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.

1. Discount Matrix

2. Prepared By
Manu Melwin Joy
Research Scholar
School of Management Studies
CUSAT, Kerala, India.
Phone – 9744551114
Mail – manu_melwinjoy@yahoo.com
Kindly restrict the use of slides for personal purpose.
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. 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.

5. Areas of discounting
• There are three areas in
which people can discount:
• Self.
• Others.
• Situation.

6. 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.

7. 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.

8. 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.

9. Types of discounting
• The three types of
discounting are of:
• Stimuli.
• Problems.
• Options.

10. 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.

11. 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.

12. 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

13. 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.

14. 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.

15. Levels of discounting
• The four levels of
discounting are:
• Existence.
• Significance.
• Change
possibilities.
• Personal abilities

16. 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.

17. 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.

18. 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”.

19. 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.

20. 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.

21. 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.

23. 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.

24. 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?

25. Discounting existence of stimuli
If the smoker were
discounting the
existence of the
stimuli, he might reply:
“What cough? I was not
coughing?”

26. 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.

27. 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.

28. 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.

29. 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.

30. 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.”

31. 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.

32. 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.

33. 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.

34. 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.

35. 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.”

36. 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.

37. 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.

38. 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.

39. 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.

40. Discounting matrix
A person discounting on any diagonal will be
discounting in all the boxes below and to the
right of that diagonal.

41. 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?”

42. 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.

43. 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.

44. Using the Discount Matrix

45. 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.

46. 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.

47. 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.

48. 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.

49. 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.

50. 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.

51. 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?”

52. 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.

53. 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.

54. 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.

55. 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?

56. 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.

57. 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

58. 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.

59. 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?

60. 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?

61. 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.

62. Thank
you

63. Other TA topics available on slideshare
1. Strokes - http://www.slideshare.net/manumjoy/strokes-24081607.
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3. Structural Analysis - http://www.slideshare.net/manumjoy/the-ego-state-model.
4. What is TA? - http://www.slideshare.net/manumjoy/what-ta-is
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7. Transactions - http://www.slideshare.net/manumjoy/transactions-33677298.
8. Time Structuring - http://www.slideshare.net/manumjoy/time-structuring.
9. Life Position - http://www.slideshare.net/manumjoy/life-position.
10. Autonomy - http://www.slideshare.net/manumjoy/autonomy-33690557.
11. Structural Pathology - http://www.slideshare.net/manumjoy/structural-pathology.
12. Game Analysis - http://www.slideshare.net/manumjoy/game-analysis-33725636.
13. Integrated Adult - http://www.slideshare.net/manumjoy/integrated-adult.
14. Stroke Economy - http://www.slideshare.net/manumjoy/stroke-economy-
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