WITH SOLUTION ANALYSIS, COMES GREAT RESPONSIBLITIES

Over the past few years, the rise of multiverse-themed movies has caught my attention. Notably, the Quantum Multiverse theories, also known as the Many-Worlds Interpretation (MWI) of quantum mechanics, have piqued my interest. This theory suggests that every possible outcome of a quantum event occurs in its own universe. In these movies, we see the main characters engaging in their analysis and solution evaluation process, much like we do in business analysis.

In life, we often encounter situations where we must choose from multiple options. We can sometimes struggle with weighing the options in selecting “the one” option that will solve all our painpoints. While our work may not be as thrilling as Michelle’s role in Everything Everywhere All at Once, it’s worth noting that, like Peter Parker’s actions from Spider-Man: No Way Home, our decisions significantly impact the well-being of our counterparts in other (future) universes.

Let’s explore the concept of our Tesseract—the Cost-Benefit Analysis (CBA)…

According to the International Institute of Business Analysis (IIBA), a Cost-Benefit Analysis is:

“A systematic process used to evaluate the strengths and weaknesses of various alternatives in terms of their costs and benefits. This approach helps decision-makers determine whether the benefits of a project or decision outweigh the associated costs, ensuring that resources are used effectively.”

While we cannot access all the universe parallels at once, this technique is essential for making informed decisions about which universe (choice/solution) would yield a higher probability of the intended outcome.

CONDUCTING A COST-BENEFIT ANALYSIS (AN OVERVIEW)

1. Define Scope and Objectives: Clearly define the problem or decision you intend to analyze for the project
2. Identify Costs
   • Direct Costs: Immediate expenses like equipment or materials.
   • Indirect Costs: Ongoing expenses such as maintenance or training.
   • Intangible Costs: Non-monetary impacts like employee morale.
3. Identify Benefits
   • Direct Benefits: Tangible gains like increased revenue.
   • Indirect Benefits: Efficiency improvements and reduced errors.
   • Intangible Benefits: Increased customer satisfaction.
4. Assign Monetary Values: Convert all identified costs and benefits into monetary values. Use historical data, market analysis, and expert judgment to ensure realistic values.
5. Calculate NPV: Calculate the Net Present Value (NPV) over the project lifecycle. This step helps you gauge the future value of current investments and returns.
6. Conduct Sensitivity Analysis: Evaluate how changes in assumptions impact your analysis. This step helps you identify risks and opportunities across your potential choices.
7. Analyze Results and Recommend: Compare the total costs to the total benefits. If the benefits outweigh the costs, your project is viable. Summarize your findings and provide clear recommendations based on your analysis.
8. Document and Communicate: Prepare a detailed report and present your findings clearly to stakeholders to ensure everyone is on the same level of understanding.

Cost-benefit analysis is based on practical decision-making. However, a theoretical connection to multiverse concepts, particularly the Many-Worlds Interpretation (MWI) of quantum mechanics, can arise when examining decision-making under uncertainty and the variability of outcomes.

Now, if we could only get access to the Runes of Kof-Kol…

REFERENCES

DeWitt, B. S., & Graham, N. (Eds.). (1973). The Many-Worlds Interpretation of Quantum Mechanics. Princeton University Press.

European Commission. (2014). Guide to cost-benefit analysis of investment projects: Economic appraisal tool for Cohesion Policy 2014-2020. Retrieved from https://ec.europa.eu/regional_policy/sources/docgener/studies/pdf/cba_guide.pdf

Government of Canada. (n.d.). Canada’s cost-benefit analysis guide for regulatory proposals. Retrieved from https://www.canada.ca/en/treasury-board-secretariat/services/treasury-board-submissions/cost-benefit-analysis-guide-regulatory-proposals.html

International Institute of Business Analysis (IIBA). (2021). A guide to the business analysis body of knowledge (BABOK guide) (3rd ed.). Toronto, Ontario: IIBA.