How effective is your company at capital planning?
By Sylvie MacKenzie, Director, Marketing-Oracle on Jan 02, 2012
Asset-intensive industries are presented with many challenges when it comes to effectively managing the capital planning process. And failing to make good decisions when the stakes are high can lead to huge financial losses. Is your company making good investment decisions?
A recent survey by the Economist Intelligence Unit, sponsored by Oracle, found that:
- Only one in ten companies in the utilities, oil & gas, chemicals and metals & mining industries consistently achieve the expected return on investment on capital projects
- 47% of executives surveyed rate their organizations as "effective" at planning, prioritizing and selecting capital investment opportunities, and just 8% say they are "extremely effective"
- Fewer than one in five organizations involve program managers in capital investment planning decision-making
With the cost of projects running into the millions, and even billions of dollars, the stakes have never been higher: timelines are long, investments are huge and lifecycles are even longer. Good decision-making in the planning stages can have a tremendous impact on the bottom line and mean the difference between the success and failure of a project.
How does your company compare? Take the EUI five-minute benchmarking survey to find out. See how your views of the capital planning process compare with those of more than 425 asset-intensive industry executives around the world.