Plotting an Importance Performance Matrix

The graphic steps you through how to plot and interpret an importance performance matrix, often call an IP matrix, which is used to assess a firm's performance on a critical success factors or product attributes. The next pages suggest more sophisticated techniques to assess the results: over time and compared to competitors. As a facilitator for strategic planning, I also suggest how to present the IP matrix to help formulate strategy from the analysis.

Customers are asked to score how important was each element of their decision and how well you performed. Usually, the scale is 1 (low importance or performance) to 5 (high importance or performance). Therefore if it was very important (>3) and you performed well (>3), the you excel. In the example below, you would fix poor performance, back off if your performance was overkill, and could ignore low priority importance elements. This GIF demonstrates the process to develop an IP Matrix:

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