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Simple Cost-benefit Analysis
Perform a simple cost–benefit analysis of your initiatives.
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When to use
When you have several ideas that you need to prioritise, this analysis will provide a basis for prioritising the implementation of your initiatives.
Why you should
When looking at the cost-benefit value you will get a clearer picture of wich initiatives will give you the most value for the cost.
What you get
This analysis will provide a good basis for prioritising the implementation of your initiatives.
Steps to take
Because actual data may be difficult to find at this point, you can use a simple ten-point scoring system to quantify the anticipated costs and benefits of your initiatives. If you have data to use in your analysis, you should feel free to employ a more sophisticated methodology.
Divide the Benefit score by the Cost score. This will give you the Benefit Cost Ratio.
You should then rank your initiatives from highest Benefit Cost Ratio to lowest.
Further reading
Use your best judgement when scoring your initiatives. A score of 1 would indicate a very low cost or benefit and a score of 10 means a very high cost or benefit.