Growth-oriented capital planning: the right spend at the right time

Capital investment, when allocated to the right place at the right time, enables strong, viable business strategy and growth. Most companies believe they are delivering profitability and productivity through their capital budgets. Yet the average company misses its plan by at least 12 percent¹.

Companies are likely to unintentionally inhibit growth unless they:

Develop an accurate, strategic capital budget
Prioritize spending effectively
Manage their spend with centralized oversight
Execute spending consistently and holistically

Overspending causes financial strain throughout your organization, raises risk and damages shareholder trust. But have you considered the risk of underspending? It may signal a worse problem lurking beneath the surface.

When money is held back rather than invested in opportunities like improvements, the impact on your future ROI, rents and potential foreign investments should not be underestimated. The value of your portfolio is at stake.

Are you meeting your growth goals?

What looks like costs saved today could actually mean missed investment opportunities:

JLL research shows Forbes 1000 companies underspend by $8.8 billion, annually.
In some cases, informed prioritization — in which managers compare and rank projects — across categories can increase portfolio net present value by more than 30 percent².
Setting a standard model can reduce spend for nonmajor projects from 10 to 30 percent³, enabling reallocations for increased benefit.