Descriptors Definitions: Payback period - the period of time, expressed in months, that a project requires to recover the money invested in it (including the one-time savings which are often excluded by some calculators) Benefit-cost ratio - an indicator that is often used to decide whether the benefits of a given project or solution outweigh the actual costs (the higher the ratio the better the investment) Analysis horizon - the number of months the project is expected to be utilized before replacement or major upgrade Implementation costs include capital costs (equipment, constructions, etc.), training, travel, outside professionals, lost of productivity during implementation & training, implementation costs such as installation, etc.

Ongoing costs include maintenance costs (monthly costs relating to the ongoing maintenance) and operational cost (internal labor, expendables, materials, supplies, etc.) Hard savings - the direct benefits that affect the bottom line and can directly improve the financial performance of the organization (examples are: sales/price increase, cost reduction and productivity savings) Soft savings - the indirect benefits which are difficult measure (they are mainly improved yield of a business process, the increased stakeholder satisfaction and the increased safety in the workplace) One-time savings - examples are value of inventory reduction and sale of unneeded assets Example Call Center $, hours, units E.g.: $/unit $ Year-1/partial year Year-2 Year-3 Cost/Benefit Unit Entry/Quantity Final/Total Description Project Title C O S T S Implementation costs (one time) 8,000 CRM Rules for CCR Quality 1 Update rules in CRM 8,000 Cost to update rules Solution Title/Description Sponsor 4 CC Manager Ongoing costs (monthly) 0 Project Manager 1 J Doe 2 Timeframe for CBA (in months) Estimated cost/savings year one (maximum 12) >>>Total Costs (monthly) ,,, B E N E F I T S Hard and soft savings (monthly) 1,200 Average labor cost (hourly / daily) 1 Saving from reduced calls Calls ,000 .

Saving from reduced QC QC Assumptions/Comments Savings (one time) >>>Total benefits (monthly) 1,,,,800 Benefit-cost ratio 1. Monthly payback Net cash flow Net gains 2,,,467 Monthly payback period 6..7 1,200 ROI 80.0% Cost Benefit Analysis $, hours, units E.g.: $/unit $ Year-1/partial year Year-2 Year-3 Cost/Benefit Unit Entry/Quantity Final/Total Description Project Title C O S T S Implementation costs (one time) 1 Solution Title/Description Sponsor 4 CC Manager Ongoing costs (monthly) 0 Project Manager 1 J Doe 2 Timeframe for CBA (in months) Estimated cost/savings year one (maximum 12) >>>Total Costs (monthly) 5 B E N E F I T S Hard and soft savings (monthly) 0 Average labor cost (hourly / daily) Assumptions/Comments Savings (one time) >>>Total benefits (monthly) Benefit-cost ratio Monthly payback Net cash flow Net gains Monthly payback period 0 ROI Change Management Matrix Model Description Benefits Limitations Purpose Additional Insights for Some Models Kotter's Change Management Model Steps to encourge new behaviors for successful organizational change Provides an eight-step actionable checklist Lack of measurement processes and time consuming Organizational Change Management Model This model identifies that creating urgency is a critical first step to initiate change.

Other steps, outlined in his book Leading Change, include: build coalitions and vision, remove obstacles, create short term "wins," build on the change, and anchor the change in the new structure. Bridges Transition Model Strategies for managing the emotional transitions of change Includes a step-by-step guide to foster emotioinal acceptance of change Not a framework for operational change Organizational Change Management Model Involves three steps that mirror some of the Kubler-Ross model by recognizing and planning for initial frustration and anger, impatience and resentment, in their steps. This model recognizes that change is constant, and the steps include "ending, losing, letting go," by creating the "neutral zone" and providing a "new beginning" - all of which provide structure and are repeatable.

