Cost-Benefit Analysis
Create and run a cost benefit analysis on an opportunity to improve your organization.
Time to Perform is 1 hour
+ Why
You’ve identified an opportunity to improve your business but you want to make sure that it’s more than just doing something to do something. You want to make sure there is a positive result from the opportunity.
But how? Enter the Cost-Benefit Analysis (CBA). The name says it all. You need to compare the Costs and the Benefits to see which one is greater. If the costs outweigh the benefits, well then it makes no sense to change. But, if the benefits outweigh the costs then you have every reason to pursue the idea.
Well, unless of course you have multiple solutions to the same opportunity in which case you should compare the CBAs of each solution.
Time break down
5 minutes - Setup the spreadsheet
30 minutes - Enter the cost and benefit values
NOTE: for more complicated scenarios this process can take considerably longer. If it’s a big opportunity, it’s worth the time investment.
15 minutes - Setup analysis calculations
10 minutes - Evaluate results and make decision