When formally and professionally presenting the proposal, managers need to include an executive summary of the overall spending, adding details, time frames, and milestones when possible. They also should include the financial spending report with solid, quantifiable analysis. It is important to always get confirmation of the numbers from an independent internal or external financial analyst.
Whenever someone in my organization came to me with a proposal for capital spending, the first person I went to was our CFO to confirm the numbers. If managers can get someone to validate the numbers first, they’ve won half the battle.
They also should include assumptions, as well as an appendix with more details of the project, other similar projects as reference, white papers, or their own analysis that validates the proposal. One proven tactic for success is to review previous proposals that received funding to find ideas on making the strongest case.
Managers can select from among hundreds of readily available articles, white papers, and studies on capital project successes and failures, but three mistakes are consistently mentioned: failing to get accurate time and cost estimates, failing to establish measures, and evaluating and proposing large capital projects without sufficient detail.
One problem rarely ruins a capital project. It usually takes a series of failed steps along the way. The best projects are on time and under budget while meeting everyone’s expectations.
Andrew Gager | CMRP, CPIM, CRL, CAMA
Andy is recognized as an industry leading expert in facilitation, global implementations of maintenance systems, supply chain, and operations best practices with over 25 years of manufacturing experience ranging from warehousing operations to plant management. Andy specializes in optimizing operations, maintenance best practices, materials management and has facilitated dozens of International improvement initiatives. As current Managing Director of N. America with Nexus Global, Andy is focused on developing, implementing, and supporting reliability-based solutions within the overall Asset Performance Management (APM) strategy. With accreditation as a Certified Maintenance Reliability Professional (CMRP), Certified in Production and Inventory Management (CPIM), Certified Reliability Leader (CRL), Six Sigma Green Belt (CSSGB), and Certified Asset Management Assessor (CAMA), Andy regularly presents at conferences and delivers training workshops to share his passion for APM. Andy receives accolades for his unique presentation style and understanding of adult learning styles in delivering sustainable competency results and served as an adjunct facilitator at North Carolina State University (NCSU). Andy is also a certified proctor for the CMRP and CAMA exams, a renowned author with articles published in numerous trade magazines, and referenced as a contributing expert in the field of Leadership, Change Management, MRO Management, and Overall Operational Improvement.