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Creating value through capital expenditure planning
An effective strategy to counteract a delicate economic environment and transcend shareholder value is to make capital expenditure planning a core competency tightly woven into an organization’s corporate fiber.
What separates a good company from a great one? Often it is an organization’s financial strategy; its capital productivity framework.
Attention to capital expenditure planning, the process by which an organization sets capital allocation targets and builds towards an optimized leveraged project portfolio, is paramount to generating and sustaining stakeholder value.
A penetrating capital productivity framework brings with it pervasive gains by boosting stakeholder return and overall organizational value while mitigating risk. The approach can improve portfolio returns, fine-tune monitoring and reporting protocols, and enhance mechanisms for adjusting projects.