For running an organization successfully the most important thing you need is a good strategy and the proper expenditure of your valuable time. But at a particular point of time there are a number of equally sound strategies for a leader to choose from. So how is he supposed to recognize the best strategy for the company from the lot? Under such circumstances making a decision entirely based on your intuition would not be a very wise decision. Your decision should be based upon solid facts. But this is easier said than done with the wide range of outcomes that these strategies can cause.
The QSPM helps you with just that. It helps you decide on which strategy is best suited for addressing the particular crisis your organization is facing currently. It also gives you a systematic approach at evaluating alternate strategies. The strategies subject to comparison should be mutually exclusive of each other if possible.
What is the Quantitative Strategic Planning Matrix and How It Works?
The QSPM is a strategic tool used for evaluating alternate strategies. It helps in objectively selecting the most powerful strategy with the use of input from some simple computations and other management techniques. The QSPM evaluates the previous stage details in an organized way and formulates scores for multiple strategies which is then for picking the strategy most appropriate for the situation and which shows most promising sign of achieving the required result. The QSPM is a part of the third stage of strategy formulation better known as the ‘Decision stage’ and at times the final stage of the process. The whole working process of the Quantitative Strategic Planning Management can be summed up in two easy stops of strategic management analysis: