Discount Matrix

Prepared By Manu Melwin JoyResearch Scholar

School of Management StudiesCUSAT, Kerala, India.Phone – 9744551114

Mail – manu_melwinjoy@yahoo.com

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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.

Discount Matrix

• Discount matrix was developed

by Ken Mellor and Eric Sigmund.

• The discount matrix starts from

the idea that we classify

discounts according to three

different criteria.

• Area.

• Type.

• Level.

Areas of discounting

• There are three areas in

which people can discount:

• Self.

• Others.

• Situation.

Areas of discounting

• In the example, When I was sitting in the restaurant dropping because the waiter wasn’t bringing my glass of water, I was discounting myself.

• I was ignoring my own ability to take action to get what I wanted.

Areas of discounting

• My friend who got angry and started criticizing the waiter, was discounting not himself but the other person.

• In judging the waiter incompetent, hew was blanking out any aspects of the waiter’s actions that might have contradicted his criticism.

Areas of discounting

• Suppose that after drooping for a while, I did turned to my friend and said: “ Well, there we are. It really isn’t fair that these other people are getting served and I am not. But then, this world is an unfair place, isn’t it?”

• Here, I did have been discounting the situation.

Types of discounting

• The three types of

discounting are of:

• Stimuli.

• Problems.

• Options.

Discounting - Stimulus

• To discount a stimulus is

to blank out perception

that something is

happening at all.

• As I sat in the restaurant, I

might simply not have

allowed myself to feel

that I was thirsty.

Discounting - Stimulus

• I would have been discounting the stimulus of my own thirst.

• Maybe my friend, in calling the waiter incompetent, had not seen the way in which the waiter had actually succeeded in serving many other customers, even though the evidence was right there in front of him.

Discounting - Problem

• The person who discounts a problem realizes that something is happening, but ignores the fact that whatever is happening poses a problem.

• Feeling thirsty there in the restaurant, I might have said to my friend, “ I feel very thirsty right now, but, oh well, it doesn’t matter.”

Discounting - Options

• When discounting options, the person is aware that something is happening and that it constitutes a problem.

• But she blanks out the possibility that anything can be done about the problem.

• That is where I was discounting in the original version of the restaurant scene.

Discounting - Options

• As I sat drooping, I knew that I felt thirsty.

• I was aware that my thirst was a problem to me.

• But I was unawarely ignoring the many options I had, other than just sitting and hoping the waiter to respond.

Levels of discounting

• The four levels of

discounting are:

• Existence.

• Significance.

• Change

possibilities.

• Personal abilities

Discounting- Existence• In the example, I was

discounting the existence of my own options to solve the problem.

• I didn’t even consider the possibility of, for example, walking over and speaking to the waiter instead of gesturing to him.

Discounting- Significance• If I had been discounting the

significance of my options, I might have said to my friend: “ I suppose I could go over and ask him.

• But I bet asking him wouldn’t make a difference.

• Here, I did have realized there was something different I could do, but blanked out the possibility that his action could have any effect.

Discounting- Change possibilities

Discounting my options at

the level of change

possibilities, I might have

said: “ Of course, I could

walk across and collar the

fellow. But people just

don’t do that in

restaurants”.

Discounting- Change possibilities

In this case, I would have

let myself realize that the

option existed and that it

might have results, while

ignoring the possibility that

anyone could actually put

the option into practice.

Discounting- Personal Abilities

• Here I am aware the options exists and could bring results.

• I realize that some people in the world might well use that option.

• But I dismiss my own ability to do so.

Discounting Matrix

• Discounting matrix is

compiled by listing all the

possible combinations of

types and levels of discount.

• When we do so, we will get

the discounting matrix

diagram.

Discounting Matrix

• Discounting matrix has three columns for the three types of discount and four rows for the four modes or levels.

• The wordings in each of the resulting twelve boxes indicates the combination of type and level.

Discounting Matrix - Example• Suppose two friends are talking.

One of them is a heavy smoker. • As he lights up yet another

cigarette, he is convulsed by a bout of coughing.

• His friend says to him : “ That’s is a terrible cough. I am concerned about you. Please give up smoking.”

• What might be the smokers reply if he were discounting in each of the twelve different boxes on the matrix?

Discounting existence of stimuli

If the smoker were

discounting the

existence of the stimuli,

he might reply: “What

cough? I was not

coughing?”

