Zero-Based Budgeting: Making the Case for Starting With Capex

It is a concept that’s been around for more than 50 years, yet periodically re-emerges as a “trending topic.” This is one of those times. I’m referring to zero-based budgeting (ZBB) — an approach Harvard Business Review characterized as being “elegantly logical.” At its core, ZBB dictates that every expense be justified individually for each […]

The Capex Project Post-Completion Review: How to Go From Theory to Practice

You just completed a multi-phase capital project. The assets are in place and in use. Time to celebrate and chalk up a win, right? Maybe. There is a final step that often gets talked about but rarely completed: a Capex project post-completion review – which is an essential step in proper project management and creating […]

Compilation of Trends in Finance and Capex: An FP&A Exec’s Guide

There’s no shortage of predictions and prognosticators when it comes to the future of finance, FP&A and the role of Capex in driving corporate growth. But there is some consensus, which can be summarized this way: Companies need to move faster. Senior leaders must be more strategic. Digital transformation is here to stay. And, as […]

Developing a business case for effective capital program transformation

Where to Begin with Capital Program Transformation For any new initiative you wish to undertake, it’s imperative to develop a business case and rationale that will help to define its vision and its value. Proposing to transform the way your business manages its capital program is no exception, and there are a number of factors […]

eBOOK: Developing a vision for unified Capex planning

What is Unified Capex Planning? Are you frustrated with the amount of time it takes to manage and control capital expenditures across your organization? Unifying the Capex planning process within a single system of record can not only save a substantial amount of time, but also provide greater assurance to the integrity of your financial […]

How do you make your capital investment decisions?

*Originally published by Perform magazine. Effective capital investment decisions underpin business success. The purchase of a new building, IT system or machine can enable a business to produce more of its goods and services so that it can expand and grow its market share. Depending on the nature of the investment, it may also enable […]

Prioritizing your capital project portfolio

Prioritizing your capital project portfolio Most organizations categorize potential investments either qualitatively or quantitatively. Qualitative investments typically include strategic projects or those that address new mandates or regulatory requirements. Most quantitative investments have clear financial goals. To prevent “pet projects”from moving under the radar, managers should be able to compare and prioritize investments across the […]

Two ways to enhance the capital expenditure approval process

Two ways to enhance the capital expenditure approval process The capital expenditure approval process should serve as the cornerstone of capital investment cost control, but in reality it can be a cumbersome, frustrating component of the capital investment program for many companies. Commonly, the systems in place to manage Capex requests and approvals are decentralized […]

How to avoid the Capex “planning fallacy”

How to Avoid the Capex Planning Fallacy If you have firsthand experience in dealing with a capital project that is years behind schedule and millions of dollars over budget, you’re familiar with the “planning fallacy” – even if you’ve never heard of the phrase before. The concept, first proposed by a team of psychologists in the 1970s, […]

Why your capital budget is probably being underspent

Why Your Capital Budget is Probably Being Underspent Your organization has just entered Q4 and the COO is concerned that it may, again, be under-spending its available capital budget based on the final Q3 numbers at hand. As a result, there’s fear that as a company, you may be missing out on capital investment opportunities […]