Capital Investment Process Deficiencies
Boyd, G. (2013). Capital Investment Process Deficiencies. Accountancy Ireland, 45(3), 37-39.
Mr. Gene Boyd’s article is exceptionally insightful. In the modern world, many organizations, both start-ups as well as some that have been on the market for significantly long periods of time, find themselves with investment challenges. The inability to distinguish between capital investments from other forms of investment features as a major challenge limiting the success of many organizations. However, with respect to the discussion by Mr. Boyd, it becomes easy to not only distinguish capital investment from other expenditures, but also to understand other underlying challenges that many organizations face in the pursuit of implementing capital investment decisions.
One key aspect of Mr. Boyd’s article is the elaborate description of possible pitfalls and scenarios that face organizations in their day to day pursuit of establishing and implementing new projects. His coverage of the above issue is insightful and full of characteristic lessons. Contrary to what many people may believe, he includes the recruitment process of the senior management as one of the challenges limiting successful. His argument that the senior management team is recruited and hired mostly on the basis of other skills without necessarily considering the knowledge on project management is relatively controversial but paves a way for establishing scholarly discussion. Ideally, Boyd’s work, as illustrated by his contribution to the article, is revolutionary since it triggers a lot of critical thinking and evaluation of matters concerning capital expenditure and investment.