Cash Flow Tip 17 - Cascading Reporting Systems

Automated Cascading Reporting Systems keeps everyone aligned around Cash Flow.

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Developing rigorous weekly Operating Rhythms in your business will help everything run smoother just like they do at the project level.

Cash Flow: Tip 17 Cascading Reporting Systems - Key Metrics and Details

Like a project, the worst thing you can do is only run cash flow related reports or talk about issues when there are problems. Too much gets overlooked and performance slips. 

In regard to cash flow, look at creating an automated system to reinforce that operating rhythm. There are many technology tools available that can help with this process.

CONTENT

  • Summary: Top 10 best and worst project cash flows + a cash metric trendline over 24 months.
  • Details: Tactical details reinforcing the 5/10/15 collection process, organized by Project Manager, Area, etc. 

RHYTHM: Pick weekdays and times that work for your company. 

  • Front-Line: The AR Manager and Project Administration take the first pass at the reporting by clearing up every problem they can, including all 5/10/15 follow-ups.  
  • Project Management: They handle the first level of escalations before they even become major problems. Keeping them in the loop on cash flow problems helps when they are discussing changes and monthly billings
  • Executive Team: Clear information flow but only after it has been scrubbed by two other layers, so what they see is accurate and actionable for escalation or other business changes if needed. 

Cash Flow Tip 17 - Cascading Reporting Systems
Great cash flow is a key driver of valuation and successful successions. Running out of cash is is the #1 reason contractors fail. Improving cash flow improves your Return on Equity. Protect yourself and never let cash flow be the limitation to your profitable growth....

Cash Flow Tip 17 - Cascading Reporting Systems
Great cash flow is a key driver of valuation and successful successions. Running out of cash is is the #1 reason contractors fail. Improving cash flow improves your Return on Equity. Protect yourself and never let cash flow be the limitation to your profitable growth....

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While there is no "Perfect Signage" about the growth inflection points that contractors must navigate through, these eight questions can help you evaluate where you are at.
Evolution of Project Delivery Methods
Project delivery methods for contractors will become increasingly more integrated from project owner through all key parts of the supply chain, which is a return to models used in the early 1900s with some modernization improvements.
Leading Change Quote - Arthur Schopenhauer
If you see something that no one else sees you are either genius or crazy of some combination of the two. If what you see is so big that you can’t ignore it be prepared for a long journey through the process of change.