What skills do you need for effective capital budgeting and strategic alignment?

2 Critical thinking skills

Critical thinking skills are the ability to apply logic, reasoning, and evidence to evaluate the strengths and weaknesses of the projects and their alignment with the organization's strategy. You need critical thinking skills to identify and challenge the assumptions, biases, and limitations that may affect your analysis and decision-making. You also need critical thinking skills to consider the alternatives, scenarios, and trade-offs that may arise during the capital budgeting process, and to weigh the pros and cons of each option.

3 Communication skills

Communication skills are the ability to convey and exchange information and ideas effectively with different stakeholders, such as managers, investors, customers, and suppliers. You need communication skills to present and explain your analysis, recommendations, and rationale in a clear, concise, and persuasive manner. You also need communication skills to listen and respond to feedback, questions, and objections, and to negotiate and resolve conflicts that may occur during the capital budgeting process.

5 Leadership skills

Leadership skills are the ability to inspire, motivate, and coordinate the people and resources involved in the capital budgeting process. You need leadership skills to establish and communicate a clear vision and direction for the projects and their alignment with the organization's strategy. You also need leadership skills to delegate tasks, assign roles and responsibilities, monitor progress, provide feedback, and recognize and reward achievements.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?