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Matrix Decision Making

Eli Singer writes "I'm writing to recommend The Power of the 2x2 Matrix , the best book on decision-making I've seen in a long time. The book presents 55 decision matrix models by some of the best minds out there including Stephen Covey ( 7 Habits of Highly Effective People ) and Geoffrey Moore (Crossing the Chasm). Although the book is primarily for business decision-making, the matrices really force you to think about your own personal and professional life." No bones about it, Singer is not a disinterested party: he helped with research that went into it. Read on for the rest of his review, below; there's also a link to a sample chapter of the book. (The Globe and Mail recently reviewed this book as well.) The Power of the 2x2 Matrix author Alex Lowy & Phil Hood pages 320 publisher Jossey-Bass rating 8 reviewer Eli Singer ISBN 0787972924 summary Using 2x2 Thinking to solve business problems and make better decisions

I had the pleasure of working with the authors of this book for over a year as a research assistant. Over that time I came to deeply associate with the 2x2 Matrix approach to problem-solving, and believe it is one of the most novel, fun, and effective ways of understanding business and personal dilemmas.

The idea behind 2x2 Matrix problem solving is to simplify any dilemma you're experiencing to its two core, often competing, facets. For example, The Gartner Magic Quadrant evaluates a company's technology solution based on Completeness of Vision and Ability to Execute. These two aspects are then placed on opposing axis of a grid and given hi/low extremes. This instantly generates four quadrants of distinctly different possible scenarios. In this case:

  • Niche Players - Low completeness of vision, low ability to execute
  • Visionaries - High completeness of vision, low ability to execute
  • Challengers - Low completeness of vision, high ability to execute
  • Leaders - High completeness of vision, high ability to execute

The authors, Alex Lowy and Phil Hood, have gone to great lengths to examine outstanding problem solving practices offering both an academic explanation of the theory behind 2x2 modeling, and a profile of 55 of the best decision models out there.

These 55 decision models, presented in short, clear summaries with illustrations and often technology-based case examples (drawn from IBM, Apple, HP, Borland, and the open source world) are the real gold in the book. The models range from highly business-oriented strategy, marketing, and employee-motivation frameworks, to personally oriented frameworks that help structure time, understand personality conflicts, improve leadership skills, and evaluate career transition opportunities.

Chapter 3 is devoted to what the authors call Archetypal Business Dilemmas. The dilemmas presented here speak vividly to the challenges being experienced right now by the open source community:

  • Head vs. Heart The toughest choices are between doing what makes sense, and what feels right.
  • Content vs. Process Content is the what, Process is the how. Success in most things requires mastery of both qualities.

Also, there are a host of technology gurus who have been interviewed and have matrices presented from their work: Charles Fine, author of Clockspeed; Watts Wacker, author of The Deviant's Advantage ; Hal Varian and Carl Shapiro, authors of Information Rules ; Paul Weifels and Geoffrey Moore, authors of Crossing the Chasm; and Joseph Pine and James Gilmore, authors of The Experience Economy.

It is almost impossible to read this book and not compulsively apply these exceptional models to personal life. At the moment I've been working with Stephen Covey's Urgency and Importance matrix.

For many of us, life is filled with tasks that are Urgent, leaving little time for more fundamental and long-term activities necessary for personal and professional development.The Time Management matrix explores two key dimensions, Importance and Urgency:

Importance. Things that are important are reflective of one's values and contribute to achieving higher-priority goals and personal mission. Importance is about results that matter.

Urgency. Urgent things require immediate attention. They tend to be visible, popular with others, and to act on us.

My cell-phone and inbox both feel highly Urgent, and I often answer my messages immediately, despite the fact that in most situations their Importance is questionable. I'm working at shifting away from a crisis-oriented instant response, which is in turn generating more free time to work on the things that are really important to me but don't necessarily jump in front of my face.

Without actually sitting down and plotting how I used my time during a week on the matrix, I would never have had to directly face the multitude of things I was sacrificing just to keep up with my trivial emails. It's the simplicity and clarity of 2x2 modeling that makes it a great tool for wrestling with dilemmas, and generating deep insights.

Most will find the book an easy and engaging read, especially the framework sections. The downside, if there is one, is the sheer volume of great frameworks. One can only absorb a few at a time and for this reason I'd recommend reading slowly, jumping from the table of contents right to parts that sound the most interesting.

