An enterprise has identified these causes for inefficient CAPEX spending:
• CAPEX planning is driven by technology and not by business objectives.
• The CAPEX planning team lacks the data it needs to perform due diligence tasks.
• The organizational structure lacks sufficient accountability and incentives.
Which corporate cultural change contributes to improving the effectiveness of CAPEX spending?

Question

An enterprise has identified these causes for inefficient CAPEX spending:

• CAPEX planning is driven by technology and not by business objectives.

• The CAPEX planning team lacks the data it needs to perform due diligence tasks.

• The organizational structure lacks sufficient accountability and incentives.

Which corporate cultural change contributes to improving the effectiveness of CAPEX spending?

Kristina Stojanovska · Accepted Answer

Build a financial control function that delivers high-quality reports on operational expenses for business insight and financial reporting.

Kristina Stojanovska · Answer

CxO-level staff must have a full technical understanding but the should not trust their technical leaders fully.

Kristina Stojanovska · Answer

Adopt new organizational models that promote real accountability for ROI. not just revenue.

EBITDA, and cash.

Kristina Stojanovska · Answer

Marketing and product management divisions must reduce their CAPEX budgets significantly to drive the change.

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