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Know the 6 Steps in Cost/Benefit Analysis

First Friday Book Synopsis

We all know we should make an investment when the benefits outweigh the costs, but few people understand what really goes into the analysis. Here is another valuable Management Tip of the Day from Harvard Business Review. To sign up for a free subscription to any/all HBR newsletters, please click here. Here are the six [.].

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How to Make the Business Case for Change

Lead Change Blog

Identify potential funding sources for both upfront and ongoing costs. Determine the budget lines that will pay for your proposal or describe the financing for it. If future cost savings will fund the initiative, show the payback calculation. Provide a cost-benefit analysis.

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We Want To Retain Control, Even When Using AI To Make Decisions

The Horizons Tracker

However, concerns have been raised regarding the extent to which individuals are willing to cede control to computer systems, particularly with respect to important matters such as health and finance. This suggests that people are not necessarily afraid of algorithms, but that for many people, this is yet another cost-benefit analysis.”

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Why Businesses Fail | N2Growth Blog

N2Growth Blog

Conduct a Cost/Benefit Analysis : Do the potential benefits derived from the decision justify the expected costs? What if the costs exceed projections, and the benefits fall short of projections? What would your family think of your decision?

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Ideas Don't Equal Innovation | N2Growth Blog

N2Growth Blog

Assess : Put the idea through a risk/reward and cost/benefit analysis. Alignment : Any new idea should preferably add value to existing initiatives, and if not, it should show a significant enough return on investment to justify the dilutive effect of not keeping the main thing the main thing.

Blog 413
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The Skills Gap That's Slowing Down Your Career

Harvard Business Review

The same can be true if you are in an engineering job without the right credentials, or a senior finance job without an MBA or an advanced degree in finance. If your speed bump is a lack of the right skills, it helps to first do a quick cost/benefit analysis to see if investing in an upgrade will be worth it.

Career 8
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High Speed Rail Versus Austerity

Harvard Business Review

And while our work quantifies some of the spatial consequences of investing in high speed rail, we cannot claim to have conducted a cost/benefit analysis of such irreversible investments. But bullet trains cost billions, and California is expecting the federal government to provide much of this money.