Learn How To Go Beyond Mere Numbers In Cost/benefit Analysis With Mind Mapping

Cost/Benefit analysis is a well-known technique that is widely used in any business transaction From simple to large project management Cost/Benefit analysis is resorted to assess the full financial implications of a business operation

As the name implies, Cost/Benefit analysis is adding up the value of benefits arising from implementation and subtracting the costs associated with the process Invariably, costs are either one-off deal or recurrent However, benefits are often experienced after a minimum period of time This time is built into the Cost/Benefit analysis as payback period, when the benefits start accruing, repaying for the costs incurred Most companies set a specific period such as 3-years to gauge results

In its basic form, Cost/Benefit analysis involves weighing the financial costs and benefits – for eg, a company deciding to provide office transport instead of offering transport allowance In such a process the company would work out the cost of hiring transport or buying appropriate mode of transport for safe return of employees versus individual payment passed on as transport allowance to the employees It would however not measure the satisfactory levels of the employees, the loyalty factor it could accrue to the company, the punctuality it would ensure and the teaming and bonding that the travel could bring among the employees These are the intangible benefits for which there are no numerical value assigned

In project management, Cost/Benefit analysis invariably takes a major share of the process In fact, no project is undertaken without it, as unless benefits outweigh the costs, the need for incurring costs in the first place is rendered meaningless This is how most financial transactions are worked through, excluding of course the political ones

In the usual Cost/Benefit there is no scope for incorporating intangible disadvantages and benefits However, intangibles such as emotional satisfaction, environmental concerns and long-term future consequences are vital to the success of any financial transaction This is exactly where Mind Maps can score above the mere Cost/Benefit analysis

After thoroughly assessing the financial implications of a business transaction or a process, it is vital that an exhaustive appraisal of the often-neglected intangible elements, are factored in to provide a complete comprehensiveness to the process Mind Maps help you to explore these aspects scrupulously and systematically

By looking at issues in all their widest aspects, Mind Maps help you to prepare for contingencies and address them effectively, and also to see the links between them Apart from providing a careful understanding of the whole issue, they could provide new opportunities and avenues for further action or growth hitherto unseen As you gain the full picture, you will be able to see the associations between various tangible and intangible elements, and to find creative approaches and solutions

That is why Mind Maps can be a useful device to help you charter into unknown territories While Cost/Benefit analysis derives its numerical value, Mind Maps go beyond it to bring in the deeper, underlying causative and emotional factors They help in rendering wholesomeness to the process and provide the highest mental satisfaction Hence, using Mind Maps indeed has a psychological advantage You could learn about them and gauge for yourself

About the Author:

Dr Vj Mariaraj is a Mind Map enthusiast and has been using Mind Maps for the past twelve years He has created over 5650 Mind Maps To learn more about mind mapping send an email to freemindmap@awebercom He is the founder of BusinessBookMindMapcom that creates Mind Map Summaries of Business Books To learn more visit http://BusinessBookMindMapcom/mind-mapphp?ea19

Tags | allowance, analysis, business, consequences, financial, implications, intangible, intangibles, loyalty, period, satisfaction, satisfactory, transactions, transport