Gartner Research

Winning in the Turns: Implement a More Disciplined Working Capital Strategy and Improve Visibility With KPIs

Published: 31 January 2020

ID: G00464613

Analyst(s): David Adams, Barry Glauberman

Summary

Going into an economic downturn, tech CEOs must implement a more disciplined working capital strategy to increase their cash balance, as well as track the right KPIs that provide visibility into costs and their impact on cash.

Table Of Contents
  • Key Challenges

Introduction

Analysis

  • Improve Cash Inflows by Taking a Cash-Focused Approach to the Customer Base
  • Slow Cash Outflow by Optimizing Supplier and Vendor Payment Processes
  • Optimize Working Capital Used During Growth Periods by Benchmarking Sales Ramp and Burn Rate
    • Burn Rate
    • Sales Ramp
    • Other Metrics

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