Prioritization Matrices

Prioritization Matrices in Six Sigma Black Belt: Define Phase

## Understanding Prioritization Matrices What is a Prioritization Matrix? A Prioritization Matrix is a decision-making tool used in Six Sigma projects to systematically evaluate and rank potential improvement opportunities or problems based on multiple criteria. It helps teams move beyond subjective opinions to make data-driven decisions about which projects or issues deserve the most attention and resources.

Why is it Important? In the Define phase of Six Sigma projects, organizations often identify multiple potential problems and improvement opportunities. Without a structured approach, teams might:

• Focus on problems that seem urgent but have minimal impact
• Waste resources on low-priority initiatives
• Make decisions based on personal preferences rather than business value
• Miss high-impact opportunities

Prioritization Matrices address these challenges by providing a systematic method to:

• Align with business strategy: Ensure selected projects support organizational goals
• Maximize ROI: Focus on initiatives that deliver the greatest business value
• Optimize resource allocation: Direct limited resources to the most impactful projects
• Reduce bias: Replace subjective decision-making with objective criteria
• Build consensus: Help teams agree on priorities through transparent evaluation

How Prioritization Matrices Work Step 1: Identify Criteria The team establishes the evaluation criteria that matter most to the organization. Common criteria include:

• Financial impact (cost savings, revenue increase)
• Customer impact (satisfaction, complaints reduced)
• Operational impact (quality, cycle time, efficiency)
• Strategic alignment (supports business goals)
• Implementation effort (time, complexity, resources)
• Risk level (ease of implementation, technical feasibility)

Step 2: Assign Weights Since not all criteria are equally important, assign relative weights to each criterion based on business priorities. Weights typically sum to 100% or 10 points. For example:

• Financial impact: 35%
• Customer impact: 25%
• Strategic alignment: 20%
• Implementation effort: 15%
• Risk: 5%

Step 3: Score Each Option For each improvement opportunity or problem being evaluated, score how well it performs against each criterion. Common scoring scales are:

• 1-5 scale (1 = low, 5 = high)
• 1-10 scale
• High/Medium/Low

Step 4: Calculate Weighted Scores Multiply each criterion score by its weight and sum the results: Weighted Score = (Criterion Score × Criterion Weight) summed across all criteria Step 5: Rank Options Rank all options from highest to lowest weighted score. Projects with higher scores become higher priorities.

Example of a Prioritization Matrix Imagine a manufacturing company identifying process improvement projects:

Project	Financial Impact (35%)	Customer Impact (25%)	Strategic (20%)	Implementation (15%)	Risk (5%)	Total Score
Reduce Defects	4 × 0.35 = 1.40	5 × 0.25 = 1.25	5 × 0.20 = 1.00	4 × 0.15 = 0.60	3 × 0.05 = 0.15	4.40
Reduce Lead Time	3 × 0.35 = 1.05	4 × 0.25 = 1.00	4 × 0.20 = 0.80	2 × 0.15 = 0.30	2 × 0.05 = 0.10	3.25
Cost Reduction	5 × 0.35 = 1.75	2 × 0.25 = 0.50	3 × 0.20 = 0.60	3 × 0.15 = 0.45	4 × 0.05 = 0.20	3.50

Based on this analysis, the "Reduce Defects" project would be prioritized first, followed by "Cost Reduction," then "Reduce Lead Time."

Types of Prioritization Matrices Impact vs. Effort Matrix A simple 2×2 matrix plotting:

• X-axis: Implementation effort (low to high)
• Y-axis: Business impact (low to high)

Projects in the high-impact, low-effort quadrant are prioritized first ("quick wins"). Multi-Criteria Matrix Evaluates multiple criteria as described above, providing more sophisticated analysis for complex decisions. Bubble Chart Visual representation where bubble size represents a third variable (e.g., risk or resource requirement).

How to Answer Prioritization Matrix Questions in Exams Question Type 1: Identifying the Purpose Question Example: "What is the primary purpose of using a Prioritization Matrix in the Define phase?" How to Answer:

• Look for answers emphasizing systematic evaluation and objective decision-making
• Avoid answers suggesting it's purely for cost reduction or quick wins only
• The correct answer should mention aligning with multiple business criteria and optimizing resource allocation

Question Type 2: Calculation Questions Question Example: "If a project scores 4 on financial impact (weighted 40%), 3 on customer impact (weighted 30%), and 5 on strategic alignment (weighted 30%), what is its total weighted score?" How to Answer:

• Use the formula: (4 × 0.40) + (3 × 0.30) + (5 × 0.30)
• Calculate step-by-step: 1.60 + 0.90 + 1.50 = 4.0
• Double-check that weights sum to 100% (40% + 30% + 30% = 100% ✓)
• Show your work clearly

Question Type 3: Interpretation Questions Question Example: "Which project should be prioritized based on this matrix?" How to Answer:

• Identify the project with the highest total weighted score
• Don't confuse highest individual scores with highest overall priority
• Remember that weights matter—a high score on a low-weight criterion won't determine overall priority

Question Type 4: Scenario-Based Questions Question Example: "A company has limited resources and must choose between two projects with similar financial impact. How would a Prioritization Matrix help resolve this?" How to Answer:

• Explain that the matrix considers multiple criteria beyond just financial impact
• Show that weighting ensures strategic alignment and operational feasibility are considered
• Mention that transparent weighting builds team consensus

Question Type 5: Criteria Selection Questions Question Example: "Which of the following would be the least appropriate criterion for a Prioritization Matrix?" How to Answer:

• Look for criteria that are measurable and relevant to business objectives
• Avoid vague or subjective criteria (e.g., "executive preference" alone)
• Appropriate criteria should align with organizational strategy and project goals

Exam Tips: Answering Questions on Prioritization Matrices Tip 1: Understand the Core Purpose Remember that Prioritization Matrices exist to make objective, strategic decisions about which projects deserve resources. This is their fundamental purpose. Many exam questions test whether you understand this philosophy. Tip 2: Master the Calculation Method Prioritization Matrix questions often include calculations. Practice the weighted scoring formula: Total Score = Σ(Criterion Score × Criterion Weight) Always:

• Verify weights sum to 100% or 10 points
• Show all calculations step-by-step
• Double-check arithmetic

Tip 3: Distinguish Between Scoring Scales Exam questions may use different scoring scales (1-5, 1-10, percentage-based). Ensure your calculations match the stated scale. If scores are 1-5 but one criterion uses 1-10, convert to a consistent scale first. Tip 4: Recognize That Weights Matter Most A project with a perfect score (5/5) on an unweighted criterion might rank lower than a project with moderate scores on highly-weighted criteria. Questions often test whether you understand this relationship. Tip 5: Know When NOT to Use Prioritization Matrices Exam questions sometimes ask when a Prioritization Matrix is inappropriate. Avoid using them when:

• There's only one option to evaluate
• The decision is already made by executive mandate
• Criteria are impossible to measure objectively
• There's insufficient data to score projects

Tip 6: Link to Six Sigma Phases Remember that Prioritization Matrices appear in the Define phase because they help:

• Define the project scope by focusing on the highest-priority problem
• Align the team on which opportunity to pursue
• Justify resource allocation to executives

Exam questions may ask how the matrix connects to Define phase objectives. Tip 7: Practice with Real Scenarios Exams often present realistic business scenarios. When answering:

• Identify all criteria explicitly
• Assign weights that reflect business priorities mentioned in the scenario
• Calculate scores systematically
• Explain why the top-ranked project best serves organizational goals

Tip 8: Watch for Common Misconceptions Misconception 1: "The project with the highest individual score wins."
Reality: Weighted overall score determines priority, not individual criterion scores. Misconception 2: "All criteria should have equal weight."
Reality: Weights should reflect actual business priorities, which are rarely equal. Misconception 3: "Prioritization Matrices are just for cost-benefit analysis."
Reality: They evaluate multiple strategic, operational, and financial dimensions. Misconception 4: "Once created, the matrix is used forever."
Reality: Weights and criteria should be revisited as business strategy evolves. Tip 9: Be Prepared for Multi-Part Questions Exam questions may ask you to:

• Create a matrix (identify criteria and assign weights)
• Calculate scores for multiple projects
• Rank projects
• Justify your choices based on business strategy

Approach these systematically: establish criteria first, then weights, then calculations. Tip 10: Remember the Human Element While Prioritization Matrices are objective tools, they don't eliminate human judgment—they structure it. Exam questions may ask about:

• How to select appropriate team members for weighting decisions
• How to gain consensus on criteria and weights
• How to communicate results to stakeholders

These questions test understanding that the matrix is a decision framework, not a black box.

Sample Exam Questions and Answers Question 1: Calculation "A company evaluates three process improvement projects using a weighted Prioritization Matrix. The weights are: Financial Impact (40%), Quality Impact (35%), Implementation Ease (25%). Project A scores 5, 4, 3 respectively. What is Project A's total weighted score?" Answer: (5 × 0.40) + (4 × 0.35) + (3 × 0.25) = 2.0 + 1.4 + 0.75 = 4.15 Question 2: Conceptual "Why is weighting criteria important in a Prioritization Matrix?" Answer: Weighting reflects organizational priorities. Not all criteria are equally important to business success. Weighting ensures that projects scoring high on strategically important criteria receive higher priority, even if they score lower on less critical dimensions. This aligns project selection with business strategy and optimizes resource allocation for maximum organizational benefit. Question 3: Application "Two projects have similar overall weighted scores in a Prioritization Matrix. How should the team decide between them?" Answer: Review the detailed scores to understand where differences lie. Consider: (1) Which project better addresses the highest-weighted criteria? (2) Are there risk factors not captured in the matrix? (3) Can both projects be pursued sequentially? (4) What does executive leadership prefer? While the matrix provides objective guidance, close scores often require qualitative discussion to determine which project better serves organizational goals given current constraints.

Conclusion Prioritization Matrices are fundamental tools in Six Sigma's Define phase. Success on exam questions requires understanding that they:

• Provide systematic, objective decision-making frameworks
• Align project selection with business strategy through weighted criteria
• Optimize resource allocation by identifying high-impact, feasible opportunities
• Build team consensus through transparent evaluation

Master the calculation method, understand the purpose, practice with real scenarios, and remember that the matrix structures human judgment rather than eliminating it. With these competencies, you'll confidently answer any Prioritization Matrix question on the Black Belt exam.