21st century stakeholders expect a lot from the organisations on which they depend.

In the private sector, shareholders want not only good dividends but year-on-year capital growth.

Meanwhile voters, ever concerned to pay as little tax as possible for adequate public services, refuse to tolerate inefficient or wasteful behaviour by public sector organisations.

No private or public sector organisation can escape for long the need to demonstrate rigorous processes for assembling, reviewing, selecting and evaluating investment opportunities.

Stakeholders insist that projects are:

• soundly based,
• likely to generate an acceptable level of return,
• well executed
• and, ultimately, exploited to maximum value.

Any failure to abide by these principles is certain to destroy value and squander stakeholder confidence.

Nor is it possible for most organisations to focus on one investment opportunity in isolation. Effective investment opportunity managements, like the management of any investment portfolio, is largely concerned with achieving an acceptable balance of risks, for example by underpinning high-risk, potentially high-return projects with less glamorous low-risk, low-return investments.

QUANTITATIVE RISK MODELLING

We make extensive use of quantitative risk modelling techniques in our risk assessment services. Click on the image below for further details, including a downloadable tutorial.

Our investment opportunity management model includes such features as:

• unequivocal and mandated delegation of authority/approvals;
• explicit organisation-specific investment criteria;
• an objective toll-gating or review point process at critical points in the project lifecycle;
• a hierarchy of approval and review bodies;
• clearly defined investment evaluation methods;
• uniform investment submission templates for consistency and coherence;
• a parallel system of independent peer review;
• a fact track procedure for high return, low risk investments.

Click on the image below for a 5-page PDF that sets out the background to investment opportunity management and Broadleaf's approach.

Our Approach

We help our clients to develop an investment "funnel" approach that stimulates the continual identification of opportunities and ensures that the narrower, development pipeline is always filled with the opportunities most likely to progress towards successful execution.

We advocate the use of rigorous evaluation and governance processes to ensure that decision makers are equipped with the information and expertise they need to make competent, well informed decisions to ratify or decline investment opportunity submissions.

Click on the image below for further details of our qualitative risk assessment service.