The principle is as follows:
1. When you plan, you want to achieve certain results (a common set of values, or outcomes) that must be achieved.
2. You consider different alternatives before making a decision. The best alternative will be the one that will best satisfy the set of envisaged outcomes (in a qualitative and quantitative manner).
3. “Best satisfy” implies that the selected alternative will optimise benefits (outcomes, or value-gains) in comparison with the investment cost thereof.
The template follows a five-step process to guide the user through this process, namely:
1. Get clarity about the framework that will drive the decision-making process (namely the strategic vision and mandate of the institution).
2. Define a set of outcomes that will serve as “selection criteria” (regardless of the alternative selected, it must produce this set of outcomes, as a minimum).
3. Identify alternatives that will delivery the required outcomes.
4. Define the outputs of each of the selected alternatives, and assess the extent to which it will satisfy the demands of the collective outcomes.
5. Cost each of the alternatives based on the Activities that must be performed to delivery it and the resources required in the process.