Treasury Success: Blocking & Tackling to Strategic Leadership Ernie Humphrey, CTP CEO, 360 Thought Leadership Consulting
May 26, 2015
Treasury Success:
Blocking & Tackling to Strategic Leadership
Ernie Humphrey, CTP
CEO, 360 Thought Leadership Consulting
OUR AGENDA
The Strategic Role of Treasury: Current State of the Union
Exceling in and Moving Beyond Blocking and Tackling
Developing Your Toolbox for Success
Owning Treasury & Career Success
THE HUMOR: YES WE CAN HAVE FUN
Top 5 Signs the Strategic Role of Treasury is on the Rise
5. No one asks you “where’s the mayo for my sandwich”
when you enter an executive lunch meeting.
4. You are actually recognized for being good at your job.
3. There are no looks of “bewilderment” when you speak at a
meeting of company executives.
2. Your CEO addresses you by name and not “buddy” or“you”.
1. No one calls you “the cash person” anymore.
THE STRATEGIC ROLE OF TREASURY IN 2014
2014 AFP Strategic Role of Treasury Survey
THE STRATEGIC ROLE OF TREASURY IN 2014
2014 AFP Strategic Role of Treasury Survey
COMPELLING HIGHLIGHTS
83%
69%
74%
45%
46%
THE STRATEGIC ROLE OF TREASURY IN 2014
2014 AFP Strategic Role of Treasury Survey
WHAT’S DRIVING TREASURY’S STRATEGIC ROLE EXPANSION
0% 10% 20% 30% 40% 50% 60% 70%
Other
Greater delegation of strategic responsibilities to
Treasury
Treasury professionals now have a more holistic view
of the organization
Organization has reduced finance staffing, requiring
employees to contribute in a broader number of ways
Increase in monitoring financial metrics on projects
and other activities
Organization has more cross-functional approach to
its activities
Organization is finding new ways to leverage Treasury
skills
Senior management and board seek greater visiblity
to liquidity and risk exposures
Cash management and liquidity are now more
important
THE STRATEGIC ROLE OF TREASURY IN 2014
2014 AFP Strategic Role of Treasury Survey
WHERE TREASURY PLAYS A LEAD ROLE IN 2014
Cash Management
Bank Relationship Management
Short-term borrowing
Long-term borrowing
Short-term investing
I.E., BLOCKING & TACKLING
CASH MANAGEMENT
Online Bank Platform
SWIFT Access
Treasury Workstation
Excel
Treasury Module of an ERP
Cloud/SaaS TMS
VISIBILITY
CONTROL
Process
People
Technology
CASH MANAGEMENT
Online and Mobile
Managing Card Processing Fees
Payment & Collection Terms
Global Payments
PAYMENTS & RECEIPTS
CASH FORECASTING
Data
Collaboration
Process
Technology
BANK RELATIONSHIP MANAGEMENT
Networking
Social Media
Relationship Management Tools (CRM)
Fee Allocation
PROFESSIONAL RELATIONSHIPS
BANK ACCOUNT MANAGEMENT
EBAM
Account Analysis Solutions
Account Reconciliation Tools
SHORT TERM & LONG TERM BORROWING
Short Term vs. Long Term
Vehicle Allocation within Each Category
Counterparties
PORTFOLIO MANAGENT
DEBT COVENANTS
Types & Structures
Covenant Management Solutions
SHORT TERM INVESTING
Risk vs. Reward
Counterparty Risk
Investment Portals
PORTFOLIO MANAGENT
INVESTMENT POLICY
Monitoring
Enforcement
Management
BEYOND BLOCKING & TACKLING
2014 AFP Strategic Role of Treasury Survey
All
Revenues
Less Than
$1 Billion
Revenues
At Least
$1 Billion
Privately
Held
Publicly
Owned
Financial risk management 53 41 63 47 62
Counterparty risk analysis 50 35 63 45 63
Working capital management
(e.g., A/R, A/P, inventory) 49 55 46 53 48
Insurance 47 38 54 43 58
Internal financial consultant to other
departments, business units
and/or affiliated companies 46 45 46 48 44
Financial planning & analysis (FP&A) 38 49 27 46 25
Retirement/pension plan management 36 26 43 30 44
Enterprise risk management (ERM) 32 35 28 30 31
Investor relations 28 27 29 25 24
Mergers & acquisitions 26 26 24 38 20
Functions Where Treasury Plays a Lead Role(Percent of Organizations)
STRATEGIC LEADERSHIP OPPORTUNITIES
ERNIE’S PATHS TO STRATEGIC IMPACT
FP& A Corporate Performance Management
Leverage Cash Forecasting Skills
Leverage Knowledge of Financial and Operational
Performance Drivers
Mergers & Acquisitions Company Growth
Leverage Comprehensive Company, Industry,
Supplier and Customer Knowledge
Financial Risk, Counterparty Risk, Insurance ERM
Leverage Any Ownership of Financial Risk
Management to Become a Key Partner or Owner
of ERM
Internal Financial Consultant Chief Trusted Advisor
Build and Leverage your Internal Network &
External Networks
CORPORATE PERFORMANCE MANAGEMENT
Budgeting, Planning and Forecasting
Financial, Statutory and Management
Reporting
Formal Financial Consolidation
Profitability Modeling & Optimization
Strategy Management Software
Any or All of the Above
- Courtesy of
CORPORATE PERFORMANCE MANAGEMENT
THE ABCs OF SUCCESS
People
Process
Communication
Collaboration
Alignment
Technology
TECHNOLOGY: TREASURY BLOCKING & TACKLING
Technology is not a “one size fits all” solution
Technology advances are leveling the playing
field for SMBs to deliver best-in-class treasury
practices
Cloud-based TMS
Cloud-based treasury & risk applications
Technology advances are improving existing
treasury technology tools that needed work
ERP Treasury Modules
Online Bank Platforms
Treasury Workstations
Research technology options to alleviate pain
points and needed improvements
Technology enables efficiency and best
practices, not magic that delivers them.