Rogers' Tech Adoption Curve Model to define the change adoption timeframe Defines a timeline for workforce acceptance Not a framework for operational change Organizational Change Management Model Most organizational change models recognize that it is critical for "buy-in" to occur, but is difficult, at best. Rogers' Tech Adoption Curve illustrates the "lifecycle" of this concept. A bell-shaped curve shows that adoption starts with the innovators, rises as majoirty of participants onborad, and finally ends with acceptance by a reluctant group alled "laggards." Note; this concept of initial reluctance is addressed in most models of innovation and change management. Kubler-Ross Model Model based on the emotional journey - five stages of grief Most change frameworks address these stages No clear guidance for operational change Individual Change Management Model This model is perhaps best at explaining the human element in change, while normally used to explain the emotional turmoil experienced by those who are terminally ill as they adapt to impending loss.

Eventually, elements of shock, resistance, bargaining, and anger evolve into acceptance and adjustment and are interpreted in many organizational change methodologies. Prosci ADKAR Model Five step process: Awareness, Desire, Knowledge, Ability, and Reinforcement Rewards individual change in organizational change process Cumbersome process for large organizations Individual Change Management Model Created by Jeffrey Hiatt, this model facilitates change on an individual level since change is often less about the changes themselves and more about people's reactions to them. ADKAR is an acronym for: Awareness, Desire, Knowledge, Ability, and Reinforcement. The ADKAR model helps individuals process change through clearly defined stages that eanable them to both understand and accept the changes at hand. (*see; McKinsey Model Seven structural model that focuses on a holistic approach to change Provides guidance and focuses on the whole organization Very complex model Organizational Change Management Model Originated by Tom Peters, Robert Waterman, Richard Pascale, and Anthony Athos in 1978, this is a change management framework that focuses on two sides of change: hard and soft.

The seven elements consist of strategy, structure, and systems which are defined, and shared values, style, staff, and skills which are more fluid. This model is considered complex and works at aligning and interrelating the seven elements to provide a process for continuous realignment. Nudge Theory Method advocating the benefits of behavior modification Positive reinforecement method to drive individual change Depends on a custom response to each change circumstance Individual Change Management Model From a 2008 book, Nudge, is a behavioral concept that encourages less enforcement and more indirect encouragement as a method for behavior modification. Like Covey's "habits," individuals modify their response for a better organizational outcome.

Stephen Covey's Model Individual leadership development through adopting better habits More leadership within rank and file to drive organizational change No framework for operational change Individual Change Management Model Adapted from Stephen Covey's The Seven Habits of Highly Effective People, the methodology is used for both individual and organizational leadership innovation. Advocating that change must begin at a personal level, professing that "to do good, you mjust first be good." Covey's system relies on learning effective ways to modify habits. Covey is quoted as saying, "...we believe that organizational behavior is individual behavior collectivized." Virginia Satir Model for improving family relationships Focus on the family as a unit rather than individuals No framework for operational change Individual Change Management Model Visually similar to Kubler-Ross, this model, developed by a family counseling pioneer Virginia Satir, also recognizes that a "breakdown" involving resistance and chaos leads to integration and a new status quo.

Switch Framework Techniques and examples on three interconnected elements of change Good overview/stories for modeling change No framework for operational change Individual Change Management Model Taken from the book, Switch: How to Change Things When Change is Hard, is a broadbased transformative method for both personal enrichment and organizational change. Reisistance (identifiied in most change methodologies) is defined by the Switch Framework as a "lack of clarity" that is remedied by good communication. Consult the book for considerably more detail. EASIER Model Six steps - Envision, Activate, Support, Implement, Ensure, and Recognize Checklist on operational and emotional elements to organizational change Relies on leadership effectiveness and response Organizational Change Management Model Is detailed in the book "How to Manage Organizational Change," by D.E.

Hussey. The acronym stands for Envision, Activate, Support, Implement, Ensure, and Recognize. The name itself promotes the idea that change can be made easier through a structured methodology. Deming Cycle An ongoing process advocating "plan, do, study, and act" Structured framework for organizational change No process to factor emotional resistance or opposition forces Organizational Change Management Model Developed by Dr. W.

