Non-deal, Value-creation
Cash flow forecasting
Implementation of a cash flow model with divisional forecasting capabilities to drive a cash culture change.
A large group, which was seeking to drive cultural change from a revenue to a cash focus by embedding formal treasury processes, approached us to develop a cash flow model to compare forecasted cash flows to actual cash flows.
The challenge
The business lacked an appropriate cash monitoring culture and required its divisions to take responsibility for forecasting and monitoring actual cash flows to forecast cash flows. We had to develop a model with sufficient granularity that was able to generate accurate forecasts in a way that would not be time consuming for the divisions.
The outcome
We designed and implemented forecasting tools for the divisions which were submitted to the group treasury on a weekly basis, and, using data analytics tools, automatically uploaded the forecasts onto the group model. This empowered treasury to focus on monitoring actual cashflows against forecast cashflows, with divisions providing explanations of significant variances, thus driving increased cash flow focus and enhancing decision-making.
