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The Dimensions of Treasury Success

The entire paradigm of corporate treasury has changed over the past few years from a focus on back office operational efficiency to being a strategic partner across the enterprise.  A successful Treasury Department must master many business dimensions in order to offer strategic value across the enterprise.

When I look to define a best in class Treasury function in today’s world I categorize the key functions of Treasury into three categories:

  1. Timeless Treasury Tasks: Tasks that Treasury has historically owned, and most likely always will.
    • Cash Management
    • Relationship Management
    • Financial Risk Management
    • Professional Development
  2. Emerging Treasury Tasks:
    • Accounts Payable Ownership
    • Accounts Receivable Ownership
    • Risk Management Leadership- an expanded role in leading Enterprise Risk Management (ERM) programs
    • Governance & Compliance
    • Investor Relations
    • M&A-a greater leadership role for identify acquisitions to acquisition integration
  3. Treasury Tasks on the Horizon:
    • IT Services Management- a leading role in owning the adoption, training, and utilization on cloud-based applications above and beyond financial applications
    • Brand Management
    • Contract Negotiations & Legal Risk Management
    • Reputation Risk Management
    • Benefit Plan Management

The dimensions that define Treasury success are dynamic and evolving. I will tackle discussing how to define and achieve success in each area of treasury success in future blogs. The top line strategy is to conduct a skills assessment of your Treasury Team in each area, define what your department needs to offer strategic value from each area vs. the staff and resources you have now. What are the gaps, how do you prioritize which gaps to fill, and how you collaborate with company leaders to get the resources that you need and transform your Treasury Team into a group of trusted strategic advisors beyond the walls (cubicles) of your Treasury Department?