What is the purpose of the impact matrix?

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An impact matrix is used to gauge how a proposed decision or change will affect different stakeholders or participants in the system. It focuses on the consequences for people, roles, or groups, rather than purely on financial numbers or organizational structure. By listing key actors and evaluating the type and magnitude of effects they may experience—such as changes in workload, authority, access to resources, or legitimacy—you can identify who needs to be engaged, what mitigation might be required, and where risks are concentrated. This helps guide communication, change management, and risk planning, making it the best way to understand the overall impact on the organization. Forecasting quarterly earnings and budgets relates to financial performance, mapping the chain of command relates to reporting structure, and ranking projects by financial return concerns economic viability—none of which centers on how a decision will affect the various actors involved.