By Rich Bond
Can treasury and finance finally learn to work collaboratively with other departments in their corporations?
This is a question I have long asked.
So I was pleased to see that Treasury and Risk is now offering a paper titled “How Treasury Can Drive Collaboration Across the Office of the CFO & Beyond” (https://linkmktg.treasuryandrisk.com/view/5ef5bbe403c69b14f05a0e38jexg7.jx9/a7560cc3).
The paper cites examples of how treasury groups are working more closely with other entities in their organizations, particularly Accounts Receivable and Accounts Payable. It emphasizes how maximizing communication and driving collaboration across an organization can help treasury give their companies a clear advantage. (View full description )
That’s all well and good, but my feeling is that without quantification and a plan, companies will talk about collaboration but not achieve the possible objectives. They need to work on treasury transformation; i.e., adopting process automation that allows the finance or treasury organization to work in the corporation with other groups effectively using KPIs and other metrics.
They need to be aware of where they can get help. Consultants such as PwC are working with companies that have installed SAP but are not yet utilizing its full capabilities. They are helping those companies set up all kinds of metrics – Order to Cash, DSO, DPO, etc. — to enable them set goals and monitor progress.
There are many routes for treasury to collaborate more effectively inside their organizations. In fact, I published an article – https://bondandcompany.com/resource/8-things-strategic-treasurers-are-doing/ – which cites examples of what innovative treasurers can achieve when they get out of their silos and collaborate strategically.
What is your treasury group doing?