You can purchase The Power of the 2x2 Matrix from bn.com; a sample chapter is available here. Slashdot welcomes readers' book reviews. To see your own review here, carefully read the book review guidelines, then visit the submission page.

15 of 296 comments (clear)

  1. Payoff matrices and game theory by heyitsme · · Score: 2, Interesting
    Using matrices for decision making is nothing new. For instance, take the elementary "pie game" :

    There is a pie

    Player 1 gets to cut the pie

    Player 2 chooses a piece.

    Assuming both of these players are rational (rationality = wanting the biggest piece), we can represent all possible outcomes of the game in a matrix. The payoff for Player 1 is always going to be 1-n, where n is the percentage of the pie he cut. Since this stupid example is a zero sum game, it is easy to see that Player 1 will always get the smaller of two pieces, making it not hard to conclude that the best cut is an equal, 50/50 cut.

    Obviously, the concept of payoff matrices can be extrapolated for more players and variables, but doing this quickly approached the limits of solving linear systems.

    derek

    1. Re:Payoff matrices and game theory by blonde+rser · · Score: 2, Interesting

      People love to throw around the statement that the problem with game theory is that people aren't rational but usually the problem isn't as simple as that. Often when a player doesn't act rationally it is due to the fact that the term rational is ill defined or more specifically the axioms of rational choice are mischosen. What do I mean by this? Take an example. There is an axiom that if you take a rational choice from a payoff matrix and multiply all that values by some positive number then the choice is still rational. This seems like a good choice and is often used in arguements ("... what if instead of $10 we were talking about $1,000. It's the same thing right?") But in practice this appears to be a bad axiom. Take a lottery where the tickets are $1 and you have a 1 in 3 chance in winning $10. This is a good game and we can probably agree it is rational to play this game. Now take the same lottery and multiply by 100,000. I can't imagine anyone except the extremely rich who would buy a $100,000 lottery ticket for a 1 in 3 chance of winning a million dollars.

      My point? Numbers oriented people love to talk about acting rational as measurable characteristic. However at the moment rational behavior is similar to moral behavior. We may have all sorts of arguments of why we think a behavior is rational but when it comes down to it rationallity is still something that we know it when we see it. So it is still too early to judge whether most players act rationally or not; whether you read about chaos or not.

  2. I've seen this before... by jmrobinson · · Score: 4, Interesting

    ...in a management book I've read. Employees all have willingness and ableness.

    Great employees are willing AND able
    Employees that need training are willing and not able
    Employees and need some attitude adjusting are not willing and able
    Employees that are about to get their asses fired are not willing and not able
    It is very interesting to see this type of matrixed used in other places.

    1. Re:I've seen this before... by TheMeddler · · Score: 2, Interesting

      Back in the day we referred to this as an AND circuit.

      01
      000
      101

      Sounds like a Very Original Book.

      --
      90% Professional Slacker
  3. Re:I Find The Self Help Books Useful by tcopeland · · Score: 3, Interesting

    > "How to Win Friends and Influence People"

    Oh, I don't know. Carnegie's book said a lot of fairly harmless things, like "say thank-you to people", and "try to remember what things the other person is interested in".

    Of course, these techniques can be abused to attempt to manipulate people, and that's not so nice. But there's nothing wrong with generally being positive and trying to interact well with other folks you work with....

  4. The Importance of Market Speak by dykofone · · Score: 5, Interesting
    I'm just a lowly engineer in a HUGE corporation, so I've always been skeptical and often frustrated with buzzword laden talk about proper decision making strategies and achieving optimum 'cinergy.'

    The truth is though, that once a corporation gets to a certain size, the more stuff like this becomes vital. And the only way a hard working engineer is ever going to be able to get his voice heard (or interpret what he is told) is to understand the processes and procedures that upper management uses.

    Books like this are invaluable if you want to be a succesful engineer in a corporate environment, because no matter how many times you yell at your boss "this just isn't logical!!!!" your message isn't going to get across unless you can speak their language. Being an engineer isn't about exclusively knowing the numbers and running the experiments (we generally call those people "scientists"), it's about organizing your resources and abilities in a way that the general public will believe and buy into.

