LeanCash Management

The concept of Lean (and Six Sigma) have been around for decades – even though it originated as a manufacturing concept, it has been successfully tailored over the years to suit and benefit the services industry (including financial services).

Background on LeanCash

Having spent over 15 years at GE, which has been at the forefront of Lean and Six Sigma, I have been exposed to these concepts from very early on in my career – and have come to appreciate their usefulness and impact. GE had some very simple concepts around Lean philosophy:

  • Involvement across the organization – the onus was not only on leaders to drive this philosophy – each and every employee across levels and functions were encouraged and incentivized to lead the way in identifying inefficiency and waste in processes and/or activities within their job responsibilities and leading efforts towards eliminating it.
  • Focus on low hanging fruit – the concept was to focus on solutions that could be accomplished within a relatively short and controlled timeline! The Lean focus was to pick problems and solutions that could be accomplished at grassroots levels with nimble implementations requiring relatively limited effort and budget that could be approved by middle management. Typically, Lean projects ran anywhere from a few weeks to about 6 months! Many large transformation projects that focus on replacing entire process streams can be multiyear projects – in many scenarios, this might be essential, but they were handled more as strategic projects.
  • Measurable improvement – one of the key criterion for picking projects was to focus on those where the inefficiency and improvements were quantifiable – so that projects with substantial benefits could be prioritized. Agile project management using DevOps culture enables client to see a quicker ROI through feedback loops.
  • Collaborative implementations – to ensure the success of any process improvement initiative, it is imperative to involve all key stakeholders in the process in the decision-making and implementation. Collaboration was accomplished by getting all concerned parties together via group meetings – some more structured, some less so – to identify problems, brainstorm solutions and agree on the roadmap. Collaborative approach for project implementation always increases the adaption rate (and hence ROI) as users feel more connected to the solution

The overall aim was to keep things simple across the board – which was the driver behind GE’s famous tagline “Simplification at Work

LeanCash

How we came up with the Medullus LeanCash™ model

LeanCash - what PWC saysBased on these experiences we have designed the Medullus LeanCash™ model – the aim is simple – focus on key inefficiencies and lacunae in cash management processes and deliver value via nimble implementations without majorly impacting the basic processes – Low Impact High Value! Even though the LeanCash™ model has been developed with a focus on cash management processes, it is very scalable to other areas of treasury and finance.

The LeanCash™ offerings are divided into 5 key components – these pertain to functional areas within treasury and finance where we see considerable inefficiencies across organizations and/or areas where we see scope for considerable efficiencies – we have developed Lean solutions to address these.

  1. Business Intelligence
  2. Business Process Management
  3. Shared Services Integrations
  4. Mobile Apps
  5. Payments Automation Solutions

As mentioned, these components represent areas where we feel considerable scope to add efficiencies within the processes. However, we realize that each organization will likely have additional problem areas and unique pain points that might fall outside the scope of the above – we would be more than happy to explore them and develop Lean solutions with the extensive skillset and tools at our disposal.

I will be covering each of the 5 components of LeanCash™ in more detail in upcoming blogs in the LeanCash™ series…..stay tuned!

Low hanging fruit is sometimes difficult to find in a large organization with myriad of processes and systems. Take the first step in identifying these high value/low risk improvements – get your LeanCash score, benchmark against other organizations that have obtained their score and improved them. It does not cost anything to find out where you are as compared to industry-best-practices for managing Treasury and Finance processes!

 

 

 

 

Medullus LeanCash is a tried-and-tested solution that draws upon lean concepts to streamline Corporate Treasury by eliminating waste in processes and functions which helps to manage liquidity and risks in the most optimal way. 

Our products and services are geared towards making improvements in Treasury & Finance processes to bring big gains with minimal impact. The low hanging fruit is sometimes difficult to find in a large organization with myriad of processes and systems. Take the 1st step in identifying these high value/low risk improvements – get your LeanCash score, benchmark against other organizations that have obtained their score and improved them. It does not cost anything to find out where you are as compared to industry-best-practices! 

Start here

 

 


Blog post by: Tejnain Singh. Reach Tej @ tsingh@medullus.com

Tej is a seasoned treasury and finance professional with over 17 years of extensive experience across organizations like GE, Deloitte, SABIC and Valeant Pharma. He has held senior positions in treasury operations and cash management and has led multiple strategic initiatives in the areas of payment automation, treasury system implementations, business process simplification and shared financial services among many others. Tej is a Chartered Accountant from India.