The Impact-Effort Matrix
The simplicity and versatility of the impact-effort matrix make it useful for everything from daily to-do lists through to strategic action plans.
In this decision-making exercise, actions are mapped against two factors – effort required to implement it and the action’s potential impact.
Categorizing ideas along these lines is a useful technique in decision making, as it obliges the balance and evaluateion of suggested actions before committing to them.
The time required to construct an impact effort matrix depends on the organization, the size of the group, and the objectives of the session. In order to generate really creative ideas, it may be a good idea to have smaller teams, run quick pitching of ideas or run ice breakers to get ideas flowing.
Instructions
Set the stage with the context and a problem statement that you want the group to focus on.
Explain how the impact effort or action priority matrix works.
Ask people to add all ideas, no matter how wild, small, seemingly insignificant or outrageous they may be in the first instance.
The goal here is about getting a wide perspective and to have different ideas shared.
Provide adequate time in the session to position and rate activities.
When positioning individual ideas, this is done independently and free from bias.
Where there are overlaps, discuss further and see if people can reposition their ideas to a newly agreed position.
Draw a 2x2 matrix and assign the x axis as the level of effort an activity or solution requires – how much time, money, resources, and capacity will be needed to achieve the desired outcome?
Assign the y axis as the level of impat an activity or solution will create – how much value or impact the outcomes will have on the business or project.
Have participants categorize their identified activities into one of four quadrants.
The result is a visual representation of where best to assign time and resources; activities fall into one of four categories –
Quick wins – Give the best return based on the effort.
Major projects – Provide long term returns but may be more complex to execute.
Fill ins – Don’t require a lot of effort but neither do they offer many benefits.
Time wasters – Time-consuming activities with low impact that should be avoided.
As you can see, the Impact-Effort Matrix rapidly identifies what activities you should focus on, along with the ones you should ignore. It also helps optimize limited time and resources, and can provide time to reflect on a range of strategies and find the most efficient path to achieve goals and reduce wasted time and effort. Using this activity and tool, can help get projects back on track, aligns team priorities, and identify the best solutions to a problem.