{"id":11413,"date":"2025-06-16T08:32:53","date_gmt":"2025-06-16T08:32:53","guid":{"rendered":"https:\/\/icv-controlling.com\/?post_type=blog&#038;p=11413"},"modified":"2025-06-24T04:49:46","modified_gmt":"2025-06-24T04:49:46","slug":"the-importance-of-change-management-in-sustainability-projects-copy-copy","status":"publish","type":"blog","link":"https:\/\/icv-controlling.com\/en\/blog\/the-importance-of-change-management-in-sustainability-projects-copy-copy\/","title":{"rendered":"Liquidity from your own resources: Why working capital management makes the difference now!"},"content":{"rendered":"<section id=\"acf-block-67cc4c5105c60\" class=\"image-module bg-bg-default text-text-default dark:!bg-dark dark:!text-white  \">\n  <div class=\"max-w-screen-2xl spacing-px mx-auto\">\n    <div class=\"content-top max-w-3xl align-left \">\n          <\/div>\n  <\/div>\n      <div class=\"image-module__container mx-auto max-w-screen-fhd spacing-px \">\n      <div class=\"image-module__image\"> <img loading=\"lazy\" decoding=\"async\" width=\"2560\" height=\"1708\" src=\"https:\/\/icv-controlling.com\/wp-content\/uploads\/2025\/06\/maryna-yazbeck-pyzjoMvyCmw-unsplash-scaled.jpg\" class=\"z-0 mx-auto !object-contain !h-full !w-auto\" alt=\"\" srcset=\"https:\/\/icv-controlling.com\/wp-content\/uploads\/2025\/06\/maryna-yazbeck-pyzjoMvyCmw-unsplash-scaled.jpg 2560w, https:\/\/icv-controlling.com\/wp-content\/uploads\/2025\/06\/maryna-yazbeck-pyzjoMvyCmw-unsplash-300x200.jpg 300w, https:\/\/icv-controlling.com\/wp-content\/uploads\/2025\/06\/maryna-yazbeck-pyzjoMvyCmw-unsplash-1024x683.jpg 1024w, https:\/\/icv-controlling.com\/wp-content\/uploads\/2025\/06\/maryna-yazbeck-pyzjoMvyCmw-unsplash-768x512.jpg 768w, https:\/\/icv-controlling.com\/wp-content\/uploads\/2025\/06\/maryna-yazbeck-pyzjoMvyCmw-unsplash-1536x1025.jpg 1536w, https:\/\/icv-controlling.com\/wp-content\/uploads\/2025\/06\/maryna-yazbeck-pyzjoMvyCmw-unsplash-2048x1366.jpg 2048w, https:\/\/icv-controlling.com\/wp-content\/uploads\/2025\/06\/maryna-yazbeck-pyzjoMvyCmw-unsplash-1900x1267.jpg 1900w, https:\/\/icv-controlling.com\/wp-content\/uploads\/2025\/06\/maryna-yazbeck-pyzjoMvyCmw-unsplash-1240x827.jpg 1240w\" sizes=\"(max-width: 2560px) 100vw, 2560px\" \/><\/div> \n          <\/div>\n  <\/section><section id=\"acf-block-67cc4c5105ee6\" class=\"text-module bg-bg-light text-text-default  dark:!bg-dark dark:!text-white\">\n  <div class=\"max-w-screen-2xl spacing-px mx-auto spacing-py\">\n          <div class=\"typo-body text-element max-w-3xl align-left \">\n        <p>In tough economic times, the first question is not: \u201cWhere can we cut costs?\u201d Rather: \u201cWhere is our tied-up capital &#8211; and how do we get it back?\u201d The answer often lies in an inconspicuous but powerful concept: <strong>working capital management (WCM)<\/strong>.  <\/p>\n<p>What sounds sober is actually an effective lever for<strong> cash flow, efficiency and resilience<\/strong> &#8211; provided that WCM is not seen as a short-term measure, but as part of strategic corporate management.<\/p>\n<p><strong>The ICV guide: Practice meets systematics<\/strong><\/p>\n<p>In response to the 2008\/2009 financial crisis, the ICV worked with company representatives, academics and consultants to develop a practical guide to working capital management. Three years of work, one clear message: WCM is not an optional extra &#8211; it is a duty. <\/p>\n<p>The guide offers:<\/p>\n<ul>\n<li><strong>Conceptual clarity and knowledge of key figures<\/strong><\/li>\n<li><strong>Procedure models for the introduction<\/strong><\/li>\n<li><strong>Checklists for responsibilities<\/strong><\/li>\n<li><strong>Best practices from companies<\/strong><\/li>\n<\/ul>\n<p>It has been translated into six languages and is still regarded as the standard work for practical WCM.<\/p>\n<p><strong>What is working capital all about?<\/strong><\/p>\n<p>In simple terms, working capital describes the capital tied up in day-to-day operations: inventories, receivables, liabilities. These are all items that fluctuate on a daily basis &#8211; and this is precisely where the opportunity lies. <\/p>\n<p>If you manage to negotiate payment terms wisely, keep inventories lean and actively manage payment terms, you can free up capital &#8211; without any bank discussions or restructuring.