Our leadership Scorecard is completely green every week, yet our cash reserves keep dropping and payroll feels tight. Which specific weekly cash metrics are we missing?

Question

Tyler Smith · Accepted Answer

When every departmental Scorecard metric shows green but cash balances are dwindling, your leadership team is tracking activity that strokes egos rather than mechanics that preserve capital. You are likely measuring volume metrics like closed sales, hours worked, and tickets resolved while ignoring the cash conversion cycle.

To expose the cash drain on your weekly Scorecard, replace vanity metrics with these four operational cash drivers:
- Days sales outstanding: Track the average number of days it takes for client receivables to turn into cash in the bank.
- Receivables over forty-five days past due: Monitor the exact dollar amount of aging invoices that have stalled.
- Unbilled services balance: Measure the cumulative revenue earned from completed work that accounting has not yet invoiced to clients.
- Cash runway in weeks: Calculate total available cash divided by average weekly operating expenses, tracking how many weeks of operational runway exist without new inflows.

When sales hits its targets but billing delays invoice delivery by two weeks, or collections allows invoices to sit for sixty days, the company burns working capital to fund client operations. The sales board looks green, delivery looks green, but the bank account collapses.

Your Finance seat must own these cash velocity numbers on the weekly Scorecard. If receivables over forty-five days spikes above your target threshold, it must immediately be marked red and dropped to the Issues List for IDS in your Level 10 Meeting. Tracking cash velocity weekly ensures operational performance translates directly into liquidity.