A more robust capital management process can have a major impact on long-term results
Profitable growth is the key to unlocking long-term value creation, and no management process exerts more influence on the profitability of growth than capital management. However, the key role played by capital management in value growth is seldom reflected in the attention paid to it. At most companies, capital is allocated during the annual budgeting process and focuses on requests to fund projects rather than strategies. The result can be an investment strategy that is not connected to business strategy and that will not deliver superior performance.