What is in this article?:
- Maximizing Return on Capital Investment
- Accountability: A Key Responsibility of Finance
- Visibility: The Info to Make Decisions Quickly
- Efficiency: Improving Utilization of Scarce Capital
U.S. companies will make capital investments totaling roughly $2 trillion this year. This investment is critically important to their future; according to research by McKinsey & Co., over 50% of corporate growth is directly attributable to capital expenditure (Capex). The companies that do it well significantly outperform their rivals, with Booz Allen finding that companies that employ best practices in Capex management earn 25% higher profits than their peers.
With respect to Capex, today's top performers are focused on the three key dimensions of accountability, visibility and efficiency.