Bain approaches the capital planning process differently, with an end-to-end process that addresses the most common pain points and is facilitated by proprietary, field-tested frameworks, benchmarks, and software. Bain Capex Impact helps companies improve capital allocations, using the four S’s of capital effectiveness (Situation, Strategy, Spend, Structure) to rapidly diagnose poor capex decisions and bring into focus the best investment opportunities:
- Situation recognizes that every company and market are different. For this reason, Bain Capex Impact is not one-size fits all, and defies a "cookie cutter" approach.
- Strategy fixes the common mistake of spreading resources thinly. Hard decisions will be made and the result will be sufficient capex allocations to the geographies and customer segments where senior leaders have made an explicit decision to play to win
- Spend dives into the details of specific projects to life its ROI beyond traditional procurement levers.
- Structure improves the operating model, especially the capital budgeting process. Rolling reviews replace the typical annual capital budgeting planning processes, new capital project evaluations are introduced, and role and responsibility allocations are redefined.
