Capital isn’t just money—it’s your future. I’ve seen it shape outcomes over 20+ years, from cutting $55M in costs at Kemper to driving $20M in EBITDA at AIG. At Consultgenix, we’ve boosted client efficiency by 12% by deploying resources smartly. Capital allocation isn’t about spending—it’s about investing for long-term growth. Let’s explore how to optimize yours—because in a world of tough choices, the right ones build legacies.
Why Capital Allocation Drives Success
Cash is finite—where it goes matters. I learned this at Lehman Brothers—missteps cost us. At AIG, managing $900M in premiums, smart allocation hit 30% profitability—$40M debt cut, $20M EBITDA gained.
It’s strategic: Allocate poorly, and you’re stuck; allocate well, and you scale. A BCG study says top allocators see 30% higher returns. At Consultgenix, 12% efficiency often starts here—capital’s your lever, not your limit.
Balancing Risk and Reward
Allocation’s a tightrope—safety vs. growth. At Kemper, I slashed $55M by pruning waste—freeing cash for reinvestment. At AIG, we shed $54M in non-core units but fueled $5M in new products.
It’s about trade-offs: Protect the core, bet on the future. I’ve juggled this since PwC—knowing when to hold and when to push is the game. At Consultgenix, we’ve kept clients steady while scaling 12% proves it.
A Real-World Win: $20M EBITDA at AIG
Let’s rewind to 2012–2018 at AIG. I was Finance Head for Personal Insurance in the LAC region, overseeing $900M. We were bloated—non-core units drained cash, and growth stalled.
I rerouted capital. We divested $54M in dead weight, cut $40M in debt with Oracle Hyperion tracking, and invested in products—$5M revenue followed. The result? $20M in EBITDA over three years, plus 30% profitability. Allocation wasn’t a guess—it was a plan. We didn’t just save—we grew.
Tools to Allocate Smart
I’m a tools guy—because they sharpen choices. At Kemper, Workday Adaptive Planning freed $55M—data guided us. At AIG, SAP tracked $900M—$40M debt cut stayed clean.
Here’s my kit:
- Forecasting: Anaplan or Vena—I’ve projected growth with both.
- Analytics: Power BI or Tableau—Consultgenix clients spot wins here.
- Budgeting: SAP or NetSuite—Kemper’s $55M relied on this.
Pick what fits—small firms can start lean, but big ones need depth. Tools don’t allocate—they illuminate.
Steps to Optimize Capital
Ready to grow smarter? Here’s my playbook, forged from PepsiCo to now:
- Assess Your Base: Where’s cash now? I’ve audited this at Aetna for 100% clarity.
- Set Priorities: Growth or stability? $20M dollars at AIG came from this.
- Cut the Deadwood: Trim waste—$55M at Kemper started here.
- Invest with Data: See returns—I’ve used Power BI at Consultgenix for it.
- Review Relentlessly: Monthly checks—30+ at AIG thrived on this.
This isn’t theory—it’s what I’ve done. At Consultgenix, we’ve applied this to clients, turning capital into compounding gains.
The Human Side of Allocation
Let’s get real: Capital is about people, not just profits. I’ll never forget an AIG rep who said, “Derrek, $5M in products—I feel the future now.” Or a Consultgenix client who grinned at 12% efficiency—“You gave us a shot,” he said.
That’s what drives me. I’ve led nine to 16% growth, 30+ to a $54M turnaround—every time, allocation inspired them. It’s not about numbers—it’s about building something lasting.
Why This Matters Now
Growth’s a marathon—markets twist, cash tightens, chances fade. I’ve navigated recessions at Lehman and booms at AIG. Today, with inflation and uncertainty, misallocated capital stalls you. Optimize it, and you’re not just surviving—you’re setting up for decades.
Think about your resources. Are they working? Could they work harder? That’s where business consulting shines—turning cash into catalysts.
Let’s Grow Your Future
Optimizing capital allocation for long-term growth isn’t a sprint—it’s a strategy. With decades in business consulting, I’ve helped companies invest smart and scale strong. At Consultgenix, we’re all about growth that lasts—for you and your legacy.
If you’re ready to allocate capital for bigger wins, I’d love to talk. Reach out to derrek@consultgenix.com to discuss your strategy. Let’s build your future—together.