Is Your Capital Budgeting Process Bullet-Proof?

June 15, 2011

by Ameeta Soni, Chief Marketing Officer, VFA, Inc.

Capital spending on property, plant and equipment represents a significant investment for most organizations. How well these capital dollars are aligned with strategic business goals can dramatically influence an organization’s success. Yet the process of evaluating capital needs is usually subjective and political in nature, and it is difficult to effectively link capital allocations to specific organizational goals.

A structured and consistent approach to prioritizing capital needs, using accurate facility condition data and consensus-based criteria that support strategic objectives, results in a capital budget that can be defended and is more likely to be funded.

How do you develop your capital budget – and how bullet-proof is it?

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