Negotiating Treasury Management Today…. Leveling the ...€¦ · based out of the company’s...
Transcript of Negotiating Treasury Management Today…. Leveling the ...€¦ · based out of the company’s...
Information herein is considered proprietary and confidential.
Today’s Treasurer: The Real Financial Superhero
Information herein is considered proprietary and confidential.
About Me
Allison Flexer Director of Treasury and Financial Operations
Allison Flexer is a Director of Treasury and Financial Operations and is based out of the company’s Charlotte office. In her role with Vizant, she is responsible for overseeing the delivery and implementation of Vizant’s Financial Operations, Treasury Management and Business Payments solutions for premier national engagements. Allison was previously with KPMG and Bank of America and has 14 years of experience in the financial operations, treasury management, business payments and efficiency and process improvement arena providing strategic insight and guidance on business operating models that support an organizations’ efforts across Treasury Management, Enterprise Payments and Technology and Operations. Ms. Flexer has extensive experience in leading large scale complex engagements for global financial services organizations.
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Information herein is considered proprietary and confidential.
About Vizant
Vizant is a consulting firm, possessing thought leadership and business intelligence in the areas of inbound and outbound business payment functions, treasury operations and financial operations
Vizant partners with its clients to implement actionable and real world solutions that maximize the efficiency and reduce the ongoing costs of their payments, treasury and financial operations
Vizant is headquartered in Philadelphia, Pennsylvania and has an additional office in Charlotte, NC.
Vizant has partnered with thousands of clients from all different
markets and industries
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Information herein is considered proprietary and confidential.
Today’s Agenda
Key Challenges and Priorities for Today’s Corporate Treasurer
Standard and Historical Role of the Treasurer
Changing Role of the Treasurer
Strategic Influence of the Treasurer
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Key Challenges and Priorities for Today’s Treasurer
Information herein is considered proprietary and confidential.
The demand for higher efficiency in treasury, money flows, cash management and A/R and A/P
More duties that were previously accounting and finance duties are being pushed to treasury operations
Significant changes in customer payment trends
Annual price increases and changing bank pricing strategies for treasury services
Continued low staffing levels
The threat of rising interest rates
Capital preservation vs. capital appreciation
Top Issues for Treasury Departments in 2017
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Top Priorities for the Treasurer
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Manage Risks Effectively
Improve Treasury Process Efficiency
Minimize Banking Fees
Improve Process Security
Optimize Borrowing Costs
Optimize Income Generation
Improve Cash Conversion Cycle
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Standard and Historical Functions of the Treasurer
Information herein is considered proprietary and confidential.
The Corporate Treasurer
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The person who is responsible for managing financial risk for the company across credit, currency, interest rates and operations. The Treasurer’s primary responsibility is to ensure the organization has adequate liquidity to meet its ongoing requirements
Core Functions of Treasury Cash Flow Management Financial Risk Management Liquidity Funding Account Receivable/Accounts Payable
Strategic Value of a Treasurer Influence on Business Plan Manage Debt Capacity Manage Capital Allocation Establish Financial Targets Influence R&R Investments Influence Product Development Create Digital Disruption
From Transactional Machine to Strategic Force
There were 972 million internet users in 2005. Today there is over 3 billion.
By 2013, there were officially more mobile devices than people on earth.
The role of the CFO has changed, often making them at a peer level with the CEO; creating a vacuum in the functional structure of many companies. This elevates the role of the Corporate Treasurer.
Many Treasurers are moving into an “Operational CFO” role; using their core skill sets to provide added value across the organizations business units.
It’s a Changing World
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The world has evolved in the past 10 years. The rapid development of new technology and the changing landscape of the online world has changed the way we work and, for many, where we do our work from.
Where We are Today
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Evolution of the Treasury Department
Challenging Environment
Limited Resources
Leaner Departments
Additional Responsibilities
New Duties
Economic Climate
Regulatory Environment
Cybercrime
Budgets
Capabilities
FTE
The Changing Role of the Treasurer
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Focus on Operational activities and new financial
instruments
1980’s 1980’s
– 2008
Post 2008
Improvement in technology; more Sophisticated risk management; and Centralization of roles and processes
Closer scrutiny by the board, strategic partner typically involved with the company, closer interaction with business units, broader skill set required
Treasurers used to work to monitor the day-to-day finances of a business, but now the advances in technology and expansion of the CFO role, has
created a shift in their job responsibilities.
