Cost-Benefit Analysis (CBA) consulting services provide expert guidance and support in assessing the financial viability and impact of projects, programs, or policies. A CBA is a systematic process that evaluates the costs and benefits associated with a particular project or decision, helping organizations make informed choices.
Here are the key components of CBA consulting services:
Project Identification and Scope Definition: Define the project, program, or policy to be evaluated, including its objectives, scope, and relevant stakeholders.
Data Collection and Analysis: Gather data on the costs and benefits associated with the project. This may include capital costs, operational expenses, expected revenues, and quantifiable benefits.
Financial Modeling: Develop financial models to project the costs and benefits over the project’s lifecycle. These models may involve discounting future cash flows to determine their present value.
Benefit Identification and Valuation: Identify and quantify both direct and indirect benefits of the project. These benefits may include increased revenues, cost savings, environmental benefits, improved health outcomes, and enhanced social well-being.
Cost Estimation: Identify and estimate all relevant costs associated with the project, including initial investment costs, operating expenses, maintenance costs, and any ongoing expenses.
Discount Rate Selection: Determine the appropriate discount rate to account for the time value of money, which helps assess the present value of future costs and benefits.
Sensitivity Analysis: Conduct sensitivity analyses to assess how variations in key parameters (e.g., costs, revenues, discount rates) affect the outcomes of the CBA.
Risk Assessment: Evaluate the potential risks and uncertainties associated with the project, including their financial implications, and develop risk mitigation strategies.
Cost-Benefit Ratio (BCR) Calculation: Calculate the Benefit-Cost Ratio (BCR), which compares the present value of benefits to the present value of costs. A BCR greater than 1 indicates a positive return on investment.
Net Present Value (NPV) Analysis: Calculate the Net Present Value by subtracting the present value of costs from the present value of benefits. A positive NPV indicates that the project is financially viable.
Return on Investment (ROI) Analysis: Calculate the ROI by comparing the net gain (benefits minus costs) to the initial investment cost.
Cost-Effectiveness Analysis (CEA): Assess the cost-effectiveness of different project alternatives by comparing the costs of achieving specific outcomes.
Recommendations and Decision Support: Provide recommendations based on the CBA findings. Assist in making informed decisions about whether to proceed with the project or consider alternative options.
Report and Presentation: Prepare a comprehensive CBA report and presentation that communicates the findings, assumptions, methodology, and conclusions to stakeholders and decision-makers.
Regulatory Compliance: Ensure that the CBA complies with relevant regulatory requirements, industry standards, and best practices.
Public Engagement: Engage with stakeholders, including the public, to gather input, address concerns, and communicate the results of the CBA.
Post-Implementation Review: Conduct post-implementation reviews to assess whether the actual costs and benefits align with the CBA projections and make necessary adjustments.
Cost-Benefit Analysis consulting services help organizations make informed and evidence-based decisions by providing a structured and quantitative approach to assessing the financial feasibility and impact of their projects, programs, or policies. CBA is a valuable tool for prioritizing investments, optimizing resource allocation, and achieving better outcomes.
The variety, breadth, and depth of the projects where Arcus can be a resource are made unique by each client’s specific needs. By providing a very small sample of projects we’ve completed, we can help you understand how and when to use our services. Visit the links below to find out more about a specific problem or opportunity you would like to address.
Below is a sample of the range of services that Arcus has provided to clients.
- A survey of 2,350 consumers and 1,320 business leaders for feedback on sustainability trends
- Architecting a multi-year change strategy for a Fortune 500 company
- Mentoring a CEO on organizational change
- Excellence transformation of a leading B2B services company
- Creating a new sales deployment model for a healthcare company
- Developing a position evaluation and compensation model for a professional medical association
- Improving services to customer segments by deepening their understanding of customer attitudes
“Arcus manages to consistently deliver tangible results on market research and strategy projects. They combine deep business expertise, powerful research capabilities, and innovative thinking to deliver substantial value.”
– Vice President, Nikon
Arcus has been quoted extensively in media on a range of topics and can offer research studies, insights and ideas. Here are some examples from the Globe and Mail, CTV, Global TV and others.
- Nordstrom countdown to opening begins – Toronto Star
- No lineups outside stores in five years – BNN
- Black Friday retail, marketing, and cross-border shopping trends – BNN
- Does global expansion need a local flavour? – Globe and Mail
- Art of the Pitch – Protect company’s interests when approaching giants – Globe and Mail
- Off-the-shelf technology or a custom design? – Globe and Mail