Success Drivers in Capital Budgeting

Success Drivers in Capital Budgeting

A Process for Strategically Aligning Facilities Investments with the Organizational Mission - Seven Steps to a Strategic Capital Budgeting Process

This paper describes an approach to successfully aligning an organization’s acilities capital budget with its strategic business objectives. This process enables objective prioritization of competing needs in order to optimally allocate capital funds and deliver the greatest business value.

Additional benefits of a mission-driven capital budget include:

Greater understanding and support among the various stakeholders in the capital budgeting process, from executives to financial planner
Reduced time and effort to generate capital budgets and make adjustments when changes inevitably occur
Defensible budget requests to funding bodies, legislatures and boards of directors, based on well-defined, quantifiable criteria

Seven Steps to a Strategic Capital Budgeting Process:


Establishing The Team


Defining Goals, Processes, Evaluation Criteria


Collecting Information and Organizing Data



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Defining a Prioritization Strategy


Preparing Budgets


Getting Approval


Sustaining and Maintaining the Program


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