Every decision a manager makes creates a ripple—some small, others much bigger. That’s why analysing the potential impact of any decision is not just useful, it’s essential. It helps avoid nasty surprises, builds trust, and shows you’ve thought things through.

Imagine you’re considering moving the team to a new project management tool. On the surface, it sounds simple. But if you dig deeper, the potential impact becomes clearer. Will training be needed? How much time will be lost during the switch? Will the new system really suit everyone’s working style? Analysing the impact helps you prepare and make a smarter, more informed decision.

It’s not just about what’s best in theory—it’s about how that decision will play out in real life. Ask yourself questions like:
Who will be affected?
What could go wrong?
What are the possible gains?
Is there a risk to performance, morale, or budget?

Let’s take another example. Say you’re thinking about changing team shift patterns to cover more hours. The potential benefits might include better customer service and fewer complaints. But without considering the impact, you might miss that staff could feel burned out, or that childcare needs and travel could become major issues. Assessing the impact means you can adjust your plans—maybe offering flexible options or introducing the change gradually.

Managers who take the time to analyse impact often avoid having to fix problems later. It also helps when explaining decisions to the team. You’re able to say, “Here’s what we’ve thought about, here’s what we expect, and here’s how we’ll manage any challenges.” This builds confidence and earns respect.

Of course, not every impact can be predicted perfectly. But even a quick risk and benefit check is better than none. In some cases, you might do a full SWOT analysis (looking at strengths, weaknesses, opportunities, and threats). In others, it might just be a quick discussion with key team members or a chat with someone who’s been through it before.

Also, remember to consider both short-term and long-term effects. A decision might look great now, but what happens six months down the line? For instance, cutting a budget might save money today, but could hurt team performance or lead to higher costs later on.

Finally, involve others in the thinking. Your team might see impacts you’ve missed, or suggest better ways to approach the change. This not only leads to better outcomes—it helps people feel included and valued.

In short, thoughtful managers don’t rush big decisions. They pause, weigh the effects, and plan ahead. Analysing impact isn’t about being overly cautious—it’s about being smart, strategic, and showing leadership that lasts.

This posts assists completion of the following unit criteria:

302 ML15 1.2 Assess the importance of analysing the potential impact of decision making