At a glance
Large capital projects are inherently risky. Download this user-friendly board guide for effective capital projects oversight.
Capital projects are integral to strategyView chart
Yet, more than 75% experience budget overrunsView chart
If mismanaged, capital projects erode share valueView chart
Across industries, loss in share value increases steadily over timeView chart
Smaller companies suffer larger lossesView chart
Capital-intensive industries recorded the largest share erosionView chart
Capital projects represent substantial risk...View chart
...caused by a variety of factorsView chart
Capital spending needs to serve business strategy. It’s really about linking the corporate vision and strategy to the “so what?” for capital investment decisions. Boards need an understanding of the business case for each capital project. What’s the rationale? How will it affect the company’s competitive position in the marketplace? What major risks could impede progress? How does this project fit within the company's overall portfolio?