Impact analysis is the identification and presentation of how a potential project or other business decision will affect the business. The impact needs to be considered as part of the decision whether or not to go ahead and make the change
Prior to conducting an impact analysis
Before completing an impact analysis, you should have identified your options, assessed the project feasibility and conducted a cost-benefit analysis using a cost-benefit analysis tool or benefits realisation tracker.
What is an impact analysis?
An impact analysis is the consideration of how a change will affect an organisation and the people working within it.
An impact analysis is often documented in a business case, after the costs and benefits for each option have been considered. For each option documented, the user must then investigate what impacts they might have on the organisation.
Why use an impact analysis?
An impact analysis can often make or break project outcomes, and therefore it is essential that they are considered fully before any decision to change is made. Whatever the impacts are, the business case must include them and it must also be made clear to the decision makers what they involve so that all opportunities and threats are scoped out.
How do you document an impact analysis?
Depending on the organisation, an impact analysis can be documented in different ways, some more detailed than others.
What happens next?
After completing an impact analysis, the user will continue to complete the rest of the business case, covering areas such as risk assessments, recommendations and financial investment appraisal.