September 21, 2015
5 Effective Ways To Handle Cost-Benefit Analysis
Every decision regarding money can accompany some type of cost-benefit analysis. However, because there are different ways of approaching gain and loss, and different ways of viewing income and expense, you may find yourself in conflict with people for each decision as well.
To give you some logical arguments to use on your side of the equation, consider the five effective following ways to make valid points toward your particular perspective – approach the defense of your spending, consider long-term vs. short-term analysis of attitudes, expand the possible metrics of success, recognize the literal value of happiness, and be aware of emotional connections that may be present.
In Defense of Spending
When you consider something like throwing an event to promote your product, there can be a lot of money that goes into something that seems like it doesn’t have much immediate return. But the fact is, when trying to differentiate yourself between a similar competitor, having people meet you face to face, and having them remember the details of an event, regardless of financial expense, may be the best marketing decision available to get a loyal customer base.
Long-Term Vs. Short-Term Attitudes
You can work long-term vs. short-term profit both ways on this one, depending on what your personal angle is. Your goal will be to convince someone that the cost on one side of the equation is worth the benefit on the other. So even though there may be an imbalance on one side, the side that is most important will be taken care of effectively. This is the time to put on a show and get your best presentation skills on display.
Expanding the Metrics of Success
If you need to make a point with someone regarding a cost-benefit analysis, one sort of get out of jail free card is the fact that you can argue to expand the metrics of success. Cost-benefit is not just about money, after all. It’s about anything that goes in, and anything that comes out. Once again, it’s all about your presentation.
Recognize the Value of Happiness
If a cost-benefit of some sort becomes particularly skewed against you financially, then consider approaching it with a thought for the value of happiness in the workplace. The money you’re putting into an equation will come back out in the quality of work of happy employees.
Be Aware of Emotional Connections
There are many, many emotional connections to certain types of business arguments and financial agreements. From your perspective, you can either use that to your advantage, or put someone else at a disadvantage by using their approach against them. Cost-benefit may be logic at its core, but there are always ways to bend around human beings who put emotions into their decisions.