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Cost-Benefit Analysis -- Just the Basics!

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Cost-Benefit Analysis -- Just the Basics!
Publisher: Resource Management Systems, Inc.
ISBN: 0-9707733-3-1
244 Pages; Metal Bound

TABLE OF CONTENTS

COST-BENEFIT ANALYSIS - A PLAIN-ENGLISH INTRODUCTION

1. What Is A Cost-Benefit Analysis?
2. What Do I Have To Do?
3. How Can I Do It?
4. How Do I Get Started?
5. How To Use This Book

FREQUENTLY ASKED QUESTIONS

ILLUSTRATIVE EXAMPLES

STEP 1. MAKE CHANGE EXPECTATIONS EXPLICIT

STEP PREVIEW: What Business Performance Changes Are Expected?

OVERVIEW

PROCEDURE

Activity 1. Describe The Big Problem To Solve
Activity 2. Identify Key Performance Changes
Activity 3. Measure Current & Expected Performance
Activity 4. Write The Overarching Change Objective

ILLUSTRATIVE EXAMPLES

FREQUENTLY ASKED QUESTIONS

STEP 2. ESTABLISH EVALUATION CRITERIA

STEP PREVIEW: How Will You Judge Proposed Solutions?

OVERVIEW PROCEDURE

Activity 1. List And Define Relevant Criteria
Activity 2. Prioritize The Criteria
Activity 3. Secure Key Stakeholder Agreement

ILLUSTRATIVE EXAMPLES

FREQUENTLY ASKED QUESTIONS

STEP 3. CONCENTRATE ON THE "VIABLE FEW"

STEP PREVIEW: Which Alternative Solutions Should You Analyze?

OVERVIEW PROCEDURE

Activity 1. Identify Potential Solutions
Activity 2. Grade (Pass/Fail) Alternatives
Activity 3. Identify "Viable" And "Not Viable" Alternatives

ILLUSTRATIVE EXAMPLES

FREQUENTLY ASKED QUESTIONS

STEP 4. MEASURE WHAT YOU GET (BENEFITS)

STEP PREVIEW: How Much Benefit Does Each Solution Deliver?

OVERVIEW PROCEDURE

Activity 1. Develop A "Benefit Scorecard"
Activity 2. Determine Non-Financial Benefits
Activity 3. Determine Financial Benefits
Activity 4. Record Results For Each Alternative

ILLUSTRATIVE EXAMPLES

FREQUENTLY ASKED QUESTIONS

STEP 5. MEASURE WHAT YOU GIVE (COSTS)

STEP PREVIEW: How Much Will Each Alternative Cost?

OVERVIEW PROCEDURE

Activity 1. Develop A "Cost Scorecard" (Cost Matrix)
Activity 2. Determine Project Costs
Activity 3. Determine Recurring Costs
Activity 4. Record Estimates In The Detail Worksheet (Scorecard)

ILLUSTRATIVE EXAMPLES

FREQUENTLY ASKED QUESTIONS

STEP 6. IDENTIFY THE RISKS

STEP PREVIEW: No Surprises! How Much Risk Is Involved?

OVERVIEW PROCEDURE

Activity 1. Locate The Risk Analysis
Activity 2. Identify Potential Risks
Activity 3. Pinpoint Significant Risks
Activity 4. Record The Results

ILLUSTRATIVE EXAMPLES

FREQUENTLY ASKED QUESTIONS

STEP 7. CALCULATE THE FINANCIAL METRICS ("ROI")

STEP PREVIEW: What Is The Financial ROI?

OVERVIEW PROCEDURE

Activity 1. Determine Required Metrics & Discount Rate
Activity 2. Calculate The Annual "Cash Flow"
Activity 3. Use Your ROI Calculator To Generate Metrics
Activity 4. Record The Results

 ILLUSTRATIVE EXAMPLES

FREQUENTLY ASKED QUESTIONS

STEP 8. COMPARE - JUDGE - COMMUNICATE

STEP PREVIEW: All Factors Considered, Which Choice Is "Best"?

OVERVIEW PROCEDURE

Activity 1. Consolidate Facts For Comparison
Activity 2. Compare Benefits, Costs, Risks, ROI
Activity 3. Pinpoint The Best Choice
Activity 4. Communicate And Document

ILLUSTRATIVE EXAMPLES

FREQUENTLY ASKED QUESTIONS.

 

 

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