Turning Treasury from Reactive to Proactive – part 3 of 5

By Kyriba July 20, 2015

We asked 24 treasury experts, from banks, consultancies, analysts and leading brands worldwide, to give their guidance on what treasury teams can do to turn their treasury function into one that is proactive and creates value across multiple levels of the business.  The third of this series of posts focuses of how becoming a more proactive treasury means managing risk more effectively.

Jeff Diorio, managing director of Treasury Strategies points out that while automation of tasks is most definitely a key driver, it cannot simply be done in a vacuum, in the hope that other areas will become more strategic in its wake. He says, “Some companies just jump right into automating things that streamline operations with the idea that when that is done, they will apply themselves more strategically in their business. This is a mistake. Treasury first needs that vision and road map – which envisions a treasury that is neither a cost nor profit center, but a “Financial Value Creation Center.”

The second piece of advice comes from Russell Hoffman, director of KPMG’s market and treasury risk advisory group.  One of his key suggestions is similarly to clearly outline what the endgame is for any treasury transformation project. What is the overall vision and strategy that treasury is looking to achieve? Once this is done, the person overseeing the transformation project must ensure that key individuals are empowered to start the discussions in each area, as well as having the ability to make decisions about the transformation process.

In his essay, Varun Dube, global business head, treasury and payments solutions at Wipro Technologies, lays out a useful checklist for organizations looking to commence their treasury journey:

  • Baseline your “as-is” treasury state and where you stand today. Define your “to-be” treasury state or target goals. Clearly outline the expectations for your treasury functions.
  • Identify how you will translate stakeholder expectations into measurable value. Define KPIs so you will know how to measure treasury’s success.
  • Build a governance structure that determines how to track and measure KPIs.
  • Embrace next-generation treasury technology to be future-ready.
  • Continuously report treasury performance; and find ways to raise the bar on how things can be better, simpler, efficient and effective.

Treasy vision ebookTo read more of these essays, as well as those of other leading treasury consultants, analysts and practitioners, download the mini-ebook, Taking Treasury from Reactive to Proactive: Treasury Vision.

Kyriba will also be hosting a webinar, From Reactive to Proactive: Real-World Solutions for Becoming a Strategic Treasury, on July 30th at 11am PT / 2pm ET, which discusses some of the issues addressed within this ebook. The webinar will feature speakers from both banking and corporate treasury, and will be moderated by Kyriba’s Bob Stark. It will include practical advice, followed by a lively and interactive panel debate on how treasury teams can become more proactive and strategic.

Stay tuned for the next blog, which will discuss centralizing your treasury operations.

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