Discounting existence of problem

If the smoker were

discounting the existence of

the problem, he might say: “

Oh, no, I am fine, thanks. I

have always had a cough. He

is letting himself be aware of

his cough, but blotting out

the possibility that this may

constitute a problem to him.

Discounting significance of stimuli

• In discounting the existence of the problem, he is also discounting the significance of the stimulus.

• In discounting the possibility that his cough may be a problem, he is also discounting the fact that the cough may have some meaning (Significance) for him.

Diagonal arrows

• This is indicated on the

matrix diagram by the

diagonal arrow connecting

the boxes for “existence of

problems” and “Significance

of stimuli”.

• The arrow means that one

of these discounts will

always entail the other.

Diagonal Arrows and T numbers

• All the diagonal arrows on the diagram has this meaning.

• The “T” numbers, entered at the top left of each box, are labels for the different diagonals.

• For instance, discounts of the existence of the problem and the significance of the stimuli corresponds to diagonal T2.

Discounting existence of options

When we take T3, smoker

is discounting the existence

of options. He might show

this by replying “ Well, yes,

but we smokers do cough,

you know?. A short lie and

a happy one, that what I

say, ha, ha.”

Discounting existence of options

Now he is admitting that he

has a cough and that the

cough may well indicate a

problem, namely that

smoking can kill people.

But he is blanking out the

possibility that anyone can

do anything to avoid

smoker’s cough.

Discounting significance of the problem

In doing so, he also blanks

out any perception that the

possibility of being killed by

smoking is something he

might be concerned about.

He discounts the

significance of the problem.

Discounting changeability of stimulus

And by his denial that

anything can possibly be

done by anyone to get rid

of a smoker’s cough, he

discounts the changeability

of the stimulus.

Discounting significance of options

• The same equivalence of

discounts applies along the

other diagonals.

• On T4, the smoker might say:

“Well, yes, I suppose I should

give up really. But I have been

smoking for so long, I don’t

think my giving up now is

going to make any difference.

Discounting viability of options and person’s ability to act on options

• On T5, he might respond: “ Sure, you are right. I need to give up, But I can’t figure out how to do it.

• And on T6, the smoker might say: “Yes, I have been telling myself for ages I should throw my cigarettes and lighter away. But I just cant seem to get round to it.”

Discounting matrix

Another feature of this matrix is that a discounting in any box also entails discounts in

the boxes below and to its right.

Discounting - Sequence

Suppose a person is

discounting the existence of a

problem. Since he is not

allowing himself to be aware

that the problem even exists,

he is obviously also going to

blank out any perception that

the problem may be

significant.

Discounting - Sequence• Nor will he be thinking whether

he or anyone else can solve the problem. He is thus discounting in the entire column of boxes related to problems.

• And since he is ignoring the existence of the problem, why should he consider whether there are options for solving it?

• Because he thus discounts the existence of options, he will also discount all the other boxes in the options column.

Discounting - Sequence

• Finally, recall that a discount

of the existence of problem is

equivalent to discounting the

significance of stimuli, along

diagonal T2.

• Therefore, the other two

boxes below it in the stimuli

column will be discounted

also.

Discounting matrix

A person discounting on any diagonal will be discounting in all the boxes below and to the

right of that diagonal.

Activity

• Make up the discount matrix for this example.

• Wife and husband have just settled down in bed for the night.

• Then, in the next room, their baby starts crying.

• The husband says “Do you think one of use should go and see why the baby is crying?”

Levels of Discounting

• The EXISTENCE of a problem, e.g. a baby cries and the parents go to sleep.

• The SIGNIFICANCE of a problem “Oh the baby always cries at this time”.

• The CHANGE POSSIBILITIES “The baby will never be satisfied”.

• The PERSONAL ABILITY to actually carry out the change “You could but I

can’t change the nappy”.

At each level the discount can be of three types:

• The STIMULUS can be discounted.

• The PROBLEM can be discounted.

• The OPTIONS can be discounted.

Activity

• Work out the responses

his wife might give if she

were discounting on

each of the diagonals in

the discounting matrix.

• Confirm that the

“hierarchy of discounts”

applies.

Using the Discount Matrix

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.

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.

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.

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.

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.

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.

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?”

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.

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.

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.

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?

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.

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?

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.

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?

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?

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.

Thank you

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