Get clarity on tough decisions with this framework (different to WADM)

[Singularity73]

I really like the Weighted Average Decision Matrix (WADM) from TMF , however sometimes I struggle with assigning a number to each factor. Sometimes a small change to the number of one factor can change the overall outcome which then confuses me and I'm still left struggling what to do. I guess in that case you could argue it doesn't really matter which one you do. However I recently came across the Upside/Downside matrix which I think can be another great tool for making decisions and helps you get clarity on everything.

Here is how it works:

1. Columns for decision options: You start by creating two columns, one for each potential choice in your decision. For instance, if you're deciding whether to quit your job to pursue a business venture, one column would be 'yes' (quitting the job) and the other 'no' (staying in the job).
2. Rows for Upsides, Downsides, and Remedies:
   1. Upside Row: In this row, you list the potential benefits or positive outcomes for each decision. Under the 'yes' column, you might list things like more time, uncapped income, more learning opportunities etc., and under the 'no' column, benefits like stable income, less risk, diversification, etc.
   2. Downside Row: Here, you consider the potential negatives or drawbacks of each decision. For the 'yes' option, downsides might include lose stable income, higher stress, etc., and for 'no', missed opportunities, possible regret, etc.
   3. Remedies to the Downside Row: This row is for brainstorming ways to mitigate or handle the downsides you've identified. For instance, if a downside of quitting the job is low/unstable income, a remedy might be to build up the business income on the side first.
3. Analysis for clarity: Once you've filled out this matrix, you can analyze it to gain a clearer understanding of the decision at hand. The matrix helps you see both the good and bad in each choice and think about how to handle the potential negatives.

The example might be a bit basic, but I found this very helpful in a recent decision I needed to make about whether to do a business partnership. I especially like that it makes you think about how to mitigate the downsides.

 

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