07 October 2021 at 04:52AM
PMI Honolulu Member Kenneth Smith's article gets published in PM World Journal September 2021 Issue
Articles by External Sources
Comprehending Cost: Effectiveness
By Dr. Kenneth Smith, PMP
Last month’s article shed some light on Benefit/Cost (B/C) Analysis. Although sometimes confused and conflated with B/C Analysis, Cost:Effectiveness (C:E) Analysis is distinctly different. Whereas Benefit/Cost determines whether a particular proposed Outcome is economically worthwhile, Cost:Effectiveness assists managers select the most efficacious way to attain an acceptable Outcome within their resources compared to other alternatives where:
- The End Objective (or Result) is not — or cannot be — monetized,
- Cost is not always the overriding consideration, and
- The ‘resource budget’ may also not even be in monetary terms.
For the full article click here in PM World Journal, Volume X, Issue 9 September 2021
For more information contact Dr. Kenneth Smith
