Frameworks · Objectives · Improve cash flow

Objective 01 of 12

Generate cash

Improve the organization’s ability to generate and retain cash. Cash is often the most immediate constraint on a business — especially in small businesses, startups, turnarounds, and capital-intensive industries.

Common measures
  • Free cash flow
  • Operating cash flow
  • Days sales outstanding (DSO)
  • Working capital
  • Cash conversion cycle
Questions to ask
  • How quickly do we turn revenue into cash?
  • Where is cash getting trapped?
  • Can we improve liquidity without increasing sales?
Typical initiatives
  • Improving collections
  • Renegotiating payment terms
  • Reducing inventory levels
  • Improving billing accuracy
  • Accelerating customer payments

Frameworks that serve this objective

Primarily Also contributes