Eliminating the cash flow gap
Business Problem-Solving Methods
the ABC project, based on LiveDevice WorkShop findings
1) The problem
Eliminating the cash flow gap
2) Structural location of the Issue: responsible unit within the Business Organisational Chart, and level of the Issue within the company
• Resources | An administrative issue – should be resolved mathematically.
• Processes | An issue for line managers – should be resolved by mapping out processes and their interdependencies to identify bottlenecks.
• Management | An issue for general management – should be resolved by executing the “Substantive analysis of the problem” project.
• Standards | An issue for the directorate – should be resolved by reviewing existing standards and subsequently improving the company’s standards system.
• Alignment with the Mission | An issue for the owner – should be resolved by analysing the current situation regarding the dissemination of the company’s mission across the core business.
3) DRAFT of the problem Solution
Existence of a financial flow deficit that threaten the business’s very survival is a clear indicator of its maturity level. This represents either a state of «Survival» that cannot be overcome, or a state of «Survival» into which the business has fallen, for one reason or another, from a higher level of maturity.
Assessment of the current level of business maturity
- Identifying sources of cash flow «leakage».
- Making decisions to eliminate «leakage» (cost savings).
- Seeking new opportunities to increase revenue (new products, new clients, a new level of service…)
Selecting the most effective strategy at the “Survival” stage of business maturity
• N – Achievements
• S – Failures
• E – Reality
• W – Expectations
Selecting the most informative tool for strategy implementation
• Light – Employee
• Darkness – Company
Who initiated the dismissal?
• Working conditions
• Compensation terms
• Personal qualities / personal interactions
• Development
• Alignment with the business
For what reason?
4) Solution implementation
5) Analysis of implementation results
