Grid Analysis

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What is Grid Analysis?

Grid Analysis, also known as decision matrix analysis, Pugh matrix analysis, or multi-attribute utility theory, is a powerful decision-making tool that allows you to quantify and compare a set of options against various decision criteria.

Grid analysis is a technique used to help organizations understand the relationships between different elements of their business. It can be used to analyze both internal and external factors that may impact the organization. Grid analysis can be used to identify strengths and weaknesses, as well as opportunities and threats. It is a helpful tool for organizations to use when developing strategic plans.

The primary purpose of grid analysis is to support decision-making where multiple factors or criteria need to be considered. It's often used in business and project management to select the best option out of several alternatives.

The role of grid analysis in decision making is to provide a structured, quantitative process for evaluating and comparing various options based on defined criteria.

The main components of a grid analysis are the options being considered, the criteria against which these options are evaluated, and the weightage or importance given to each criterion. Each option is scored for each criterion, and these scores are then multiplied by the weightage and summed to provide a total score for each option.

Grid analysis is important as it provides an objective and transparent method for making complex decisions, helping to reduce bias and improve the quality of decision-making.

This method of decision-making has been used in various forms for many years, particularly in fields where complex decisions need to be made such as engineering, business, and healthcare.

Benefits of grid analysis include its structured approach, the ability to handle complex multi-criteria decisions, and its provision for a record of the decision-making process which can be reviewed if necessary.

  1. Grid analysis encourages objectivity in decision-making, ensures all relevant factors are considered, and provides a clear rationale for a decision.
  2. On the downside, it can be time-consuming, especially for decisions with many options and criteria. Also, the process may be influenced by the subjective allocation of weights and scores.


An example of grid analysis could be a business deciding on a new location. The options would be potential locations and the criteria might include cost, distance from customers, quality of infrastructure, access to labor, etc. Each location would be scored against these criteria, with more desirable attributes receiving higher scores. The scores would then be totaled to identify the most suitable location.

Overall, grid analysis is a versatile tool that can be adapted to a wide variety of decision-making situations.

See Also