Comparison of Responses in Proactive vs. Reactive Balance ...
From Reactive to Proactive: Real-world Solutions for Becoming a Strategic Treasury
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Transcript of From Reactive to Proactive: Real-world Solutions for Becoming a Strategic Treasury
July 30, 20152pm ET / 11am PT
From Reactive to ProactiveReal World Solutions for Becoming a Strategic Treasury
© 2015 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 2
Bob Stark Tom DurkinVP, Strategy MD, Integrated Channels
Todd Yoder Guy SimonsDir., Global Treasury Assistant Treasurer
Today’s panel
© 2015 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 3
What is proactive treasury, and how can it benefit you?– Bob Stark, Kyriba Corp
How can we get there? Practical advice from our panel– Tom Durkin, Bank of America Merrill Lynch– Todd Yoder, Fluor Corporation– Guy Simons, TRW Automotive
Roundtable discussion and audience questions
Agenda
© 2015 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 5
Productivity
Financial controls
Global visibility
Effective financial decisions
Treasury as a strategic partner Treasury can contribute strategically to the organization and build value in a number of ways: Regulatory compliance Financial performance Risk management Operational improvement Business continuity
What exactly is proactive treasury?
© 2015 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 6
What exactly is proactive treasury?
Opportunities to Add Value Reactive and Tactical Proactive and Strategic
Fraud Fixing controls as soon as fraud is detected
Collaborating with internal teams to standardize workflows and IT security to prevent fraud and cybercrime
Regulation & Compliance Implementing changes recommended by external parties – e.g. auditors
Building working capital programs to unlock internal cash to avoid relying on banks post-Basel III
Shareholder Value Identifying how to repatriate cash after stock buyback announcement
Building in-house bank to mobilize global cash; analyzing borrowing vs. repatriating costs; preparing bank borrowing facilities; reviewing hedging programs
© 2015 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 7
Productivity
Financial controls
Global visibility
Effective financial decisions
Treasury as a strategic partner Treasury can contribute strategically to the organization and build value in a number of ways: Regulatory compliance Financial performance Risk management Operational improvement Business continuity
What exactly is proactive treasury?
© 2015 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 9
BofA Merrill has a 230-year history in North America, a 75-year history in Asia, and more than 50 years in Europe and Latin America.
In addition to our growing market share of large corporates, we serve more than three million small businesses and almost 23,000 middle market companies with revenue of $50mm to $2bn.
The Global Transaction Services platform has a unique client coverage model: we partner closely with other lines of business – including capital markets, investment banking, and wealth management – to deliver holistic solutions for our clients.
Tom Durkin, Bank of America Merrill Lynch
© 2015 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 10
Plan based on your corporate growth strategy– Role of treasury, services provided, tools required
Understand treasury technology & standards – Standardization is critical for multi-bank efficiency
Talk to your banking providers about:– Commitment to standards development and adoption
– Investments in payments and reporting platforms
– Integration of online and file-based channels
Tom Durkin: Efficiency breeds optimization
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$21.53 billion global revenues (2014)
>40k employees in >80 countries on 6 continents
>1,000 projects annually, >50 currencies
>900 accounts with >100 banking partners
Treasury team of 16, based in 3 locations
Fluor ranks No. 136 on the Fortune 500 Americas largest corporations list, and has been the top-ranked engineering and construction company on FORTUNE’s ‘World’s Most Admired Companies’ list for 3 years in a row
Todd W. Yoder, Fluor Corporation (NYSE: FLR)
© 2015 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 12
Understand Company’s Mission & Objectives (S/L) Spend time “out there” learning how the business
creates shareholder value and what the challenges are Invest in building the best team possible Create a winning environment Develop sound policies / procedures / controls Make Core Treasury an asset, not a liability Seize advantages from Technology & Data
Build win-win partnerships with your bank group
Make time to think strategically and present ideas
Todd W. Yoder: Building a World-Class Treasury
© 2015 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 13
About ZF TRW’s treasury operation
$17.5bn global revenues (2014)
Operations in 24 countries, using 28 currencies
Treasury team of 21, based in 4 locations
875 accounts with 87 banking partners
Currently integrating with ZF Friedrichshafen AG (2014 global revenues €18.4bn) after being acquired effective May 2015
Guy Simons, ZF TRW Automotive
© 2015 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 14
Have a strategy to achieve treasury objectives taking into account specific business needs and constraints.
Identify simple sets of rules for the business to follow, and thresholds above which treasury gets involved.
Spend more time educating others in the team, and making yourself almost superfluous in day-to-day.
Don’t make decisions based on ad-hoc analysis.
Work with shared services to get to a common vision of how you want to work with banks.
Guy Simons: Don’t get bogged down in the day-to-day
© 2015 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 16
What kind of opportunities are created by being strategic and proactive?
Question
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How do you measure the value of a strategic treasury?
Question
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Collaboration is a theme of being strategic and proactive. What kind of best practices have you seen and experienced?
Question
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What do you suggest for those that find themselves in very tactical situations, struggling to manage daily activities?
Question
© 2015 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 20
Build credibility for your ideas through strong execution: productivity, visibility, effective financial decisions.
Cultivate relationships that get you “in the room” – your ideas are only effective if heard.
You can never automate too much: you will still have a job, just a better one.
Technology will help you: focus on what can enable strategic benefit.
Conclusions
© 2015 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 21
Learn more
Taking Treasury from Reactive to ProactiveLearn from Bob, Guy, Todd, Tom and 20 other treasury experts how your team can become a strategic partner to the organization and provide real business value. DOWNLOAD e-book at http://kyri.ba/treasuryebook
Featuring insight from:
© 2015 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 22
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