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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:

  1. The End Objective (or Result) is not — or cannot be — monetized,
  1. Cost is not always the overriding consideration, and
  1. 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

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