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On Track To Reduce Accounts Receivable 20% In One Of The Regions in 2 months – Global Telecom Company

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Situation

  • A multi $billion USD Telecom company
  • The International Region was suffering from poor cash flow and A/R performance
  • The size of the International Region was approximately $2.5B
  • The Board expressed their concern during late summer 2008, and asked Management to improve the Situation by 31 March, 2009
  • High level of overdue %
  • High level of disputes
  • Negative image on the market due to low quality of billing/ service
  • No cash culture in the company

Actions Taken

  • Full support to prioritized business units/geographical areas through:
    • Assessing local performance
    • Developing local implementation plans thru cross functional workshops
    • Set local targets anchored by local management
    • Hands on implementation support where needed
  • Implemented incentive structure and aligned those with targets on different hierarchical levels
  • Implemented a global monitoring system
  • Communicated lessons learned and facilitated internal communication

Results

  • Global tracking/monitoring structure in place
  • Tools, structures and processes in place to support continuous improvements (cash focus achieved, forums to discuss /solve issues and controls/processes in place to prevent new debt become old)
  • Linked the targets to a newly designed incentive scheme
  • The region reduced 20% of the overall accounts receivables by 20% in two months

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