Be Prepared Is Not Just For Scouts – Smart Business Thinking

Be Prepared Is Not Just For Scouts – Smart Business Thinking

While studying for my MBA I was in charge of the John Hancock Life's cash management utilizing a string of 500 banks of deposits. The current cash collection system had been developed 30 years earlier and had not been modified since.

Knowing it could use an upgrade using current technologies, I wrte my thesis developing a new system. The tile “Corporate Cash Mobilization in a Checkless Society”. 

In the thesis I constructed a system utilizing available communication and computer techniques. Unfortunately nothing existed at the time and it sat on the college’s library shelves not acted upon until one day I had an opportunity to implement it.

A telecommunications system had been developed for the major oil companies that protected their local retailers from bad credit card purchases. It was based on an inbound 800 number and a database of valid credit cards.

Using that mechanism, I adapted it to information of bank deposits.

•  Each office manager phoned in the total deposit for the day.

•  The collection system was automated through regional banks that started the collection process that evening.

•  When I walked into the office in the morning I knew to the penny every deposit made up until 5:00pm local time and those funds were in the collection process.

By releasing operating funds from compensating balances, I freed $20 million the company used to invest in operations.

Bottom Line?

•  Focus on the real issue. For me the issue was rapid information and a system that automatically acted on the information

•  In this case the answer was developed but outside the industry.

•  Be Prepared recognize potential improvements and develop a response

Jim is an expert business coach and a respected advisor management and financial executives. He draws on his long-term business leadership background to help CEOs grow revenue, increase profits, improve performance.