Project-based Cost Benefit Analysis and ROI

Course description

Projects use scarce organizational resources and therefore care must be exercised in choosing projects that benefit the organization. In this course, participants will learn how to justify the project’s expenses in relation to the value it creates for the organization. Participants will come to understand the different elements of a sound business case and how to write a convincing case by evaluating a projects return on investment based on quantitative measures. A variety of financial techniques necessary to quantify costs and benefits are explained, including present-value, return-on-investment (ROI), and break-even. In addition, a number of practical forecasting techniques for revenue, expenses, and project growth are presented. Finally, a number of decision-making strategies are shown that help in making informed project decisions. The participants will leave with a thorough understanding of how to write a detailed yet concise business case.

Who should attend

Business Analysts, Project Managers, Project Directors, Project Team Leaders, Product Managers, IT Project Directors, Sr. Managers, and other team members involved in the following areas: process management, business analysis, strategy and more.

What you will achieve

  • A clear differentiation between project, phases, lifecycles program, and sub-project, identifying contrasting and related characteristics of each
  • Knowledge of how to define the role of project manager while balancing the expectations of the different project stakeholders
  • Ability to apply project management methods in the work place
  • Differentiate the relationships between project management, program management, and portfolio management
  • Different Elements of a Successful Business Case
  • Financial Analysis using Present-Value, Return-On Investment (ROI), and Break-Even
  • Cost, Expense, and Growth Forecasting
  • Risk Analysis
  • Decision Making Strategies

What you will learn

  • Understand the structure and content of a business case
  • Quantify financial and non-financial benefits and costs
  • Calculate estimates through forecasting
  • Take into account the time-value of money through present-value ROI analysis
  • Make decisions under uncertainty and risk using decision tables and decision trees
Course Outline
The Business Case
  • Define and Quantify Benefits and Costs
  • Business Case Outline
Cost Analysis Techniques
  • Types of Costs and Benefits
  • Activity Based vs. Resource Based Cost Modeling
  • Financial vs. Non-Financial Benefits
  • Cost of Do-Nothing Decision
Financial Analysis Techniques
  • Cost Benefit Analysis (CBA)
  • Return on Investment (ROI)
  • Internal Rate of Return
  • Present Value Analysis (PVA)
  • Break-Even Analysis
  • Time Value of Money
  • Sensitivity Analysis
  • Dealing with Changes
Forecasting Techniques
  • Forecasting Essentials
  • Straight-Line Model
  • Moving Average Models
  • Exponential Smoothing
  • Regression
Risk Analysis
  • Probabilities
  • Impact Assessment
  • Risk Management Strategies
  • Risk Costing
  • Sensitivity Analysis
Decision Analysis
  • Making Decisions under Uncertainty
  • Making Decisions using Probabilities
  • Decision Tables & Trees

This course is currently not scheduled. To be notified of the next available date, provide us with your information. Or, if you have a group to train, contact us to learn more about bringing this course onsite to your location:

Call: 1.800.288.7246 (US ONLY) or +1.978.649.8200


Form: Corporate Onsite Request Form