<\/p>\n<p>But be careful: WCM is not just a financial issue. It is an interdisciplinary task that only works if purchasing, sales, production, accounting and controlling all pull together. <\/p>\n<p><strong>The top key figure: cash-to-cash cycle<\/strong><\/p>\n<p>The cash-to-cash cycle (CCC) is the pacemaker in working capital management. It measures the number of days that elapse between paying suppliers and receiving money from the customer. <\/p>\n<p>The formula is simple, the effect enormous:<br \/>\nCCC = days in inventory (DIV) + days sales outstanding (DSO) &#8211; days payable outstanding (DPO)<\/p>\n<p>A short CCC means that capital circulates quickly, is less tied up and is available again sooner. A negative CCC &#8211; in trade, for example &#8211; can even mean that suppliers (co-)finance the business. Clever.  <\/p>\n<p><strong>Three levers for more liquidity<\/strong><\/p>\n<p>Receivables management (reduce DSO):<br \/>\nThose who collect faster have faster cash. A good dunning system, active customer communication and clear payment targets help. <\/p>\n<p>Stock optimization (reduce DIV):<br \/>\nThis is often where the greatest treasure lies. If you know your production and sales processes, you can avoid excess stock and significantly reduce capital commitment. <\/p>\n<p>Extending payment terms with suppliers (DPO):<br \/>\nNaturally in dialog, not by dictation. If you extend payment terms intelligently, you create financial leeway &#8211; but without straining the relationship with the supplier. <\/p>\n<p><strong>The underestimated power of the process view<\/strong><\/p>\n<p>Many companies still optimize from the perspective of individual departments. However, WCM requires end-to-end thinking: from ordering from the supplier to warehousing to payment by the customer. This is the only way to uncover frictional losses and blind spots.  <\/p>\n<p><strong>Typical stumbling blocks:<\/strong><\/p>\n<ul>\n<li><strong>Sales promises delivery times without knowing stock levels.<\/strong><\/li>\n<li><strong>Purchasing orders too much \u201cin stock\u201d &#8211; without reference to demand.<\/strong><\/li>\n<li><strong>Accounting posts late &#8211; which distorts cash flow forecasts.<\/strong><\/li>\n<\/ul>\n<p>In short: without common goals and coordinated processes, WCM remains a numbers game without effect.<\/p>\n<p><strong>Why this is important now<\/strong><\/p>\n<p>Studies show: 490 billion euros could be freed up in European balance sheets through better working capital management (source: Ernst &amp; Young). And the potential can often be realized quickly:<br \/>\n5% sales optimization &#8211; half of it within a year. <\/p>\n<p>But the real benefit lies elsewhere: in the flexibility that is created. If you tie up less capital, you can invest faster, react more intelligently and act more independently. <\/p>\n<p><strong>Conclusion: Working capital is more than controlling<\/strong><\/p>\n<p>It is a strategic lever for corporate management, cash flow and competitiveness &#8211; especially in turbulent times. The ICV stands for Controlling Excellence in practice &#8211; and WCM is a prime example of this. <\/p>\n<p>So: keep an eye on CCC, break down silos, network processes! Liquidity lies within the company. You just have to free it!  <\/p>\n<p><strong>You can find out more about the guide <a href=\"http:\/\/bit.ly\/4dlDwno\" target=\"_blank\" rel=\"noopener\">here<\/a>.<\/strong><\/p>\n<p>And the <a href=\"https:\/\/icv-controlling.com\/en\/arbeitskreise\/expert-work-group-working-capital-management\/\">Working Capital Management expert group<\/a> is still working on the topic \ud83d\ude09 <\/p>\n<p>&nbsp;<\/p>\n      <\/div>\n          <div class=\"flex flex-wrap w-full gap-2 lg:gap-4 md:mt-lg mt-md \">\n              <\/div>\n      <\/div>\n<\/section>","protected":false},"template":"","blog-category":[],"blog-tags":[],"class_list":["post-11413","blog","type-blog","status-publish","hentry"],"acf":[],"_links":{"self":[{"href":"https:\/\/icv-controlling.com\/en\/wp-json\/wp\/v2\/blog\/11413","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/icv-controlling.com\/en\/wp-json\/wp\/v2\/blog"}],"about":[{"href":"https:\/\/icv-controlling.com\/en\/wp-json\/wp\/v2\/types\/blog"}],"version-history":[{"count":0,"href":"https:\/\/icv-controlling.com\/en\/wp-json\/wp\/v2\/blog\/11413\/revisions"}],"wp:attachment":[{"href":"https:\/\/icv-controlling.com\/en\/wp-json\/wp\/v2\/media?parent=11413"}],"wp:term":[{"taxonomy":"blog-category","embeddable":true,"href":"https:\/\/icv-controlling.com\/en\/wp-json\/wp\/v2\/blog-category?post=11413"},{"taxonomy":"blog-tags","embeddable":true,"href":"https:\/\/icv-controlling.com\/en\/wp-json\/wp\/v2\/blog-tags?post=11413"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}