Imagine a company generating millions in revenue but making deals with no legal commitment. The numbers are great on the surface and the Sales Team are crushing it however they are pretty flimsy deals if there is no contract and no Purchase Order.

This was the case in one of my previous companies. Working in Finance, there were ramifications. Cashflow. The lifeblood of a business. There would be a rush to invoice clients and we would then be predicting incoming cash based on standard payment terms but more often than not, clients would come back saying “Hey, hold on there. We have no contract or purchase order, let’s take a few steps back”. And this would all be tragedy for cashflow.

So far two teams are affected, but let’s introduce a third. The Client Services Team wouldn’t be able to start work on the product and services until payment was received so their timeframes and ability to manage workload would be significantly impacted by who has and has not paid.

The C-Suite didn’t quite understand how all of this was causing a problem. Sales were great and that is all that appeared to matter to them. But as Finance Manager, I saw an opportunity to improve the daily lives of my team, the Client Services Team and also the Sales Team because the Sales guys would be paid commission upon payment so by having an improved process they would get their commission quicker and on a more reliable-basis. I rolled up my sleeves and got to work.

This is how it unfolded under the 3-phase model:

01. GATHER

• Through formal and informal interactions with colleagues, inside and outside of meetings, I listened and understood what the key pinch points and frustrations of our current working practices were.

• I listed the key requirements and non-negotiables for the teams in the existing working processes so not to overlook these in my suggestions for a new process. • I had my idea and vision of what the new process would look like.

02. ASSESS

• I produced a workflow diagram which featured how the 3 teams would interact on the new working process which I called the “sales to cash-in” process.The company was very process workflow-oriented so this step would be vital in evidencing how everybody could follow this in all scenarios without bottlenecks or troubleshooting.

• I organised a meeting with the key stakeholders and explained my proposition and the process. I gathered their feedback for final tweaks.

• During the process all but one senior Director was on board with the change. There was work here to engage the Director one-on-one and understand why there was resistance to change. In her eyes, I was encouraging her to take a leap of faith but for the rest of us it was a very well thought out alternative. There is typically resistance with change so that is part of my role to be sensitive and investigate resistance.

• I got everybody on board and we set a date for the switch over to the new process.

03. DELIVER

• The new process was clearly communicated well ahead of the implementation date.

• A workshop was held for the Sales and Client Services teams which I ran and took questions to make sure everybody was happy and understood the changes.

• Post-implementation, regular meetings with key stakeholders was had for a period of time to “take the pulse” and check everything was working how it should be.

The results?

• Happier teams.

• Reduced frustration and stress.

• Improved cashflow forecasting.

• Improved cashflow - more money, sooner by being clear and strict on payment terms and seeking agreement, instead of hoping.

These are to name but a few of the positives. At one of the company’s quarterly events, during his speech the CFO made a point of highlighting this piece of work and encouraging a round of applause.

So all in all, a success. Another one for the books and onto the next.

Let’s see if I can help you! Reach out to me on WhatsApp +44 7459 347 090 or e-mail [email protected]