Five ways to boost capital project execution
Capital projects can transform the way a business functions, and build for long-term success as it adapts to major new changes. Experts from Proudfoot explain five ways companies can set themselves up to pull off such a transformation – and negate some of the largest associated risks.
A capital expenditure project is an investment in a company’s long-term future, involving the purchase, creation or upgrade of an asset which is core to the firm’s business model. Capital refers to a company’s financial resources, and so spending those funds mean that such a project can be very risky.
Prior to 2025, crises including the Covid-19 pandemic, rampant inflation and supply chain conflicts had meant companies were already guarded on giving CapEx projects the green light. Chaotic threats of trade tariffs from the US, and rising geopolitical conflict in Europe and the Middle East have further ramped up that caution. But this also means that those who spend now have an opportunity to get ahead of the curve; if they succeed.
So, even as half of companies say the cost of materials is causing them to delay their projects, two-thirds have earmarked project execution and procurement as areas they could find the efficiencies to free up more capital in the future. The key to the impact of that expenditure will be how firms manage their capital project execution.
Founded in 1946, Proudfoot is a consulting firm which specialises in supporting clients across the manufacturing, mining, chemicals and resource-extraction space. For eight decades, the firm has worked to accelerate transformation, and boost return on investment for companies around the world. Building on this expertise, the firm has released a list of five pillars for successful capital project execution.
- Integrated planning and execution
“It’s a well-known fact that a high percentage of large capital projects fail to deliver on their original promise,” the researchers explain. But from Proudfoot’s perspective, “this is rarely due to a lack of technical skill.”
In actual fact, the gap is in execution, the experts believe. As a result, the first piece of advice Proudfoot issues is to build a “horizontally integrated hierarchy of plans, to ensure seamless coordination between resources, materials and teams.”
This approach can provide a proactive way of bridging the gap between a capital project’s plan and the reality on the ground – removing constraints before they cause delays.
- Forge true contractor partnerships
“Success is determined by how well you empower your people and optimise your processes on the ground,” the researchers add.
Again, they stress the need for “seamless integration”. This time, though, that is between contractors – fostering collaboration, rather than simply managing partners.
“Strong collaborative relationships can be formed by aligning incentives and ensuring clear communication and shared objectives from day one.”
- Eliminate waste with lean principles
“The Proudfoot System (TPS) that we apply ensures capital projects are delivered on time, on budget, and to the highest standard,” they add.
A big part of this involves the identification of waste in all its forms. In projects Proudfoot partners with, it works to eliminate excess inventory, while also cutting waiting times, and identifying defects.
“This streamlines every project phase, from planning to execution, enhancing efficiency and reducing costs.”
- Drive daily performance
A common complaint in the digital era is that businesses are “drowning in data but starving for insights." Organisations worldwide have access to vast amounts of data yet struggle to derive meaningful and actionable insights from it.
But data is only useful when acted upon. It can then make the difference between success and failure of a project, by enabling managers to alter their plans in real-time. To that end, Proudfoot recommends working with a third-party expert, who can implement daily performance management processes.
“This can enable rapid, data-backed adjustments, empowering teams to proactively solve problems rather than just react to crises.”
- Empower the frontline
Finally, and perhaps most crucially, it is important to remember that every project hinges on the people executing the work. Even in the age of AI, where the capabilities of machine learning are regularly touted as ‘revolutionising’ business operations, from efficiency to accuracy, it still depends on people knowing how to use its tools correctly.
As a result, Proudfoot recommends that capital projects are supported by consultants who will leave an organisation enriched with long-term skills. This can promote sustainable, long-term change.
“We focus on equipping managers, supervisors, and workers with the knowledge and tools to perform flawlessly,” Proudfoot’s experts conclude. “Fostering ownership and accountability at every level.”