Edwards Deming, this is a systematic process of innovation management, and is also known as Plan, Do, Study, Act (PDSA). Although, originally created to facilaite TQM (Total Quality Management) relying extensively on the use of statistical data, to assist the process of continous improvement to systematically identify and implement changes. Tending to be more process oriented and seem to exclude the variance of human emotional resistance to change. Lewin's Model Three steps - unfreeze, change, and refreeze process of change Simples steps to combat emotional resistance and opposition No mechanism for ongoing change Organizational Change Management Model Developed in the 1940s, Kurt Lewin's easy 3 step model for change is known as the "unfreeze, change, refreeze" system.

In this model, emphasis is placed on ways to work around resistance through good communication, "buy-in" at all levels, recognition of the emotional element of change, and then "cementing" the new normal. The visual of reshaping an organization like a block of ice that is melted, remolded, and then frozen again illustrates the system. methodologies-right-your-organization

Paper for above instructions

In any organizational project management, understanding the financial implications of proposed initiatives is vital. This understanding typically revolves around cost-benefit analysis (CBA), which aids decision-making by contrasting the benefits of a project against its costs (Duncan, 2016). Essentially, CBA enables organizations to ascertain whether resources are directed toward projects that yield satisfactory returns to stakeholders (Harris, 2017). This report unpacks various descriptors associated with CBA, outlines a practical framework for its application, and reviews organizational change management models pertinent to facilitating successful project implementation.

Descriptors and Definitions in Cost-Benefit Analysis

1. Payback Period: The payback period quantifies the time, often in months, required for a project to recover its initial investment. The implications of this metric are crucial; a shorter payback period typically signifies better liquidity and a reduced risk for investors (Gitman, 2018).
2. Benefit-Cost Ratio (BCR): The ratio compares the benefits of a project to its costs, essentially allowing stakeholders to ascertain the relative value of an investment (Besnard, 2019). A higher BCR often indicates a more favorable investment prospect.
3. Analysis Horizon: This refers to the duration over which the outcomes and costs of a project are evaluated, providing a timeline within which benefits should be realized before potential replacement or significant upgrades (Garrison et al., 2020).
4. Implementation Costs: These denote the total upfront costs associated with deploying a project, which may encompass capital expenses for equipment, training, consultant fees, and productivity losses during the transition phase (Healy & Schussler, 2019).
5. Ongoing Costs: These monthly costs encompass maintenance expenses and operational costs such as labor and materials required for ongoing project functionality (Sullivan, 2020).
6. Hard Savings: Direct benefits that positively influence an organization’s bottom line are labeled as hard savings; these often manifest through increased revenue or diminished operational costs (Brigham & Ehrhardt, 2020).
7. Soft Savings: Unlike hard savings, soft savings are indirect and often intangible, such as improved employee satisfaction or enhanced process efficiency (Hawkins, 2021).
8. One-Time Savings: These may arise from significant changes, like reducing excess inventory or selling off obsolete assets (Dahl, 2022).

Cost-Benefit Analysis Framework

Let's examine a hypothetical example based on the provided CBA details:
- Project Description: Update rules in a Customer Relationship Management (CRM) system.
- Implementation Costs: ,000.
- Ongoing Monthly Costs:

Descriptorsdefinitionspayback Period The Period Of Time Expressed

Descriptors Definitions: Payback period - the period of time, expressed in months, that a project requires to recover the money invested in it (including the one-time savings which are often excluded by some calculators) Benefit-cost ratio - an indicator that is often used to decide whether the benefits of a given project or solution outweigh the actual costs (the higher the ratio the better the investment) Analysis horizon - the number of months the project is expected to be utilized before replacement or major upgrade Implementation costs include capital costs (equipment, constructions, etc.), training, travel, outside professionals, lost of productivity during implementation & training, implementation costs such as installation, etc.

