Our weekly scorecard focuses heavily on sales and operations, but our cash flow remains highly volatile. What non-financial, operational leading indicators can we track weekly to predict cash inflows and outflows before they hit our bank account?

Question

Tyler Smith · Accepted Answer

Cash flow volatility is usually an operational execution problem disguised as a financial issue. If you are waiting for monthly financial statements to manage cash, you are driving by looking in the rearview mirror. You must track weekly operational leading indicators that predict cash movement.

To predict cash inflows, track the velocity of your billing pipeline. Excellent operational metrics include:

- Weekly timesheet submission compliance percentage
- Project milestone sign-offs completed on schedule
- The number of days between project completion and invoice delivery

When timesheet submissions or project sign-offs lag, your future cash receipts will inevitably drop.

To predict cash outflows, track operational commitments before they turn into expenses. Track metrics like raw material purchase orders approved or contractor hours authorized.

By monitoring these non-financial leading indicators on your weekly scorecard, your leadership team can forecast and resolve cash flow bottlenecks during your Level 10 Meeting long before they impact your bank balance.