Collaboration, Prioritisation, Planning, Performance (CP3)
Within the large organisations or government entities (at any tier), the cycle of capital investment planning has many challenges. The merits of capital projects competing for priority and subsequent budget development is usually determined through tried and tested financial methods, such as the calculation of a benefit-cost ratio, the internal rate of return (IRR) or other related financial methods.
The short-comings of this clinical and somewhat aged approach creates a number of challenges. Strategic leadership often takes issue with the disjoint between capital expenditure and evidential alignment with objectives, strategies and commitments. In addition, other issues such as spatial priorities, economic impacts, social impacts, environmental impacts, affordability, project readiness, and numerous other contextual considerations are often ignored.
The complexity of the process is compounded by the diversity of sources from which the capital needs originate. This diversity of important considerations in the project preparation journey, renders the required process to evaluate and appraise projects across a spectrum of seeming unrelated needs extremely challenging.
The CP3 software service provides one portal where capital needs are registered. It provides the ability for innovative prioritisation of these needs reflecting the specific needs of the organisation. The budgeting module facilitates the development of a budget fitting strategy and allocating budgets in accordance to pre-determined bins or alternatively, the user can allow the system to determine the true size of the bins. the last step is to allow project managers to track the timely implementation of capital needs by tracking both financial and physical progress.