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Chapter 12
The Red Flag Radar
By the time I saw the problem on the report, it was too late.
22 min read
This is real
"Five early warning signals. Fifteen minutes a month. The difference between catching a problem and explaining one."
Key concepts
Concept 1
Five early warning signals
Revenue lag, headcount creep, ageing receivables, negative operating cash, margin compression.
Concept 2
Monthly 15-minute check
One coffee, five numbers. Most managers never do this. The ones who do see problems early.
Concept 3
Use the radar tool
Toggle each signal in the Red Flag Radar to score your current risk.
Flashcard deck
Tap a card to flip.
Knowledge check
Q1
Receivables aged beyond 60 days are:
Q2
Negative operating cash flow for 2+ months means:
Q3
Margin declining three months running is:
Red flag alert
All five signals are covered in the Red Flag Radar tool — open it now and run a baseline.
Questions to ask your finance team
- 1.Can you produce a one-page early-warning dashboard for my area?
- 2.Which of the five signals has finance flagged in the last 6 months?
- 3.What's our process for escalating an early warning?