Taming your capital monster

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Most companies believe they are creating a capital plan that supports business goals but in fact, the world’s largest companies often miss their real estate capital plan by billions each year – felled by the ‘capital monster.’

The capital monster strikes when companies are unintentionally inhibiting growth because they do not effectively develop, prioritize, manage and execute their capital plan. So how do you tame the beast?

Missed capital plan targets for office real estate equals $12.2 billion every year, a monstrous-sized figure.

A monstrous-sized figure! Missed capital plan targets for office real estate equals $12.2 billion every year.

The world’s best companies manage their capital spend to within +/- 2 percent to plan. These companies have three things in common that help them to achieve this level of precision:

  1. Building an accurate and strategic capital plan from the start
  2. Establishing a function to manage the process holistically from planning to execution
  3. Leverage a single technology platform and data set to ensure transparency and consistent information source

The last piece of all of this important planning is to ensure that the right skills are in place to drive the plan. Learn more about taming your capital monster.

 

 

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