Friday, October 22, 2010

Get your company's associates to help with cash, even though they DON'T have direct cash responsibilty! My great mentor and former boss, Red Scott, very cogently observed that "cash ain't cash unless it's cash." What he always meant is that a promise to be paid or a check or a banker's promise or any other substitute is not really cash. You can run out of cash too easily by relying on those assumed, supposed, or "promised" cash sources.

As a result, we need to get EVERYONE around us to turn their actions, activities and thoughts toward real cash! Get your operations, marketing, sales, support, and service people to re-evaluate what they do and it's impact on cash. Get them to understand whether what they do and spend really contributes, or doesn't, to cash; are those things really necessary? Do they contribute more cash than they use? Talk frequently to your associates about this.

Do let them know we're okay, but need to focus on cash due to the long-delayed recovery. Get them to FORECAST where they're going, and how it impacts cash. Get your people to forecast more accurately, and to begin forecasting if they haven't in the past. This alone can change your cash situation. Get them to look at the "Forecaster" and "Cash Manager" tools at (scroll down through New Tools Catalog to those tools).

By simply creating cash awareness, your cash will improve! Pretty simple concept: just get your people and associates (including employees, suppliers and supporters) to think a bit more about how what they do affects cash!

It's now clear we're facing a very long, cash-crunching delay in the world economic recovery, so please prepare now for cash improvement through your associates' actions.

With very best regards,
Kraig Kramers
President & CEO -- CEO Tools, Inc.
Copyright © 2010 Corporate Partners Inc.

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