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Strategy: How do you get there?
Information herein is considered proprietary and confidential.
Finance’s New Powerhouse
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As Treasurers are asked to do more by their CEO’s, CFO’s and Boards, the traditional definition of their job duties begins to look increasing similar to the duties of a CFO.
Let’s look at some key strategies to be successful in their expanded role.
Be Forward Thinking
Implement a Financial Strategy that is
not Contingent on Market Conditions
Keep a Close Eye on Risk
Cultivate Strong Relationships
The attitude you need to have is not ‘think outside of the box.’ Instead, it’s ‘don’t
even see the box’”.
Safra Catz, Oracle CEO
As corporate treasury needs become increasingly complex and individual in nature, demand is growing for more sophisticated, flexible and sustainable cash management solutions that tie in with the trend for concentrating on the long term.
Banks
Vendors
FinTech
Automation
Associations and Events
Periodicals
Consultants/Advisors
Rely on Outside Resources
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Efficiency Creates Capacity for Strategy
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Create Efficiencies
Treasury organizations must create methods to streamline and automate key transactional and operational duties.
Standardize core treasury practices across the business Standardize and streamline cash management practices Use ERP and/or TMS solutions to introduce process enhancements and increase controls
Standardize
Integrate key technology platforms: ERP, TMS and various banking platforms Implement STP for core Treasury functions such as reporting, reconciliation and payments
processing Leverage FinTech to improve or automate processes
Leverage Technology
Utilize banking products to enhance cash mobilization and improve liquidity Utilized liquidity management platforms Use automation to optimize liquidity and cash availability across the business
Leverage Banking Products
Create shared services or centralize low value activities to drive efficiency and reduce costs Work with bank relationships to consolidate or eliminate low value transactions Outsource low value activities as necessary
Consolidate and Automate
Ensure there is a robust segregation of duties and hierarchy of approvals Implement a culture of checks/balances and controls Develop standards, policies and documented procedures
Reduce and Manage Risks
Define Where You Want To Be
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Today the Treasurer must take a more strategic role, providing greater insight into the company’s return proposition vs operational risk.
Manage risk holistically while maximizing returns and minimizing idle funds. *
Enhance supervision and forecasting of liquidity and funding needs. *
Establish the right policies, procedures and governance to protect financial assets in response to changing business strategies, conditions and external market factors. *
Implement, integrate and optimize technology to enable proactive and data-driven decision making. *
Build relationships with external funding partners to ensure adequate access to capital requirements with reasonable terms and costs. *
Get to Where you Want to Be
Corporate Strategy
Link into financial strategy and risk appetite
Engage effectively with leaders across the business
Enablers
Use of systems and technology
Process automation, standardization and simplification
Performance and Reporting
Measurable KPIs
Accurate and timely reports
External Environment
Regulation
Markets
Events
Core Responsibilities
Cash and liquidity funding
Finance
Risk management
Operations
Deal execution
Relationships
Valuation and Appraisals
The Evolving Role of the Treasurer
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Utilize experts and advisors within the treasury and payments field to maximize efficiencies and reduce the direct and indirect costs of treasury and payments operations
Ensure your treasury and payments operations are ‘best in class’ within your market
Continuously benchmark processes, systems, functions, services and fees against industry standards
Regularly review business and economic climate with industry experts
Critically evaluate and optimize treasury and payments efficiencies by understanding and scrutinizing systems, technology and processes associated with money flowing into and out of the business
Ensure regulatory and compliance functions are up to date
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Best Practices
Questions?
20 Information herein is considered proprietary and confidential.
21 Information herein is considered proprietary and confidential.
Thank You!
Audience Questions
What are your biggest challenges as a Treasurer?
What prevents you from taking a strategic role in the company?
What types of automation have you found helpful?
What prevents you from pursuing automation?
What process improvements have you made to allow you more time to focus on strategy?
22 Information herein is considered proprietary and confidential.