Portfolio Optimisation

Optimising a portfolio of capital projects is critical and challenging so avoiding distortions in the decision-making process is a key driver of value for capital-intensive businesses

PIP adopts a structured, three-stage approach when helping clients optimise their capital portfolios:

  1. Ensure that the early prioritisation of projects and a robust allocation of capital takes place – aligning the top-down capital strategy with a portfolio that best satisfies business plans, company capabilities and return-on-investment (ROI) hurdles.
  2. Hardwire an ongoing portfolio optimisation process into the organisation (both for major capital and for sustaining capital projects).
  3. On the priority projects, optimise individual investments through structured and rigorous value engineering and rapid optimisation of capital expenditure (ROCx). This optimisation work includes right sizing, eliminating unnecessary capital expenditure (CAPEX), balancing CAPEX and operating expense (OPEX) options and accelerating delivery, all with the aim of maximising value.
A PIP team started with us on December 8 and by December 18 we had: committed $263m of improvements to the Board; completed a strategic review of the asset base and made a number of key recommendations; implemented a framework of capturing and tracking ongoing improvements and immediately set about delivering cash-flow improvements. Within the 100 days that followed, we have doubled the value of the improvement pipeline, and most importantly we have delivered in excess of 140% of our original commitment in bottom-line cash flow. By adopting the PIP pipeline management process and embedding PIP specialists into key areas of the business, PIP ha[s] enabled us to harness our efforts on the right actions, at the right time, and deliver rapid results.JASON WHITTL

Meet our Portfolio Optimisation expert