The Crunch time series for CFOs

Crunch Time 14: Untangling Capital Allocation

Does a new car fit into your budget, or is that money needed for someone’s college tuition? Do you put that bonus into your investment portfolio, or keep it handy in a bank account for projects? It’s complicated, and each decision we make comes with implications and trade-offs. But for businesses, it gets even more complex—and, sometimes, almost as personal.

How businesses generate and allocate capital involves multiple choices, trade offs, and stakeholders, along with shifting internal priorities, rapidly evolving business environments, and potential biases that have powerful impacts on decision-making. CFOs are in a prime position to explain the big picture, the implications, and the trade-offs for each capital allocation decision.

There’s a lot at stake, but so much to gain when you answer these key
questions: Where to start and why now?