Can the Capital Planning Process ever be fixed?
Annual planning is one of the most frustrating corporate exercises I go through every year. Hours upon hours are wasted on creating lists, guessing costs and benefits, building complex CBAs, investment stories, and pretty PowerPoint decks. Sometimes teams get a chance to pitch directly to the investment committee, but more often than not, executive leaders look at lists of ideas and numbers and make the call in a leadership vacuum. The outcome usually leaves teams confused, wanting more insight into the why of decisions, and frustrated with the outcome. The best processes, in my experience, leave everyone a bit wanting for more but confident in the direction of the investments.
With the onset of agile project execution in both technology and business projects, coupled with the move towards product level investments vs. project investments, there is a new tug and pull in the dynamic of capital planning. Agile processes anchor in the concept of fixed funding, constraining budget and resources with scope as the lever to pull to achieve value. Agile’s approach is to develop a minimum viable product, delivering the best value for the customer in the fastest possible time. The product owner must be disciplined in prioritizing and facilitate a rapid feedback loop from customers to the agile team. Also, funding an Agile approach requires framing the bigger picture and…
