For many businesses, the process of aligning operational initiatives with strategic goals represents a major challenge. For example, the management of capital expenditure represents the majority of discretionary cash outflow, yet the decision-making and management processes surrounding capital expenditure are often relatively weak.
Application of optimisation disciplines can generate enormous improvements in free cash flow. The key steps are quantifying the contribution from each initiative to the firm’s goals, optimising (not prioritising) across the initiatives to generate the optimal portfolio, and managing delivery to ensure risks are controlled and maximum value is delivered.
Strong optimisation disciplines are essential to good governance in all businesses.
Contact us to find out how we can help you optimise your business initiatives.