5 Steps to Becoming A More Strategic Treasurer

Many Treasurers strive to become a "Strategic Treasurer" but in reality they can more accurately be described as a "Tactical Treasurer." A tactical treasurer is a treasurer who is consumed with the management of day-to-day treasury operations due to lack of staff, effective processes and/or treasury technology. A strategic treasurer is one who focuses on continuous improvements, developing a successful treasury staff, leveraging "The Right" treasury technology and has implemented thoughtfully designed treasury policies and processes.

5 Steps to Becoming a More Strategic Treasurer

1. Create Comprehensive Treasury Policies
2. Hire and/or Develop Knowledgeable Treasury Staff
3. Develop Secure and Efficient Treasury Processes
4. Utilize "The Right" Treasury Management Technology
5. Implement Continuous Treasury Improvements

1.) Create Comprehensive Treasury Policies

Generally, each major treasury function (bank relationships, cash management, debt management, investment management, foreign exchange, hedging, etc.) should have a dedicated treasury policy. Developing comprehensive treasury policies is critical to the success of a treasury department. By taking the time to analyze both business operational needs and treasury best practices, treasurers can develop treasury policies that are clear, meaningful and productive.

2.) Hire and/or Develop Knowledgeable Treasury Staff

Hiring successful treasury staff is one of the most import function of a strategic treasurer. By hiring knowledgeable (ideally experienced) treasury professionals, strategic treasurers can focus on the overall treasury strategy (not processing daily operations). Equally important is the need to hire enough treasury staff so that internal controls and processes can be completed in a timely and secure manner. Further, strategic treasurers encourage their staff to attend ongoing treasury professional education and treasury management conference to help ensure that they too develop strategic treasury skills.

3.) Develop Secure and Efficient Treasury Processes

Internal controls and secure treasury processes are of paramount importance to all strategic treasurers. By developing treasury policies and hiring knowledgeable staff, strategic treasures will be able to put into place comprehensive, logical and secure treasury procedures. It is important that all treasury processes take into consideration treasury internal controls, separation of duties and efficiency.

4.) Utilize "The Right" Treasury Management Technology

"The Right" treasury technology can come in many forms. From Treasury Management Systems to Bank Portals to Spreadsheets. Different treasury technology will be needed based upon the size and complexity of your treasury operations.  A strategic treasurer takes a close looks at the current (and future!) treasury environment to evaluate "The Right" treasury technology that enables the treasury department to operate in a secure and efficient environment.  The right treasury technology will enable your treasury department to strategically flourish... while the wrong treasury technology will be a tactical disaster.

5.) Implement Continuous Treasury Improvements

The final, yet repeating, step in becoming a more strategic treasurer is to continuously implement treasury department improvements. A strategic treasurer who has created meaningful treasury policies, hired knowledgeable staff, developed secure treasury processes and utilizes the right treasury technology should free up time both for themselves and their staff to focus on continuous improvements. Strategic treasurers may want to consider benchmarking their treasury operations against best practices or evaluate their banking relationships in order to create a multi-year treasury strategic plan.  By developing a treasury strategic plan, strategic treasurers will be able to envision and communicate the future success of the treasury department to their staff, colleagues and other stakeholders.

Becoming A More Strategic Treasurer Conclusion

A strategic treasurer strives to formalize treasury policies and operations, hires and enable great staff and leverages "the right" treasury technology. As you can see... becoming a strategic treasurer is not a destination but an ongoing journey.

TreaSolution has assisted numerous treasurers on their journey to becoming a more strategic treasurer.  We take pride in being our clients' independent advocate by providing unbiased, practical and strategic treasury management advice. Please feel free to contact TreaSolution today if we can provide assistance with our treasury consulting, training and / or temporary staffing services.