This project was designed to use Human Resource job analysis strategies to improve the cash flow of the business.
Many businesses invoice clients at the end of the month for ongoing project work.
Usually such invoices are mailed to clients within the first 5 to 10 business days of the new month.
In this firm, invoices sat on the desks of the 15 Engineers waiting for approval for 30 to 60 days, which pushed Accounts Receivable (AR) for this firm into an AR average of 85 days.
We flowcharted the process and conducted an extensive job analysis of the work required to process invoices.
By changing the way information was gathered for the invoices and by implementing specific incentives, disincentives, and consequences for Engineers, the firm began sending out 90% of invoices within the first 10 business days of the new month, starting with the second month after the implementation.