    My biggest role models haven't been the cynical yet super intelligent underdogs, they've been the cynical yet super intelligent Senior engineers who got there knowing how to play the corporate BS for what it is. I say books like this should be required reading for any engineer who wants to be taken seriously in a corporation, and subsequently getting your inovative ideas across.

  5. The Power of the 2x2 Matrix! by NoMoreNicksLeft · · Score: 5, Interesting

    When all your problems in life and business can be neatly summed up into 4 absurdly simply outcomes, nothing beats the power of the 2x2 decision matrix. Examples:

    Is there a God, and should I worship him?

    ........... Worship ... Don't Worship
    God ......| Great ...... Hell
    No God | So-so .... Live it up!

    So what, if non-idiots wish to ruin the pea-brained genius of this matrix with questions like "What if there is more than one god, or that a single god might not care about Christian ideals?". This matrix can show you the only way to live your life correctly. And who can forget the sarcastic logic of Scott Adams, in this comic strip favorite:

    Bosses:
    ........... Competent .... Not Competent
    Good ..| Yeh, right ....... Hell
    Evil ..| Hell ...... Finally, someone honest!

    Finally, someone has discovered this breakthrough in philosophy that proves you are screwed no matter what you do. Before this, people actually had false hopes of something better, but they need not suffer under any such illusions today!

    Pick up your copy at your local Barnes And Noble bookstore today, for these and many other incredible matrices!

  6. Re:I Find The Self Help Books Useful by tcopeland · · Score: 3, Interesting

    > if you have to learn this from a book

    True, if these things don't come naturally, faking them won't do you much good. But at the same time, sometimes it's helpful to read something that encourages saying thank-you and such like. A good reminder...

  7. This immediately brought to mind Pascal's Wager by Thaelon · · Score: 3, Interesting

    In short it's a decision matrix that says believing in god is a better choice than not believing in god. Being an atheist I have to admit it's about the most convincing argument I've ever seen, largely because it's purely logical. Here is the short of it:

    God exists------God does not exist
    Wager for God-------Gain all--------Satus quo
    Wager against God---Misery----------Status quo

    Read all about it here.

    Please excuse the horrible formatting, I suck at html.

    --

    Question everything

    1. Re:This immediately brought to mind Pascal's Wager by Hard_Code · · Score: 2, Interesting

      Or similar to that:

      For simplicity let's call X, the proposition that: "A boulder will materialize out of thin air in exactly 1 second and will fall on your head crushing you to death"

      ---------------------True--------False
      Wager for X------Not crushed--status quo
      Wager against X----Crushed----status quo


      Now, it is just as likely that a boulder will instantly materialize out of thin air and crush you in a grisly death, as God exists (well, it's actually probably more likely).

      So are you sitting around with a gigantic helmet on your head? Why not? Aren't you scared by the horrible horrible crushed-in-grisly-death-by-uncaring-boulder-of-non -perceptible-yet-righteous-doom?

      ARE YOU TEMPTING FATE MORTAL!?

      --

      It's 10 PM. Do you know if you're un-American?
    2. Re:This immediately brought to mind Pascal's Wager by DunbarTheInept · · Score: 2, Interesting


      I can't make myself believe something merely by *wanting* to believe it. People who *can* do that are not entirely sane.

      And this is the biggest flaw in Pascal's Wager. Even if it succeeded at convincing me that I should want to believe in god (it has other flaws that make it fail to do that, but even if it did succeed at that...) then I'm still stuck with the fact that my mind can still differentiate between me wanting something to be true and me believing something to be true. They are not the same thing and I simply cannot help it - I can tell they aren't the same thing, and that means I'm not really believing it even if I'd like to pretend I am. What I believe to be true is not entirely under my will to control. And that's a *good* thing. The alternative is insanity.

      --

      Don't label something "offtopic" unless you know the topic well enough to tell what's on topic.

  8. Re:Binary Thinking by s.fontinalis · · Score: 2, Interesting

    "Engineer Type" maangers may live and breathe that stuff, but most engineers I encounter are very good at analyzing a problem, finding possible solutions, evaluating and implementing. In my experience it is the pseudoengineers (more often than not trained as scientists) who are very good at exploring options, but horrible at implementing solutions.

  9. Re:A real recommendation, not a placebo by Anonymous Coward · · Score: 1, Interesting

    Yes. A lot of the comments here seem unusually friendly towards the "using math in real life" aspect of this. I would expect a much more critical attitude.

