Balanced Value Impact Model

Multi-Criteria Analysis (MCA)

A Multi-Criteria Analysis (MCA) assesses a range of monetary and non-monetary benefits and impacts.  In addition to monetary impacts, MCA measures variable such as material costs, time savings, sustainability as well as social and environmental impacts. It is often used as an alternative to cost-benefit analysis or stated preference and revealed preference techniques.  MCA is usually used by decision-makes when weighing up the possible impacts of a policy.  In short, the MCA framework permits the integration of monetary, quantitative and qualitative data.

To apply MCA, a performance matrix (or consequence table) is constructed, with each row representing a policy option, and various objectives and criteria in the columns. A number of scoring methods are used: these can be numerical scales, colour coding, high/medium/low  assessments. The decision-makers decide the criteria for the performance matrix, but it is also recommended that the views of broader stakeholder groups be solicited in the process.

Department for Communities and Local Government (2009), Multi-criteria analysis: a manual. Communities and Local Government Publications, London. http://www.communities.gov.uk/documents/corporate/pdf/1132618.pdf

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