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Trade-Off Analysis for Program Selection

This document describes a trade-off analysis process to help a nonprofit organization choose between three potential employment counseling program scenarios. The scenarios involve: individual counseling and job training; large group counseling and training; or referral to other agencies. A trade-off analysis involves: 1) identifying decision criteria and weighting importance, 2) rating scenarios on criteria, 3) multiplying ratings by weights, and 4) comparing total scores to determine the best scenario. The example analysis showed Program Scenario A, involving individual counseling and training, scored highest based on the criteria of improving employment prospects, covering expenses with fees/grants, using existing staff, and not requiring new space.

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Adrián Pérez
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40 views2 pages

Trade-Off Analysis for Program Selection

This document describes a trade-off analysis process to help a nonprofit organization choose between three potential employment counseling program scenarios. The scenarios involve: individual counseling and job training; large group counseling and training; or referral to other agencies. A trade-off analysis involves: 1) identifying decision criteria and weighting importance, 2) rating scenarios on criteria, 3) multiplying ratings by weights, and 4) comparing total scores to determine the best scenario. The example analysis showed Program Scenario A, involving individual counseling and training, scored highest based on the criteria of improving employment prospects, covering expenses with fees/grants, using existing staff, and not requiring new space.

Uploaded by

Adrián Pérez
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Nonprofit Management Certificate Course

Project Planning and Management


Center for Community Research & Service
University of Delaware

Example of Trade-Off Analysis


Developed by Steven W. Peuquet, Ph.D.

Taking the example used in the break-even analysis, lets say that the organization identifies two other
possible ways to increase the employability of citizens it seeks to serve. The organization now has
three possible approaches, and it needs to make a decision about which to choose:
Program Scenario A: (The program scenario used in the break-even example.) An employment
counseling and job search training program for unemployed persons which includes individual
counseling sessions to help the person determine his or her skills and job qualifications, combined
with small group training on how to conduct an effective job search, fill out employment
applications, write a resume, and make a good impression during a job interview.
Program Scenario B: Covers same subject matter with clients as in Scenario A above, but all is done
in large group sessions.
Program Scenario C: Do not provide any direct counseling or training service, but develop a good
data base on other agencies which provide job search training services and refer people to those
agencies.
A break-even analysis could be done for each one of these three scenarios. This would provide some
very useful information about the financial feasibility of each scenario. However, after having
completing the break-even analyses for each scenario, the organizations executive director and board
of directors are still faced with a decision: which program scenario should be chosen? Here is where
Trade-Off Analysis can be very helpful.
Step 1:

Identify decision criteria which are important factors to consider in the decision, then
weight each criteria as to its importance, with a weight of 1 being low and 5 being high.

Step 2:

For each of the program scenarios, rate, on a scale of 1 to 5, with 1 being the worst and
5 being the best, how well each program scenario fulfills each of the decision criteria.

Step 3:

Then, for each program scenario, multiply the rating you gave for how well the scenario
fulfills each decision criteria by the weight (of importance) you gave to each of the
decision criteria.

Step 4:

Add up the results of the multiplications for each of the program scenarios and compare
the totals for each program scenario. The scenario with the highest score is the
program which best meets the criteria identified.

On the following page, these steps are followed for the example where three different program
scenarios are being analyzed. With the highest score of 44, Program Scenario A is the best, given the
decision criteria used. In conducting trade-off analysis, the actual analysis can be done by an
individual, or collectively by a group. You can also have several individuals to the analysis separately,
and then calculate the average score for each program scenario.

Program Scenario A

Column A
Weight of
Importance

Column B
Rating

Column A
x
Column B

Likelihood service will significantly improve


employment prospects of clients

25

Program fees and grants will cover program


expenses

Program can be carried out with existing staff

Program does not require additional building


space

Decision Criteria

Total
Program Scenario B

44

Column A
Weight of
Importance

Column B
Rating

Likelihood service will significantly improve


employment prospects of clients

15

Program fees and grants will cover program


expenses

12

Program can be carried out with existing staff

Program does not require additional building


space

Decision Criteria

37

Total
Program Scenario C

Column A
x
Column B

Column A
Weight of
Importance

Column B
Rating

Column A
x
Column B

Likelihood service will significantly improve


employment prospects of clients

10

Program fees and grants will cover program


expenses

15

Program can be carried out with existing staff

10

Program does not require additional building


space

Decision Criteria

Total

40

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