What does cost say about success? Lectures on strategy evaluation at the University of Malta and the University of Madeira.

Some municipal leaders (and not only them), when talking about implemented investments and other projects, often emphasize how much they cost or will cost, and ignore other aspects. High costs are supposed to prove, convince us, that the project will greatly improve the conditions of our lives, doing business and protecting the environment. They are supposed to convince us that the project is a success. Sometimes even an impressive one.

The cost of a project can indeed say something about its effects, but is it enough? Of course, NO. The amount itself, even if staggeringly large, does not say:

– was the project implemented at least to the expected extent?

– what non-monetary costs, i.e. spatial, environmental and time costs, were also incurred for its implementation?

– were all the expected positive effects of the project achieved at least to a satisfactory degree, and if not yet, then when?

– whether unexpected positive effects appeared and how strong?

– whether the expected negative effects of the project turned out to be greater than expected and whether this is not in the cards?

– whether there were negative effects of the project that were not expected and what their scale is?

– how durable each of these positive and negative effects will be?

– how much it will cost to maintain what was created as part of the project is this as much as was planned and is it not too much for us and we will have enough money for other necessary projects?

As you can see, the cost itself does not say much about success. So let’s not let ourselves be impressed by the amounts themselves. Let’s also read the rankings of expenditures and even obtained subsidies with reserve. Let’s ask about the effects of what has been done and let them impress us.Good authorities have sufficient knowledge about the effects of their actions and they use it. Not only after they have finished, but already during and even before they start. Gaining and applying this knowledge is THE ART OF EVALUATION, to which I devoted a large part of my recent lectures at The University of Malta and at The University of Madeira representing my @Wroclaw University of Economics and Business as part of Erasmus+. It was a wonderful experience, and I send my warm thanks for it to the distinguished professors who honored me with their presence and help, in particular to Mario Thomas Vassallo, George Vital Zammit and Mara Franco, and to the Maltese, Portuguese and other students, with whom I had great conversations and jokes also 🙂