What is a decision matrix—and how can it work for you?

Say you’ve got a complex project on your plate, like designing a new product. You might have a design vision for it—but you also need to know that your design concepts meet critical criteria like usability, cost, and aesthetics. A decision matrix gives you a measurable framework to assess ideas and make data-driven decisions.

How do you know when to use one, how to score one, and what steps to take to create your own? Read on.

What is a decision matrix?

A decision-making matrix, also known as a Pugh matrix or grid analysis, is an established method to work through complex decisions in a logical way. When using a decision matrix in your strategic planning process, you assign a weighted score to each possible outcome or option. Comparing these scores helps you make a final decision. If you've ever seen an Eisenhower matrix, you've encountered a simplified form of a decision matrix.

When to use a decision matrix—and when to skip it

Using a decision matrix removes some subjectivity from difficult decisions. This tool is most helpful when you want to narrow down similar options to one choice, or when you need to weigh multiple options. The grid design of a decision matrix makes it easy to see what your best outcomes are.

Don’t use a decision matrix when you’re making a simple decision, when you can solve your problem with a list of pros and cons, or when you’re brainstorming ideas and identifying problems. If your options can’t be quantified, then it’s not an appropriate tool.

4 key decision-matrix questions

Before you use a decision matrix to inform your plans, ask yourself:

1. Is there a baseline scenario or product that can serve as a point of comparison?
2. Are there multiple products, scenarios, or outcomes to compare against the baseline? To use a decision matrix, you need at least two options in addition to the baseline.
3. Are there multiple criteria to compare for each option? If you're only comparing one or two differences, you probably don't need a decision matrix.
4. Can I assign a level of relative importance or impact to each of the weighted criteria? You should be able to comfortably rank each option based on the numerical scale discussed in this guide. If you find it hard to assign a number to each of your criteria, you may want to try a different problem-solving approach.

If you confidently answered yes to all of the above, a Pugh matrix may be the right decision-making tool for your workflow.

3 main parts of a decision matrix

Three main components appear in every decision matrix:

1. X-axis, where you can see the different items or outcomes that you're comparing
2. Y-axis, where you list all the different factors and weighted criteria for consideration
3. Sum, or the total for each column for easy comparison

How to score a decision matrix

Before you can create a decision matrix, you need to know what your "baseline" is. The baseline refers to the current status of a problem, product, or situation, and it's represented by zero.

From zero, you can move either up or down the scale. Positive numbers represent positive change, while negatives represent a worse situation or outcome than the baseline. Here is an example of a decision matrix scale:

• -3 = worst
• -2 = worse
• -1 = not ideal
• 0 = baseline
• +1 = good
• +2 = better
• +3 = best

The closer a score is to zero, the smaller the change will be from the current status quo. A value of positive or negative three represents a bigger change.

After you've filled out a decision matrix, add the scores in each column or row to find your optimal course of action.

How to create a decision matrix in 5 steps

Plotting your decision matrix online makes collaborating and sharing with others easier. Using the Pugh matrix template, you can complete your matrix in just five steps.

1. Draw a grid.

This is the foundation of any decision matrix analysis. You'll want to make sure you have enough cells in your grid to account for the criteria you've selected.

2. Label the x-axis with options to compare.

Fill in the top row of cells along the x-axis with labels. As an example, this row might list the different software products you're evaluating.

Be sure to include a column for your current baseline, or status quo. In your software product comparison, this might be the software you're already using. This column provides an important point of comparison when making your final decision.

3. Label the y-axis with decision factors.

Along the y-axis, detail the evaluation criteria you're using to make an informed decision. For your software decision, this might be cost expenditure, cost savings, security risks, and ease of deployment.

4. Assign weighted scores.

To score your decision matrix, you'll want to fill in each cell based on its corresponding x and y axis labels. In the Pugh matrix example, product #1 gets a score of -1 for security, meaning that it's less safe than our baseline.The baseline column should receive a score of zero across all criteria.

5. Calculate the scores.

Add up the values in each column from top to bottom and record the total scores at the bottom of the decision grid. The column with the highest score is your best option.

3 pro tips for decision matrix success

A decision matrix is a guide, not an oracle—use your judgment, experience, and other decision-making tools to make sure it's right. If your decision matrix just doesn't seem to be working, you may have incorrect, incomplete, or inadequate selection criteria. To fix this, the creator of the Pugh Matrix recommends teams to:

1. Validate criteria with stakeholders to ensure that they're not just using their own opinions on the y-axis.

2. Ensure that criteria are comprehensive and nothing is being deliberately ignored because it doesn’t neatly fit.

3. Check that everyone has the same understanding of each criterion and that its meaning is clear. For example, “low cost” is ambiguous; “low production cost” is more precise.

Make smarter decisions with Figma

With smart decision-making tools, you'll make more informed, confident decisions. Start with Figma's decision matrix template, then use other problem-solving tools like strategy map templates to improve your process.

Make sure your team is on the same page with a FigJam collaborative online whiteboard, where you can share your decision matrix, tag colleagues in comments, build out project notes, and more.