Ongoing costs include maintenance costs (monthly costs relating to the ongoing maintenance) and operational cost (internal labor, expendables, materials, supplies, etc.) Hard savings - the direct benefits that affect the bottom line and can directly improve the financial performance of the organization (examples are: sales/price increase, cost reduction and productivity savings) Soft savings - the indirect benefits which are difficult measure (they are mainly improved yield of a business process, the increased stakeholder satisfaction and the increased safety in the workplace) One-time savings - examples are value of inventory reduction and sale of unneeded assets Example Call Center $, hours, units E.g.: $/unit $ Year-1/partial year Year-2 Year-3 Cost/Benefit Unit Entry/Quantity Final/Total Description Project Title C O S T S Implementation costs (one time) 8,000 CRM Rules for CCR Quality 1 Update rules in CRM 8,000 Cost to update rules Solution Title/Description Sponsor 4 CC Manager Ongoing costs (monthly) 0 Project Manager 1 J Doe 2 Timeframe for CBA (in months) Estimated cost/savings year one (maximum 12) >>>Total Costs (monthly) ,,, B E N E F I T S Hard and soft savings (monthly) 1,200 Average labor cost (hourly / daily) 1 Saving from reduced calls Calls ,000 $23.

Saving from reduced QC QC Assumptions/Comments Savings (one time) >>>Total benefits (monthly) 1,,,,800 Benefit-cost ratio 1. Monthly payback Net cash flow Net gains 2,,,467 Monthly payback period 6..7 1,200 ROI 80.0% Cost Benefit Analysis $, hours, units E.g.: $/unit $ Year-1/partial year Year-2 Year-3 Cost/Benefit Unit Entry/Quantity Final/Total Description Project Title C O S T S Implementation costs (one time) 1 Solution Title/Description Sponsor 4 CC Manager Ongoing costs (monthly) 0 Project Manager 1 J Doe 2 Timeframe for CBA (in months) Estimated cost/savings year one (maximum 12) >>>Total Costs (monthly) 5 B E N E F I T S Hard and soft savings (monthly) 0 Average labor cost (hourly / daily) Assumptions/Comments Savings (one time) >>>Total benefits (monthly) Benefit-cost ratio Monthly payback Net cash flow Net gains Monthly payback period 0 ROI Change Management Matrix Model Description Benefits Limitations Purpose Additional Insights for Some Models Kotter's Change Management Model Steps to encourge new behaviors for successful organizational change Provides an eight-step actionable checklist Lack of measurement processes and time consuming Organizational Change Management Model This model identifies that creating urgency is a critical first step to initiate change.

Other steps, outlined in his book Leading Change, include: build coalitions and vision, remove obstacles, create short term "wins," build on the change, and anchor the change in the new structure. Bridges Transition Model Strategies for managing the emotional transitions of change Includes a step-by-step guide to foster emotioinal acceptance of change Not a framework for operational change Organizational Change Management Model Involves three steps that mirror some of the Kubler-Ross model by recognizing and planning for initial frustration and anger, impatience and resentment, in their steps. This model recognizes that change is constant, and the steps include "ending, losing, letting go," by creating the "neutral zone" and providing a "new beginning" - all of which provide structure and are repeatable.

Rogers' Tech Adoption Curve Model to define the change adoption timeframe Defines a timeline for workforce acceptance Not a framework for operational change Organizational Change Management Model Most organizational change models recognize that it is critical for "buy-in" to occur, but is difficult, at best. Rogers' Tech Adoption Curve illustrates the "lifecycle" of this concept. A bell-shaped curve shows that adoption starts with the innovators, rises as majoirty of participants onborad, and finally ends with acceptance by a reluctant group alled "laggards." Note; this concept of initial reluctance is addressed in most models of innovation and change management. Kubler-Ross Model Model based on the emotional journey - five stages of grief Most change frameworks address these stages No clear guidance for operational change Individual Change Management Model This model is perhaps best at explaining the human element in change, while normally used to explain the emotional turmoil experienced by those who are terminally ill as they adapt to impending loss.

