Decision-making, whether individual or collective, can draw on a variety of tools and methods to structure, analyze and optimize choices.
These tools help to clarify options, assess risks and benefits, and make informed decisions by reducing complexity and uncertainty.
But how do you choose between all these approaches?
Here is a list of the 11 most common tools used in decision-making and the circumstances in which they are best suited.
1. The decision matrix
The decision matrix is an essential tool for structuring and comparing several options according to specific criteria. It is particularly useful when you have to choose between several measurable alternatives (such as selecting a supplier, a product or a strategy). This tool is suited to situations where the evaluation criteria are clear and available, and where an objective analysis is required.
For example, a company might use it to evaluate different software products in terms of cost, ease of use and functionality.
How to use the decision matrix
List the available options and the evaluation criteria. Assign a weight to each criterion according to its importance, then evaluate each option according to these criteria. Add up the scores to identify the optimal option.
Benefits of the decision matrix
Enables structured, objective analysis, easy to implement and suitable for simple to moderately complex decisions.
Limitations of the decision matrix
Does not take into account qualitative or emotional aspects, and can be biased if weights or evaluations are poorly defined.
2. SWOT analysis (Strengths, Weaknesses, Opportunities, Threats)
SWOT analysis is a strategic tool for evaluating a situation or decision, taking into account internal strengths and weaknesses, as well as external opportunities and threats. It is particularly useful for strategic decisions, such as launching a new product, entering a new market or evaluating a project. This tool helps to identify the key elements influencing a decision, and to better understand the environment in which it will be taken. For example, a company can use a SWOT analysis to assess whether it is ready to invest in a new technology or take on a competitor.
How to use a SWOT analysis
Divide a sheet of paper into four quadrants (strengths, weaknesses, opportunities, threats). Complete each section by analyzing internal factors on the x-axis (strengths/weaknesses) and external factors on the y-axis (opportunities/threats).
Advantages of SWOT analysis
Provides a clear, structured overview that’s easy to understand and share with a team.
Limitations of SWOT analysis
May lack depth if identified elements are not analyzed in detail or if information is incomplete.
3. The decision tree
The decision tree is a visual tool that helps structure complex decisions involving several steps or uncertainties. It is particularly useful when the potential consequences of each option need to be assessed, as in the case of a risky investment or strategic project. This tool is ideal for situations where possible outcomes can be quantified and the probabilities associated with different scenarios are known. For example, a company might use a decision tree to assess the risks and rewards of a merger or acquisition.
How to use a decision tree
Draw a tree with branches representing different options and their potential consequences. Associate probabilities and values with the results to calculate the most advantageous option.
Benefits of the decision tree
Allows you to visualize possible scenarios and take into account the probabilities of expected outcomes.
Limitations of the decision tree
Can become complex and difficult to interpret if the number of options or variables is too high.
4. Cost-benefit analysis
Cost-benefit analysis is an essential tool for assessing the economic viability of a decision. It is particularly useful in contexts where costs and benefits can be quantified, such as investing in a project, purchasing equipment or launching a new product. This tool helps to determine whether a decision is economically justified, and to compare several options in terms of their profitability. For example, a company can analyze whether the purchase of an expensive piece of equipment is justified by the savings it will generate in the long term.
How to use cost-benefit analysis
List all the costs and benefits associated with a decision. Assign a monetary value to each item, then compare the totals to determine whether the benefits outweigh the costs.
Benefits of cost-benefit analysis
Provides a rational, quantitative basis for assessing the profitability of a decision.
Limitations of cost-benefit analysis
Does not take into account non-financial aspects (such as social or environmental impact) and can be biased if estimates are inaccurate.
5. Pareto’s law (80/20)
Pareto’s law is based on the principle that 80% of results come from 20% of causes. It is particularly useful for identifying priorities and concentrating efforts on the actions or problems with the greatest impact. This tool is suited to situations where it is necessary to maximize efficiency by focusing on key elements. For example, a company might use this method to identify the 20% of customers who generate 80% of its sales, or the 20% of problems that cause 80% of delays.
How to use Pareto’s Law
Analyze data to identify the 20% of causes that generate 80% of results or problems. Focus your efforts on these key elements.
Advantages of Pareto’s Law
Quick and easy to use, maximizes efficiency by focusing on the essentials.
Limits of Pareto’s Law
The approximation of this heuristic may mask important secondary factors.
