Applying the 2x2 matrix

- Another tool you can use … to prioritize your initiatives … is called the two by two matrix. … The way a two by two matrix works … is you look at two objective functions of your organization, … and plot them against one another, … and then place your initiatives on that grid. … So the example I've got here, … first, I look at profit. … And that's the most important objective … of my organization, … and I'm going to assess my initiatives … from low profit to high profit. … Then I look at growth rate of the organization, … how much will this initiative … help my top line grow for the company. … And again, I look from low to high. … And what happens is, the two by two matrix … will help me prioritize. … And initiatives that are high profit and high growth … are my priority one initiatives. … Next, since profit is most important to me, … anything that's high profit, … even if it doesn't get me a lot of growth, … is going to be priority two. … Initiatives that get me a small amount of profit, …