It’s a commonly used phrase that I did not coin, but I use it all the time. “What gets measured gets managed.”
Over my career, I have worked with for-profit organizations as well as non-profits. No matter the corporate structure, all organizations need to live within their means in order to continue as a going concern. Many organizations I’ve worked with have expressed concerns about a lack of cash. They may say it in different ways – no money for pay raises or new programs, dwindling bank account, not hitting budget, etc. – but the gist is the same. Something seems off.
I have found that often it’s due to a lack of awareness of the driving forces of their business or policies and procedures are either not in place or they’re being ignored.
This article is a high-level summary of helpful hints if you’re struggling with cash flow.
Overall, your company needs to apply a disciplined approach to the organization. What gets measured really does get managed if you are committed! As I see it, the following is a brief list of high level strategies to review, all of which is a separate topic that warrants further discussion:
Each of these matters can and should be further analyzed, and there are likely other best practices to consider. I do know that these best practices work. I’ve seen it multiple times. I’ve had clients look back and wonder what took them so long to implement these best practices.
If these topics resonate, and you think you need some help, I would be happy to discuss. I can help with processes, financial reporting and analysis or helping you find the right people.
Send me a note with your thoughts. What other topics would be helpful to you?
Karl spends his time thinking about ways to help organizations with sound financial decisions.
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