AR Period Reduction/Leverage

It is now appropriate to investigate the possible leverage points for the current situation in an attempt to understand the most appropriate components for the strategy. There is a also a video for this insight which is a component of the Effective Problem Solving Course.

It is now appropriate to investigate the possible leverage points for the current situation in an attempt to understand the most appropriate components for the strategy. There is a also a video for this insight which is a component of the Effective Problem Solving Course.
Using the 12 leverage dimensions from the Meadows paper the model is considered in conjunction with each one to see where it might be applicable.
And the guidance from Ackoff we always keep in the back of our mind guides us as to what we're looking for.
There seems to be three parameters involved here; Desired AR Period, Sales Goals; Order Discount Structure. None of these would seem to have the potential to improve the interactions.
The delays in the system seem to be the Current AR Period and the Customer Reorder Period. If the Customer shortens their reorder period they'll purchase less which may have a positive impact on the Average AR Period though since the Customer won't get the discount it will have a negative impact on their business.
Because Sales and Accounts Receivables are currently Accidental Adversaries it would seem altering the structure in some way to overcome this would be a good idea. Though the next question is how?
There are currently several goals which are essentially cross purposes to each other and altering any of them would seem to violate the Ackoff rule.
All of the current goals are essentially the result of a single mindset... "I want!" Might there be a collaborative solution possible around what "We want?" We'll investigate this in the Strategy segment.

View the model in Insight Maker