Whitepaper – Rethinking Capital Allocation for the New Normal
This article reflects the status at the time of its publication. The content may since have become outdated.
Re-allocation and Rightsizing towards New Growth and Value Creation.
Systematic capital allocation is a distinguishing factor for successful and outperforming companies in the long term. The current economic crisis, triggered by the COVID-19 pandemic, has highlighted the need to re-allocate capital to those business models flourishing in a new normal and to resize the relevant resources and costs accordingly. To leverage this opportunity, CFOs should focus on four imperatives of capital allocation as part of their recovery strategy. With a systematic approach to capital re-allocation in hand, companies are able to recover from crises faster and much stronger than their peers.