Impact-effort Matrix: How To Set Priorities
“ A problem is a chance for you to do your best.” -Duke Ellington
THINKING TOOL
The impact-effort matrix is a simple framework for effective decision-making. It is used the evaluate the impact-effort relationship of a given choice, task, or investment. This allows us to identify which actions have the biggest impact with the least investment, and which require the most effort but produce little results. It’s a trusty sidekick when we need to figure out what to tackle first or what approach to take. Impact-effort schemes have been used for years in project management, product development, and productivity planning. Low-hanging fruit.
The matrix is a two-by-two grid with two axes: the x-axis represents effort, from low to high, and the y-axis is impact, from low to high. Each task or initiative is plotted based on these criteria. Impact. How significant the results or benefits are of completing or doing this. High-impact actions contribute to achieving goals, creating value, and drive results. Low-impact alternatives offer minor or negligible benefits. Effort. How much time, effort, and resources are required to complete the task. Low-effort initiatives are quick, simple, and require minimal resources. High-effort tasks are time-intensive, complex, and resource-heavy. The idea: concentrate on high-impact, low-effort tasks. Try less, achieve more, win.
The goal for everyone is to figure out where best to spend their time, energy, and resources. Fast wins. These are the high-impact, low-effort gems that bring significant benefits without eating up lots of resources. They should be prioritized immediately, as they offer the highest return on investment. Fixing a glaring typo on a homepage or sending a follow-up to a client. Identify these and tick them straight away. Major projects take the second spot. They are high-impact, high-effort initiatives that are beneficial but require substantial investments. These warrant planning, delegation, and resource allocation. Think launching a new product or developing a long-term advertising campaign.
As for the other two, these are the ugly ducklings. Low-impact, low-effort tasks. Tiny fix-ups. They won’t change the world. Yet they will free up time for high-impact jobs. If left for too long, they can become frustrating chores. Minor tasks that don’t require that much effort but don’t create that much value, either. Can be done during downtime. Or delegated. Tidying up your work environment or updating a profile picture on a social platform. Handle these opportunistically. The last category are time sinks. Low-impact, high-effort tasks. Significant effort, little value. Should be questioned, minimized, or avoided and deleted altogether. Creating overly detailed reports that nobody wants or needs and meetings with no clear purpose fall under this umbrella. They gobble resources and don’t move the needle.
You can use an impact-effort matrix any time you are not sure what or when to take an action. It comes in handy especially when stakes are high. Employ it if you have a backlog of tasks and aren’t sure which to tackle first. If you’ve lost the picture of how your project should progress over time, this matrix can act as a GPS. When resources are tight and various projects are on the go, try the matrix to avoid burnout and maximize output. Laying out impact-effort matrixes is like grabbing a spyglass and viewing the project which deserves your immediate attention. Make a big splash with little sweat.
Real life implications of impact-effort matrixes:
Project: helps teams prioritize tasks in workflows by identifying high-impact deliverables, like a software team working on bug fixes in lieu of risky feature overhauls;
Personal: individuals can prioritize daily or weekly to-do lists based on effort and value, like a student who concentrates on assignments that have the biggest impact on their grades while skipping unnecessary club meetings;
Strategy: helps leaders decide which initiatives align with long-term goals, such as businesses choosing to invest in new CRM systems but avoid a costly and uncertain rebranding campaign;
Resources: teams can allocate time, budget, and staff based on where the most value lies, like when a non-profit org prioritizes grant-writing over updating a website nobody visits;
Collaboration: aligning a team’s members by visualizing priorities and ensuring everybody understands the focus areas, like a marketing team which prioritizes a social media campaign over an expensive video production.
How you might use the impact-effort matrix as a thinking tool: (1) brainstorm and list your tasks, writing down every task, project, and decision you are seeking to evaluate; (2) evaluate impact and effort, assessing each initiative for its potential impact and effort, being as honest as possible; (3) plot on the matrix, placing each task into the appropriate quadrant of the grid; (4) prioritize, concentrating on quick wins and major projects first, scheduling or delegating fill-ins as needed, and minimizing or deleting time sinks; (5) iterate regularly, revisiting the matrix as priorities shift or tasks accumulate. Pro tips for effective use: (1) involve stakeholders, getting input from your team to ensure your impact-effort assessments are accurate; (2) quantify where possible, using data to measure impact—revenue generated, users reached—and effort—hours worked; (3) automate, moving fill-ins and time sinks to automation tools or delegating or deleting them when feasible.
Thought-provoking insights. “You can do anything, but not everything.” by David Allen emphasizes how everything is possible, just not at once, highlighting the power of prioritization. “The key is not to prioritize what’s on your schedule, but to schedule your priorities.” is another classic, this time by Stephen Covey, supporting that a clear comprehension of our tasks is crucial for making effective use of our time. “Deciding what not to do is as important as deciding what to do.” by Steve Jobs is a reminder that sometimes the best decision is to forego the task at hand for something more important. Work smarter, not harder. Go for impact. Do things that matter.