Eventually, elements of shock, resistance, bargaining, and anger evolve into acceptance and adjustment and are interpreted in many organizational change methodologies. Prosci ADKAR Model Five step process: Awareness, Desire, Knowledge, Ability, and Reinforcement Rewards individual change in organizational change process Cumbersome process for large organizations Individual Change Management Model Created by Jeffrey Hiatt, this model facilitates change on an individual level since change is often less about the changes themselves and more about people's reactions to them. ADKAR is an acronym for: Awareness, Desire, Knowledge, Ability, and Reinforcement. The ADKAR model helps individuals process change through clearly defined stages that eanable them to both understand and accept the changes at hand. (*see; McKinsey Model Seven structural model that focuses on a holistic approach to change Provides guidance and focuses on the whole organization Very complex model Organizational Change Management Model Originated by Tom Peters, Robert Waterman, Richard Pascale, and Anthony Athos in 1978, this is a change management framework that focuses on two sides of change: hard and soft.

The seven elements consist of strategy, structure, and systems which are defined, and shared values, style, staff, and skills which are more fluid. This model is considered complex and works at aligning and interrelating the seven elements to provide a process for continuous realignment. Nudge Theory Method advocating the benefits of behavior modification Positive reinforecement method to drive individual change Depends on a custom response to each change circumstance Individual Change Management Model From a 2008 book, Nudge, is a behavioral concept that encourages less enforcement and more indirect encouragement as a method for behavior modification. Like Covey's "habits," individuals modify their response for a better organizational outcome.

Stephen Covey's Model Individual leadership development through adopting better habits More leadership within rank and file to drive organizational change No framework for operational change Individual Change Management Model Adapted from Stephen Covey's The Seven Habits of Highly Effective People, the methodology is used for both individual and organizational leadership innovation. Advocating that change must begin at a personal level, professing that "to do good, you mjust first be good." Covey's system relies on learning effective ways to modify habits. Covey is quoted as saying, "...we believe that organizational behavior is individual behavior collectivized." Virginia Satir Model for improving family relationships Focus on the family as a unit rather than individuals No framework for operational change Individual Change Management Model Visually similar to Kubler-Ross, this model, developed by a family counseling pioneer Virginia Satir, also recognizes that a "breakdown" involving resistance and chaos leads to integration and a new status quo.

Switch Framework Techniques and examples on three interconnected elements of change Good overview/stories for modeling change No framework for operational change Individual Change Management Model Taken from the book, Switch: How to Change Things When Change is Hard, is a broadbased transformative method for both personal enrichment and organizational change. Reisistance (identifiied in most change methodologies) is defined by the Switch Framework as a "lack of clarity" that is remedied by good communication. Consult the book for considerably more detail. EASIER Model Six steps - Envision, Activate, Support, Implement, Ensure, and Recognize Checklist on operational and emotional elements to organizational change Relies on leadership effectiveness and response Organizational Change Management Model Is detailed in the book "How to Manage Organizational Change," by D.E.

Hussey. The acronym stands for Envision, Activate, Support, Implement, Ensure, and Recognize. The name itself promotes the idea that change can be made easier through a structured methodology. Deming Cycle An ongoing process advocating "plan, do, study, and act" Structured framework for organizational change No process to factor emotional resistance or opposition forces Organizational Change Management Model Developed by Dr. W.

Edwards Deming, this is a systematic process of innovation management, and is also known as Plan, Do, Study, Act (PDSA). Although, originally created to facilaite TQM (Total Quality Management) relying extensively on the use of statistical data, to assist the process of continous improvement to systematically identify and implement changes. Tending to be more process oriented and seem to exclude the variance of human emotional resistance to change. Lewin's Model Three steps - unfreeze, change, and refreeze process of change Simples steps to combat emotional resistance and opposition No mechanism for ongoing change Organizational Change Management Model Developed in the 1940s, Kurt Lewin's easy 3 step model for change is known as the "unfreeze, change, refreeze" system.

In this model, emphasis is placed on ways to work around resistance through good communication, "buy-in" at all levels, recognition of the emotional element of change, and then "cementing" the new normal. The visual of reshaping an organization like a block of ice that is melted, remolded, and then frozen again illustrates the system. methodologies-right-your-organization