Question

Why do we have to determine how a program is evaluated prior to implementation?

The amount of benefit based on the amount of resources used to produce it. (Hint: This is the definition for what is sought in the answer)

Answer 1

Followings are the reasons for which evaluation of program is necessary before the implementation:

1. Capital investment

For any project capital requirements are compulsory to expand the business in the target market. It is important to decide the sources of funding for starting a business. Example- whether it is from bank loan, venture capital or credit card loan. This funding evaluation is necessary before implementation of financial plans.

2. Selection of alternatives

The best project needs to be selected on the basis of their net present value and internal rate of return. It will give an idea to investment manager about the risk factors associated with the specific projects and the amount of annual return an organisation will receive at the year end.

3. Internal audit control

Internal auditors review is must required for validating the resources and preparing effective budget plan. Also financial statements needs to be transparent and accurate. So that the investors will get clear financial picture about the corporation.

4. Training and development programs

Before implementing production work, many organisations are providing training program to their skilled employees. As a result process production flow will be smooth and flawless. Clients will get their reports before the deadline.

Example- HSBC global banking and markets decided to go for hexagon project in 2018. Before implementing that project they evaluated their TMD platform upon which the future production will run.

Hence for every program evaluation is essential before moving towards the implementation process.