The Execution Gap Begins Between Departments
A practical operating model connects the customer promise to the decisions, capacity and cash required to keep it. The organizational chart is only the beginning.
Two practical working tools for your next operating review. Define the decision, test the arithmetic, and leave with an accountable next step.
Use consistent period averages. Days inventory outstanding plus days sales outstanding, less days payable outstanding, gives an indicative cash conversion cycle. This is a timing measure, not a dollar estimate or a financing recommendation.
Which operating improvement would release time from this cycle without reducing service quality or damaging supplier relationships?
Illustrative starting values. A negative cycle can occur when customer collections precede supplier payment. Definitions, seasonality, and business models affect interpretation. Read the cash feature ↗
Bring one unresolved operating choice to the next leadership meeting. Complete the six prompts, name the responsibility, and export the brief for your discussion.
A practical operating model connects the customer promise to the decisions, capacity and cash required to keep it. The organizational chart is only the beginning.
Output, quality, time and capital belong in the same conversation. A useful scorecard makes improvement visible without rewarding the transfer of cost or risk.
Working capital improves when commercial promises, inventory decisions and payment processes work together. A quarter-end collection campaign reaches only part of the problem.