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Enhancing value through strategic capital allocation
Capital efficiency services
How effectively an organization allocates capital can make the difference between sustained success and market underperformance. Raising the stakes even further is the uncertainty and complexity that often surrounds capital allocation decisions. Having the insights and information necessary to make difficult and timely trade-off decisions in allocating capital has the potential to provide an organization with a significant competitive advantage.
The challenges of capital allocation
Having the insights and information necessary to make difficult and timely trade-off decisions in allocating capital has the potential to provide an organization with a significant competitive advantage. Across industries, organizations face many of the same obstacles associated with strategic capital allocation, which commonly include:
- A lack of consistency and transparency surrounding information and assumptions about capital investment alternatives
- Difficulties in making comparisons between investments given their divergence on factors such as strategic benefits, risk and reward, priorities, interdependencies with other investments, and time horizons
- Capital planning tools and processes that don’t enable decision makers to readily collect, evaluate, and compare business cases, or to recommend custom optimal portfolios under different scenarios