Whenever a problem is not being solved, some information relevant to the solution of that problem is being ignored. The discount matrix gives us a systematic way to pinpointing what information is being missed. This in turn provides guidance to the specific actions we need to take to solve the problem.

1. Using the Discount Matrix

2. Prepared By
Manu Melwin Joy
Research Scholar
School of Management Studies
CUSAT, Kerala, India.
Phone – 9744551114
Mail – manu_melwinjoy@yahoo.com
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Please seek permission to reproduce the same in public
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3. Discount Matrix
• Discounting results in
unresolved problems.
• Thus, if we can devise a
systematic way of identifying
the nature and intensity of
discounting, we will have a
powerful tool for problem
solving.
• Such a tool is called discount
matrix.

4. Using the Discount Matrix
• Whenever a problem is not
being solved, some
information relevant to the
solution of that problem is
being ignored.
• The discount matrix gives us
a systematic way to
pinpointing what
information is being missed.
• This in turn provides
guidance to the specific
actions we need to take to
solve the problem.

5. Using the Discount Matrix
When a problem
remains unsolved
despite efforts to solve
it, this is often because
the person is addressing
the problem on too low
a diagonal of the
discount matrix.

6. Using the Discount Matrix
It follows that in using
the matrix as a problem
solving tool, we need to
begin by looking for
discounts on the highest
diagonal first.

7. Using the Discount Matrix
• We step into the matrix at
the top left corner.
• If we discover a discount
there, we need to deal with
that discount before going
any further downward or to
the right.
• Because if we miss that
initial discount and try to
deal with a discount on any
lower diagonal, our
intervention will itself be
discounted.

8. Example
• If you were the friend of a
smoker and seeing him
cough, you say “ I am
concerned about you.
Please give up smoking.”
• With your intervention, you
have addressed the
problem on the lowest
diagonal of the box.
• The issue is whether the
smoker is going to act on a
specific option.

9. Example
• But suppose the smoker is
discounting much higher on the
matrix?
• For example, he may be diagonal
T2, discounting the significance of
stimulus and existence of the
problem.
• It is obvious that he will also
discount any relevance in what
you have just said to him.
• Why should he have any
investment is stopping smoking,
when as far as he is aware, his
smoker’s cough is not a problem.

10. Example
Suppose now you wanted
to help your smoking
friend by systematically
using the discount matrix,
you would begin by
checking for a discount on
diagonal T1. “Are you
aware that you have got a
really bad cough?”

11. Example
• If he confirms that he is
aware of the cough, you
would go down to the next
diagonal.
• You might ask “ Is that
cough of yours something
you bother about?”
• Were he to reply “No, Not
really, it is something I just
take for granted.”
• Now you have located that
his discount is on T2.

12. Example
• This lets you know that if
your smoker friend is to
give up his habit, he first
needs to become aware
that his cough may
indicate a problem
• He needs to realize too
that his problem may be a
cause of his concern.

13. Activity
• Using discount matrix to
review your personal
example of a problem
situation you did not solve
at the time.
• Begin at the top left of the
discount matrix, check
each box, working
downwards on successive
diagonals, until you
identify the box in which
you were discounting.

14. Activity
• As before, if you were
working in a group or with a
willing friend, it may be
helpful if you get a second
opinion.
• Test whether you were also
discounting in all the other
boxes on the same diagonal
and those below it.
• What were the area of
discount?
• Were you discounting
yourself, others or the
environment?

15. Activity
• When you have identified the
discount, consider its ego
state source.
• Did it come from
contamination? An exclusion?
Or were you uninformed or
misinformed?
• Let yourself be aware of
whatever part of reality you
had previously been
discounting.
• If you need accurate or new
information, get it.

16. Activity
• Now rerun the situation in your
mind’s eye.
• When you come to the point at
which you began discount,
replace the discount with your
full awareness of reality.
• How do you now act, think or
feel differently?
• How does this alter the
outcome of the situation?

17. Application
• The discount matrix was
originally developed for
use in psychotherapy.
• But it provides an equally
effective tool for problem
solving in organization
and education.

18. Example
• A college teacher takes a
class and asks student
some questions to check
their understanding.
• To his surprise, the
students can answer
hardly any.
• He told himself “These
students are not working.
Why they don’t have any
motivation?

19. Example
• By assuming that the
students have not been
working, he is addressing
a discount in the area of
others on diagonal T5 or
T6 of the discount matrix.
• He has assumed that
students knew they have
to work but they either
don’t feel they can handle
the work or just aren’t
getting started?

20. Example
• When he were to check
through the discount matrix,
the real problem may be
different.
• While lecturing, he mumbles.
The students cant hear what
he is saying.
• The discount is on diagonal
T2 of the matrix.
• To address the problem, the
lecturer simply needs to
speak up.

21. Thank
you

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