An important element of decision making is to consider the impact of taking action (and as importantly often, the impact of not taking action). A cost benefit analysis helps you consider the impact in two important ways: the cost of doing it, and the benefits of doing it. Often, a decision maker will compare and contrast the two:Sometimes we have no choice, but even then it’s useful to sketch out the costs and the benefits. You can list costs and benefits in terms of financial costs, but also think of the non financials, the costs/benefits to people, your image, your reputation and so on.
- Involving beneficiaries
- Stakeholder analysis