Case Study - Streamlining Capital Allocation in a Global Enterprise

CLIENT OVERVIEW

A global producer of industrial chemicals, headquartered in Europe, sought to enhance how capital was allocated across its extensive network of over 60 production facilities. The organisation was focused on aligning capital deployment with strategic production priorities, aiming to better support long term operational goals through improved portfolio investment decisions.
 
THE CHALLENGE

The client identified an opportunity to improve the way project funding was distributed across its global operations. Capital allocation decisions were centrally managed, yet the diversity of local project types made consistent prioritisation complex. There was a desire to better align capital investment with key drivers such as risk reduction, compliance, and production efficiency, while ensuring transparency and consistency across the portfolio.
 
APPROACH

The analysis began with a review of historical budget forecasts and future project plans. Each proposed initiative was assessed and categorised according to its capital intensity, its contribution to reducing operational risk, and its alignment with regulatory compliance requirements. These dimensions were used to create a structured scoring framework that could be applied across the diverse global project landscape.
 
SOLUTION 

A single metric — the Weighted Project Equivalent Score — was developed to combine the three assessment dimensions into a unified project ranking system. This enabled direct comparison and prioritisation across the portfolio. A digital tool was deployed, allowing the central Finance team to apply annual capital constraints and dynamically determine which projects could proceed. The tool also provided a high-level view of capital distribution, supporting broader business planning and financial visibility.
 
IMPACT 

The Capital Allocation tool was adopted immediately and used to shape the global investment portfolio from 2025 onwards. It delivered a structured, data-informed basis for capital decision-making and allowed the business to optimise funding against strategic and operational needs.
 
Headline Metric
Capital Affordability Limit (CAL) visualised project rankings and spend forecasts against the Annual Capital Tideline.