BANYAN / DECISION MEMORANDUM
Make business investment decisions with assumptions you can examine.
Compare internal capital projects through initial outlay, ongoing operating effects and the uncertainties that need review.
Discuss capital planning
Banyan Capital Planning
Internal business capital-expenditure planning
Compare project proposals
Capex decision frameworks
Separate initial and ongoing effects
Scenario assumptions
Document uncertainties
Project cash-flow comparison
Banyan Capital Planning
Internal business capital-expenditure planning
Compare internal capital projects through initial outlay, ongoing operating effects and the uncertainties that need review.
Capex decision frameworkManagement questions
Which proposal rests on examinable assumptions?
Method
Record the reasoning from proposal to review
- Frame the decision
- Inspect the inputs
- Compare options
- Review and revise
Capex decision frameworks
Capex decision frameworks. Planning priority: Compare project proposals. Scope and limits are agreed first.
Scenario assumptions
Scenario assumptions. Planning priority: Separate initial and ongoing effects. Scope and limits are agreed first.
Project cash-flow comparison
Project cash-flow comparison. Planning priority: Document uncertainties. Scope and limits are agreed first.
Post-implementation review structure
Post-implementation review structure. Planning priority: Compare project proposals. Scope and limits are agreed first.
Illustrative scenarios
Which option survives a change in demand?
Operating contexts
Internal investment follows operating context
Manufacturing
Internal business capital-expenditure planning in the context of manufacturing.
Logistics and warehousing
Internal business capital-expenditure planning in the context of logistics and warehousing.
Corporate facilities
Internal business capital-expenditure planning in the context of corporate facilities.
Resources
Working papers for capital decisions
Define inputs before capex decision frameworks
A practical framework for internal business capital-expenditure planning.
Which assumptions need an owner?
A practical framework for internal business capital-expenditure planning.
A review agenda that supports decisions
A practical framework for internal business capital-expenditure planning.
Compare scenarios without claiming certainty
A practical framework for internal business capital-expenditure planning.
Banyan Capital Planning