9 February 2017

BPIF research on decision making process around investment

Building on its portfolio of research based knowledge papers, the BPIF recently conducted research around how the sector undertakes decision making in relation to investment decisions. Some 110 companies responded representing circa £740m of turnover and 6800 employees.

Successfully making the right capital investments depends on the effectiveness of the decision making process. This in itself is a truism but in reality many 'things' get in the way of effective decision making. 

The document and research seeks to:

• Highlight the range of current decision making practices across the sector
• Highlight comments from buyers who undertake the process and what frustrates them with pointers on how sellers and vendors can improve the process
• Offer direction on improving the process for better outcomes where possible
• Highlight a more effective platform for communication between supplier and customer and build on best practice collaborations across the supply chain
• Provide a good representation of feelings and actions around investment and decision making.

BPIF Eastern Regional Director, Marcus Clifford, compiled the research alongside Kyle Jardine, BPIF Research and Information Manager. Marcus comments, "Overall, if we can raise the debate and quality of dialogue on this crucial topic between individuals and teams in a company making investment decisions and between supplier and customer then it's worthwhile. We want to raise the debate and practice wherever possible on better collaborative communications, measurement, post-installation evaluation and interaction across the supply chain."

Good decision making will invariably be able to withstand challenges, but maximising the decision making process can be difficult due to time issues, access to all the options and solutions available to your situation, staff with specialist knowledge and experience, stretched resources and how can one fully gain the fundamental knowledge around new technologies and the 'real' risks associated with them.

Ensuring which technology is right for your business, which gives you the flexibility to meet changing demands, which has a lower lifetime cost, which does not risk your business and so on is a taxing process indeed.

Marcus Clifford comments further, "The sector is migrating itself up the value chain and being an innovator can create more complex problems to be solved and more complex deliverables to be managed . Decision making around investment in unstable market conditions and with newer technologies requires a more strategic decision making process as a consequence and looking at the processes involved and areas to improve the process is something we want to develop as an outcome."

The results from this research will be published shortly and will be available to all members.