mckinsey.com

Source: mckinsey.com

Capital expenditure - the money companies spend on large projects, equipment, and infrastructure - is critical to business strategy and cash flow. Yet most organizations treat it like a black box: executives struggle to understand why projects succeed or fail, costs balloon unexpectedly, and billions get wasted on projects that don't deliver real value. The problem isn't lack of money or bad luck; it's that companies haven't built the systems and discipline to manage capital spending effectively