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your business: ?Return on Capital ?Return on Equity ?Return on Investment ?Economic Value Added ?Cash Flow ?Payback Period ?Net Present Value 38 Benefits Analysis: NonFinancial Express nonfinancial improvements* in terms that make both sense for the customer and your business: ?Reduced cycle time ?Improved ontime delivery ?Increased flexibility ?Faster response ?Reduced effort ?Increased availability ?Fewer defects * Includes customer service and quality. 39 Cost Analysis When analyzing the costs it is important to distinguish between the design / implementation and the operation phase ? Cost associated with design and implementation ? Training Cost ? System Cost ? Design and Development Cost ? Cost of Change ? COGS impact ? Resource Consumption ? Rework Cost ? Cost of Capital ? Maintenance Cost 40 Summary ?The simpler the presentation the better: most people do not know the project in detail ?Use the data generated in the previous steps to illustrate the difference between the asis state and your solution ?Speak the language of the business: use standard methods and techniques ?Assessing costs and benefits helps overing political resistance and manage expectations ?Document your assumptions Selecting Solutions 42 Making a Decision ?If there is an obvious winner from the evaluation step, go with that choice ?If there is no clear choice, use decision making ? Consensus ? Majority vote ? Minority vote ? One person 43 Consensus Decision Making ?Consensus IS NOT: ? A unanimous vote ? Having everyone pletely satisfied with the oute ? Necessarily anyone’s first choice. ? Everyone getting everything they want ? Everyone finally ing around to the “right” opinion ?Consensus IS: ? A search for the best decision through the exploration of the best of everyone’s thinking ? Everyone understands the decision and can explain why it is best ? Everyone has had an opportunity to be heard 44 When to Use Consensus The decision is… ?High impact ?High consequence ?Emotionally charged ?Full of controversy ?Wide diversity of opinion A better decision will be made if… ?You get everyone’s opinions and thoughts ?You get full buy in from all participants ?You have a structured process that helps your team listen to each other 45 Consensus Process 1. Discuss 2. Check Has agreement been reached? If not, continue. 3. 46 Tips for Consensus DecisionMaking ? Use a facilitator. ? Take good notes. ? Balance power. ? Make sure there is enough time. ? Search for alternatives that meet the goals of all members. ? Encourage all members to participate fully. ? Listen carefully. Check for understanding. ? Be open to new ideas, but don’t change your mind simply to avoid conflict or speed up the decision. ? Don’t just argue for your point of view. ? Seek out differences of opinion. Have people play devil’s advocate. 47 Selecting Solutions: Review ?Involve people ?Use creativity techniques to generate alternatives ?Generate and weight criteria ?Evaluate each alternative against the criteria ?Be creative in finding ways to get additional information about a potential solution ?If no clear choice emerges, use consensus decision making 4