AR Period Reduction/Boundaries

In addition to identifying the relevant stakeholders it is essential to understand which elements of the situation are relevant to which stakeholders. Often this is quite apparent and at times it's not so obvious. There is a also a video for this insight which is a component of the Effective Problem Solving Course.

In addition to identifying the relevant stakeholders it is essential to understand which elements of the situation are relevant to which stakeholders. Often this is quite apparent and at times it's not so obvious. There is a also a video for this insight which is a component of the Effective Problem Solving Course.
There are two reasons for paying attention to boundaries; 1) to understand which stakeholders are responsible for which aspects of the interactions, 2) to understand what the addressable space is.
[Management] is responsible for establishing [Desired Avg AR Period] which influences the [Gap]. [Management] is also responsible for establishing [Sales Goals] which influence the sales [Gap]
[Accounts Receivable] is responsible for actions to reduce the [Current Avg AR Period]
[Sales] is responsible for [Current Sales] endeavoring to reduce the sales [Gap] and there also doing the [Sales Positioning] which is increasing the [Current Avg AR Period].
[Customer] actions influence for [Current Sales] and [Current Avg AR Period].
When you look at these responsibilities together you should get a sense of how quickly things can become complicated and confusing. Yet, it is this set of overlapping responsibilities that must be taken into account when endeavoring to synthesize a strategy.

View the model in Insight Maker