Doing Cost-Effectiveness Analysis

The table below outlines the different ways in which cost effectiveness analysis can be used. This type of analysis is best undertaken for actions/initiatives within the strategy and for Best Value Reviews. If time allows cost-effective analysis could be included within audits where initiatives have had an impact on local crime rates, to demonstrate whether resource allocations made in the past delivered net savings and to identify possible actions/initiatives when deciding on new priorities for the next strategy.

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The stages in undertaking a cost-effectiveness analysis are as follows:

1. Define intervention, its objectives and the mechanism through which inputs have led to impacts and outcomes

2. Identify inputs

3. Identify outputs and outcomes

4. Quantify inputs

5. Quantify attributable outcomes

6. Value inputs

7. Compare input costs with outputs and outcomes

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