Capital Program Management

Capital Program Management in an organization considers all the capital needs of a business enterprise. There are essentially three types of capital expenditures which organizations consider: changes in capacity or capability, changes in functional requirements and renewal of existing assets. Program management integrates all capital projects in a manner wherein an organization will achieve maximum benefit from its short and long range capital plan and associated processes.

Because capital expenditures are essentially unique year over year, in comparison to the operating budgets which tend to be very similar over time, it is important that senior management have an overall view of where capital is being spent in order to increase the value to shareholders or asset owners. Capital Program Management allows this to occur.

Through identification of needs, prioritization, approval and scheduling of capital requirements, an organization is able to establish capital projects and effectively spend its capital dollars over a period of time.

TCPS® allows an organization to track its various types of capital spending, and in some cases, major non-recurring expense activities out into the future. This will allow an organization to determine its future capital liabilities and hence funding strategies which can be put into place proactively.

Altus Capital Planning Solutions will assist organizations set up the structure and business process required to effectively manage its overall capital program.