Visibility is Key to a Successful Cash Culture

July 5, 2018
Erik Bratt
CFO Perspective: cash culture

Editor’s Note: For this installment of our multi-part blog series, profiling CFOs who are leveraging treasury to drive strategic change for their organizations, we focus on Philippe Sanchez, CFO of The Exclusive Group, a value-added services and technologies (VAST) group. Philippe talks about why visibility is key to a successful cash culture and how a good treasury management system can enable cross-organizational communication, allowing treasury to see clearly the health, safety and success of an organization’s treasury management activities. His comments are from his profile in Kyriba’s new e-book, "The CFO Perspective: The Strategic Value of Treasury," which highlights more than a dozen CFOs and expert treasury consultants from Accenture and KPMG. Enjoy!

“The value of the treasury department is based on the ability to mobilize and coordinate teams and subsidiaries around the cash culture,” says Philippe Sanchez, CFO of the Exclusive Group. “Being Successful is not just about the system you are using, but creating a change that, thanks to good technology, spreads a cash culture across the organization.” Of course, what Sanchez means when he says “cash culture” is management of cash forecasts, cash flow statements and other cash-specific methodologies. Since the Exclusive Group is a global organization, based in Paris, with subsidiaries in Europe and Asia, the company deals with 20 different currencies. This makes managing a cash culture challenging. “Thanks to the treasury department, we can automate these processes, which helps to optimize short-term liquidity.

Related article: Free Cash Flow, Eliminating the Culture of Cash Hoarding

Ultimately, Sanchez points out, “A treasury management system improves the efficiency, visibility and operational controls under cash collections.” Sanchez says that part of being successful is having the right technology in place. “This is why we selected Kyriba. This will help with visibility of cash flow in real time because when you talk about treasury, you are not talking about the cash flow within a year. In our business, we are more interested in knowing what will happen in the next weeks or days.”

 

“Finally, the TMS gives us some comfort in terms of safety, and making secure payments,” says Sanchez. “We are aware of the risks, so it makes sense to secure our own transactions.” To sum it up, Sanchez says, “The measurement of success is two things: creating projects that can be identified and shared with all the countries and teams, not only treasury teams. It’s managed by the treasury group, but it also involves purchases, sales and other departments. Success is then based on those results.

To read the rest of Sanchez’s interview, plus get insight from nine other CFOs, download our new ebook.

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