Capital Allocation Effectiveness

Summary

The quality of decisions about where capital is committed.

Conventional Definition

Capital Allocation Effectiveness is assessed by comparing capital deployment decisions to returns, risk, strategic contribution, and opportunity cost.

Value Realization-Oriented Definition

In Value Realization, this measure tests whether commitments are governed toward verified value rather than dispersed across attractive but weakly evidenced options.

Notes

This draft measure is an indicator, not a complete proof of realized value. It should be interpreted with baseline, attribution, timing, confidence, quality, risk, and sustainability evidence.