Impact Analysis

 

Hopefully by the end of this article will have introduced, or re-introduced
you to a simple but very effective improvement technique.

 
Impact Analysis - What is it?

Impact analysis is a useful technique to prioritise a list of potential improvement ideas. 

It helps us to review a group of  actions in terms of their impact and ease of implementation.

Impact Analysis - Who is it for?

Primarily it works best for a team of between 8-12 people who are working on an improvement activity together.
It is best to have an independent facilitator to lead the activity.

Impact Analysis - Why use it?

The main reason we use Impact Analysis is to take a number of potential improvement actions to group them
into four meaningful sub-groups.

Those actions that will have a big impact on our objectives and are fairly easy to implement.

Those actions that will only have a small impact on our objectives and are fairly easy to implement

Those actions that will have a big impact on our objectives but are more difficult to implement.

Those actions that will only have a small impact on our objectives and are fairly difficult to implement.

Impact Analysis - When should you use it?

This technique can be used at anytime once you have a set of improvement actions to prioritise.

Impact Analysis - How do I use it?

Preparation

Equipment/Facilities

You will need the following to create a Impact Analysis Chart:-

Team Members / Facilitator

The team should be made up with people who understand the implications of the improvement actions
being considered.

It is always useful to have an experienced facilitator to lead this activity.

Creating the Impact Analysis Chart

Step

Create the chart on flip chart paper

(best to stick 4 pieces of flip chart paper together and
then draw 2 lines to split into 4 rectangular quadrants)

The following headings should be added to each quadrant

Team members then write down potential improvement ideas onto post it notes around the objective
you are working on.

As many good ideas per person as possible!

Step

Team members then critique ideas one at a time via the facilitator and decide which quadrant of the
chart they should fall under.

i.e.

-High Impact / Low Difficulty
-Low Impact / Low Difficulty
-High Impact / High Difficulty
-Low Impact /High Difficulty

The following questions should be considered for each idea.
 
Will the idea have a high or low impact on the objectives we are working on?

Will the idea be easy or difficult to implement?

Once agreed the post it note in turn is added to the appropriate quadrant on the chart.

Example of a Impact Analysis Chart
during a Kaizen Blitz Event facilitated by
Graham Ross

It's usually best to work on high impact low difficulty ideas first and then low impact low difficulty
items next.

The High Impact / High Difficulty can make the basis for a longer term improvement plan

Low impact / High Difficulty items may or may not be even considered depending on resources.

Summary

Impact Analysis is a great technique for prioritising improvement actions quickly.

Hope this helps.

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