What aspect of decision-making does impact analysis focus on?

Impact analysis primarily centers on evaluating the potential implications of decisions for stakeholders. This process involves assessing how a decision will affect various parties involved, which may include employees, customers, shareholders, and the broader community. By focusing on stakeholders, impact analysis helps organizations understand the broader consequences of their decisions, leading to more informed and responsible choices.

An effective impact analysis requires considering both positive and negative outcomes that decisions may generate for the stakeholders. This understanding is crucial in decision-making processes because it can guide organizations in aligning their decisions with the interests and wellbeing of those affected, thereby fostering a more sustainable and ethical operational environment. By prioritizing stakeholder implications, organizations can enhance engagement, satisfaction, and overall effectiveness in their decision-making practices.