Project Overview
We partnered with EMG to implement an enhanced accounting back-end process, achieving a reduction in Work in Progress (WIP) and Days Sales Outstanding (DSO) by over 45 days and cutting processing time by more than 30 hours per week.
The Challenge
Improving Cash Flow
EMG, a fast-growing national project management service provider in the construction industry, experienced exponential growth by offering guarantees for on-time delivery. However, this growth led to backend services, such as billing and collections, falling behind. The increasing Daily Sales Outstanding (DSO) and Work in Progress (WIP) numbers began to cause cash flow issues. The CFO turned to AI Advisory Group (AIAG) as a trusted partner to provide quick turnaround solutions and align business objectives with realistic actions and effective outcomes.
The Approach
Communication Alignment
AIAG engaged in a high-impact, 2-day session with EMG, bringing the motivation and positive energy needed to facilitate business process improvements. Key to this approach was enabling candid feedback from key players and mapping out processes for each role within the company.
We focused on building relationships and enhancing communication practices between business groups. It became evident that while EMG had technology solutions in place, employee engagement and collaboration were extremely low. AIAG’s trusted approach helped uncover the underlying issues within the organization, ensuring a thorough understanding of the challenges.
Our strategy aligned perfectly with addressing the immediate problems to prevent further decline and provided ways to implement process improvements and communication best practices for long-term success. By offering an outside perspective, AIAG helped EMG position themselves better to accept and include various factors involved in their operations.
The Solution
Implementation
- Duration: 4 Weeks
- Key Actions:
- Conducted candid feedback sessions with key stakeholders
- Mapped out and optimized processes for each role
- Improved communication practices and relationship-building within teams
- Enhanced engagement with existing technology solutions for better reporting and collaboration
The Outcome
A Trusted Partnership
- Greater Insights for C-Suite: Enabled better understanding of root causes and implementation of necessary changes.
- Improved Cash Flow: Significantly reduced Days Sales Outstanding (DSO) and Work in Progress (WIP).
- Increased Project Visibility: Improved project tracking to mitigate delays in on-time delivery.
- Enhanced Technology Utilization: Better use of existing technology solutions for reporting and collaboration.
- Improved Interdepartmental Communication: Fostered better communication practices and boosted employee morale.
- Boost in Employee Morale: Increased confidence among staff to identify and communicate areas of concern for immediate resolution.
By partnering with AIAG, EMG was able to transform their accounting back-end processes, resulting in improved cash flow, enhanced communication, and greater overall efficiency.
