The Road to Working Capital Maturity – Blog Series – Post #2
Working capital management is no longer just about liquidity –it’s about business agility and long-term resilience. Yet, our research shows that only a fraction of companies achieve best-in-class working capital optimization.
Where does your organization stand? The Working Capital Forum Maturity Model defines four distinct stages of working capital maturity.
The Four Maturity Levels
Onlookers (16%)
- No dedicated working capital strategy
- Finance and treasury functions operate in silos
- Disconnected systems with manual data entry
Risk: Cash management is reactive, increasing exposure to market volatility
Adopters (63%)
- Basic working capital KPIs reported in treasury
- Some financing solutions in place
- Improvements in cash flow forecasting
Opportunity: Moving from finance-only metrics to organization-wide cash culture
Transformers (21%)
- Dedicated working capital teams and processes
- Multiple financing tools in use
- Integration of systems for real-time data visibility
Advantage: Proactive decision-making and improved operational efficiency
Innovators (N/A)
- AI-driven cash forecasting and automation
- Working capital KPIs linked to executive incentives
- Fully integrated, enterprise-wide cash culture
Best Practice: Continuous optimization and agility in financial planning
How to Move to the Next Level
The journey to working capital maturity requires a combination of process improvements, financial strategy, and technology integration.
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