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Multicriteria Decision Analysis

A method that uses a decision matrix to define and weigh criteria (such as risk, uncertainty, and value) so multiple options can be scored, compared, and ranked in a consistent, transparent way.

Key Points

  • Uses a decision matrix to score alternatives against agreed criteria.
  • Criteria can include risk exposure, uncertainty, cost, benefit, feasibility, and strategic fit.
  • Supports objective, repeatable prioritization by applying weights to each criterion.
  • Useful for evaluating many ideas, vendors, requirements, or solution options.

Example

A project team must choose among five software vendors. They build a matrix with criteria such as total cost of ownership (30%), security compliance (25%), implementation risk (20%), scalability (15%), and user experience (10%). Each vendor is scored 1–5 per criterion, multiplied by the weights, and summed. The highest total score identifies the preferred vendor, with a clear rationale for stakeholders.

PMP Example Question

A project manager needs a structured way to compare several design options using weighted criteria like risk, cost, and business value. Which tool should be used?

  1. Decision tree analysis
  2. Multicriteria decision analysis
  3. Affinity diagram
  4. Delphi technique

Correct Answer: B — Multicriteria decision analysis

Explanation: It applies a decision matrix with weighted criteria to score and rank multiple alternatives objectively.

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