6. Multi-criteria analysis (or AHP – Analytic Hierarchy Process)
Multi-criteria analysis is a powerful tool for comparing options on the basis of several criteria, particularly in complex decisions such as choosing a site for a new plant, evaluating projects or selecting a supplier. It is particularly useful when there are a large number of decision criteria and it is necessary to prioritize them according to their importance. For example, a municipality might use this method to choose a site for a new leisure center, taking into account criteria such as cost, accessibility and environmental impact.
How to use multi-criteria analysis
Identify the decision criteria and assign them weights according to their importance. Evaluate each option against these criteria, then calculate an overall score for each option.
Benefits of multi-criteria analysis
Enables detailed, prioritized evaluation, suitable for complex decisions.
Limits of multi-criteria analysis
Can be time-consuming, and requires clear definition of criteria and weightings to avoid bias.
7. Bono’s 6 hats method
Bono’s 6 Hats method is a creative and collaborative tool for examining a decision from different angles. It is particularly useful in brainstorming or strategic discussion contexts, where it is important to take into account a variety of perspectives (logical, emotional, creative, etc.). For example, a management team can use this method to assess the benefits and risks of an innovative project.
How to use the 6 Hats method
Each participant adopts a “hat” symbolizing a mode of thinking (logical, emotional, creative, etc.). Ideas are explored from different angles to obtain a complete picture.
Benefits of the 6 Hats method
Encourages diverse, collaborative thinking, reduces conflict by separating emotions from facts.
Limitations of the 6 Hats method
May be difficult to apply in groups unfamiliar with this type of method, or in highly technical contexts.
8. Ishikawa diagram (or cause-and-effect diagram)
The Ishikawa diagram, also known as the fishbone diagram, is used to identify the root causes of a problem. It is particularly useful in complex problem-solving contexts, or for analyzing the factors that influence a situation. For example, a team can use it to understand why a project has failed, or why a product is not meeting customer expectations.
How to use the Ishikawa diagram
Draw a fish-shaped diagram, with the main problem at the head and potential causes on the edges. Classify the causes by category (methods, machines, labor, etc.).
Benefits of the Ishikawa diagram
Helps to clarify the factors influencing a situation and to structure thinking.
Limitations of the Ishikawa diagram
Does not provide a direct solution and can be ineffective if the causes identified are not analyzed in depth.
9. The Eisenhower matrix
The Eisenhower Matrix is a prioritization tool that helps organize tasks or actions according to urgency and importance. It is particularly useful for time and priority management, especially in the context of project or crisis management.
How to use the Eisenhower Matrix
Divide a matrix into four quadrants: urgent/important, non-urgent/important, urgent/non-important, non-urgent/non-important. Classify tasks in each category to decide what to do, delegate or postpone.
Advantages of the Eisenhower Matrix
Simplifies decision-making by prioritizing, easy to use.
Limitations of the Eisenhower matrix
Not suitable for complex strategic decisions and may neglect qualitative aspects.
10. Forward-looking scenarios
Forward-looking scenarios are used to anticipate the long-term consequences of a decision, particularly in uncertain or strategic contexts. They are particularly useful for strategic planning, such as international expansion or the adoption of new technologies.
How to use scenarios
Imagine several future scenarios based on decisions made today. Analyze possible impacts and prepare action plans for each scenario.
Benefits of prospective scenarios
Allows you to prepare for different outcomes and anticipate risks.
Limitations of prospective scenarios
Realistic scenarios require a great deal of time and data.
11. Software and digital tools
Software and digital tools are used to automate and facilitate data analysis, collaboration and visualization for complex decisions. They are particularly useful in contexts where precise calculations or voluminous analyses are required.
Which digital tools should I use?
Use tools like Excel (decision matrices), Tableau or Power BI (data analysis), or specialized software like Decision Lens to structure and analyze options.
Benefits of digital tools
Speeds up calculations, improves accuracy and facilitates collaboration.
Limits of digital tools
Can be costly and require training for optimal use.
12. The MoSCoW method
The MoSCoW method is used to prioritize requirements or tasks within a project. It is particularly useful in agile project management or for defining priorities in contexts where resources are limited.
How to use the MoSCoW method
Classify items into four categories: Must have, Should have, Could have and Won’t have.
Advantages of the MoSCoW method
Provides clear, structured prioritization that’s easy to understand and apply.
Limitations of the MoSCoW method
Can be subjective if prioritization criteria are not well defined.
So, how do you choose?
These tools offer a variety of approaches to structuring and improving decision-making.
By understanding their advantages and limitations, each decision-maker can better choose the tool best suited to the decision-making context.
What about you? What decision-making methods do you prefer?
Share your experience in comments and let’s make progress together.
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