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turning knowledge into competencies

Cost-Effectiveness Management

Ensuring value creation by linking cost elements to benefits achievements

Customers expect organizations to deliver services of high value at the correct cost level. Organizations need therefore to carefully select the investments and operational efforts they are making to adjust very correctly the service level to the exact need of functionality of that service. Organizations which stay away from that dynamic approach will miss a lot of opportunities and remain in never-ending complaint management about too high costs for poor quality.
The Cost-Effectiveness Management approach relates service levels dynamically to cost levels, so to create a clear choice for clients where these are empowered to define themselves their best value-for-money level.
This course will show how to apply pragmatically the economical market theories (supply vs. demand), the concepts of value creation and value perception and effectiveness of the costs in relation to added value. This will enable service organizations to propose tangible service levels with adequate prices, as basis for sound alignment with clients.


 Present the economical value of Cost-Effectiveness management
 Identify critical success factors and assumptions for Cost-Effectiveness
 Present a framework for Cost-Effectiveness Management
 Combined implementation of flexibility and control in the organization
 Provide an overview of the common pitfalls in Cost-Effectiveness Management


1. The economics perspective
2. Identify Key Issues, Obstacles and Barriers
3. Cost Effectiveness Framework
a. Customer value perception and market demand
b. Understanding true costs
c. Capturing benefits and interactive effects
d. Least cost resource planning
e. Cost modelling and value creation
f. Valuing the intangible
4. Enabling the organizational transition to Cost-Effective approach
5. Lessons learned in Cost Effectiveness management


• Executives and product portfolio managers involved in strategic resource planning and market development
• Business managers or programme managers involved in product development and customer alignment




 Theory and concepts illustrated by a trainer with sound expertise and experience in Cost-Effectiveness Management.
 Group discussions with the purpose to match the relevant Cost-Effectiveness Management issues to real life experience.


Not applicable


 Course Materials
 Attendance Certificate

Design and implementation Flockdesign Ronse