Case Study - Capital Allocation – Investment Modelling Tool

CLIENT OVERVIEW

Our client, a capital-intensive enterprise, was seeking a more strategic and consistent approach to prioritising and managing projects across the organisation. With limited capital and a diverse range of initiatives, it was critical to ensure investment decisions maximised return and aligned with business objectives.

THE CHALLENGE

The organisation lacked a consistent, enterprise-wide model to evaluate and compare projects on an equivalent basis. As a result, capital was at risk of being misallocated, and there was a need to prevent costly inefficiencies from starting and stopping projects mid-execution. A more disciplined, data-driven method was required to guide investment decisions and improve portfolio performance.

APPROACH

The team developed a comprehensive tool that scored projects based on their primary business drivers—such as growth, risk reduction, maintenance, or exploration—using a rigorous and tailored assessment methodology. This enabled the organisation to prioritise projects and build a capital portfolio within affordability limits, optimising return on investment.

A dashboard was created to visualise the portfolio and assess its alignment with strategic goals, offering clarity and transparency to decision-makers. Additionally, the tool provided ongoing guidance and supported the business in managing capital expenditure and maintaining discipline throughout the investment lifecycle.

SOLUTION 

A robust capital prioritisation and optimisation tool was delivered, enabling automatic generation of the optimal portfolio based on defined parameters. It also supported scenario planning and simulations, empowering the business to explore different investment strategies and respond dynamically to changes in strategic direction or capital constraints.

IMPACT

The client gained a powerful, automated solution to support capital allocation, strategic planning, and portfolio management. The tool uncovered gaps in project discipline, helping to enforce greater rigour in decision-making and investment governance. As a result, the organisation is now better equipped to maximise capital efficiency, avoid costly missteps, and deliver long-term value.