By: Kelsey McIntyre
Hello all! Today we will be exploring how to generate an impact/effort matrix and how it can be beneficial when learning and applying lean principles.
When coming up with possible actions to undertake for your business, it is always good to visualise the potential payoff vs. the cost of taking the action as a way to evaluate possible courses of action. You want your actions to have a high potential payoff, but you don’t want it to require a large amount of effort. The Impact/Effort matrix can help you to visualise this. The impact/effort matrix was designed specifically for the purpose of deciding which of many suggested solutions to implement.
To start, brainstorm possible actions your business can take in order to improve or grow.
Once you have a list of possible actions, make a chart with effort on the x-axis and impact on the y-axis. High effort actions will go further to the right and high impact actions will go further up.
Now evaluate the actions you are considering. How much effort and costs would go into implementation? How much of an impact would it have on your business? Chart these onto the matrix to see where it lands.
Actions with high impact /low effort are ideal and should be prioritized. High effort/high impact actions and low impact/low effort actions should be considered but not prioritised. High effort/low impact would distract from your more impactful actions and should not be prioritised. It would be beneficial though to evaluate if there was a way to make it more impactful or make it require less effort.
This practice is beneficial as it provides answers to the question of which solutions seem easiest to achieve with the most effect and it assists people to manage their time more efficiently and effectively. Overall, practicing this will help you cut out waste, positively impact growth and progress, save time and energy, and visualise solutions.