Ten steps to creating your own cost benefit analysis
Published: York Consulting, February 2018
This guide, developed by York Consulting, is designed to assist Named Social Worker (NSW) teams to conduct their own economic assessment using a predictive cost benefit analysis (CBA) methodology.
The approach presented recognises that NSW teams have had limited opportunities, given the short time scales, to collect much client outcome information. The initial focus is therefore on constructing a model of impact based on a range of assumptions. This provides an illustrative projection which can be checked with actual outcomes data at a later date.
Cost and illustrative outcome data was estimated based on a range of consultations with the Hertfordshire NSW team. The method was further market tested with all six second round NSW teams at a NSW evaluation workshop in February 2018.
While the methodology presented is not definitive, it should provide NSW teams, and others piloting a similar approach, with sufficient information to get started and specify their own cost benefit models. Teams may require further advice to fine tune their approach and to estimate counterfactual scenarios.