- We’re operating in extraordinary times and the disruption of the past few years has redefined uncertainty.
- There are ways to adapt what we know and practice in our businesses to address the impact of uncertainty.
- Controlling costs, measuring performance, and understanding risks are critical to successfully navigating uncertainty.
A Step-By-Step Guide to Cost Containment and Cash Flow Management
The disruption of the past few years has redefined uncertainty. Fortunately, there are ways to adapt what we know and practice in our businesses to address the impact of such uncertainty. The key differences will be the speed at which we need to calculate and act, the flexibility with which we assess and forecast, and the scale at which we apply our approach. Most importantly, as we adapt what we know, we must be prepared for massive change moving forward.
In this environment, leaders must remain strategically focused on cash flow management and cost containment to ensure they are successfully navigating the waters and coming out stronger than ever.
We've developed a comprehensive guide to help you walk through cash flow management and a cost containment plan for your organization. The guide provides actionable insight and covers areas of importance for these key financial metrics:
- Controlling costs by reviewing the current state of your cash flow, measuring your performance and understanding your inherent risks
- Assessing your organization for risk, especially in the areas of technology, supply chain and outdated infrastructure
- Creating real-time visibility into operations through clear financial data, a review of fixed asset costs and how to involve your employees in the process
What is Cash Flow Management?
Cash flow management involves looking closely at funds that move into and out of your company to identify inefficiencies and make changes that improve the flow. Good cash flow management is a challenge even during the best of times, when money is coming in and going out at a sustainable enough rate to continue and/or grow your business.
What is Cost Containment?
Cost containment involves taking short-term actions to reduce expenses in order to keep your organization viable for the long-term.