Formulating a Decision Matrix

how feasible do you think it would be to implement it?

The decision matrix allows you to give objective scores to each innovation option, to help you make better decisions about which will be most beneficial for your business. The matrix itself can be drawn as a simple table.

List the options that are competing for strategic support (A,B,C) along the X-axis, then list the key checks along the Y-axis. Key checks can include such factors as: Does the idea fit with what you already know (your competence base)? Does it fit your overall business strategy? And how feasible do you think it would be to implement it?

A checklist for a decision matrix would include:

• Have you established a definitive list of the options competing for strategic support?
• Do you have a list of key checks that must be applied to each option, and do the key checks cover all aspects of the innovation's potential benefits?
• Have you considered all potential costs that you might incur as you pursue this innovation?
• Are some factors more important than others? Have you weighted them appropriately?
• What other disruptive factors could your ideas face in the future?

ACTION POINT: Balance risk and reward across several different criteria when making innovation decisions.

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