Cash Flow and Cost Reduction Guide (PowerPoint PPTX)

According to McKinsey, when the COVID-19 crisis began to affect companies worldwide, the preliminary response of CEOs and CFOs was all about survival: freeing up cash and resources to keep the lights on and the doors open. The liquidity crisis triggered by the sharp disruption in economic activities prompted organizations to rush toward cash and liquidity to keep operations going.

In a cash flow crisis, every cent counts. Organizations worldwide are currently faced with serious financial challenges. Cash flow management during a crisis is one of the key factors to an organizations' sustainability beyond a crisis and will have to become an inseparable part of corporate strategic planning.

This guide aims to enable organizations to stay prepared and manage risks as a result of the impact.

The Guide comprises of the following sections:
1. Resilience and its need in the current environment
2. Financial resilience and what it means
3. Implementation steps to consider to tackle a cash flow crisis

Appendices:
A: Organization current state assessment tool
B: Future proof your finances – Use cash flow planning for good strategic decisions (included is a simple 12-month cash flow forecast)

This guide recommends the steps that organizations can take to optimize cash flow management during a crisis and integrate the process for managing financial resilience into the organization's overall strategy.

The guide provides an operational review current state assessment in order to fully gauge where cash is being utilized and a monthly cash flow template to ensure effective cash flow management during a crisis.

This guide also includes a comprehensive organization design current state assessment tool, providing a structured approach to analyze and report key findings. It outlines critical steps for defining and collecting information, analyzing data, and reporting key findings to inform strategic decisions.