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What is effect analysis and how to use it in the organization?

Study guide




Has it ever occurred to you that when changes occur in your organization, you wish that those in charge thought more deeply about the issues in order to avoid the confusion and disruption that often ensues that change? Or have you ever been involved in a project that, once completed, you realized that if you had started with more planning and thinking, you could have reduced the severity of the difficulties? Analysis of the work will help you here.

What is effect analysis?

Effect analysis is a technique for identifying the negative and unexpected effects of a change that occurs in an organization. This technique is very useful in brainstorming, which is usually less used. This technique helps you to examine all the effects that the proposed change will have on the organization. For this reason, it is an essential part of the evaluation process for making important decisions. Most importantly, it gives you the ability to identify the problem before it occurs so you can plan for potential events and easily manage issues. This is what makes project management tactful and easy.

This technique provides a structural approach to examining the proposed change so that you can identify all the negative effects and consequences that result from it. This makes impact analysis an important tool for evaluating your decision to start a project, and also helps you manage potential problems in the implementation phase after launching the project.

Often, organizations do not use impact analysis, which is why many of their projects fail.

Impact analysis challenge

The first challenge in performing impact analysis is to identify and organize all the possible consequences of the decision, followed by ensuring that all of them are well managed.

For smaller decisions, this analysis can be done easily and as a small exercise. For larger and more risky decisions, it is best to analyze with the help of an expert team. Ideally, you should select your team from different parts of the organization. With such a team, it is better to weigh all the consequences of the decision than to do it alone.

How to use effect analysis?

Follow the steps below to perform the appropriate effect analysis:

1. Prepare to analyze the effect

The first step is to build a good team that has access to the right sources of information. Remember to clearly define the project and the proposed solution for all members of the group and provide all the necessary information to the people involved in the analysis process.

2. Identify the main parts that are affected by the storm

At this stage, you need to identify the people and important people who are affected by the decision or project you are considering.

These sections will be different for different organizations, so it is worthwhile to take the time to get through this stage and do the brainstorming correctly.

The following analysis identifies a number of different approaches that can provide a good starting point for identifying these key and important parts.

Analysis 1: Effect analysis: The most important parts affected

Here are some suggestions on how to look or get an appointment for antique items. Choose frameworks that you think are most relevant, then “combine and match” them properly and add other sections that seem relevant.

Do not forget to involve as many people as possible in the brainstorming session that is most affected by this change, because they have a deeper insight into the consequences of the decision you want to make.

A: Organizational approach

  • Impact on different units.
  • Impact on various business processes.
  • Impact on different groups of customers.
  • Impact on different people.

B: The McKenzie 7S approach

Using the McKenzie 7S Framework, think about issues that are important to an organization:

  • Strategy
  • Structure
  • systems
  • common values
  • Skills
  • styles
  • Staff

A: Tool-based approach

Impact analysis and the other tools we have described so far, especially risk analysis, risk / impact impact charts, and stakeholder analysis, have many overlaps.

You can use the titles used in the risk analysis article as a starting point for your brainstorming session, and use stakeholder analysis to think about the people who may be affected by your decision.

3. Identify all areas

In this step, for each of the main parts that you have identified, do a brainstorming session for all the different elements that can be affected. For example, if you are looking at different units of an organization, list all the units that exist in your organization. If you are looking at processes, list the ongoing business processes, starting with the process that relates to the customer experience, and then move on to the processes that support them.

How successful you are at doing this depends on the scale of your decision and the time you have. Just be careful not to get caught up in superficial details.

4. Evaluate the effects

Once you have listed all the groups of people and things that will affect your decision, the next step is to carefully review the list and identify all the possible positive and negative effects and estimate the impact and consequences of the decision. .

5. Manage the consequences

It’s time to turn this information into action.

If you use impact analysis as part of your decision-making process, you need to think about whether or not you want to implement the project or decision. You need to ask yourself if you are willing to continue with the negative consequences of the project and the costs you have to pay to manage these consequences.

If you are currently managing a project that has been approved, you should consider the following:

  • Actions needed to manage the project and reduce the negative consequences.
  • How to prepare people who are affected to support change rather than to resist it.
  • Possible strategies needed to deal with the negative consequences that may arise.

tip:

Keep in mind that the effects of change can be exacerbated or diminished by other events that are taking place. When thinking about impact, consider the environment in which you operate, as well as how people respond to these changes and whether they support or respond to them.

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