A Prioritization Matrix is typically an L-shaped matrix which makes pairwise comparisons of established criteria and options. The prioritization matrix is a rigorous method and requires skill to use effectively. It is also applicable to many situations and has several different configurations. To be used effectively, the criteria and the options must be clearly developed and a scheme for weighing them must be applied.
Example: A firm is in the process of evaluating three different suppliers for a new product. First, the firm establishes the criteria that are most important to them and then they rate each supplier against those criteria on a scale of 1 to 5 (5 being best). The prioritization matrix is given below.
Keep in mind that prioritization matrices are typically used in an iterative fashion. For example, the firm will most likely take the matrix a step further by assigning a weight to each criterion and using that to generate a final value for each supplier (rating x weight). Then they can sum the values to see which supplier has the highest priority to be chosen.
