|
If your company is like most, you are in the throes of planning for next year. While the implementation of these strategic, operational, and capital plans is not likely to occur until many months from now, it is crucial that you get a head start on the planning process. Perhaps even more important, your planning process needs to incorporate tools for keeping both project managers and executives abreast of progress in order to ensure maximum return on your investments. This article addresses not only the critical success factors for producing and managing capital budgets, but also addresses what happens once a budget is approved. For example, how do you identify and proactively respond to projects that are significantly over budget? Do you 'borrow' funds from other projects? Modify the initial scope? Reschedule the construction timeline? Too many organizations lose sight of actual expenditures and time to completion, making it difficult to assess the benefits realized. The ability to capture and report—in a timely and accurate manner—on all fluctuations in expenditures, budgets, and schedules is critical to realizing your projected return on invested capital.
|
