Cash flow is the heartbeat of your business, when it falters, everything else does too. I’ve felt that pressure over 20+ years in finance and consulting, from slashing $55M in costs at Kemper to cutting $40M in debt at AIG. At Consultgenix, I’ve helped clients boost efficiency by 12% by tightening operations. The secret? Operational discipline. It’s not about squeezing pennies but building a system that keeps cash flowing strong. Let’s dive into how you can strengthen cash flow management—because a healthy business starts with a healthy pulse.
Why Cash Flow Is King
Revenue’s nice, but cash keeps the lights on. I learned this at Lehman Brothers during lean years—profit on paper means nothing if you can’t pay the bills. At AIG, managing $900M in premiums, I saw how tight cash flow fueled a 30% profitability spike.
It’s simple: Cash flow buys flexibility—room to invest, weather storms, or seize opportunities. At Consultgenix, we’ve turned shaky cash positions into steady ones with discipline. Without it, you’re one hiccup from trouble.
The Link Between Operations and Cash
Operations aren’t just tasks—they’re cash drivers. At Kemper, I cut $55M in costs by streamlining workflows—every inefficiency was a leak. At AIG, outsourcing to a Bogota Shared Service Center saved $4M annually, boosting liquidity.
Think about it: Slow invoicing delays payments, bloated inventory ties up capital, and loose processes waste dollars. Discipline plugs those leaks, turning ops into a cash machine, not a cash drain.
A Real-World Win: $55M Savings at Kemper
Let’s go back to 2022 at Kemper Insurance. I was Director of Business Intelligence, and cash flow was under strain—siloed ops, outdated reporting, and rising costs. We needed a fix, fast.
I led a team to overhaul it. We used Workday Adaptive Planning to sync budgeting, Power BI to spot waste, and tightened processes across the Auto and Life divisions. The result? $55M in savings in one year—cash freed up for reinvestment. It wasn’t flashy—just focused. Operational discipline turned a squeeze into strength.
Tools to Tighten the System
I’m a tools guy—because they make discipline stick. At AIG, SAP tracked cash flow, helping us cut $40M in debt. At Consultgenix, Vena forecasts kept clients liquid—12% efficiency didn’t happen by chance.
Here’s my kit:
- Analytics: Power BI or Tableau—I’ve used both to monitor cash trends.
- ERP: SAP or NetSuite—kept AIG’s $900M humming.
- Forecasting: Anaplan or QuickBooks—I’ve leaned on these since PepsiCo.
Pick what fits—small firms can start light, and big ones need heft. Tools don’t fix cash flow—they show you how.
Steps to Strengthen Cash Flow
Ready to take control? Here’s my playbook, forged from PwC to now:
- Audit Your Flow: Where’s cash stuck? At Kemper, it was reported—$55M proved it.
- Speed Up Collections: Tighten invoicing—I’ve cut delays at Aetna for 100% compliance.
- Trim Waste: Cut what doesn’t pay. AIG’s $4M Bogota win started here.
- Forecast Smart: Plan cash needs—I’ve used Vena at Consultgenix for this.
- Review Often: Monthly checks—I kept 30+ at AIG on track this way.
This isn’t theory—it’s what I’ve done. At Consultgenix, we’ve applied this to clients, turning cash crunches into cash cushions.
The Human Side of Discipline
Let’s get real: Cash flow is about peace of mind. I’ll never forget a Kemper manager who said, “Derrek, $55M means we’re safe now.” Or an AIG rep who breathed easier when debt dropped $40M—“You gave us room to work,” she said.
That’s what drives me. I’ve led nine reps to 16% sales growth, and 30+ to a $54M turnaround—every time, discipline eased the strain. It’s not about control—it’s about confidence for you and your team.
Why This Matters Now
Cash is tighter than ever—costs climb, payments lag, and uncertainty looms. I’ve navigated recessions at Lehman and booms at AIG. Today, with supply chain woes and inflation biting, loose operations bleed cash you can’t spare. Discipline keeps you liquid—and alive.
Think about your business. Is cash slipping through the cracks? Could a system stop that? That’s where business consulting shines—turning flow into fortitude.
Let’s Secure Your Cash Flow
Strengthening cash flow with operational discipline isn’t a quick fix—it’s a foundation. With decades in business consulting, I’ve helped companies stay flush and grow strong. At Consultgenix, we’re all about systems that sustain—for you and your future.
If you’re ready to tighten operations and boost your cash flow, I’d love to talk. Reach out to derrek@consultgenix.com to discuss your strategy. Let’s keep your business thriving—together.