1. “A Deal is a Deal” – It is important that our clients agree that if they meet their side of the deal (to deliver their goods/services on time, in full and to the correct specification) then if the customer pays just one day late, they have broken the deal. The Aim of the principle is to set up an expectation within our clients to be paid on time. If the customer has agreed to pay to an agreed payment term; one day late is not acceptable!
To exploit this approach fully, it is necessary for our clients to be clear exactly what the terms of the deal are and having agreed this within their organisation, to communicate this to their customers effectively, so that there is a firm agreement between the two parties.
2. “Think Do Get” – If a company wants to Get a different result (reduced OWC) then they have to get their people to Do things differently. But before they can change what the Do it may be necessary to change the way people Think. Think Do Get is JustOne’s change management model and is used to reduce resistance to change that is common in certain aspects of an OWC project – for instance sales people resisting reduction in payment terms with existing customers.
3. “Increase ROCE” - JustOne is clear that its role is to help clients to reduce their operational working capital but also to increase their Return on Capital Employed (or improve their EVA) This principle is used throughout the project to ensure that every action will both reduce OWC and increase ROCE. If the action does not achieve both criteria then it should not proceed.
