Finance 2025

Perspectives

Untangling Capital Allocation

How to simplify the challenge

How to simplify the challenge

Allocation of capital can be complex. Shifting priorities, external pressures, trade-offs, and stakeholder interest show no signs of abating. A changing world means more complexity, not less. Our Crunch time report takes an in-depth look at how CFOs can understand, simplify, and improve their organization’s capital allocation process.

Why are we talking about capital allocation now?

Finance leaders constantly weigh the return of their business’s time, resources, and human capital investments in their efforts to maximize the organization’s health and shareholder value. But what about analyzing the investments themselves? Capital allocation challenges can be a lot to untangle. Here’s why we’re talking about it now:

A changing world: COVID-19; environmental, social, and governance risk; and activist shareholders are forcing many executives to reckon with long-term impacts on strategy.

Policy matters: As administrations pursue and implement new tax policies, it can have an enormous impact on how—and how fast—companies can use tax equity for capital outlays.

More than profit and loss: Focusing on capital allocation means ensuring that the organization can keep creating value as it changes within its charter and shareholders’ expectations.

Competitive advantage: An effective strategy can narrow the gap between what a portfolio could deliver and what it actually does deliver.

Untangling capital allocation

How to build the big picture (piece by piece)

What you’ll need for your capital allocation journey:

It's crunch time

By tackling your capital allocation strategy, measuring what matters, and building a plan and team for the future, you can create a new competitive advantage for your organization—one that keeps an eye on what the future might hold while building on the success that’s right in front of you.

 

Download the guide

Deloitte can help

Our Finance Labs explore the “art of the possible” and define your Finance Transformation strategy, bringing to life potential use cases, road map priorities, and future-state benefits. Contact us to learn more.

Explore other reports and guides in our Crunch time series, along with inspirational Finance Transformation case studies.

Endnotes

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