At Working Capital Hub, we really like this McKinsey piece because it emphasizes what we believe is critical for lasting results: taking a holistic approach across the full cash conversion cycle rather than chasing isolated fixes.
The article underlines the value of streamlining processes to release significant cash quickly, often with less disruption to the organization than large-scale transformations.
Equally important, it highlights the need for clear metrics, management attention, and setting ambitious yet realistic targets – exactly what we refer to as establishing the right setpoint for working capital performance.
With the right focus, companies can unlock large potential while building transformation momentum that lasts.
Want the full perspective?
Read McKinsey’s complete article on their website:
McKinsey emphasizes that working capital improvements – notably in payables and receivables – can deliver quick wins and boost momentum in broader transformation efforts.
Small, targeted changes can generate up to 30% optimization in a matter of weeks, often without complex stakeholder negotiation.
1. Map Your Cash Conversion Cycle
3. Deploy Performance Management
Want to become a certified Working Capital Expert?
Check out Working Capital Hub’s e-Learning course below:
1. Conduct a Cash Flow Mapping Workshop
Identify bottlenecks in your purchase-to-pay and order-to-cash processes to pinpoint where optimization can deliver quick results.
2. Implement Low-Friction Tech Solutions
Start with automation in invoice validation, payment matching, or AR reminders – even minor fixes can drive substantial cash flow gains.
3. Set Working Capital KPIs Early
Define targets (e.g., Days Payable Outstanding, Days Sales Outstanding) and review them as part of transformation dashboards to maintain momentum and accountability.
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