How I Use Scorecards to Make Life Decisions
Back when I was working in data analytics for a mortgage company, my team and I prepared tons of reports: sales, finance, ops, government filings, licensing, and more.
One of my favorite type of reports were scorecards.
These were simple grids that let us evaluate loan officers, underwriters, processors, and anyone/anything else on efficiency, productivity, close rates, ratios… the works.
You probably can imagine that mortgage data is quite rich, borrower profiles, employee stats, loan details, processing times.
But raw numbers like “closed X loans” rarely told the full story. We had to layer in a dozen criteria: compliance risks, turnaround times, customer satisfaction, loan details.
The output? A single, weighted score that cut through the noise.
Sometimes it informed a pat on the back. Other times? A tough conversation or worse.
I use a similar method whenever I’m facing a tough or important choice with too much noise.
Recently, I helped someone in that exact spot, and the scorecard approach was new to them and helpful.
If you already use this method, give me a virtual high-five. If you don’t, I hope this helps.
The beauty of scorecards is that you can use them for any type of rational decision-making, from picking between businesses, people, objects, or projects.
It works whether you’re choosing between A and B, A, B, and C, or beyond.
Why Most Complex Decisions Suck (And How This Fixes It)
Daily choices are mostly binary: yes/no, this/that, pasta/sushi, gym/movie night.
Easy.
The nightmares? When:
You’re missing key information (hello, stress),
47 factors are screaming at once,
Or emotions turn your brain into mush.
Enter the decision scorecard. It’s emotionless, structured, and forces clarity.
I don’t use it often just when I’m paralyzed or the stakes are too high.
How to Build Your Own Decision Scorecard (Step-by-Step)
Let’s say you’re debating two real estate moves:
Option A: Build a 10-unit micro-resort in your current (familiar) market.
Option B: Jump to a hotter market 1,000+ miles away with stronger demand but zero local network.
You’ve got contractors here, none there. Demand looks juicy in B, but you’d be away from family/friends for 18+ months, uprooting a comfy life.
Permits? Unknown.
Risks? Everywhere.
For this scenario let’s assume you have a spouse, no kids. Spouse works remotely and is ok with you to move anywhere.(what a spouse!)
Here’s a simplified version of a scorecard:
1. List Your Criteria
Be specific. Vague input = garbage output.
2. Assign Weights (0.0 – 1.0)
How much does each actually matter to you?
Lower = less critical. Higher = more critical.
Make sure your weights sum to exactly 1.0 (100 percent) because the scorecard calculates a weighted average. Any other sum scales every score up or down.
3. Score Each Option (1–10)
10 = best possible
4. Multiply & Sum
Weighted score = (Score × Weight)
Option A wins: 6.61 vs 5.74
As you build it, it makes you:
Name what actually matters,
Quantify trade-offs you’d otherwise dodge,
Spot where emotion was hijacking logic.
Two considerations:
Ensure you’ve thought through different scenarios when assigning weights to criteria. And have your non-negotiables cleared out. For example, for you, permitting could be a non-negotiable and carry the highest weight.
If one of your criteria is, let’s say, diversity of demand (something requiring external data), ensure you score it based on reliable, up-to-date data from valid sources, not necessarily from a news article.
So, next time you’re staring at a fork in the road? Consider giving it a try.
