Reduced Working Capital
The challenge of risks & receivables and working capital, is closely related to sales effectiveness. Our studies and experience show that companies with low rates of sales productivity - measured as sales time spent selling - typically have high levels of receivables. Poor fulfillment processes lead to high Days Sales Outstanding (DSO), resulting in valuable sales time spent sorting out contract and billing issues instead of growing the business.
By using segmentation and improved service capabilities to increase intimacy with key growth customers, Lean Growth enables progressive reductions in the working capital tied up in receivables and inventories.
Our Lean Growth programs define and capture opportunities to simplify processes, reduce DSO and late payments, while our emphasis on sales effectiveness frees up sales time and focus it on high-growth accounts. We can usually deliver improvements in DSO, revenue and growth within 100 days. This is what we call, Lean Growth 100.