    The book referred to in the parent post might actually be described that way, but not the book under review (judging by the sample chapter). It is pure management fluff.

    For example: two axes labled by ambiguous buzzwords do not a matrix make. If we were actually talking about matrices then there would be no reason not to extend the analysis beyong 2x2. But since its just boxes on a whiteboard, we're stuck.

    The classic book on game theory, both readable and mathematical is "The Compleat Strategyst" by J.D.Williams (1954), now a cheap Dover book. (And no, I don't know him personally). Only game theory, but still a lot more useful in decision-making than "proactively moving into the upper right quadrant" or whatever. (not an actual quote..)

  10. Decision making psychological tip by Cuff · · Score: 5, Interesting
    Whenever you're called on to make up your mind,
    and you're hampered by not having any,
    the best way to solve the dilemma, you'll find,
    is simply by spinning a penny.
    No - not so that chance shall decide the affair
    while you're passively standing there moping;
    but the moment the penny is up in the air,
    you suddenly know what you're hoping

    - Piet Hein, from one of his Grook Books
  11. Another Darn Matrix by Alien54 · · Score: 3, Interesting
    Another darn internet personality test, this time with these dichotomies:

    Wacky vs Sober
    Rational vs Emotional
    Constructive vs Destructive
    Leader vs Follower

    As good as any I suppose, and maybe a bit more amusing.

    Of course, you can take the test at this link, if you feel so inclined, and have nothing better to do.

    Personality types described as follows here

    All a good bit of entertainment. and better than some of the other stuff I've seen around [smile]

    Some example results:

    You are a WRCL--Wacky Rational Constructive Leader. This makes you a golden god. People gravitate to you, and you make them feel good. You are smart, charismatic, and interesting. You may be too sensitive to others reactions, especially criticism. Your self-opinion and mood depends greatly on those around you. You think fast and have a smart mouth, is a hoot to your friends and razorwire to your enemies. You hold a grudge like a brass ring. You crackle.

    Although you have a leader's personality, you often choose not to lead, as leaders stray too far from their audience. You probably weren't very popular in high school--the joke's on them! You may be a rock star.

    You are a WRDL--Wacky Rational Destructive Leader. This makes you an enemy of the state. You are charismatic and winning and a very dangerous enemy. You favor justice over compassion, and would almost rather see your opponent fail than you succeed. You impact the lives of those around you more than any other personality. People remember your name and respect you. You are a tremendous amount of fun to be around and astonishing to watch. You are generally abstinent in your habits, and you like things tidy and ordered.

    When picking teams, it is smartest for others to pick yours.

    You are a WRDF--Wacky Rational Destructive Follower. This makes you a hacker. Your thirst for knowledge can be damaging to your possessions--you like to take things apart, even if you then forget to put them back together. You demand respect and, no matter how much you are respected, seldom feel it is adequate. You are tenacious, and will stick to a task long after weaker minds have given it up.

    Socially, you are awkward, and get into arguments and make people uncomfortable. One recommends counting to ten, holding back comments unless warranted, and listening more than speaking. Still, your no-holds-barred approach to socialization can be strangely endearing, as long as you are funny and self-deprecating. You feel misunderstood, and you probably are.

    You are a WEDF--Wacky Emotional Destructive Follower. This makes you a menace to society, depending on how you channel your energies. You chew your fingers and have an addictive personality. Properly guided, you can be enormously productive--otherwise you run amok, stir up trouble, and generally have a hell of a good time.

    To your friends, you are a source of relentless entertainment. You often get into trouble, but you almost always find a way out. You are strangely popular and feed off others' energy. You live hard, seize the day, and although your more sober friends would like to see you settled down, you generally have fewer regrets and better memories than they do. Your tenet is that, at the end of the day, one regrets only what one didn't try. You are right. You could benefit from outside help in balancing your highs and lows. Or perhaps cutting back on the caffeine.

    You are an SEDF--Sober Emotional Destructive Follower. This makes you an evil genius. You are extremely focused and difficult to distract from your tasks. With luck, you have learned to channel your energies into improving your intellect, rather than destroying the weak and unsuspecting.

    --
    "It is a greater offense to steal men's labor, than their clothes"