Implementing best practices for capital planning

Though Axiom Capital Planning is highly configurable, it does make a few very general assumptions as to how your organization should structure the capital planning process.

While every organization's situation is unique, it has been our experience that organizations typically get the best results when their capital planning process:

• Is rigorous and highly organized.
• Receives the full support of a well-informed management team.

• Links financial planning and capital planning to the organization’s strategic plan.

• Takes a one-batch approach to evaluating capital requests, reviewing all upcoming requests at once instead of making decisions in isolation.

• Encourages rational comparisons between projects and strategic initiatives throughout the entire organization.

• Provides a financial context for allocation decisions.

• Accounts for the strategic, mission, and operational aspects of alternative investment decisions.

• Focuses senior management’s attention on larger Threshold projects while allowing decisions about smaller Non-Threshold items to be decentralized.