axis, a list of criteria, which are weighted dependently of their respective importance in the final decision to be taken. The decision matrix is, therefore, a variation of the 2dimension, Lshaped matrix.
The decision matrix is an elaborated version of the measured criteria technique in which options are given, for each criterion, satisfactory or compliance points up to a maximum (usually from 0 to 100) that is predefined per criterion and may vary between criteria depending on its relative importance in the final decision.
The Decision Matrix is also called:

AHP matrix

advantages comparison matrix

alternative evaluation matrix

alternatives analysis decision making matrix

alternatives analysis matrix

alternatives comparison matrix

alternatives/criteria matrix

alternatives evaluation matrix

alternatives ordering matrix

alternatives prioritization matrix

alternatives rating matrix

alternatives scoring matrix

analytical grid

AnalyticalHierarchyProcess matrix

analytical matrix

application prioritization matrix

bid decision matrix

bid matrix

bid/nobid analysis decision matrix

bid prioritization matrix

bid scoring decision matrix

bidders comparison matrix

comparison matrix

comparison matrix

cost/benefit analysis grid

cost/benefit matrix

COWS decision matrix

criteria/alternatives matrix

criteriabased decision matrix

criteriabased matrix

criteria rating form

decision alternative matrix

decision grid

decisionmaking matrix

decision matrix

decision matrix form

decisionsupport grid

decisionsupport matrix

decision table

evaluation matrix

evaluation criteria decision matrix

executive decision matrix

government decision matrix

government procurement matrix

gridbased decision making

gridbased decision support

importance vs. performance matrix

importance vs. past performance matrix

importance/performancebased decision matrix

measured criteria technique

multiple alternative matrix

multipleattribute decision matrix

multiple criteria decision matrix

multiple dimension comparison matrix

opportunity analysis

option analysis and evaluation matrix

options analysis decision making matrix

options analysis matrix

options/criteria matrix

options prioritization matrix

performance matrix

performance vs. importance matrix

performancebased decision matrix

prioritization grid

prioritization matrix

prioritizing matrix

problem matrix

problem prioritization matrix

problem selection matrix

problemsolution matrix

problem solving matrix

project selection matrix

proposal comparison matrix

proposal decision matrix

Pugh matrix

Pugh method

rating grid

requirements analysis table

requirements matrix

RFP alternative matrix

RFP analysis matrix

RFP evaluation grid

RFP evaluation matrix

RFP scoring matrix

scoring matrix

scoring RFP matrix

screening matrix

selection grid

selection matrix

software vendor selection matrix

solution analysis matrix

solution matrix

solution selection matrix

solutions prioritization matrix

source evaluation matrix

source selection matrix

strategy decision matrix

supplier comparison decision matrix

supplier comparison matrix

supplier evaluation matrix

supplier rating spreadsheet

supplier selection decision

supplier rank matrix

vendor comparison decision matrix

vendor comparison matrix

vendor matrix

weighted criteria matrix

weighted comparison matrix

weighted decision matrix

weighted decision table

weighted prioritization matrix

weighted project ranking matrix

weighted score matrix

weighted scoring matrix
Decision Matrix Activity
Should you be involved in creating a decision matrix, here is the activity you will be engaged in. Use the COWS method, shown below, that describes all the information you should come up with in order to make an impartial decision:
C 

Criteria.
Develop a hierarchy of decision criteria,
also known as decision model. 
O 

Options.
Identify options, also called
solutions or alternatives. 
W 

Weights.
Assign a weight to each criterion
based on its importance in the final decision. 
S 

Scores.
Rate each option on a ratio scale by assigning it
a score or rating against each criterion. 
Decision Matrix Example
For our decision matrix example, let's consider the information below. Let's say we've identified criteria C1, C2, and C3 playing a role in the final decision, with a respective weight of 1, 2, and 3. Moreover, we've found 3 prospective providers A, B, and C, whose offer may constitute a good solution.
Creating a decision matrix
It's critical to rate solutions based on a ratio scale and not on a point scale. For instance, the ratio scale could be 05, 010, or 0100. Should you feel you must use a point scale (for instance, maximum speed, temperatures, etc.), you must then convert rating values on a ratio scale by assigning the maximum ratio to the estimated maximum value, which could be, for instance, 5 (for a 05 scale), 10 (010), or 100 (0100). Indeed, a point scale with high values introduces a bias even if it's of less importance in the final decision.
We've laid out the information into a 2dimension, Lshaped decision matrix as shown below, and then compute the scores for each solution regarding the criteria with the formulas below:
Score = Rating x Weight
and then
Total Score = SUM(Scores)
The result is the following:
Scenario #1

ALTERNATIVES 

Option A 
Option B 
Option C 
CRITERIA 
Weight 
Rating 
Score^{(1)} 
Rating 
Score^{(1)} 
Rating 
Score^{(1)} 
Criterion C1 
1 
3 
3 
3 
3 
3 
3 
Criterion C2 
2 
2 
4 
1 
2 
2 
4 
Criterion C3 
3 
1 
3 
3 
9 
2 
6 
Total

6 
4 
10 
7 
14 
7 
13 
^{(1) }Score = Rating * Weight
For a better interpretation, we can visualize the data in histograms. To do so, let's consider, as the data source, the ratings and scores of evaluated solutions. Here is the result:

WEIGHTS:
W1 = 1
W2 = 2
W3 = 3


Solution Ratings
When we sum up the ratings, both solutions B and C are equivalent and outperforming solution A. While similar globally, options B and C present different intrinsic strengths and weaknesses. Indeed, option B is better than option C for the criterion C3, but weaker on C2, while option C distribute more evenly its forces.
Therefore, Option B is usually called a bestofbreed solution, while Option C is a typical suite or integrated solution.
Let's apply the weights to the ratings now to obtain the...
Solution Scores
While both options B and C were initially equivalent ratingly speaking, weights applied to their ratings exacerbate the strength of option B in criterion C3. Indeed, a higher weight was applied to its strength and a lesser to its weakness, resulting in a first place. In this particular context, the better the solution breed, the higher rank the solution gets.
We have here an interesting example of a battle opposing two alternatives at first sight equivalent, but one showing an explicit, differentiated strength against an other solution seeming spreading its strengths more evenly. Extrapolated, this battle is also called:

The One versus The Best

AllinOne versus BestofBreed

Suite versus BestofBreed

BestofBreed versus Integrated solutions
To solve this dilemma, there's no answer. Rather, the answer is "It depends". Indeed, depending on the contextual needs, one kind may be selected over the other. But, whatever the path chosen, the decision matrix won't be of any help in this matter but raising the concern. You will have to decide what's best for your organization's future. You could even build a meta decision matrix to help you answer this question...
Let's take a look at what would happen should your priorities change, and then find out the...
Importance of weight distribution in the final decision
In order to discuss about the relative importance or effectiveness of weights coupled with ratings in the final decision, let's use the same aforementioned example and play with the weights, given the ratings won't never change.
In the first scenario, the weights were distributed as 1, 2, and 3 respectively for criterion C1, C2, and C3. Let's increase the second weight from 2 to 3. Here is the result:
Scenario #2

ALTERNATIVES 

Option A 
Option B 
Option C 
CRITERIA 
Weight 
Rating 
Score^{(1)} 
Rating 
Score^{(1)} 
Rating 
Score^{(1)} 
Criterion C1 
1 
3 
3 
3 
3 
3 
3 
Criterion C2 
3 
2 
6 
1 
3 
2 
6 
Criterion C3 
3 
1 
3 
3 
9 
2 
6 
Total

7 
4 
12 
7 
15 
7 
15 
^{(1) }Score = Rating * Weight

WEIGHTS:
W1 = 1
W2 = 3 (+1)
W3 = 3


Solution Ratings
Based on an initial, fair, and impartial evaluation, the ratings don't change since solution capabilities remain the same. In some cases we hope there're rare, evaluators may be tempted to change the ratings to give a favor to a soillegitimately selected solution.
Then we obtain the new...
Solution Scores
Because they are globally equivalent in their ratings, and given identical weights, both options B and C are now ex aequo. But, still, as you may notice, their internal differences remain.
Now, let's keep the second weight at 3, and decrease the third from 3 to 2. Here is the result:
Scenario #3

ALTERNATIVES 

Option A 
Option B 
Option C 
CRITERIA 
Weight 
Rating 
Score^{(1)} 
Rating 
Score^{(1)} 
Rating 
Score^{(1)} 
Criterion C1 
1 
3 
3 
3 
3 
3 
3 
Criterion C2 
3 
2 
6 
1 
3 
2 
6 
Criterion C3 
2 
1 
2 
3 
6 
2 
4 
Total

6 
4 
11 
7 
12 
7 
13 
^{(1) }Score = Rating * Weight

WEIGHTS:
W1 = 1
W2 = 3 (+1)
W3 = 2 (1)


Solution Ratings
Ratings still don't change, since the solution features and benefits are the same.
Now, let's keep the second weight at 3, and decrease the third from 3 to 2. As a result, these are the new...
Solution Scores
While both options B and C were initially equivalent ratingly speaking, the new weights applied to their ratings inhibit what appeared to be a strength for option B in criterion C3. Indeed, a lesser weight was applied to its strength and a higher to its weakness, resulting in losing the first place in favor of option C. In this particular context, the more integrated the solution, the better its rank is.
Conclusion
Here is a recapitulation of the three scenarii with their respective weights:



Weights:
W1 = 1
W2 = 2
W3 = 3





Weights:
W1 = 1
W2 = 3 (+1)
W3 = 3





Weights:
W1 = 1
W2 = 3 (+1)
W3 = 2 (1)


So, be careful in your interpretation of the result you get using a decision matrix. Indeed, you have to question the validity of the path you took to reach the conclusion you found. To challenge each step of your decision cycle, some features like sensitivity analysis and robustness analysis are helpful.
FREE Decision Matrix Template and Example
Decision matrix template in Microsoft Excel (MS Excel)
A decision matrix template and a decision matrix example are provided in your FREE RFP Toolkit. The decision matrix template is a Microsoft Excel spreadsheet that you customize based on your needs (criteria vs. alternatives). Thus it becomes a business object you can use not only in your RFP evaluation process which would be better called proposal evaluation process but, more generally, in any decisionmaking cycle.
The MS Excel decision matrix template spreadsheet contains, in fact, two worksheets:

a decision matrix example worksheet,

a decision matrix template worksheet.
Both Excel decision matrix template and example can be opened with any MS Excelcompliant application.
You will also find in your FREE RFP Toolkit, amongst others, templates and samples of RFP letters, including:

RFP cover letter

proposal cover letter

nobid letter

disqualification letter

rejection letter

nonbinding letter of intent

decision matrix template

protest letter

letter to decline a proposal

contract award letter
Use templates and samples provided in your FREE RFP Letters Toolkit to create your own Decision Matrix.
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Learn tips on how to create your decision matrix from the decision matrix template you can find in your FREE RFP Toolkit.
You will also find in it lots of templates and samples of professional RFP letters.
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"The decision matrix streamlines the decision cycle"