Investment Cycle Management

Improve decision support by capitalizing projects' financial performance

To maximize the return on investment of new capital employed in projects, Chief Financial Officers (CFOs) must define a methodological framework to:

  • Secure decision-making
  • Control the performance management of investment throughout its life cycle
  • Capitalize on acquired experience

This framework must be applied to all families of investments (tangible, intangible, financial).

Context and challenges

The decision to invest is a responsibility that should be exercised according to decision-making rules and procedures that promote:

  • Maintaining a subtle equilibrium between subjective opinion and factual judgments, based on quantitative analyses
...read more
  • Enabling the company to optimize the creation of value
  • Making a wide variety of investments (some projects may generate revenue, whereas others will generate savings; some will require significant expenditure in advance, while others will involve spreading expenditure throughout the life cycle of the project)

 

How can Argon Consulting help you?

  • Diagnosing the existing investment cycle (processes, decision-making rules, valuing tools, project performance measurement)
  • Revising the valuation and decision-making processes (process design, Responsibility Assignment [RACI - Responsible, Accountable, Consulted, Informed] matrix)
  • Defining the discount rate selection criteria applicable when valuing an investment’s value creation (risk profiles)
  • Defining value-creation indicators (return on investment, economic added-value, and aggregate net present value related to the internal rate of return, etc.)
  • Designing and building investment performance tracking and valuation tools
  • Defining investment performance management rules
  • Creating a knowledge base on the financial performance of investment projects