Put Your Employees On The Cash Flow Team

by Doug Smith, President, The Woodhaven Group

Employees look to management for guidance or direction on what to focus on, what is important, what direction the company is going…… simply, what is your priority.

If the employee sees that the owner passionately believes in the concept of generating more cash flow then do not be surprised if you start seeing good results throughout the organization.  Employees will find ways to internally generate cash that you have not even thought of.

There are many ways to reinforce this mindset.  Here are just two:

  • As CEO or owner personally have a column in the company newsletter dedicated only to cash flow successes.  Show examples in the last month of additional money freed up as a result of actions by employees or new systems implemented.
  • Post in the employee break room or lounge a certain metric or dashboard related to cash flow that shows positive progress such as reduction in days outstanding of accounts receivable, increase in sales, or an uptick in inventory turnover.  Any of these metrics can have a column of their own in the newsletter.

The employee will take great personal pride in being knowledgeable about what is important to the success of the company.

Make sure the employees are the MVP of your cash flow team!  Do it by making sure you as management have open ongoing communication on this most important part of your business success.

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