Impact Analysis
Transcript: IMPACT ANALYSIS The Challenge of Impact Analysis How to use Impact Analysis 2. Brainstorm Major Areas Affected The challenge in conducting an Impact Analysis is firstly to capture and structure all the likely consequences of a decision; and then, importantly, to ensure that these are managed appropriately. 4. Evaluate Impacts 3. Identify All Areas Now, for each of the major areas identified, brainstorm all of the different elements that could be affected. For example, if you're looking at departments, list all of the departments in your organization. If you're looking at processes, map out the business processes you operate, starting with the process the customer experiences, then moving on to the business processes that support this. B. McKinsey 7Ss Approach: Now brainstorm the major areas affected by the decision or project, and think about whom or what it might affect. Different organizations will have different areas – this is why it's worth spending a little time getting this top level brainstorming correct. 1. Prepare for Impact Analysis Identifying the Full Consequences of Change To conduct an effective Impact Analysis, use the following steps: Impact Analysis is a technique designed to unearth the "unexpected" negative effects of a change on an organization. It provides a structured approach for looking at a proposed change, so that you can identify as many of the negative impacts or consequences of the change as possible. Firstly, this makes it an important tool for evaluating whether you want to run a project. Secondly, and once the decision to go ahead has been made, it helps you prepare for and manage any serious issues that may arise. Using the popular McKinsey 7Ss Add to My Personal Learning Plan approach to thinking about the things that are important to an organization: Strategy. Structure. Systems. Shared Values. Skills. Styles. Staff. A. Organizational Approach: The first step is to gather a good team, with access to the right information sources. Make sure that the project or solution proposed is clearly defined, and that everyone involved in the assessment is clearly briefed as to what is proposed and the problems that it is intended to address. Impacts on different departments. Impacts on different business processes. Impacts on different customer groups. Impacts on different groups of people. Having listed all of the groups of people and everything that will be affected in an appropriate level of detail, the next step is to work through these lists identifying and listing the possible negative and positive impacts of the decision, and making an estimate of the size of the impact and the consequences of the decision.
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