In a credit crunch environment companies need to prepare for a harsh borrowing climate, and to proactively optimize their working capital
The business and financial community has suddenly realized that many of the financial instruments they have used over the past few years have relied heavily upon a growing global economy based on an assumed sound underpinning from the banking fraternity. However, the sub-prime market in the United States, the run on the British bank Northern Rock and the flight of investors to gold has shown that all is not so sound in the banking world. John Mardle leads the Working Capital Improvement Practice at Develin & Partners, a UK-based management consultancy focusing on cost management. He was previously Financial Director of the Parsons Group International, one of the world´s largest engineering and construction companies, where he was responsible for winning project management contracts with the Channel Tunnel Rail Link, and turnaround project management contracts with London Underground. Prior to joining Parsons, Mardle was a member of ABB´s Executive Management Team, where as Worldwide Project Controller he helped lead the integration of ABB and Daimler Benz to form the world´s largest train manufacturer. He played a pivotal role in making ABB the largest engineering company in the world by steering companies acquired by ABB through the transition phases to become compliant with ABB ethos and culture. He talks here with CEO Magazin about the world-wide credit crunch and its implications for how companies need to manage their working capital and cash flow.
