Best Practice Elements

Best practice in Capital Expenditure processes requires:

• Executive management commitment
• Guidelines and approval regimes
• A risk based organization and value approach
• Clear process maps for all stakeholders to follow
• Roles and responsibilities for key players
• A QA process to ensure that the policy is followed.

Without each of these key success factors, the capital investment process may fail to achieve the organization's desired outcomes.

Executive management has a prime role in ensuring that the organization achieves best practice in the capital investment component of asset management.