The Issue is About Measurement
Tyrone Skogstrom, Management Consultant, Sweden
First, the benefit arises when people behave in new ways. A cost/benefit calculation should never be conducted without a clear definition of how the process-or behavioral change will take place.
In other words there is a kind of two-step-analysis you need to do. First you need to find KPIs for that usually measurable change. See more
Add a reliable calculation what the changes will make in money. Sometimes you can, sometimes you cannot. With a good and systematic screening of all possible improvements and their benefit values, you can decide what impact is reasonable to expect.
Probably the monetary benefit will be higher than what you can measure, and usually management needs to take a decision about: What total value? What process- and behavioral changes can be representative for this value? What of that can be measured? What can be communicated to employees and make sense connected to incentive programs? Keep the focus close to their daily activities.