Investigating the costs and benefits of taking a particular course of action is central to ensuring that the decision-makers are fully informed of the potential solutions to enable them to make a decision based on evidence. A cost-benefit analysis is challenging and requires both creativity and analytical skills from those involved. Costs and benefits are either tangible or intangible, and they occur either immediately or over the longer term and should be categorised accordingly.
To work out the cost of an option, various tools can be utilised. To accurately calculate the cost savings due to improved processes, a process costing tool can be used. To manage benefits through the life of the project into business-as-usual, you can use a benefits realisation tracker. Templates for process costing and benefits realisation are available to download on the Change Manager’s Knowledge Hub Group.