Enterprise Portfolio Optimization Strategy
Never is the fear factor higher for managers than when they are making strategic investment decisions on multibillion-dollar capital projects. Organizations evaluating a new investment project sometimes rush headlong into an assessment of risks and returns of the project alone without fully understanding the sources and magnitude of the risks they already face. Managing risk (and return) in capital-project and portfolio decisions will always be a challenge. But with an expanded set of tools it is possible to focus risk-return decisions and enrich decision making, launching a dialogue about how to proactively manage those risks that matter most in a more timely fashion.
Project Governance and Stage-gate Processes
Small- and medium-sized capital projects can represent twenty percent to thirty percent of the total that CapEx spends in capital-intensive industries and can represent more than eighty percent of all capital projects, yet they often receive insufficient attention. We have found that better management of that “small capital” portfolio with a rigorous value-focused approach that stretches from business case and concept development all the way to execution and ramp-up can translate into a two to three percent return on investment improvement. We are uniquely positioned to serve the public entities and private partners responsible for planning, maintaining, and developing physical infrastructure for public and private purposes including the following:
Public Spaces and Buildings
Our Integrated Facilities Management Information Services Practice provides several major services for government agencies. We support clients in aligning architectural design and public-use objectives with capital and operational expenditure budgets. To ensure the long-term relevance of buildings we advise clients on the strategic use of materials and on design, expansion, accessibility, and sustainability techniques.
Schools and Universities
In collaboration with our colleagues from the Social Sector Practice we analyze the evolving user requirements of schools and universities to help clients manage education facilities. We apply innovative techniques to ensure safety, security, and health regulations are met. We help clients control investment and facility management costs while maintaining high-quality buildings with long lifecycles.
Shipyards and Ports
Container ships, the pack mules of the global economy, are among the largest oceangoing vessels. The growth of ocean freight is far stronger than the growth of any other shipping or transportation sector. Industry leaders are making substantial investments to expand port capacity and build the necessary connections inland. Our work includes infrastructure, logistics network planning, demand-based customer segmentation, and risk management in addition to corporate strategy and operations.
Water and Waste
We help utilities transform their operations along the entire value chain of water, waste, and wastewater by optimizing elements such as network and pump station maintenance, pump energy efficiency, sludge treatment, waste asset configuration, aeration control, and support functions. We also help local governments assess how recycled materials might contribute to resource management strategies and economic development targets. Drawing upon extensive experience in capital-intensive projects we use best practices—such as Earned Value and Schedule Management—to build client capabilities and safeguard the long-term success of a project.
We design project organizations and owner’s teams, support capability building, and help implement management processes that enable project success.
We help clients with capital productivity in all business areas, project types, and stages including portfolio optimization, project concept and design, lean construction, contract and contractor management, contract close-out, and commissioning support.