Tool 36: Comparison Matrix

AKA

Comparative Assessment Matrix

Classification

Evaluating/Selecting (ES)

Tool description

A comparison matrix assists with the analysis process to identify existing gaps between an organization and its competitors, to determine the profitability potential of a product or service, or to discover other problems that may require immediate attention. When gaps, problems and profitability potential are known, a company can more effectively position its future products and services.

Typical application

• To identify problem areas and areas where resources should best be allocated.

• To compare organizational capability with that of competitors.

• To perform market demand futuring for products and services.

Problem-solving phase

→	Select and define problem or opportunity
	Identify and analyze causes or potential change
→	Develop and plan possible solutions or change
	Implement and evaluate solution or change
→	Measure and report solution or change results
	Recognize and reward team efforts

Typically used by

	Research/statistics
	Creativity/innovation
	Engineering
	Project management
	Manufacturing
1	Marketing/sales
	Administration/documentation
2	Servicing/support
3	Customer/quality metrics
4	Change management

links to other tools

before

• Data Collections Strategy

• Benchmarking

• Conjoint Analysis

• Information Needs Analysis

• Customer-First-Questions (CFQ)

after

• Resource Requirements Matrix

• Opportunity Analysis

• Gap Analysis

• Starbursting

• Action Plan

Notes and key points

• A rating system of non-numeric symbols can be used in place of numeric values or non-numeric ratings. Optional: • = 5 (strong); ○ = 3 (moderate); □ = 1 (weak).

Step-by-step procedure

• STEP 1 A facilitated cross-functional team decides upon a data-collection strategy to gather historical and forecasted information about the products/services.

• STEP 2 The team identifies core productions/services and lists them in order of importance or value to the organization. See example Softhelp Software Company.

• STEP 3 Appropriate markets or market segments are agreed upon.

• STEP 4 The team selects a rating system.

• Note: Non-numeric figures can be used in place of numeric values or non-numeric ratings.

• STEP 5 Data is collected and discussed, and findings are plotted on the comparison matrix as shown in the example.

• STEP 6 The team reviews the completed matrix and writes a short rationale for each product/service rating.

• STEP 7 A final report, which describes potential, leverage points, future requirements, etc., is written and attached to the comparison matrix and submitted to management.

Example of tool application