TECHNOLOGY: BEYOND BLOCKING & TACKLING
Empowering Modern Finance:
The CFO as Technology Evangelist
TECHNOLOGY: THE POWER OF THE CLOUD
Courtesy of
TECHNOLOGY INVESTMENTS
TECHNOLOGY INVESTMENTS: THE BUSINESS CASE
PEOPLE: YOU
Self-Assessment
Technical Skills
Soft Skills
Resources
Skills Gaps
Your Personal Brand
Within Your Company
Within Your Profession
Within Your Community
Online
Thought Leadership
YOUR ONLINE BRAND
Your online brand can impact career success in today’s world
Actively Assess it-
Respect it- Don’t let Professional and Personal
Worlds Collide
Build it-
Leverage it
Networking
Conveying & Promoting Thought Leadership
Show it Love – Do Not Neglect it
You DO Have the Time to Own it!
THE HUMOR: MORE FUN
Top 5 Signs You Need Social Media 101
5. You think Instagram is a breakfast treat.
4. You think that LinkedIn is a fashion accessory.
3. You are studying up on bird calls so you can catch
up with all of the other who are “tweeting” out there.
2. You think that blogging is the consequence of eating to
much ice cream.1. You are worried that you are “it” when someone says they
tag you in a photo.
PEOPLE: YOUR COLLEAGUES
Internal
Within Your Department
Outside Your Department
Up & Down the Chain of Command
External
Suppliers/Service Providers
Consultants
Customers
Fellow Members of Your Profession
PEOPLE: YOUR NETWORK
Who you Know
How Can you Help Them
How Can they Help You
Who Do You Want to Know
Building Relationships
Colleagues
Within & Outside Your Profession
Personal
Managing Relationships
PROCESS: THE FOUNDATION OF EFFICIENCY
Efficiency is Limited without It
Allows Scalability
Can Deliver Flexibility
Defines Stakeholders
Fuels Effective Change Management
COMMUNICATION: A WEAPON OR WEAKNESS
Effective Communication Skills
Start with the Ability to Listen
Deliver “Buy-in” for Projects, Ideas
and Career Defining Decisions
Getting to a “YES” and not just a “YES, BUT”
The Ability to Sell Without a Sales Pitch
Effective Verbal and Written
Communication Require Different
Skills on Some Level
Verbal and Written Communication
Require Different Skills on Some Level
Success is about “how you do it” in
addition to what you get done
COLLABORATION: THERE IS NO “I” IN SUCCESS
Meaningful accomplishments require
effective collaboration, and great ideas
often fail from the lack of it.
Listen
Know What YOU Know
Know What You Need
Know Who You Need to Engage
Discover How to Engage Them
Be a Team Player as Well as a Leader
Technology Fosters the Ability to
Communicate, not its Effectiveness
ALIGNMENT: RUNNING ON ALL CYLINDERS
Within & Among Projects
People
Process
Technology
Your Current Job Related Goals
Your Departmental Goals
Your Company’s Goals
Your Career Goals
Your Life Goals
YOUR CAREER PATH TO STRATEGIC LEADERSHIP
Self-Assessment
Technical Skills
Soft Skills
Resources
Your Professional Brand
Within Your Company
Online
Define Opportunities
Optimizing Blocking and Tackling
Involvement in Areas beyond
Traditional Treasury
Leading in New Areas for Your Company
YOUR CAREER PATH TO STRATEGIC LEADERSHIP
Define Your Success Toolbox to Create
and Capitalize on Opportunities
Where You Are
Where You Want to Go
What You Need to Get There
How You are Going to Get There
PARTING THOUGHTSDevelop, Manage, and Own Your Toolbox for Success within and Beyond Treasury.
People- You, Your Network, Colleagues
Process- Not much Great Happens
without It
Communication- Leadership Demands
Effective Written and Verbal Communication
Collaboration- There is no “I” in Success
Alignment- Your Current Job, Career, Life
Technology- Needs to be Right-Sized for
Each Company
PARTING THOUGHTS
LISTEN
LEARN
BE INSPIRED
BE INSPIRING
Ernie Humphrey, CTP
CEO, 360 Thought Leadership Consulting
E-Mail: [email protected]
LinkedIn: http://www.linkedin.com/in/erniehumphrey
THANK YOU!!!
http://www.360thoughtleadership.com