Working Capital Management
An effective Working Capital management system can allow companies to improve earnings, demonstrate increase in ROA, and free up cash for new projects and businesses. All companies understand this, but not everybody succeeds on the WC management excellence path.
We work with clients on:
Setting up aspirational but achievable goals for all the WC components. First, MCG will conduct internal diagnostics and evaluate the current WC ratios in order to understand the key components responsible for WC growth or decline. MCG will also pay attention to current practices and polices currently deployed to control and improve WC within the company. Next, we will compare the client’s WC performance and controlling practices with these of the industry standards and competitors. Through numerous interviews with industry experts and practitioners we will ensure the optimal WC management system design for the client and compile a wide list of practical initiatives that would help the client to reach the set targets.
Development and planning of actual initiatives to achieve the set targets. At this stage, MCG will concentrate on collecting and formalizing actions and initiatives necessary to improve the client’s WC level. MCG will segment all the collected initiatives by “Effort to implement” and “Effect to WC level” dimensions. Fast implementation of “low-hanging-fruits” initiatives not only will have an immediate effect, but also motivate the employees’ further efforts. The project’s results would include detailed work plans for all the initiatives approved for implementation.